SENATE BILL No. 27
AN ACT reconciling multiple amendments to certain statutes; amending K.S.A. 9-2201, as
amended by section 16 of 2024 Senate Bill No. 491, 9-2209, as amended by section
17 of 2024 Senate Bill No. 491, 16a-6-104, as amended by section 22 of 2024 Senate
Bill No. 491, 17-12a412, as amended by section 1 of 2024 Senate Bill No. 405, 44-
706, as amended by section 12 of 2024 House Bill No. 2760, 65-2401, as amended
by section 1 of 2023 House Bill No. 2358, 73-1210a, as amended by section 27 of
2024 House Bill No. 2760 and K.S.A. 2023 Supp. 38-2203, as amended by section 3
of 2024 House Bill No. 2536, 38-2212, as amended by section 8 of 2023 Senate Bill
No. 115, 38-2243, 65-536, 65-5808, 65-6129, as amended by section 21 of 2024
House Bill No. 2760, 79-32,117, as amended by section 2 of 2024 Senate Bill No.
360, and 79-3606, as amended by section 5 of 2023 House Bill No. 2098, and
repealing the existing sections; also repealing K.S.A. 9-508, as amended by section
11 of 2024 Senate Bill No. 491, 9-509, as amended by section 12 of 2024 Senate Bill
No. 491, 9-513e, as amended by section 13 of 2024 Senate Bill No. 491, 9-2201, as
amended by section 17 of 2024 House Bill No. 2247, 9-2209, as amended by section
21 of 2024 House Bill No. 2247, 16a-6-104, as amended by section 104 of 2024
House Bill No. 2247, 17-12a412, as amended by section 15 of 2024 House Bill No.
2562, 44-706, as amended by section 4 of 2024 House Bill No. 2570, 65-2401, as
amended by section 51 of 2024 Senate Bill No. 491, 73-1210a, as amended by
section 63 of 2024 Senate Bill No. 491, and K.S.A. 2023 Supp. 38-2203a, 38-2212,
as amended by section 1 of 2024 House Bill No. 2628, 38-2243a, 65-536a, 65-5808a,
65-6129, as amended by section 62 of 2024 Senate Bill No. 491, 75-5665a, 79-
32,117, as amended by section 18 of 2024 Senate Bill No. 410, 79-32,117, as
amended by section 9 of 2024 House Bill No. 2465, and 79-3606, as amended by
section 11 of 2024 House Bill No. 2465.
Be it enacted by the Legislature of the State of Kansas:
Section 1. On and after January 1, 2025, K.S.A. 9-2201, as
amended by section 16 of 2024 Senate Bill No. 491, is hereby amended
to read as follows: 9-2201. As used in this act:
(a) "Act" means the Kansas mortgage business act.
(b) "Amount financed" means the net amount of credit provided to
the consumer or on the consumer's behalf. The amount financed shall
be calculated as provided in rules and regulations adopted by the
commissioner pursuant to K.S.A. 9-2209, and amendments thereto.
(c) "Annual percentage rate" shall have the same meaning, be
interpreted in the same manner and be calculated using the same
methodology as prescribed by 15 U.S.C. § 1606.
(d) "Applicant" means a person who has submitted an application
for a license to engage in mortgage business or a person who has
submitted an application for registration to conduct mortgage business
in this state as a loan originator.
(b)(e) "Appraised value" means, with respect to any real estate at
any time:
(1) The total appraised value of the real estate, as reflected in the
most recent records of the tax assessor of the county in which the real
estate is located;
(2) the fair market value of the real estate, as reflected in a written
appraisal of the real estate performed by a Kansas licensed or certified
appraiser within the past 12 months; or
(3) in the case of a nonpurchase-money real estate transaction,
the estimated market value as determined through a method acceptable
to the commissioner. In determining the acceptability of the method, the
commissioner shall consider the reliability and impartiality of the
method under the circumstances. The commissioner may consider
industry standards or customs. A method shall not be acceptable if the
resulting value is predetermined or when the fee to be paid to the
method provider is contingent upon the property valuation reached or
upon the consequences resulting from the property valuation reached.
(f) "Balloon payment" means any required payment that is more
than twice as large as the average of all earlier scheduled payments.
(g) "Branch office" means a place of business, other than a
principal place of business, where the mortgage company maintains a
physical location for the purpose of conducting mortgage business with SENATE BILL No. 27—page 2
the public.
(c)(h) "Closed-end covered transaction" means the same as in 12
C.F.R. 1026.2(a)(10).
(i) "Closing costs" means:
(1) The actual fees paid to a public official or agency of the state
or federal government for filing, recording or releasing any instrument
relating to the debt; and
(2) bona fide and reasonable expenses incurred by the mortgage
company in connection with the making, closing, disbursing, extending,
readjusting or renewing the debt that are payable to third parties not
related to the mortgage company. Reasonable fees for an appraisal
made by the mortgage company or related party are permissible.
(j) (1) "Code mortgage rate" means the greater of:
(A) 12%; or
(B) the sum of:
(i) The required net yield published by the federal national
mortgage association for 60-day mandatory delivery whole-loan
commitments for 30-year fixed-rate mortgages with actual remittance
on the first day for which the required net yield was published in the
previous month; and
(ii) 5%.
(2) If the reference rate referred to in clause (i)(1)(B)(i) is
discontinued, becomes impractical to use, or is otherwise not readily
ascertainable for any reason, the commissioner may designate a
comparable replacement reference rate and, upon publishing notice of
the same, such replacement reference rate shall become the reference
rate referred to in clause (i)(1)(B)(i). The secretary of state shall
publish notice of the code mortgage rate not later than the second issue
of the Kansas register published each month.
(k) "Commissioner" means the state bank commissioner or
designee, who shall be the deputy commissioner of the consumer and
mortgage lending division of the office of the state bank commissioner.
(d)(l) "Consumer" means an individual to whom credit is offered
or granted under this act.
(m) "Covered transaction" means a mortgage loan that:
(1) Is a subordinate mortgage;
(2) has a loan-to-value ratio at the time when made that exceeds
100%, except for any loan guaranteed by a federal government agency
of the United States; or
(3) in the case of section 11 of 2024 House Bill No. 2247, and
amendments thereto, the annual percentage rate of the loan exceeds the
code mortgage rate.
(n) "Finance charge" means all charges payable directly or
indirectly by the consumer and imposed directly or indirectly by the
mortgage company as an incident to or as a condition of the extension
of credit. The finance charge shall be calculated as provided in rules
and regulations adopted by the commissioner pursuant to K.S.A. 9-
2209, and amendments thereto.
(o) "Individual" means a human being.
(e)(p) "Insufficient payment method" means any instrument as
defined in K.S.A. 84-3-104, and amendments thereto, drawn on any
financial institution for the payment of money and delivered in
payment, in whole or in part, of preexisting indebtedness of the drawer
or maker, which is refused payment by the drawee because the drawer
or maker does not have sufficient funds in or credits with the drawee to
pay the amount of the instrument upon presentation.
(q) "Installment" means a periodic payment required or permitted
by agreement in connection with a covered transaction.
(r) "License" means a license issued by the commissioner to SENATE BILL No. 27—page 3
engage in mortgage business as a mortgage company.
(f)(s) "Licensed mortgage company" means a mortgage company
that has been licensed as required by this act.
(t) "Licensee" means a person who is licensed by the
commissioner as a mortgage company.
(g)(u) "Loan originator" means an individual:
(1) Who engages in mortgage business on behalf of a single
mortgage company;
(2) whose conduct of mortgage business is the responsibility of
the licensee;
(3) who takes a residential mortgage loan application or offers or
negotiates terms of a residential mortgage loan for compensation or
gain or in the expectation of compensation or gain; and
(4) whose job responsibilities include contact with borrowers
during the loan origination process, which can include soliciting,
negotiating, acquiring, arranging or making mortgage loans for others,
obtaining personal or financial information, assisting with the
preparation of mortgage loan applications or other documents, quoting
loan rates or terms or providing required disclosures. It does not
include any individual engaged solely as a loan processor or
underwriter.
(h)(v) "Loan processor or underwriter" means an individual who
performs clerical or support duties as an employee at the direction and
subject to the supervision and instruction of a person registered or
exempt from registration under this act.
(1) For purposes of this subsection, the term "clerical or support
duties" may include subsequent to the receipt of a mortgage loan
application:
(A) The receipt, collection, distribution and analysis of
information common for the processing or underwriting of a residential
mortgage loan; and
(B) communicating with a consumer to obtain the information
necessary for the processing or underwriting of a loan, to the extent that
such communication does not include offering or negotiating loan rates
or terms or counseling consumers about residential mortgage loan rates
or terms.
(2) An individual engaging solely in loan processor or underwriter
activities shall not represent to the public, through advertising or other
means of communicating or providing information including the use of
business cards, stationery, brochures, signs, rate lists or other
promotional items, that such individual can or will perform any of the
activities of a loan originator.
(i)(w) "Loan-to-value ratio" means a fraction expressed as a
percentage at any time:
(1) The numerator of which is the aggregate unpaid principal
balance of all loans secured by a mortgage; and
(2) the denominator of which is the appraised value of the real
estate.
(x) "Mortgage business" means engaging in, or holding out to the
public as willing to engage in, for compensation or gain, or in the
expectation of compensation or gain, directly or indirectly, the business
of making, originating, servicing, soliciting, placing, negotiating,
acquiring, selling, arranging for others, or holding the rights to or
offering to solicit, place, negotiate, acquire, sell or arrange for others,
mortgage loans in the primary market.
(j)(y) "Mortgage company" means a person engaged in mortgage
business.
(k)(z) "Mortgage loan" means a loan or agreement to extend credit
made to one or more individuals persons which is secured by a first or SENATE BILL No. 27—page 4
subordinate mortgage, deed of trust, contract for deed or other similar
instrument or document representing a security interest or lien, except
as provided for in K.S.A. 60-1101 through 60-1110, and amendments
thereto, upon any lot intended for residential purposes or a one-to-four
family dwelling as defined in 15 U.S.C. § 1602(w), located in this state,
occupied or intended to be occupied for residential purposes by the
owner, including the renewal or refinancing of any such loan.
(l)(aa) "Mortgage loan application" means the submission of a
consumer's financial information, including, but not limited to, the
consumer's name, income and social security number, to obtain a credit
report, the property address, an estimate of the value of the property
and the mortgage loan amount sought for the purpose of obtaining an
extension of credit.
(m)(bb) "Mortgage servicer" means any person engaged in
mortgage servicing.
(n)(cc) "Mortgage servicing" means collecting payment, remitting
payment for another or the right to collect or remit payment of any of
the following: Principal; interest; tax; insurance; or other payment
under a mortgage loan.
(o)(dd) "Nationwide mortgage licensing system and registry"
means a mortgage licensing system developed and maintained by the
conference of state bank supervisors and the American association of
residential mortgage regulators for the licensing and registration of
mortgage loan originators.
(p)(ee) "Not-for-profit" means a business entity that is granted tax
exempt status by the internal revenue service.
(q)(ff) "Open-end covered transaction" means a covered
transaction in which a mortgage company:
(1) Reasonably contemplates repeated transactions;
(2) may impose a finance charge from time to time on an
outstanding unpaid balance; and
(3) extends an amount of credit to the consumer during the term of
the mortgage loan, up to any set limit, that is generally made available
to the extent that any outstanding balance is repaid.
(gg) "Person" means any individual, sole proprietorship,
corporation, partnership, trust, association, joint venture, pool
syndicate, unincorporated organization or other form of entity, however
organized.
(r)(hh) "Prepaid finance charge" means any finance charge paid
separately before or at consummation of a transaction or withheld from
the proceeds of the credit at any time.
(ii) "Principal" of a mortgage loan means the total of the amount
financed and the prepaid finance charges, except that prepaid finance
charges are not added to the amount financed to the extent such
prepaid finance charges are paid separately by the consumer.
(jj) "Primary market" means the market wherein mortgage
business is conducted including activities conducted by any person who
assumes or accepts any mortgage business responsibilities of the
original parties to the transaction.
(s)(kk) "Principal place of business" means a place of business
where mortgage business is conducted, which has been designated by a
licensee as the primary headquarters from which all mortgage business
and administrative activities are managed and directed.
(t)(ll) "Promotional items" means pens, pencils, hats and other
such novelty items.
(u)(mm) "Registrant" means any individual who holds a valid
registration to conduct mortgage business in this state as a loan
originator on behalf of a licensed mortgage company.
(v)(nn) "Related" with respect to a person means: SENATE BILL No. 27—page 5
(1) A person directly or indirectly controlling, controlled by or
under common control of another person;
(2) an officer or director employed by the person performing
similar functions with another person;
(3) a relative by blood, adoption or marriage of a person within
the fourth degree of relationship; or
(4) an individual who shares the same home with such person.
(oo) "Remote location" means a location other than the principal
place of business or a branch office where a licensed mortgage
company's employee or independent contractor is authorized by such
company to engage in mortgage business. A remote location is not
considered a branch office.
(w)(pp) "Unique identifier" means a number or other identifier
assigned by protocols established by the nationwide mortgage licensing
system and registry.
Sec. 2. On and after January 1, 2025, K.S.A. 9-2209, as amended
by section 17 of 2024 Senate Bill No. 491, is hereby amended to read
as follows: 9-2209. (a) The commissioner may exercise the following
powers:
(1) Adopt rules and regulations as necessary to carry out the intent
and purpose of this act and to implement the requirements of applicable
federal law;
(2) make investigations and examinations of the licensee's or
registrant's operations, books and records as the commissioner deems
necessary for the protection of the public and control access to any
documents and records of the licensee or registrant under examination
or investigation;
(3) charge reasonable costs of investigation, examination and
administration of this act, to be paid by the applicant, licensee or
registrant. The commissioner shall establish such fees in such amounts
as the commissioner may determine to be sufficient to meet the budget
requirements of the commissioner for each fiscal year. Charges for
administration of this act shall be based on the licensee's loan volume;
(4) order any licensee or registrant to cease any activity or practice
that the commissioner deems to be deceptive, dishonest, violative of
state or federal law or unduly harmful to the interests of the public;
(5) exchange any information regarding the administration of this
act with any agency of the United States or any state that regulates the
licensee or registrant or administers statutes, rules and regulations or
programs related to mortgage business and to enter into information
sharing arrangements with other governmental agencies or associations
representing governmental agencies that are deemed necessary or
beneficial to the administration of this act;
(6) disclose to any person or entity that an applicant's, licensee's or
registrant's application, license or registration has been denied,
suspended, revoked or refused renewal;
(7) require or permit any person to file a written statement, under
oath or otherwise as the commissioner may direct, setting forth all the
facts and circumstances concerning any apparent violation of this act,
or any rule and regulation promulgated thereunder or any order issued
pursuant to this act;
(8) receive, as a condition in settlement of any investigation or
examination, a payment designated for consumer education to be
expended for such purpose as directed by the commissioner;
(9) require that any applicant, registrant, licensee or other person
successfully passes a standardized examination designed to establish
such person's knowledge of mortgage business transactions and all
applicable state and federal law. Such examinations shall be created and
administered by the commissioner or the commissioner's designee, and SENATE BILL No. 27—page 6
may be made a condition of application approval or application
renewal;
(10) require that any applicant, licensee, registrant or other person
complete a minimum number of prelicensing education hours and
complete continuing education hours on an annual basis. Prelicensing
and continuing education courses shall be approved by the
commissioner, or the commissioner's designee, and may be made a
condition of application approval and renewal;
(11) require fingerprinting of any applicant, registrant or licensee
in accordance with section 2 of 2024 Senate Bill No. 491, and
amendments thereto. For the purposes of this section and in order to
reduce the points of contact that the federal bureau of investigation may
have to maintain with the individual states, the commissioner may use
the nationwide mortgage licensing system and registry as a channeling
agent for requesting information from and distributing information to
the department of justice or any governmental agency;
(12) refer such evidence as may be available concerning any
violation of this act or of any rule and regulation or order hereunder to
the attorney general, or in consultation with the attorney general to the
proper county or district attorney, who may in such prosecutor's
discretion, with or without such a referral, institute the appropriate
criminal proceedings under the laws of this state;
(13) issue and apply to enforce subpoenas in this state at the
request of a comparable official of another state if the activities
constituting an alleged violation for which the information is sought
would be a violation of the Kansas mortgage business act if the
activities had occurred in this state;
(14) use the nationwide mortgage licensing system and registry as
a channeling agent for requesting and distributing any information
regarding loan originator registration or mortgage company licensing
to and from any source so directed by the commissioner;
(15) establish relationships or contracts with the nationwide
mortgage licensing system and registry or other entities to collect and
maintain records and process transaction fees or other fees related to
applicants, licensees, registrants or other persons subject to this act and
to take such other actions as may be reasonably necessary to participate
in the nationwide mortgage licensing system and registry. The
commissioner shall regularly report violations of law, as well as
enforcement actions and other relevant information to the nationwide
mortgage licensing system and registry;
(16) require any licensee or registrant to file reports with the
nationwide mortgage licensing system and registry in the form
prescribed by the commissioner or the commissioner's designee;
(17) receive and act on complaints, take action designed to obtain
voluntary compliance with the provisions of the Kansas mortgage
business act or commence proceedings on the commissioner's own
initiative;
(18) provide guidance to persons and groups on their rights and
duties under the Kansas mortgage business act;
(19) enter into any informal agreement with any mortgage
company for a plan of action to address violations of law. The adoption
of an informal agreement authorized by this paragraph shall not be
subject to the provisions of K.S.A. 77-501 et seq., and amendments
thereto, or K.S.A. 77-601 et seq., and amendments thereto. Any
informal agreement authorized by this paragraph shall not be
considered an order or other agency action, and shall be considered
confidential examination material pursuant to K.S.A. 9-2217, and
amendments thereto. All such examination material shall also be
confidential by law and privileged, shall not be subject to the open SENATE BILL No. 27—page 7
records act, K.S.A. 45-215 et seq., and amendments thereto, shall not
be subject to subpoena and shall not be subject to discovery or
admissible in evidence in any private civil action; and
(20) issue, amend and revoke written administrative guidance
documents in accordance with the applicable provisions of the Kansas
administrative procedure rules and regulations filing act.
(b) For the purpose of any examination, investigation or
proceeding under this act, the commissioner or any officer designated
by the commissioner may administer oaths and affirmations, subpoena
witnesses, compel such witnesses' attendance, adduce evidence and
require the production of any matter that is relevant to the examination
or investigation, including the existence, description, nature, custody,
condition and location of any books, documents or other tangible things
and the identity and location of persons having knowledge of relevant
facts, or any other matter reasonably calculated to lead to the discovery
of relevant information or items.
(c) In case of contumacy by, or refusal to obey a subpoena issued
to any person, any court of competent jurisdiction, upon application by
the commissioner, may issue to that person an order requiring the
person to appear before the commissioner, or the officer designated by
the commissioner, there, to produce documentary evidence if so
ordered or to give evidence touching the matter under investigation or
in question. Any failure to obey the order of the court may be punished
by the court as a contempt of court.
(d) No person is excused from attending and testifying or from
producing any document or record before the commissioner or in
obedience to the subpoena of the commissioner or any officer
designated by the commissioner or in any proceeding instituted by the
commissioner, on the ground that the testimony or evidence,
documentary or otherwise, required of the person may tend to
incriminate the person or subject the person to a penalty or forfeiture.
No individual may be prosecuted or subjected to any penalty or
forfeiture for or on account of any transaction, matter or thing
concerning which such person is compelled, after claiming privilege
against self-incrimination, to testify or produce evidence, documentary
or otherwise, except that the individual so testifying shall not be
exempt from prosecution and punishment for perjury committed in so
testifying.
(e) Except for refund of an excess charge, no liability is imposed
under the Kansas mortgage business act for an act done or omitted in
conformity with a rule and regulation or written administrative
interpretation guidance document of the commissioner in effect at the
time of the act or omission, notwithstanding that after the act or
omission, the rule and regulation or written administrative
interpretation may be determined by judicial or other authority to be
invalid for any reason.
(f) The grant of powers to the commissioner in this article does
not affect remedies available to consumers under K.S.A. 9-2201 et seq.,
and amendments thereto, or under other principles of law or equity.
Sec. 3. On and after January 1, 2025, K.S.A. 16a-6-104, as
amended by section 22 of 2024 Senate Bill No. 491, is hereby amended
to read as follows: 16a-6-104. This act shall be administered by the
deputy commissioner for consumer and mortgage lending who is also
referred to as the administrator.
(1) In addition to other powers granted by this act, the
administrator within the limitations provided by law may:
(a) Receive and act on complaints, take action designed to obtain
voluntary compliance with the provisions of K.S.A. 16a-1-101 to 16a-
9-102, inclusive et seq., and amendments thereto, or commence SENATE BILL No. 27—page 8
proceedings on the administrator's own initiative;
(b) counselprovide guidance to persons and groups on their rights
and duties under K.S.A. 16a-1-101 to 16a-9-102, inclusive et seq., and
amendments thereto;
(c) establish or support programs for the education of consumers
with respect to credit practices and problems and:
(A) As a condition in settlements of investigations or
examinations, the administrator may receive require a payment
designated for consumer education to be expended as directed by the
administrator for such purpose; and
(B) the administrator may fund consumer education programs
from operating funds in an amount up to 1% of operating funds;
(d) make studies appropriate to effectuate the purposes and
policies of K.S.A. 16a-1-101 to 16a-9-102, inclusive et seq., and
amendments thereto;
(e) adopt, amend and revoke rules and regulations to carry out the
specific provisions of K.S.A. 16a-1-101 to 16a-9-102, inclusive et seq.,
and amendments thereto, and to implement the requirements of the
secure and fair enforcement for mortgage licensing act of 2008 (P.L.
110-289);
(f) issue, amend and revoke written administrative interpretations.
Such written administrative interpretations shall be approved by the
attorney general and published in the Kansas register within 15 days of
issuance. The administrator shall annually publish all written
administrative interpretations in effect;
(g) maintain offices within this state;
(h) appoint any necessary attorneys, hearing examiners, clerks,
and other employees and agents and fix their set such employees'
compensation, and authorize attorneys appointed under this section to
appear for and represent the administrator in court;
(i) examine periodically at intervals the administrator deems
appropriate the loans, business and records of every licensee, registrant
or person filing notification pursuant to K.S.A. 16a-6-201 through 16a-
6-203, and amendments thereto or consumer credit filer, except
licensees which that are supervised financial organizations. The official
or agency responsible for the supervision of each supervised financial
organization shall examine the loans, business and records of each such
organization in the manner and periodically at intervals prescribed by
the administrator. In addition, for the purpose of discovering violations
of K.S.A. 16a-1-101 through 16a-9-102 et seq., and amendments
thereto, or securing information lawfully required, the administrator or
the official or agency to whose supervision the organization is subject
to K.S.A. 16a-6-105, and amendments thereto, may at any time
investigate the loans, business and records of any supervised lender.
For examination purposes the administrator shall have free and
reasonable access to the offices, places of business and records of the
lender, registrant or person filing notification licensee or consumer
credit filer and the administrator may control access to any documents
and records of a licensee, registrant or person filing notification under
examination or consumer credit filer;
(j) refer such evidence as may be available concerning violations
of this act or of any rule and regulation or order to the attorney general
or in consultation with the attorney general to the proper county or
district attorney, who may in the prosecutor's discretion, with or
without such a reference referral, institute the appropriate criminal
proceedings under this act. Upon receipt of such reference, the attorney
general or the county attorney or district attorney may request that a
duly employed attorney of the administrator prosecute or assist in the
prosecution of such violation on behalf of the state. Upon approval of SENATE BILL No. 27—page 9
the administrator, such employee shall be appointed special prosecutor
for the attorney general or the county attorney or district attorney to
serve without compensation from the attorney general or the county
attorney or district attorney. Such special prosecutor shall have all the
powers and duties prescribed by law for assistant attorneys general or
assistant county or district attorneys, and such other powers and duties
as are lawfully delegated to such special prosecutors by the attorney
general or the county attorney or district attorney the laws of this state;
(k) if deemed necessary by the administrator, require
fingerprinting of any applicant in accordance with section 2 of 2024
Senate Bill No. 491, and amendments thereto. For purposes of this
section and in order to reduce the points of contact which the federal
bureau of investigation may have to maintain with the individual states,
the administrator may use the nationwide mortgage licensing system
and registry as a channeling agent for requesting information from and
distributing information to the department of justice or any
governmental agency. As used in this paragraph, "applicant" means a
licensee, a member of a licensee if such licensee is a copartnership or
association, an officer or director if such licensee is a corporation or an
agent or other person acting on behalf of a licensee;
(l) exchange information regarding the administration of this act
with any agency of the United States or any state which regulates the
licensee, registrant or person required to file notification, or consumer
credit filer who administers statutes, rules and regulations or other
programs related to consumer credit and to enter into information
sharing arrangements with other governmental agencies or associations
representing governmental agencies which are deemed necessary or
beneficial to the administration of this act;
(m) require that any applicant, licensee, registrant or other person
complete a minimum number of prelicensing education hours and
complete continuing education hours on an annual basis. Prelicensing
and continuing education courses shall be approved by the
administrator or the administrator's designee and may be made a
condition of the application approval and renewal;
(n) require that any applicant, licensee, registrant or other person
successfully pass a standardized examination designed to establish such
person's knowledge of residential mortgage loan origination
transactions and all applicable state and federal law. Such examinations
shall be created and administered by the administrator or the
administrator's designee and may be made a condition of application
approval;
(o) use the nationwide mortgage licensing system and registry as a
channeling agent for requesting and distributing any information
regarding residential mortgage loan originator registration or
supervised lender licensing to and from any source so directed by the
administrator;
(p)(n) establish relationships or contracts with the nationwide
mortgage licensing system and registry or other entities to collect and
maintain records and process transaction fees or other fees related to
applicants, licensees, registrants or other persons subject to the act and
to take such other actions as may be reasonably necessary to participate
in the nationwide mortgage licensing system and registry. The
administrator shall regularly report violations of law, as well as
enforcement actions and other relevant information, to the nationwide
mortgage licensing system and registry, and make publicly available
the proposed budget, fees, and audited financial statements of the
nationwide mortgage licensing system and registry as may be prepared
by the nationwide mortgage licensing system and registry and provided
to the administrator; SENATE BILL No. 27—page 10
(q) require that any residential mortgage loan originator applicant,
registrant or other person successfully pass a standardized examination
designed to establish such person's knowledge of mortgage transactions
and all applicable state and federal law. Such examinations shall be
created and administered by the administrator or the administrator's
designee, and may be made a condition of application approval or
application renewal;
(r) require that any mortgage loan originator applicant, registrant
or other person complete a minimum number of prelicensing education
hours and complete continuing education hours on an annual or
biannual basis. Prelicensing and continuing education courses shall be
approved by the administrator or the administrator's designee and may
be made a condition of application approval and renewal; and
(s)(o) require any licensee or registrant to file reports with the
nationwide mortgage licensing system and registry in the form
prescribed by the administrator or the administrator's designee.
(2) The administrator shall enforce the provisions of this act and
the rules and regulations and interpretations adopted thereunder with
respect to a creditor, unless the creditor's compliance is regulated
exclusively or primarily by another state or federal agency.
(3) To keep the administrator's rules and regulations in harmony
with the rules of administrators in other jurisdictions which enact the
revised uniform consumer credit code, the administrator, so far as is
consistent with the purposes, policies and provisions of K.S.A. 16a-1-
101 to 16a-9-102, inclusive et seq., and amendments thereto, may:
(a) Before adopting, amending and revoking rules and regulations,
advise and consult with administrators in other jurisdictions which
enact the uniform consumer credit code; and
(b) in adopting, amending and revoking rules and regulations, take
into consideration the rules of administrators in other jurisdictions
which enact the revised uniform consumer credit code.
(4) Except for refund of an excess charge, no liability is imposed
under K.S.A. 16a-1-101 to 16a-9-102, inclusive et seq., and
amendments thereto, for an act done or omitted in conformity with a
rule and regulation or written administrative interpretation of the
administrator in effect at the time of the act or omission
notwithstanding that after the act or omission the rule and regulation or
written administrative interpretation may be determined by judicial or
other authority to be invalid for any reason.
(5) The administrator prior to December 1 of each year shall
establish such fees as are authorized under the provisions of K.S.A.
16a-1-101 to 16a-9-102, inclusive et seq., and amendments thereto, for
the ensuing calendar year in such amounts as the administrator may
determine to be sufficient to meet the budget requirements of the
administrator for each fiscal year.
Sec. 4. K.S.A. 17-12a412, as amended by section 1 of 2024 Senate
Bill No. 405, is hereby amended to read as follows: 17-12a412. (a)
Disciplinary conditions–applicants. An order issued under this act may
deny an application, or may condition or limit registration of an
applicant to be a broker-dealer, agent, investment adviser, or investment
adviser representative if the administrator finds that the order is in the
public interest and that there is a ground for discipline under subsection
(d) against the applicant or, if the applicant is a broker-dealer or
investment adviser, against any partner, officer, director, person having
a similar status or performing similar functions, or person directly or
indirectly controlling the broker-dealer or investment adviser.
(b) Disciplinary conditions — registrants. An order issued under
this act may revoke, suspend, condition, or limit the registration of a
registrant if the administrator finds that the order is in the public SENATE BILL No. 27—page 11
interest and that there is a ground for discipline under subsection (d)
against the registrant or, if the registrant is a broker-dealer or
investment adviser, against any partner, officer, or director, any person
having a similar status or performing similar functions, or any person
directly or indirectly controlling the broker-dealer or investment
adviser. However, the administrator:
(1) May not institute a revocation or suspension proceeding under
this subsection based on an order issued by another state that is
reported to the administrator or designee later than one year after the
date of the order on which it is based; and
(2) under subsection (d)(5)(A) and (d)(5)(B), may not issue an
order on the basis of an order under the state securities act of another
state unless the other order was based on conduct for which subsection
(d) would authorize the action had the conduct occurred in this state.
(c) Disciplinary penalties — registrants. If the administrator finds
that the order is in the public interest and that there is a ground for
discipline under subsection (d)(1) through (d)(6), (d)(8), (d)(9), (d)(10),
(d)(12) or (d)(13) against a registrant or, if the registrant is a broker-
dealer or investment adviser, against any partner, officer, or director,
any person having similar functions, or any person directly or indirectly
controlling the broker-dealer or investment adviser, then the
administrator may enter an order against the registrant containing one
or more of the following sanctions or remedies:
(1) A censure;
(2) a bar or suspension from association with a broker-dealer or
investment adviser registered in this state;
(3) a civil penalty up to $25,000 for each violation. If any person
is found to have violated any provision of this act, and such violation is
committed against elder or disabled persons, as defined in K.S.A. 50-
676, and amendments thereto, in addition to any civil penalty otherwise
provided by law, the administrator may impose an additional penalty
not to exceed $15,000 for each such violation. The total penalty against
a person shall not exceed $1,000,000;
(4) an order requiring the registrant to pay restitution for any loss
or disgorge any profits arising from a violation, including, in the
administrator's discretion, the assessment of interest from the date of
the violation at the rate provided for interest on judgments by K.S.A.
16-204, and amendments thereto;
(5) an order charging the registrant with the actual cost of an
investigation or proceeding; or
(6) an order requiring the registrant to cease and desist from any
action that constitutes a ground for discipline, or to take other action
necessary or appropriate to comply with this act.
(d) Grounds for discipline. A person may be disciplined under
subsections (a) through (c) if the person:
(1) Has filed an application for registration in this state under this
act or the predecessor act within the previous 10 years, which, as of the
effective date of registration or as of any date after filing in the case of
an order denying effectiveness, was incomplete in any material respect
or contained a statement that, in light of the circumstances under which
it was made, was false or misleading with respect to a material fact;
(2) willfully violated or willfully failed to comply with this act or
the predecessor act or a rule adopted or order issued under this act or
the predecessor act within the previous 10 years;
(3) has been convicted of a felony or within the previous 10 years
has been convicted of a misdemeanor involving a security, a
commodity future or option contract, or an aspect of a business
involving securities, commodities, investments, franchises, insurance,
banking, or finance; SENATE BILL No. 27—page 12
(4) is enjoined or restrained by a court of competent jurisdiction in
an action instituted by the administrator under this act or the
predecessor act, a state, the securities and exchange commission, or the
United States from engaging in or continuing an act, practice, or course
of business involving an aspect of a business involving securities,
commodities, investments, franchises, insurance, banking, or finance;
(5) is the subject of an order, issued after notice and opportunity
for hearing by:
(A) The securities, depository institution, insurance, or other
financial services regulator of a state or by the securities and exchange
commission or other federal agency denying, revoking, barring, or
suspending registration as a broker-dealer, agent, investment adviser,
federal covered investment adviser, or investment adviser
representative;
(B) the securities regulator of a state or by the securities and
exchange commission against a broker-dealer, agent, investment
adviser, investment adviser representative, or federal covered
investment adviser;
(C) the securities and exchange commission or by a self-
regulatory organization suspending or expelling the registrant from
membership in the self-regulatory organization;
(D) a court adjudicating a United States postal service fraud order;
(E) the insurance regulator of a state denying, suspending, or
revoking the registration of an insurance agent; or
(F) a depository institution regulator suspending or barring a
person from the depository institution business;
(6) is the subject of an adjudication or determination, after notice
and opportunity for hearing, by the securities and exchange
commission, the commodity futures trading commission, the federal
trade commission, a federal depository institution regulator, or a
depository institution, insurance, or other financial services regulator of
a state that the person willfully violated the securities act of 1933, the
securities exchange act of 1934, the investment advisers act of 1940,
the investment company act of 1940, or the commodity exchange act,
the securities or commodities law of a state, or a federal or state law
under which a business involving investments, franchises, insurance,
banking, or finance is regulated;
(7) is insolvent, either because the person's liabilities exceed the
person's assets or because the person cannot meet the person's
obligations as they mature, but the administrator may not enter an order
against an applicant or registrant under this paragraph without a finding
of insolvency as to the applicant or registrant;
(8) refuses to allow or otherwise impedes the administrator from
conducting an audit or inspection under K.S.A. 17-12a411(d), and
amendments thereto, refuses access to a registrant's office to conduct an
audit or inspection under K.S.A. 17-12a411(d), and amendments
thereto, fails to keep or maintain sufficient records to permit an audit
disclosing the condition of the registrant's business, or fails willfully
and without cause to comply with a request for information by the
administrator or person designated by the administrator in conducting
investigations or examinations under this act;
(9) has failed to reasonably supervise an agent, investment adviser
representative, or other individual, if the agent, investment adviser
representative, or other individual was subject to the person's
supervision and committed a violation of this act or the predecessor act
or a rule adopted or order issued under this act or the predecessor act
within the previous 10 years;
(10) has not paid the proper filing fee within 30 days after having
been notified by the administrator of a deficiency, but the administrator SENATE BILL No. 27—page 13
shall vacate an order under this paragraph when the deficiency is
corrected;
(11) after notice and opportunity for a hearing, has been found
within the previous 10 years:
(A) By a court of competent jurisdiction to have willfully violated
the laws of a foreign jurisdiction under which the business of securities,
commodities, investment, franchises, insurance, banking, or finance is
regulated;
(B) to have been the subject of an order of a securities regulator of
a foreign jurisdiction denying, revoking, or suspending the right to
engage in the business of securities as a broker-dealer, agent,
investment adviser, investment adviser representative, or similar
person; or
(C) to have been suspended or expelled from membership by or
participation in a securities exchange or securities association operating
under the securities laws of a foreign jurisdiction;
(12) is the subject of a cease and desist order issued by the
securities and exchange commission or issued under the securities,
commodities, investment, franchise, banking, finance, or insurance
laws of a state;
(13) has engaged in dishonest or unethical practices in the
securities, commodities, investment, franchise, banking, finance, or
insurance business within the previous 10 years;
(14) is not qualified on the basis of factors such as training,
experience, and knowledge of the securities business. However, in the
case of an application by an agent for a broker-dealer that is a member
of a self-regulatory organization or by an individual for registration as
an investment adviser representative, a denial order may not be based
on this paragraph if the individual has successfully completed all
examinations required by subsection (e). The administrator may require
an applicant for registration under K.S.A. 17-12a402 or 17-12a404, and
amendments thereto, who has not been registered in a state within the
two years preceding the filing of an application in this state to
successfully complete an examination; or
(15) lacks sufficient character or reputation to warrant the public
trust; or
(16) was required to report information under the protect
vulnerable adults from financial exploitation act and knowingly failed
to make such a report or knowingly caused such report not to be made
within the previous 10 years.
(e) Examinations. A rule adopted or order issued under this act
may require that an examination, including an examination developed
or approved by an organization of securities regulators, be successfully
completed by a class of individuals or all individuals. An order issued
under this act may waive, in whole or in part, an examination as to an
individual and a rule adopted under this act may waive, in whole or in
part, an examination as to a class of individuals if the administrator
determines that the examination is not necessary or appropriate in the
public interest and for the protection of investors.
(f) Summary process. In accordance with the Kansas
administrative procedures procedure act, the administrator may use
summary or emergency proceedings to suspend or deny an application;
restrict, condition, limit, or suspend a registration; or censure, bar, or
impose a civil penalty or cease and desist order on a registrant before
final determination of an administrative proceeding. If a hearing is not
requested and none is ordered by the administrator within 30 days after
the date of service of the order, the order becomes final by operation of
law. If a hearing is requested or ordered, the administrator, after notice
of and opportunity for hearing to each person subject to the order, may SENATE BILL No. 27—page 14
modify or vacate the order or extend the order until final determination.
(g) Procedural requirements. (1) An order issued may not be
issued under this section, except under subsection (f), without:
(A) Appropriate notice to the applicant or registrant;
(B) opportunity for hearing; and
(C) findings of fact and conclusions of law in a record.
(2) Proceedings under this subsection shall be conducted in
accordance with the Kansas administrative procedures procedure act.
(h) Control person liability. A person that controls, directly or
indirectly, a person subject to discipline under subsection (d) may be
disciplined by order of the administrator under subsections (a) through
(c) to the same extent as the noncomplying person, unless the
controlling person did not know, and in the exercise of reasonable care
could not have known, of the existence of the conduct that is a ground
for discipline under this section.
(i) Limit on investigation or proceeding. The administrator may
not institute a proceeding under subsection (a), (b) or (c) based solely
on material facts actually known by the administrator unless an
investigation or the proceeding is instituted within one year after the
administrator actually acquires knowledge of the material facts.
Sec. 5. K.S.A. 2023 Supp. 38-2203, as amended by section 3 of
2024 House Bill No. 2536, is hereby amended to read as follows: 38-
2203. (a) Proceedings concerning any child who may be a child in need
of care shall be governed by this code, except in those instances when
the court knows or has reason to know that an Indian child is involved
in the proceeding, in which case, the Indian child welfare act of 1978,
25 U.S.C. § 1901 et seq., applies. The Indian child welfare act may
apply to: The filing to initiate a child in need of care proceeding,
K.S.A. 38-2234, and amendments thereto; ex parte custody orders,
K.S.A. 38-2242, and amendments thereto; temporary custody hearing,
K.S.A. 38-2243, and amendments thereto; adjudication, K.S.A. 38-
2247, and amendments thereto; burden of proof, K.S.A. 38-2250, and
amendments thereto; disposition, K.S.A. 38-2255, and amendments
thereto; permanency hearings, K.S.A. 38-2264, and amendments
thereto; termination of parental rights, K.S.A. 38-2267, 38-2268 and
38-2269, and amendments thereto; establishment of permanent
custodianship, K.S.A. 38-2268 and 38-2272, and amendments thereto;
establishment of SOUL family legal permanency, section 1 of 2024
House Bill No. 2536, and amendments thereto; the newborn infant
protection act, K.S.A. 38-2282, and amendments thereto; the
Representative Gail Finney memorial foster care bill of rights, K.S.A.
2023 Supp. 38-2201a, and amendments thereto; the placement of a
child in any foster, pre-adoptive and adoptive home and the placement
of a child in a guardianship arrangement under article 30 of chapter 59
of the Kansas Statutes Annotated, and amendments thereto.
(b) Subject to the uniform child custody jurisdiction and
enforcement act, K.S.A. 23-37,101 through 23-37,405, and
amendments thereto, the district court shall have original jurisdiction of
proceedings pursuant to this code.
(c) The court acquires jurisdiction over a child by the filing of a
petition pursuant to this code or upon issuance of an ex parte order
pursuant to K.S.A. 38-2242, and amendments thereto. When the court
acquires jurisdiction over a child in need of care, jurisdiction may
continue until the child has:
(1) Become 18 years of age, or until June 1 of the school year
during which the child became 18 years of age if the child is still
attending high school unless there is no court approved transition plan,
in which event jurisdiction may continue until a transition plan is
approved by the court or until the child reaches the age of 21 years of SENATE BILL No. 27—page 15
age;
(2) been adopted;
(3) SOUL family legal permanency as ordered by the court
pursuant to section 1 of 2024 House Bill No. 2536, and amendments
thereto, and such jurisdiction may continue until the child has reached
18 years of age, or until June 1 of the school year during which the
child reached 18 years of age if the child is still attending high school;
or
(4) been discharged by the court.
(d) Any child 18 years of age or over may request, in writing to
the court, that the jurisdiction of the court cease. The court shall give
notice of the request to all parties and interested parties and 30 days
after receipt of the request, jurisdiction will cease.
(e) When it is no longer appropriate for the court to exercise
jurisdiction over a child, the court, upon its own motion or the motion
of a party or interested party at a hearing or upon agreement of all
parties or interested parties, shall enter an order discharging the child.
Except upon request of the child pursuant to subsection (d), the court
shall not enter an order discharging a child until June 1 of the school
year during which the child becomes 18 years of age if the child is in an
out-of-home placement, is still attending high school and has not
completed the child's high school education.
(f) When a petition is filed under this code, a person who is
alleged to be under 18 years of age shall be presumed to be under that
age for the purposes of this code, unless the contrary is proved.
(g) A court's order issued in a proceeding pursuant to this code,
shall take precedence over such orders in a civil custody case, a
proceeding under article 31 of chapter 60 of the Kansas Statutes
Annotated, and amendments thereto, protection from abuse act, or a
comparable case in another jurisdiction, except as provided by K.S.A.
23-37,101 through 23-37,405, and amendments thereto, uniform child
custody jurisdiction and enforcement act.
(h) If a child is eligible to receive services from the Kansas
department for children and families, the department of corrections or
the judicial branch, such agencies shall collaborate to provide such
services. Nothing in this subsection shall preclude the child from
accessing services provided by the Kansas department for children and
families, the department of corrections, the judicial branch or any
other state agency if the child is otherwise eligible for the services.
Sec. 6. K.S.A. 2023 Supp. 38-2212, as amended by section 8 of
2023 Senate Bill No. 115, is hereby amended to read as follows: 38-
2212. (a) Principle of appropriate access. Information contained in
confidential agency records concerning a child alleged or adjudicated to
be in need of care may be disclosed as provided in this section and shall
be disclosed as provided in subsection (e). Disclosure shall in all cases
be guided by the principle of providing access only to persons or
entities with a need for information that is directly related to achieving
the purposes of this code.
(b) Free exchange of information. Pursuant to K.S.A. 38-2210,
and amendments thereto, the secretary and juvenile intake and
assessment agencies shall participate in the free exchange of
information concerning a child who is alleged or adjudicated to be in
need of care.
(c) Necessary access. The following persons or entities shall have
access to information from agency records. Access shall be limited to
information reasonably necessary to carry out their lawful
responsibilities, to maintain their personal safety and the personal
safety of individuals in their care, or to educate, diagnose, treat, care for
or protect a child alleged to be in need of care. Information authorized SENATE BILL No. 27—page 16
to be disclosed pursuant to this subsection shall not contain information
that identifies a reporter of a child who is alleged or adjudicated to be a
child in need of care.
(1) A child named in the report or records, a guardian ad litem
appointed for the child and the child's attorney.
(2) A parent or other person responsible for the welfare of a child,
or such person's legal representative.
(3) A court-appointed special advocate for a child, a citizen review
board or other advocate that reports to the court.
(4) A person licensed to practice the healing arts or mental health
profession in order to diagnose, care for, treat or supervise:
(A) A child whom such service provider reasonably suspects may
be in need of care;
(B) a member of the child's family; or
(C) a person who allegedly abused or neglected the child.
(5) A person or entity licensed or registered by the secretary of
health and environment or approved by the secretary for children and
families to care for, treat or supervise a child in need of care.
(6) A coroner or medical examiner when such person is
determining the cause of death of a child.
(7) The state child death review board established under K.S.A.
22a-243, and amendments thereto.
(8) An attorney for a private party who files a petition pursuant to
K.S.A. 38-2233(b), and amendments thereto.
(9) A foster parent, prospective foster parent, permanent
custodian, prospective permanent custodian, adoptive parent or
prospective adoptive parent. In order to assist such persons in making
an informed decision regarding acceptance of a particular child, to help
the family anticipate problems that may occur during the child's
placement, and to help the family meet the needs of the child in a
constructive manner, the secretary shall seek and shall provide the
following information to such persons as the information becomes
available to the secretary:
(A) Strengths, needs and general behavior of the child;
(B) circumstances that necessitated placement;
(C) information about the child's family and the child's
relationship to the family that may affect the placement;
(D) important life experiences and relationships that may affect
the child's feelings, behavior, attitudes or adjustment;
(E) medical history of the child, including third-party coverage
that may be available to the child; and
(F) education history, to include present grade placement, special
strengths and weaknesses.
(10) The state protection and advocacy agency as provided by
K.S.A. 65-5603(a)(10) or 74-5515(a)(2)(A) and (B), and amendments
thereto.
(11) Any educational institution to the extent necessary to enable
the educational institution to provide the safest possible environment
for its pupils and employees.
(12) Any educator to the extent necessary to enable the educator to
protect the personal safety of the educator and the educator's pupils.
(13) The office of the child advocate pursuant to the child
advocate act.
(14) Any other federal, state or local government executive branch
entity or any agent of such entity, having a need for such information in
order to carry out such entity's responsibilities under the law to protect
children from abuse and neglect.
(d) Specified access. The following persons or entities shall have
access to information contained in agency records as specified. SENATE BILL No. 27—page 17
Information authorized to be disclosed pursuant to this subsection shall
not contain information that identifies a reporter of a child who is
alleged or adjudicated to be a child in need of care.
(1) Information from confidential agency records of the Kansas
department for children and families, a law enforcement agency or any
juvenile intake and assessment worker of a child alleged or adjudicated
to be in need of care shall be available to members of the standing
house or senate committee on judiciary, house committee on
corrections and juvenile justice, house committee on child welfare and
foster care, house committee on appropriations, senate committee on
ways and means, legislative post audit committee and any joint
committee with authority to consider children's and families' issues,
when carrying out such member's or committee's official functions in
accordance with K.S.A. 75-4319, and amendments thereto, in a closed
or executive meeting. Except in limited conditions established by
2
/3 of
the members of such committee, records and reports received by the
committee shall not be further disclosed. Unauthorized disclosure may
subject such member to discipline or censure from the house of
representatives or senate. The secretary for children and families shall
not summarize the outcome of department actions regarding a child
alleged to be a child in need of care in information available to
members of such committees.
(2) The secretary for children and families may summarize the
outcome of department actions regarding a child alleged to be a child in
need of care to a person having made such report.
(3) Information from confidential reports or records of a child
alleged or adjudicated to be a child in need of care may be disclosed to
the public when:
(A) The individuals involved or their representatives have given
express written consent; or
(B) the investigation of the abuse or neglect of the child or the
filing of a petition alleging a child to be in need of care has become
public knowledge, provided, however, except that the agency shall limit
disclosure to confirmation of procedural details relating to the handling
of the case by professionals.
(e) Law enforcement access. The secretary shall disclose
confidential agency records of a child alleged or adjudicated to be a
child in need of care, as described in K.S.A. 38-2209, and amendments
thereto, to the law enforcement agency investigating the alleged or
substantiated report or investigation of abuse or neglect, regardless of
the disposition of such report or investigation. Such records shall
include, but not be limited to, any information regarding such report or
investigation, records of past reports or investigations concerning such
child and such child's siblings and the perpetrator or alleged perpetrator
and the name and contact information of the reporter or persons
alleging abuse or neglect and case managers, investigators or
contracting entity employees assigned to or investigating such report.
Such records shall only be used for the purposes of investigating the
alleged or substantiated report or investigation of abuse or neglect.
(f) Court order. Notwithstanding the provisions of this section, a
court of competent jurisdiction, after in camera inspection, may order
disclosure of confidential agency records pursuant to a determination
that the disclosure is in the best interests of the child who is the subject
of the reports or that the records are necessary for the proceedings of
the court. The court shall specify the terms of disclosure and impose
appropriate limitations.
(g) (1) Notwithstanding any other provision of law to the contrary,
except as provided in paragraph (6), in the event that child abuse or
neglect results in a child fatality or near fatality, reports or records of a SENATE BILL No. 27—page 18
child alleged or adjudicated to be in need of care received by the
secretary, a law enforcement agency or any juvenile intake and
assessment worker shall become a public record and subject to
disclosure pursuant to K.S.A. 45-215, and amendments thereto.
(2) Within seven days of receipt of a request in accordance with
the procedures adopted under K.S.A. 45-220, and amendments thereto,
the secretary shall notify any affected individual that an open records
request has been made concerning such records. The secretary or any
affected individual may file a motion requesting the court to prevent
disclosure of such record or report, or any select portion thereof. Notice
of the filing of such motion shall be provided to all parties requesting
the records or reports, and such party or parties shall have a right to
hearing, upon request, prior to the entry of any order on such motion. If
the affected individual does not file such motion within seven days of
notification, and the secretary has not filed a motion, the secretary shall
release the reports or records. If such motion is filed, the court shall
consider the effect such disclosure may have upon an ongoing criminal
investigation, a pending prosecution, or the privacy of the child, if
living, or the child's siblings, parents or guardians, and the public's
interest in the disclosure of such records or reports. The court shall
make written findings on the record justifying the closing of the records
and shall provide a copy of the journal entry to the affected parties and
the individual requesting disclosure pursuant to the Kansas open
records act, K.S.A. 45-215 et seq., and amendments thereto.
(3) Notwithstanding the provisions of paragraph (2), in the event
that child abuse or neglect results in a child fatality or criminal charges
are filed with a court alleging that a person caused a child fatality, the
secretary shall release the following information in response to an open
records request made pursuant to the Kansas open records act, within
seven business days of receipt of such request, as allowed by applicable
law:
(A) Age and sex of the child;
(B) date of the fatality;
(C) a summary of any previous reports of abuse or neglect
received by the secretary involving the child, along with the findings of
such reports; and
(D) any department recommended services provided to the child.
(4) Notwithstanding the provisions of paragraph (2), in the event
that a child fatality occurs while such child was in the custody of the
secretary for children and families, the secretary shall release the
following information in response to an open records request made
pursuant to the Kansas open records act, within seven business days of
receipt of such request, as allowed by applicable law:
(A) Age and sex of the child;
(B) date of the fatality; and
(C) a summary of the facts surrounding the death of the child.
(5) For reports or records requested pursuant to this subsection,
the time limitations specified in this subsection shall control to the
extent of any inconsistency between this subsection and K.S.A. 45-218,
and amendments thereto. As used in this section, "near fatality" means
an act that, as certified by a person licensed to practice medicine and
surgery, places the child in serious or critical condition.
(6) Nothing in this subsection shall allow the disclosure of reports,
records or documents concerning the child and such child's biological
parents that were created prior to such child's adoption. Nothing herein
is intended to require that an otherwise privileged communication lose
its privileged character.
Sec. 7. K.S.A. 2023 Supp. 38-2243 is hereby amended to read as
follows: 38-2243. (a) Upon notice and hearing, the court may issue an SENATE BILL No. 27—page 19
order directing who shall have temporary custody and may modify the
order during the pendency of the proceedings as will best serve the
child's welfare.
(b) A hearing pursuant to this section shall be held within 72
hours, excluding Saturdays, Sundays, legal holidays, and days on
which the office of the clerk of the court is not accessible, following a
child having been taken into protective custody.
(c) Whenever it is determined that a temporary custody hearing is
required, the court shall immediately set the time and place for the
hearing. Notice of a temporary custody hearing shall be given to all
parties and interested parties.
(d) Notice of the temporary custody hearing shall be given at least
24 hours prior to the hearing. The court may continue the hearing to
afford the 24 hours prior notice or, with the consent of the party or
interested party, proceed with the hearing at the designated time. If an
order of temporary custody is entered and the parent or other person
having custody of the child has not been notified of the hearing, did not
appear or waive appearance and requests a rehearing, the court shall
rehear the matter without unnecessary delay.
(e) Oral notice may be used for giving notice of a temporary
custody hearing where there is insufficient time to give written notice.
Oral notice is completed upon filing a certificate of oral notice.
(f) The court may enter an order of temporary custody after
determining there is probable cause to believe that the:
(1) Child is dangerous to self or to others;
(2) child is not likely to be available within the jurisdiction of the
court for future proceedings;
(3) health or welfare of the child may be endangered without
further care;
(4) child has been subjected to human trafficking or aggravated
human trafficking, as defined by K.S.A. 21-5426, and amendments
thereto, or commercial sexual exploitation of a child, as defined by
K.S.A. 21-6422, and amendments thereto;
(5) child is experiencing a mental behavioral health crisis and is in
need of treatment; or
(6) child committed an act which, if committed by an adult, would
constitute a violation of K.S.A. 21-6419, and amendments thereto.
(g) (1) Whenever the court determines the necessity for an order
of temporary custody the court may place the child in the temporary
custody of:
(A) A parent or other person having custody of the child and may
enter a restraining order pursuant to subsection (h);
(B) a person, other than the parent or other person having custody,
who shall not be required to be licensed under article 5 of chapter 65 of
the Kansas Statutes Annotated, and amendments thereto;
(C) a youth residential facility;
(D) a shelter facility;
(E) a staff secure facility, notwithstanding any other provision of
law, if the child has been subjected to human trafficking or aggravated
human trafficking, as defined by K.S.A. 21-5426, and amendments
thereto, or commercial sexual exploitation of a child, as defined by
K.S.A. 21-6422, and amendments thereto, or the child committed an act
which, if committed by an adult, would constitute a violation of K.S.A.
21-6419, and amendments thereto;
(F) after written authorization by a community mental health
center, a juvenile crisis intervention center, as described in K.S.A. 65-
536, and amendments thereto; or
(G) the secretary, if the child is 15 years of age or younger, or 16
or 17 years of age if the child has no identifiable parental or family SENATE BILL No. 27—page 20
resources or shows signs of physical, mental, emotional or sexual
abuse.
(2) If the secretary presents the court with a plan to provide
services to a child or family which the court finds will assure the safety
of the child, the court may only place the child in the temporary
custody of the secretary until the court finds the services are in place.
The court shall have the authority to require any person or entity
agreeing to participate in the plan to perform as set out in the plan.
When the child is placed in the temporary custody of the secretary, the
secretary shall have the discretionary authority to place the child with a
parent or to make other suitable placement for the child. When the child
is placed in the temporary custody of the secretary and the child has
been subjected to human trafficking or aggravated human trafficking,
as defined by K.S.A. 21-5426, and amendments thereto, or commercial
sexual exploitation of a child, as defined by K.S.A 21-6422, and
amendments thereto, or the child committed an act which, if committed
by an adult, would constitute a violation of K.S.A. 21-6419, and
amendments thereto, the secretary shall have the discretionary authority
to place the child in a staff secure facility, notwithstanding any other
provision of law. When the child is presently alleged, but not yet
adjudicated to be a child in need of care solely pursuant to K.S.A. 38-
2202(d)(9) or (d)(10), and amendments thereto, the child may be placed
in a secure facility, but the total amount of time that the child may be
held in such facility under this section and K.S.A. 38-2242, and
amendments thereto, shall not exceed 24 hours, excluding Saturdays,
Sundays, legal holidays, and days on which the office of the clerk of
the court is not accessible. The order of temporary custody shall remain
in effect until modified or rescinded by the court or an adjudication
order is entered but not exceeding 60 days, unless good cause is shown
and stated on the record.
(h) If the court issues an order of temporary custody, the court
may also enter an order restraining any alleged perpetrator of physical,
sexual, mental or emotional abuse of the child from residing in the
child's home; visiting, contacting, harassing or intimidating the child;
or attempting to visit, contact, harass or intimidate the child, other
family members or witnesses. Such restraining order shall be served by
personal service pursuant to K.S.A. 38-2237(a), and amendments
thereto, on any alleged perpetrator to whom the order is directed.
(i) (1) The court shall not enter the initial order removing a child
from the custody of a parent pursuant to this section unless the court
first finds probable cause that:
(A) (i) The child is likely to sustain harm if not immediately
removed from the home;
(ii) allowing the child to remain in home is contrary to the welfare
of the child; or
(iii) immediate placement of the child is in the best interest of the
child; and
(B) reasonable efforts have been made to maintain the family unit
and prevent the unnecessary removal of the child from the child's home
or that an emergency exists which threatens the safety to the child.
(2) Such findings shall be included in any order entered by the
court. If the child is placed in the custody of the secretary, upon making
the order the court shall provide the secretary with a written copy.
(j) If the court enters an order of temporary custody that provides
for placement of the child with a person other than the parent, the court
shall make a child support determination pursuant to K.S.A. 38-2277,
and amendments thereto.
(k) For the purposes of this section, "harassing or intimidating"
and "harass or intimidate" includes, but is not limited to, utilizing any SENATE BILL No. 27—page 21
electronic tracking system or acquiring tracking information to
determine the targeted person's location, movement or travel patterns.
Sec. 8. K.S.A. 44-706, as amended by section 12 of 2024 House
Bill No. 2760, is hereby amended to read as follows: 44-706. The
secretary shall examine whether an individual has separated from
employment for each week claimed. The secretary shall apply the
provisions of this section to the individual's most recent employment
prior to the week claimed. An individual shall be disqualified for
benefits:
(a) If the individual left work voluntarily without good cause
attributable to the work or the employer, subject to the other provisions
of this subsection. For purposes of this subsection, "good cause" is
cause of such gravity that would impel a reasonable, not supersensitive,
individual exercising ordinary common sense to leave employment.
Good cause requires a showing of good faith of the individual leaving
work, including the presence of a genuine desire to work. Failure to
return to work after expiration of approved personal or medical leave,
or both, shall be considered a voluntary resignation. After a temporary
job assignment, failure of an individual to affirmatively request an
additional assignment on the next succeeding workday, if required by
the employment agreement, after completion of a given work
assignment, shall constitute leaving work voluntarily. The
disqualification shall begin the day following the separation and shall
continue until after the individual has become reemployed and has had
earnings from insured work of at least three times the individual's
weekly benefit amount. An individual shall not be disqualified under
this subsection if:
(1) The individual was forced to leave work because of illness or
injury upon the advice of a licensed and practicing healthcare provider
and, upon learning of the necessity for absence, immediately notified
the employer thereof, or the employer consented to the absence, and
after recovery from the illness or injury, when recovery was certified by
a practicing health care provider, the individual returned to the
employer and offered to perform services and the individual's regular
work or comparable and suitable work was not available. As used in
this paragraph "healthcare provider" means any person licensed by the
proper licensing authority of any state to engage in the practice of
medicine and surgery, osteopathy, chiropractic, dentistry, optometry,
podiatry or psychology;
(2) the individual left temporary work to return to the regular
employer;
(3) the individual left work to enter active service in the armed
forces of the United States but was rejected or delayed from entry;
(4) The spouse of an individual who is a member of the armed
forces of the United States who left work because of the voluntary or
involuntary transfer of the individual's spouse from one job to another
job that is for the same employer or for a different employer, at a
geographic location that makes it unreasonable for the individual to
continue work at the individual's job. For the purposes of this provision
"member of the armed forces" means a person performing active
service in the army, navy, marine corps, air force, space force, coast
guard or any component of the military reserves of the United States;
(5) the individual left work because of hazardous working
conditions; in determining whether or not working conditions are
hazardous for an individual, the degree of risk involved to the
individual's health, safety and morals, the individual's physical fitness
and prior training and the working conditions of workers engaged in
the same or similar work for the same and other employers in the
locality shall be considered; as used in this paragraph, "hazardous SENATE BILL No. 27—page 22
working conditions" means working conditions that could result in a
danger to the physical or mental well-being of the individual; each
determination as to whether hazardous working conditions exist shall
include, but shall not be limited to, a consideration of: (A) The safety
measures used or the lack thereof; and (B) the condition of equipment
or lack of proper equipment; no work shall be considered hazardous if
the working conditions surrounding the individual's work are the same
or substantially the same as the working conditions generally prevailing
among individuals performing the same or similar work for other
employers engaged in the same or similar type of activity;
(6) the individual left work to enter training approved under
section 236(a)(1) of the federal trade act of 1974, provided the work
left is not of a substantially equal or higher skill level than the
individual's past adversely affected employment, as defined for
purposes of the federal trade act of 1974, and wages for such work are
not less than 80% of the individual's average weekly wage as
determined for the purposes of the federal trade act of 1974;
(7) the individual left work because of unwelcome harassment of
the individual by the employer or another employee of which the
employing unit had knowledge and that would impel the average
worker to give up such worker's employment;
(8) the individual left work to accept better work; each
determination as to whether or not the work accepted is better work
shall include, but shall not be limited to, consideration of: (A) The rate
of pay, the hours of work and the probable permanency of the work left
as compared to the work accepted; (B) the cost to the individual of
getting to the work left in comparison to the cost of getting to the work
accepted; and (C) the distance from the individual's place of residence
to the work accepted in comparison to the distance from the
individual's residence to the work left;
(9) the individual left work as a result of being instructed or
requested by the employer, a supervisor or a fellow employee to
perform a service or commit an act in the scope of official job duties
that is in violation of an ordinance or statute;
(10) the individual left work because of a substantial violation of
the work agreement by the employing unit and, before the individual
left, the individual had exhausted all remedies provided in such
agreement for the settlement of disputes before terminating. For the
purposes of this paragraph, a demotion based on performance does not
constitute a violation of the work agreement;
(11) after making reasonable efforts to preserve the work, the
individual left work due to a personal emergency of such nature and
compelling urgency that it would be contrary to good conscience to
impose a disqualification; or
(12) (A) the individual left work due to circumstances resulting
from domestic violence, including:
(i) The individual's reasonable fear of future domestic violence at
or en route to or from the individual's place of employment;
(ii) the individual's need to relocate to another geographic area in
order to avoid future domestic violence;
(iii) the individual's need to address the physical, psychological
and legal impacts of domestic violence;
(iv) the individual's need to leave employment as a condition of
receiving services or shelter from an agency that provides support
services or shelter to victims of domestic violence; or
(v) the individual's reasonable belief that termination of
employment is necessary to avoid other situations that may cause
domestic violence and to provide for the future safety of the individual
or the individual's family. SENATE BILL No. 27—page 23
(B) An individual may prove the existence of domestic violence
by providing one of the following:
(i) A restraining order or other documentation of equitable relief
by a court of competent jurisdiction;
(ii) a police record documenting the abuse;
(iii) documentation that the abuser has been convicted of one or
more of the offenses enumerated in articles 34 and 35 of chapter 21 of
the Kansas Statutes Annotated, prior to their repeal, or articles 54 or 55
of chapter 21 of the Kansas Statutes Annotated, or K.S.A. 21-6104, 21-
6325, 21-6326 or 21-6418 through 21-6422, and amendments thereto,
where the victim was a family or household member;
(iv) medical documentation of the abuse;
(v) a statement provided by a counselor, social worker, health care
provider, clergy, shelter worker, legal advocate, domestic violence or
sexual assault advocate or other professional who has assisted the
individual in dealing with the effects of abuse on the individual or the
individual's family; or
(vi) a sworn statement from the individual attesting to the abuse.
(C) No evidence of domestic violence experienced by an
individual, including the individual's statement and corroborating
evidence, shall be disclosed by the department of labor unless consent
for disclosure is given by the individual.
(b) If the individual has been discharged or suspended for
misconduct connected with the individual's work. The disqualification
shall begin the day following the separation and shall continue until
after the individual becomes reemployed and in cases where the
disqualification is due to discharge for misconduct has had earnings
from insured work of at least three times the individual's determined
weekly benefit amount, except that if an individual is discharged for
gross misconduct connected with the individual's work, such individual
shall be disqualified for benefits until such individual again becomes
employed and has had earnings from insured work of at least eight
times such individual's determined weekly benefit amount. In addition,
all wage credits attributable to the employment from which the
individual was discharged for gross misconduct connected with the
individual's work shall be canceled. No such cancellation of wage
credits shall affect prior payments made as a result of a prior
separation.
(1) As used in this subsection, "misconduct" means a violation of
a duty or obligation reasonably owed the employer as a condition of
employment including, but not limited to, a violation of a company
rule, including a safety rule, if: (A) The individual knew or should have
known about the rule; (B) the rule was lawful and reasonably related to
the job; and (C) the rule was fairly and consistently enforced.
(2) (A) Failure of the employee to notify the employer of an
absence and an individual's leaving work prior to the end of such
individual's assigned work period without permission shall be
considered prima facie evidence of a violation of a duty or obligation
reasonably owed the employer as a condition of employment.
(B) For the purposes of this subsection, misconduct shall include,
but not be limited to, violation of the employer's reasonable attendance
expectations if the facts show:
(i) The individual was absent or tardy without good cause;
(ii) the individual had knowledge of the employer's attendance
expectation; and
(iii) the employer gave notice to the individual that future absence
or tardiness may or will result in discharge.
(C) For the purposes of this subsection, if an employee disputes
being absent or tardy without good cause, the employee shall present SENATE BILL No. 27—page 24
evidence that a majority of the employee's absences or tardiness were
for good cause. If the employee alleges that the employee's repeated
absences or tardiness were the result of health related issues, such
evidence shall include documentation from a licensed and practicing
healthcare provider as defined in subsection (a)(1).
(3) (A) The term "gross misconduct" as used in this subsection
shall be construed to mean conduct evincing extreme, willful or wanton
misconduct as defined by this subsection. Gross misconduct shall
include, but not be limited to: (i) Theft; (ii) fraud; (iii) intentional
damage to property; (iv) intentional infliction of personal injury; or (v)
any conduct that constitutes a felony.
(B) For the purposes of this subsection, the following shall be
conclusive evidence of gross misconduct:
(i) The use of alcoholic liquor, cereal malt beverage or a
nonprescribed controlled substance by an individual while working;
(ii) the impairment caused by alcoholic liquor, cereal malt
beverage or a nonprescribed controlled substance by an individual
while working;
(iii) a positive breath alcohol test or a positive chemical test, if:
(a) The test was either:
(1) Required by law and was administered pursuant to the drug
free workplace act, 41 U.S.C. § 701 et seq.;
(2) administered as part of an employee assistance program or
other drug or alcohol treatment program in which the employee was
participating voluntarily or as a condition of further employment;
(3) requested pursuant to a written policy of the employer of
which the employee had knowledge and was a required condition of
employment;
(4) required by law and the test constituted a required condition of
employment for the individual's job; or
(5) there was reasonable suspicion to believe that the individual
used, had possession of, or was impaired by alcoholic liquor, cereal
malt beverage or a nonprescribed controlled substance while working;
(b) the test sample was collected either:
(1) As prescribed by the drug free workplace act, 41 U.S.C. § 701
et seq.;
(2) as prescribed by an employee assistance program or other drug
or alcohol treatment program in which the employee was participating
voluntarily or as a condition of further employment;
(3) as prescribed by the written policy of the employer of which
the employee had knowledge and that constituted a required condition
of employment;
(4) as prescribed by a test that was required by law and which
constituted a required condition of employment for the individual's job;
or
(5) at a time contemporaneous with the events establishing
probable cause;
(c) the collecting and labeling of a chemical test sample was
performed by a licensed health care professional or any other individual
certified pursuant to paragraph (b)(3)(A)(iii)(f) or authorized to collect
or label test samples by federal or state law, or a federal or state rule or
regulation having the force or effect of law, including law enforcement
personnel;
(d) the chemical test was performed by a laboratory approved by
the United States department of health and human services or licensed
by the department of health and environment, except that a blood
sample may be tested for alcohol content by a laboratory commonly
used for that purpose by state law enforcement agencies;
(e) the chemical test was confirmed by gas chromatography, gas SENATE BILL No. 27—page 25
chromatography-mass spectroscopy or other comparably reliable
analytical method, except that no such confirmation is required for a
blood alcohol sample or a breath alcohol test;
(f) the breath alcohol test was administered by an individual
trained to perform breath tests, the breath testing instrument used was
certified and operated strictly according to a description provided by
the manufacturers and the reliability of the instrument performance was
assured by testing with alcohol standards; and
(g) the foundation evidence establishes, beyond a reasonable
doubt, that the test results were from the sample taken from the
individual;
(iv) an individual's refusal to submit to a chemical test or breath
alcohol test, if:
(a) The test meets the standards of the drug free workplace act, 41
U.S.C. § 701 et seq.;
(b) the test was administered as part of an employee assistance
program or other drug or alcohol treatment program in which the
employee was participating voluntarily or as a condition of further
employment;
(c) the test was otherwise required by law and the test constituted
a required condition of employment for the individual's job;
(d) the test was requested pursuant to a written policy of the
employer of which the employee had knowledge and was a required
condition of employment; or
(e) there was reasonable suspicion to believe that the individual
used, possessed or was impaired by alcoholic liquor, cereal malt
beverage or a nonprescribed controlled substance while working; and
(v) an individual's dilution or other tampering of a chemical test.
(C) For purposes of this subsection:
(i) "Alcohol concentration" means the number of grams of alcohol
per 210 liters of breath;
(ii) "alcoholic liquor" means the same as defined in K.S.A. 41-
102, and amendments thereto;
(iii) "cereal malt beverage" means the same as defined in K.S.A.
41-2701, and amendments thereto;
(iv) "chemical test" includes, but is not limited to, tests of urine,
blood or saliva;
(v) "controlled substance" means the same as defined in K.S.A.
21-5701, and amendments thereto;
(vi) "required by law" means required by a federal or state law, a
federal or state rule or regulation having the force and effect of law, a
county resolution or municipal ordinance, or a policy relating to public
safety adopted in an open meeting by the governing body of any special
district or other local governmental entity;
(vii) "positive breath test" means a test result showing an alcohol
concentration of 0.04 or greater, or the levels listed in 49 C.F.R. part 40,
if applicable, unless the test was administered as part of an employee
assistance program or other drug or alcohol treatment program in which
the employee was participating voluntarily or as a condition of further
employment, in which case "positive chemical test" means a test result
showing an alcohol concentration at or above the levels provided for in
the assistance or treatment program; and
(viii) "positive chemical test" means a chemical result showing a
concentration at or above the levels listed in K.S.A. 44-501, and
amendments thereto, or 49 C.F.R. part 40, as applicable, for the drugs
or abuse listed therein, unless the test was administered as part of an
employee assistance program or other drug or alcohol treatment
program in which the employee was participating voluntarily or as a
condition of further employment, in which case "positive chemical test" SENATE BILL No. 27—page 26
means a chemical result showing a concentration at or above the levels
provided for in the assistance or treatment program.
(4) An individual shall not be disqualified under this subsection if
the individual is discharged under the following circumstances:
(A) The employer discharged the individual after learning the
individual was seeking other work or when the individual gave notice
of future intent to quit, except that the individual shall be disqualified
after the time that such individual intended to quit and any individual
who commits misconduct after such individual gives notice to such
individual's intent to quit shall be disqualified;
(B) the individual was making a good faith effort to do the
assigned work but was discharged due to:
(i) Inefficiency;
(ii) unsatisfactory performance due to inability, incapacity or lack
of training or experience;
(iii) isolated instances of ordinary negligence or inadvertence;
(iv) good faith errors in judgment or discretion; or
(v) unsatisfactory work or conduct due to circumstances beyond
the individual's control; or
(C) the individual's refusal to perform work in excess of the
contract of hire.
(c) If the individual has failed, without good cause, to either apply
for suitable work when so directed by the employment office of the
secretary of labor, or to accept suitable work when offered to the
individual by the employment office, the secretary of labor, or an
employer, such disqualification shall begin with the week in which
such failure occurred and shall continue until the individual becomes
reemployed and has had earnings from insured work of at least three
times such individual's determined weekly benefit amount. In
determining whether or not any work is suitable for an individual, the
secretary of labor, or a person or persons designated by the secretary,
shall consider the degree of risk involved to health, safety and morals,
physical fitness and prior training, experience and prior earnings, length
of unemployment and prospects for securing local work in the
individual's customary occupation or work for which the individual is
reasonably fit by training or experience, and the distance of the
available work from the individual's residence. Notwithstanding any
other provisions of this act, an otherwise eligible individual shall not be
disqualified for refusing an offer of suitable employment, or failing to
apply for suitable employment when notified by an employment office,
or for leaving the individual's most recent work accepted during
approved training, including training approved under section 236(a)(1)
of the trade act of 1974, if the acceptance of or applying for suitable
employment or continuing such work would require the individual to
terminate approved training and no work shall be deemed suitable and
benefits shall not be denied under this act to any otherwise eligible
individual for refusing to accept new work under any of the following
conditions:
(1) If the position offered is vacant due directly to a strike, lockout
or other labor dispute;
(2) if the remuneration, hours or other conditions of the work
offered are substantially less favorable to the individual than those
prevailing for similar work in the locality;
(3) if as a condition of being employed, the individual would be
required to join or to resign from or refrain from joining any labor
organization; and
(4) if the individual left employment as a result of domestic
violence, and the position offered does not reasonably accommodate
the individual's physical, psychological, safety, or legal needs relating SENATE BILL No. 27—page 27
to such domestic violence.
(d) For any week with respect to which the secretary of labor, or a
person or persons designated by the secretary, finds that the individual's
unemployment is due to a stoppage of work that exists because of a
labor dispute or there would have been a work stoppage had normal
operations not been maintained with other personnel previously and
currently employed by the same employer at the factory, establishment
or other premises at which the individual is or was last employed,
except that this subsection (d) shall not apply if it is shown to the
satisfaction of the secretary of labor, or a person or persons designated
by the secretary, that:
(1) The individual is not participating in or financing or directly
interested in the labor dispute that caused the stoppage of work; and
(2) the individual does not belong to a grade or class of workers of
which, immediately before the commencement of the stoppage, there
were members employed at the premises where the stoppage occurs
any of whom are participating in or financing or directly interested in
the dispute. If in any case separate branches of work that are commonly
conducted as separate businesses in separate premises are conducted in
separate departments of the same premises, each such department shall,
for the purpose of this subsection be deemed to be a separate factory,
establishment or other premises. For the purposes of this subsection,
failure or refusal to cross a picket line or refusal for any reason during
the continuance of such labor dispute to accept the individual's
available and customary work at the factory, establishment or other
premises where the individual is or was last employed shall be
considered as participation and interest in the labor dispute.
(e) For any week or a part of the week in which the individual has
received or is seeking unemployment benefits under the unemployment
compensation law of any other state or of the United States, except that
if the appropriate agency of such other state or the United States finally
determines that the individual is not entitled to such unemployment
benefits, this disqualification shall not apply.
(f) For any week in which the individual is entitled to receive any
unemployment allowance or compensation granted by the United States
under an act of congress to former members of the armed forces in
recognition of former service with the military, naval, air or space
services of the United States.
(g) If the individual, or another in such individual's behalf with the
knowledge of the individual, has knowingly made a false statement or
representation, or has knowingly failed to disclose a material fact to
obtain or increase benefits under this act or any other unemployment
compensation law administered by the secretary of labor, unless the
individual has repaid the full amount of the overpayment as determined
by the secretary or the secretary's designee, including, but not limited
to, the total amount of money erroneously paid as benefits or
unlawfully obtained, interest, penalties and any other costs or fees
provided by law. If the individual has made such repayment, the
individual shall be disqualified for a period of one year for the first
occurrence or five years for any subsequent occurrence, beginning with
the first day following the date the department of labor confirmed the
individual has successfully repaid the full amount of the overpayment.
In addition to the penalties set forth in K.S.A. 44-719, and amendments
thereto, an individual who has knowingly made a false statement or
representation or who has knowingly failed to disclose a material fact
to obtain or increase benefits under this act or any other unemployment
compensation law administered by the secretary of labor shall be liable
for a penalty in the amount equal to 25% of the amount of benefits
unlawfully received. Notwithstanding any other provision of law, such SENATE BILL No. 27—page 28
penalty shall be deposited into the employment security trust fund. No
person who is a victim of identify theft shall be subject to the
provisions of this subsection. The secretary shall investigate all cases of
an alleged false statement or representation or failure to disclose a
material fact to ensure no victim of identity theft is disqualified,
required to repay or subject to any penalty as provided by this
subsection as a result of identity theft.
(h) For any week in which the individual is receiving
compensation for temporary total disability or permanent total
disability under the workmen's compensation law of any state or under
a similar law of the United States.
(i) For any week of unemployment on the basis of service in an
instructional, research or principal administrative capacity for an
educational institution as defined in K.S.A. 44-703(v), and amendments
thereto, if such week begins during the period between two successive
academic years or terms or, when an agreement provides instead for a
similar period between two regular but not successive terms during
such period or during a period of paid sabbatical leave provided for in
the individual's contract, if the individual performs such services in the
first of such academic years or terms and there is a contract or a
reasonable assurance that such individual will perform services in any
such capacity for any educational institution in the second of such
academic years or terms.
(j) For any week of unemployment on the basis of service in any
capacity other than service in an instructional, research, or
administrative capacity in an educational institution, as defined in
K.S.A. 44-703(v), and amendments thereto, if such week begins during
the period between two successive academic years or terms if the
individual performs such services in the first of such academic years or
terms and there is a reasonable assurance that the individual will
perform such services in the second of such academic years or terms,
except that if benefits are denied to the individual under this subsection
and the individual was not offered an opportunity to perform such
services for the educational institution for the second of such academic
years or terms, such individual shall be entitled to a retroactive
payment of benefits for each week for which the individual filed a
timely claim for benefits and such benefits were denied solely by
reason of this subsection.
(k) For any week of unemployment on the basis of service in any
capacity for an educational institution as defined in K.S.A. 44-703(v),
and amendments thereto, if such week begins during an established and
customary vacation period or holiday recess, if the individual performs
services in the period immediately before such vacation period or
holiday recess and there is a reasonable assurance that such individual
will perform such services in the period immediately following such
vacation period or holiday recess.
(l) For any week of unemployment on the basis of any services,
consisting of participating in sports or athletic events or training or
preparing to so participate, if such week begins during the period
between two successive sport seasons or similar period if such
individual performed services in the first of such seasons or similar
periods and there is a reasonable assurance that such individual will
perform such services in the later of such seasons or similar periods.
(m) For any week on the basis of services performed by an alien
unless such alien is an individual who was lawfully admitted for
permanent residence at the time such services were performed, was
lawfully present for purposes of performing such services, or was
permanently residing in the United States under color of law at the time
such services were performed, including an alien who was lawfully SENATE BILL No. 27—page 29
present in the United States as a result of the application of the
provisions of section 212(d)(5) of the federal immigration and
nationality act. Any data or information required of individuals
applying for benefits to determine whether benefits are not payable to
them because of their alien status shall be uniformly required from all
applicants for benefits. In the case of an individual whose application
for benefits would otherwise be approved, no determination that
benefits to such individual are not payable because of such individual's
alien status shall be made except upon a preponderance of the evidence.
(n) For any week in which an individual is receiving a
governmental or other pension, retirement or retired pay, annuity or
other similar periodic payment under a plan maintained by a base
period employer and to which the entire contributions were provided by
such employer, except that:
(1) If the entire contributions to such plan were provided by the
base period employer but such individual's weekly benefit amount
exceeds such governmental or other pension, retirement or retired pay,
annuity or other similar periodic payment attributable to such week, the
weekly benefit amount payable to the individual shall be reduced, but
not below zero, by an amount equal to the amount of such pension,
retirement or retired pay, annuity or other similar periodic payment that
is attributable to such week; or
(2) if only a portion of contributions to such plan were provided
by the base period employer, the weekly benefit amount payable to
such individual for such week shall be reduced, but not below zero, by
the prorated weekly amount of the pension, retirement or retired pay,
annuity or other similar periodic payment after deduction of that
portion of the pension, retirement or retired pay, annuity or other
similar periodic payment that is directly attributable to the percentage
of the contributions made to the plan by such individual; or
(3) if the entire contributions to the plan were provided by such
individual, or by the individual and an employer, or any person or
organization, who is not a base period employer, no reduction in the
weekly benefit amount payable to the individual for such week shall be
made under this subsection; or
(4) whatever portion of contributions to such plan were provided
by the base period employer, if the services performed for the employer
by such individual during the base period, or remuneration received for
the services, did not affect the individual's eligibility for, or increased
the amount of, such pension, retirement or retired pay, annuity or other
similar periodic payment, no reduction in the weekly benefit amount
payable to the individual for such week shall be made under this
subsection. No reduction shall be made for payments made under the
social security act or railroad retirement act of 1974.
(o) For any week of unemployment on the basis of services
performed in any capacity and under any of the circumstances
described in subsection (i), (j) or (k) that an individual performed in an
educational institution while in the employ of an educational service
agency. For the purposes of this subsection, the term "educational
service agency" means a governmental agency or entity that is
established and operated exclusively for the purpose of providing such
services to one or more educational institutions.
(p) For any week of unemployment on the basis of service as a
school bus or other motor vehicle driver employed by a private
contractor to transport pupils, students and school personnel to or from
school-related functions or activities for an educational institution, as
defined in K.S.A. 44-703(v), and amendments thereto, if such week
begins during the period between two successive academic years or
during a similar period between two regular terms, whether or not SENATE BILL No. 27—page 30
successive, if the individual has a contract or contracts, or a reasonable
assurance thereof, to perform services in any such capacity with a
private contractor for any educational institution for both such
academic years or both such terms. An individual shall not be
disqualified for benefits as provided in this subsection for any week of
unemployment:
(1) That the individual is a participating employee in a short-term
compensation program established pursuant to K.S.A. 44-757, and
amendments thereto; or
(2) on the basis of service as a bus or other motor vehicle driver
employed by a private contractor to transport persons to or from
nonschool-related functions or activities.
(q) For any week of unemployment on the basis of services
performed by the individual in any capacity and under any of the
circumstances described in subsection (i), (j), (k) or (o) that are
provided to or on behalf of an educational institution, as defined in
K.S.A. 44-703(v), and amendments thereto, while the individual is in
the employ of an employer that is a governmental entity, Indian tribe or
any employer described in section 501(c)(3) of the federal internal
revenue code of 1986 that is exempt from income under section 501(a)
of the code.
(r) For any week in which an individual is registered at and
attending an established school, training facility or other educational
institution, or is on vacation during or between two successive
academic years or terms. An individual shall not be disqualified for
benefits as provided in this subsection if:
(1) The individual was engaged in full-time employment
concurrent with the individual's school attendance;
(2) the individual is attending approved training as defined in
K.S.A. 44-703(s), and amendments thereto; or
(3) the individual is attending evening, weekend or limited day
time classes that would not affect availability for work, and is
otherwise eligible under K.S.A. 44-705(c), and amendments thereto.
(s) For any week in which an individual is receiving or has
received remuneration in the form of a back pay award or settlement.
The remuneration shall be allocated to the week or weeks in the manner
as specified in the award or agreement, or in the absence of such
specificity in the award or agreement, such remuneration shall be
allocated to the week or weeks for which such remuneration, in the
judgment of the secretary, would have been paid.
(1) For any such weeks that an individual receives remuneration in
the form of a back pay award or settlement, an overpayment will be
established in the amount of unemployment benefits paid and shall be
collected from the claimant.
(2) If an employer chooses to withhold from a back pay award or
settlement, amounts paid to a claimant while they claimed
unemployment benefits, such employer shall pay the department the
amount withheld. With respect to such amount, the secretary shall have
available all of the collection remedies authorized or provided in
K.S.A. 44-717, and amendments thereto.
(t) (1) Any applicant for or recipient of unemployment benefits
who tests positive for unlawful use of a controlled substance or
controlled substance analog shall be required to complete a substance
abuse treatment program approved by the secretary of labor, secretary
of commerce or secretary for children and families, and a job skills
program approved by the secretary of labor, secretary of commerce or
the secretary for children and families. Subject to applicable federal
laws, any applicant for or recipient of unemployment benefits who fails
to complete or refuses to participate in the substance abuse treatment SENATE BILL No. 27—page 31
program or job skills program as required under this subsection shall be
ineligible to receive unemployment benefits until completion of such
substance abuse treatment and job skills programs. Upon completion of
both substance abuse treatment and job skills programs, such applicant
for or recipient of unemployment benefits may be subject to periodic
drug screening, as determined by the secretary of labor. Upon a second
positive test for unlawful use of a controlled substance or controlled
substance analog, an applicant for or recipient of unemployment
benefits shall be ordered to complete again a substance abuse treatment
program and job skills program, and shall be terminated from
unemployment benefits for a period of 12 months, or until such
applicant for or recipient of unemployment benefits completes both
substance abuse treatment and job skills programs, whichever is later.
Upon a third positive test for unlawful use of a controlled substance or
controlled substance analog, an applicant for or a recipient of
unemployment benefits shall be terminated from receiving
unemployment benefits, subject to applicable federal law.
(2) Any individual who has been discharged or refused
employment for failing a preemployment drug screen required by an
employer may request that the drug screening specimen be sent to a
different drug testing facility for an additional drug screening. Any such
individual who requests an additional drug screening at a different drug
testing facility shall be required to pay the cost of drug screening.
(u) If the individual was found not to have a disqualifying
adjudication or conviction under K.S.A. 39-970 or 65-5117, and
amendments thereto, was hired and then was subsequently convicted of
a disqualifying felony under K.S.A. 39-970 or 65-5117, and
amendments thereto, and discharged pursuant to K.S.A. 39-970 or 65-
5117, and amendments thereto. The disqualification shall begin the day
following the separation and shall continue until after the individual
becomes reemployed and has had earnings from insured work of at
least three times the individual's determined weekly benefit amount.
(v) Notwithstanding the provisions of any subsection, an
individual shall not be disqualified for such week of part-time
employment in a substitute capacity for an educational institution if
such individual's most recent employment prior to the individual's
benefit year begin date was for a non-educational institution and such
individual demonstrates application for work in such individual's
customary occupation or for work for which the individual is
reasonably fit by training or experience.
Sec. 9. K.S.A. 2023 Supp. 65-536 is hereby amended to read as
follows: 65-536. (a) A juvenile crisis intervention center is a facility
that provides short-term observation, assessment, treatment and case
planning, and referral for any juvenile who is experiencing a behavioral
health crisis and is likely to cause harm to self or others. Such centers
shall:
(1) Address or ensure access to the broad range of services to meet
the needs of a juvenile admitted to the center, including, but not limited
to, medical, psychiatric, psychological, social, educational and
substance abuse-related services;
(2) not include construction features designed to physically restrict
the movements and activities of juveniles, but shall have a design,
structure, interior and exterior environment, and furnishings to promote
a safe, comfortable and therapeutic environment for juveniles admitted
to the center;
(3) implement written policies and procedures that include the use
of a combination of supervision, inspection and accountability to
promote safe and orderly operations; and
(4) implement written policies and procedures for staff monitoring SENATE BILL No. 27—page 32
of all center entrances and exits.
(b) A juvenile crisis intervention center shall provide treatment to
juveniles admitted to such center, as appropriate while admitted.
(c) A juvenile crisis intervention center may be on the same
premises as that of another licensed facility. If the juvenile crisis
intervention center is on the same premises as that of another licensed
facility, the living unit of the juvenile crisis intervention center shall be
maintained in a separate, self-contained unit. No juvenile crisis
intervention center shall be in a city or county jail or a juvenile
detention facility.
(d) (1) A juvenile may be admitted to a juvenile crisis intervention
center when:
(A) The head of such center determines such juvenile is in need of
treatment and likely to cause harm to self or others;
(B) a qualified mental health professional from a community
mental health center has given written authorization for such juvenile to
be admitted to a juvenile crisis intervention center; and
(C) no other more appropriate treatment services are available and
accessible to the juvenile at the time of admission.
(2) A juvenile may be admitted to a juvenile crisis intervention
center for not more than 30 days. A parent with legal custody or legal
guardian of a juvenile placed in a juvenile crisis intervention center
may remove such juvenile from the center at any time. If the removal
may cause the juvenile to become a child in need of care pursuant to
K.S.A. 38-2202(d), and amendments thereto, the head of a juvenile
crisis intervention center may report such concerns to the department
for children and families or law enforcement or may request the county
or district attorney to initiate proceedings pursuant to the revised
Kansas code for care of children. If the head of a juvenile crisis
intervention center determines the most appropriate action is to request
the county or district attorney to initiate proceedings pursuant to the
revised Kansas code for care of children, the head of such center shall
make such request and shall keep such juvenile in the center for an
additional 24-hour period to initiate the appropriate proceedings.
(3) When a juvenile is released from a juvenile crisis intervention
center, the managed care organization, if the juvenile is a medicaid
recipient, and the community mental health center serving the area
where the juvenile is being discharged shall be involved with discharge
planning. Within seven days prior to the discharge of a juvenile, the
head of the juvenile crisis intervention center shall give written notice
of the date and time of the discharge to the patient, the managed care
organization, if the juvenile is a medicaid recipient, and the community
mental health center serving the area where the juvenile is being
discharged, and the patient's parent, custodian or legal guardian.
(e) (1) Upon admission to a juvenile crisis intervention center, and
if the juvenile is a medicaid recipient, the managed care organization
shall approve services as recommended by the head of the juvenile
crisis intervention center. Within 14 days after admission, the head of
the juvenile crisis intervention center shall develop a plan of treatment
for the juvenile in collaboration with the managed care organization.
(2) Nothing in this subsection shall prohibit the department of health
and environment from administering or reimbursing state medicaid
services to any juvenile admitted to a juvenile crisis intervention center
pursuant to a waiver granted under section 1915(c) of the federal social
security act, provided that such services are not administered through a
managed care delivery system.
(3) Nothing in this subsection shall prohibit the department of
health and environment from reimbursing any state medicaid services
that qualify for reimbursement and that are provided to a juvenile SENATE BILL No. 27—page 33
admitted to a juvenile crisis intervention center.
(4) Nothing in this subsection shall impair or otherwise affect the
validity of any contract in existence on July 1, 2018, between a
managed care organization and the department of health and
environment to provide state medicaid services.
(5) On or before January 1, 2019, the secretary of health and
environment shall submit to the United States centers for medicare and
medicaid services any approval request necessary to implement this
subsection.
(f) The secretary for children and families, in consultation with the
attorney general, shall promulgate rules and regulations to implement
the provisions of this section on or before January 1, 2019.
(g) The secretary for children and families shall annually report
information on outcomes of juveniles admitted into juvenile crisis
intervention centers to the J. Russell (Russ) Jennings joint committee
on corrections and juvenile justice oversight, the corrections and
juvenile justice committee of the house of representatives and the
judiciary committee of the senate. Such report shall include:
(1) The number of admissions, releases and the lengths of stay for
juveniles admitted to juvenile crisis intervention centers;
(2) services provided to juveniles admitted;
(3) needs of juveniles admitted determined by evidence-based
assessment; and
(4) success and recidivism rates, including information on the
reduction of involvement of the child welfare system and juvenile
justice system with the juvenile.
(h) The secretary of corrections may enter into memorandums of
agreement with other cabinet agencies to provide funding, not to
exceed $2,000,000 annually, from the evidence-based programs
account of the state general fund or other available appropriations for
juvenile crisis intervention services.
(i) For the purposes of this section:
(1) "Behavioral health crisis" means behavioral and conduct issues
that impact the safety or health of a juvenile, members of the juvenile's
household or family or members of the community, including, but not
limited to, non-life threatening mental health and substance abuse
concerns;
(2) "head of a juvenile crisis intervention center" means the
administrative director of a juvenile crisis intervention center or such
person's designee;
(3) "juvenile" means a person who is less than 18 years of age;
(4) "likely to cause harm to self or others" means that a juvenile,
by reason of the juvenile's behavioral health condition, mental disorder
or mental condition is likely, in the reasonably foreseeable future, to
cause substantial physical injury or physical abuse to self or others or
substantial damage to another's property, as evidenced by behavior
threatening, attempting or causing such injury, abuse or damage;
(5) "treatment" means any service intended to promote the mental
health of the patient and rendered by a qualified professional, licensed
or certified by the state to provide such service as an independent
practitioner or under the supervision of such practitioner; and
(6) "qualified mental health professional" means a physician or
psychologist who is employed by a participating mental health center
or who is providing services as a physician or psychologist under a
contract with a participating mental health center, a licensed masters
level psychologist, a licensed clinical psychotherapist, a licensed
marriage and family therapist, a licensed clinical marriage and family
therapist, a licensed professional counselor, a licensed clinical
professional counselor, a licensed specialist social worker or a licensed SENATE BILL No. 27—page 34
master social worker or a registered nurse who has a specialty in
psychiatric nursing, who is employed by a participating mental health
center and who is acting under the direction of a physician or
psychologist who is employed by, or under contract with, a
participating mental health center.
(j) This section shall be a part of and supplemental to article 5 of
chapter 65 of the Kansas Statutes Annotated, and amendments thereto.
Sec. 10. K.S.A. 65-2401, as amended by section 1 of 2023 House
Bill No. 2358, is hereby amended to read as follows: 65-2401. As used
in this act:
(a) "Vital statistics" includes the registration, preparation,
transcription, collection, compilation, and preservation of data
pertaining to birth, adoption, legitimation, death, stillbirth, marriage,
divorce, annulment of marriage, induced termination of pregnancy, and
data incidental thereto.
(b) "Live birth" means the complete expulsion or extraction from
its mother of a human child, irrespective of the duration of pregnancy,
which, after such expulsion or extraction, breathes or shows any other
evidence of life such as beating of the heart, pulsation of the umbilical
cord, or definite movement of voluntary muscles, whether or not the
umbilical cord has been cut or the placenta is attached.
(c) "Gestational age" means the age of the human child as
measured in weeks as determined by either the last date of the mother's
menstrual period, a sonogram conducted prior to the 20
th
week of
pregnancy or the confirmed known date of conception.
(d) "Stillbirth" means any complete expulsion or extraction from
its mother of a human child the gestational age of which is not less than
20 completed weeks, resulting in other than a live birth, as defined in
this section, and which is not an induced termination of pregnancy.
(e) "Induced termination of pregnancy" means abortion, as defined
in K.S.A. 65-6701, and amendments thereto.
(f) "Dead body" means a lifeless human body or such parts of a
human body or the bones thereof from the state of which it reasonably
may be concluded that death recently occurred.
(g) "Person in charge of interment" means any person who places
or causes to be placed a stillborn child or dead body or the ashes, after
cremation, in a grave, vault, urn or other receptacle, or otherwise
disposes thereof.
(h) "Secretary" means the secretary of health and environment.
(i) "Cause of death certifier" means a person licensed to practice
medicine and surgery by the state board of healing arts, a physician
assistant licensed by the state board of healing arts, an advanced
practice registered nurse licensed by the state board of nursing or a
district coroner, deputy coroner or special deputy coroner.
(j) "Employee" means a person who has applied for employment
or is currently employed in the office of vital statistics.
Sec. 11. K.S.A. 2023 Supp. 65-5808 is hereby amended to read as
follows: 65-5808. (a) The board may collect the following fees, and any
such fees shall be established by rules and regulations adopted by the
board:
(1) For application for licensure as a professional counselor, not
more than $100;
(2) for an original license as a professional counselor, not more
than $175;
(3) for a temporary license as a professional counselor, not more
than $175;
(4) for a six-month reinstatement temporary license as a
professional counselor, not more than $50;
(5) for renewal for licensure as a professional counselor, not more SENATE BILL No. 27—page 35
than $150;
(6) for application for licensure as a clinical professional
counselor, not more than $175;
(7) for licensure as a clinical professional counselor, not more than
$175;
(8) for renewal for licensure as a clinical professional counselor,
not more than $175;
(9) for a six-month reinstatement temporary license as a clinical
professional counselor, not more than $50;
(10) for a community-based professional counselor license, not
more than $175;
(11) for a home-state license with privilege to practice under the
counseling compact, not more than $25 in addition to any other
applicable fee;
(12) for late renewal penalty, an amount equal to the fee for
renewal of a license;
(12)(13) for reinstatement of a license, not more than $175;
(13)(14) for replacement of a license, not more than $20;
(14)(15) for a wallet card license, not more than $5; and
(15)(16) for application as a board-approved clinical supervisor,
not more than $50.
(b) Fees paid to the board are not refundable.
Sec. 12. K.S.A. 2023 Supp. 65-6129, as amended by section 21 of
2024 House Bill No. 2760, is hereby amended to read as follows: 65-
6129. (a) (1) Application for an emergency medical service provider
certificate shall be made to the board. The board shall not grant an
emergency medical service provider certificate unless the applicant
meets the following requirements:
(A) (i) Has successfully completed coursework required by the
rules and regulations adopted by the board;
(ii) has successfully completed coursework in another jurisdiction
that is substantially equivalent to that required by the rules and
regulations adopted by the board; or
(iii) has provided evidence that such applicant holds a current and
active certification with the national registry of emergency medical
technicians, completed emergency medical technician training as a
member of the army, navy, marine corps, air force, space force, air or
army national guard of any of the several states and territories, Puerto
Rico and the District of Columbia, coast guard or any component of the
military reserves of the United States that is substantially equivalent to
that required by the rules and regulations adopted by the board, and
such applicant separated from such period of active service as a
member of the armed forces with an honorable discharge. Applicants
currently performing active service as a member of the armed forces
are presumed to be serving honorably;
(B) (i) has passed the examination required by the rules and
regulations adopted by the board; or
(ii) has passed the certification or licensing examination in another
jurisdiction that has been approved by the board; and
(C) has paid an application fee required by the rules and
regulations adopted by the board.
(2) The board may grant an emergency medical service provider
certificate to any applicant who meets the requirements under
subsection (a)(1)(A)(iii) but was separated from such period of active
service as a member of the armed forces with a general discharge under
honorable conditions.
(b) (1) The emergency medical services board may require an
original applicant for certification as an emergency medical services
provider to be fingerprinted and submit to a state and national criminal SENATE BILL No. 27—page 36
history record check in accordance with section 2 of 2024 Senate Bill
No. 491, and amendments thereto. The fingerprints shall be used to
identify the applicant and to determine whether the applicant has a
record of criminal history in this state or another jurisdiction. The
emergency medical services board is authorized to submit the
fingerprints to the Kansas bureau of investigation and the federal
bureau of investigation for a state and national criminal history record
check. The emergency medical services board may use the information
obtained from fingerprinting and the applicant's criminal history for
purposes of verifying the identification of the applicant and making the
official determination of the qualifications and fitness of the applicant
to be issued or to maintain a certificate.
(2) Local and state law enforcement officers and agencies shall
assist the emergency medical services board in taking the fingerprints
of applicants for license, registration, permit or certificate. The Kansas
bureau of investigation shall release all records of adult convictions,
nonconvictions or adjudications in this state and any other state or
country to the emergency medical services boardAs used in this
section, "applicant" means a person who has submitted an application
for an emergency medical services provider certificate.
(3) The emergency medical services board may fix and collect a
fee as may be required by the board in an amount equal to the cost of
fingerprinting and the criminal history record check. The emergency
medical services board shall remit all moneys received from the fees
established by this section to the state treasurer in accordance with the
provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt
of each such remittance, the state treasurer shall deposit the entire
amount in the state treasury to the credit of the emergency medical
services criminal history and fingerprinting fund.
(4) There is hereby created in the state treasury the emergency
medical services criminal history and fingerprinting fund. All moneys
credited to the fund shall be used to pay the Kansas bureau of
investigation for the processing of fingerprints and criminal history
record checks for the emergency medical services board. The fund shall
be administered by the emergency medical services board. All
expenditures from the fund shall be made in accordance with
appropriation acts upon warrants of the director of accounts and reports
issued pursuant to vouchers approved by the chairperson of the
emergency medical services board or the chairperson's designee.
(c) The board shall not grant an initial advanced emergency
medical technician certificate or paramedic certificate as a result of
successful course completion in the state of Kansas, except if the
applicant for such an initial certificate is certified as an emergency
medical technician.
(d) An emergency medical service provider certificate shall expire
on the date prescribed by the board. An emergency medical service
provider certificate may be renewed for a period of two years upon
payment of a fee as prescribed by rule and regulation of the board and
upon presentation of satisfactory proof that the emergency medical
service provider has successfully completed continuing education as
prescribed by the board.
(e) All fees received pursuant to the provisions of this section shall
be remitted to the state treasurer in accordance with the provisions of
K.S.A. 75-4215, and amendments thereto. Upon receipt of each such
remittance, the state treasurer shall deposit the entire amount in the
state treasury to the credit of the emergency medical services operating
fund established by K.S.A. 65-6151, and amendments thereto.
(f) If a person who was previously certified as an emergency
medical service provider applies for an emergency medical service SENATE BILL No. 27—page 37
provider's certificate after the certificate's expiration, the board may
grant a certificate without the person completing an initial course of
instruction or passing a certification examination if the person has
completed education requirements and has paid a fee as specified in
rules and regulations adopted by the board.
(g) The board shall adopt, through rules and regulations, a formal
list of graduated sanctions for violations of article 61 of chapter 65 of
the Kansas Statutes Annotated, and amendments thereto, that shall
specify the number and severity of violations for the imposition of each
level of sanction.
Sec. 13. K.S.A. 73-1210a, as amended by section 27 of 2024
House Bill No. 2760, is hereby amended to read as follows: 73-1210a.
(a) Except as otherwise provided by law, and subject to the Kansas civil
service act, the director of the Kansas office of veterans services shall
appoint:
(1) Subordinate officers and employees, subject to the approval of
the governor, as are necessary to enable the director to exercise or
perform the functions, powers and duties pursuant to the provisions of
article 12 of chapter 73 of the Kansas Statutes Annotated, and
amendments thereto;
(2) the superintendent of the Kansas soldiers' home;
(3) the superintendent of the Kansas veterans' home; and
(4) the deputy director of veterans services pursuant to K.S.A. 73-
1234, and amendments thereto.
(b) (1) Upon the commencement of the interview process, every
candidate for a position in the Kansas office of veterans services that
interviews claimants and provides information advice and counseling to
veterans, surviving spouses, their dependents concerning
compensation, pension, education, vocational rehabilitation, insurance,
hospitalization, outpatient care, home loans, housing, tax exemptions,
burial benefits and other benefits to which they may be entitled, or any
other sensitive position, as determined by the director shall be given a
written notice that a criminal history records check is required. The
director of the Kansas office of veterans services shall require such
candidates to be fingerprinted and submit to a state and national
criminal history record check in accordance with section 2 of 2024
Senate Bill No. 491, and amendments thereto. The fingerprints shall be
used to identify the candidate and to determine whether the candidate
has a record of criminal history in this state or another jurisdiction. The
director of the Kansas office of veterans services shall submit the
fingerprints to the Kansas bureau of investigation and the federal
bureau of investigation for a state and national criminal history record
check. Local and state law enforcement officers and agencies shall
assist the director of the Kansas office of veterans services in taking
and processing of fingerprints of candidates. If the criminal history
record information reveals any conviction of crimes of dishonesty or
violence, such conviction may be used to disqualify a candidate for any
position within the director of the Kansas office of veterans services. If
the criminal history record information is used to disqualify a
candidate, the candidate shall be informed in writing of that decision
(2) As used in this subsection, "candidate" means an applicant for
a position in the Kansas office of veterans services that interviews
claimants and provides information, advice and counseling to veterans,
surviving spouses and their dependents concerning compensation,
pension, education, vocational rehabilitation, insurance,
hospitalization, outpatient care, home loans, housing, tax exemptions,
burial benefits and other benefits to which they may be entitled.
(c) Persons employed by the Kansas soldiers' home and Kansas
veterans' home shall be excluded from the provisions of subsection (b). SENATE BILL No. 27—page 38
No person who has been employed by the director of the Kansas office
of veterans services for five consecutive years immediately prior to the
effective date of this act shall be subject to the provisions of subsection
(b) while employed by the director of the Kansas office of veterans
services.
(d) (1) Except as otherwise provided by law, and subject to the
Kansas civil service act, the director of the Kansas office of veterans
services shall appoint subordinate officers and employees, a
superintendent of the Kansas soldiers' home and a superintendent of the
Kansas veterans' home, as shall be necessary to enable the director of
the Kansas office of veterans services to exercise or perform its
functions, powers and duties pursuant to the provisions of article 19 of
chapter 76 of the Kansas Statutes Annotated, and amendments thereto.
(2) (A) All subordinate officers and employees shall be within the
classified service under the Kansas civil service act, shall perform such
duties and exercise such powers as the director of the Kansas office of
veterans services may prescribe and such duties and powers as are
designated by law, and shall act for and exercise the powers of the the
director of the Kansas office of veterans services.
(B) The superintendent of the Kansas soldiers' home shall be in
the unclassified service under the Kansas civil service act and shall
receive an annual salary fixed by the director of the Kansas office of
veterans services, with the approval of the governor. The
superintendent of the Kansas soldiers' home shall perform such duties
and exercise such powers as the director may prescribe, and such duties
and powers as are prescribed by law.
(C) The superintendent of the Kansas veterans' home shall be in
the unclassified service under the Kansas civil service act and shall
receive an annual salary fixed by the director of the Kansas office of
veterans services, with the approval of the governor. The
superintendent of the Kansas veterans' home shall perform such duties
and exercise such powers as the director may prescribe, and such duties
and powers as are prescribed by law.
(e) Any veterans service representative appointed by the director
of the Kansas office of veterans services shall be an honorably
discharged veteran or retired from the United States armed forces. No
veterans service representative of the Kansas office of veterans services
shall take a power of attorney in the name of the director of the Kansas
office of veterans services. Nothing in this act shall be construed to
prohibit any such veterans service representative from assisting any
veteran with any claim in which a power of attorney is not required.
(f) For the purpose of this subsection, "veterans service
representative" means any officer or employee appointed pursuant to
this section whose primary duties include:
(1) Assisting veterans and their dependents in securing benefits
from the federal government and the state of Kansas.
(2) Providing information and assistance to veterans and
dependents in obtaining special services and benefits based on
knowledge of federal and state laws, policies and regulations pertaining
to veterans benefits and services.
(3) Providing assistance to veterans service organizations
participating in the veterans claims assistance program.
Sec. 14. K.S.A. 2023 Supp. 79-32,117, as amended by section 2 of
2024 Senate Bill No. 360, is hereby amended to read as follows: 79-
32,117. (a) The Kansas adjusted gross income of an individual means
such individual's federal adjusted gross income for the taxable year,
with the modifications specified in this section.
(b) There shall be added to federal adjusted gross income:
(i) Interest income less any related expenses directly incurred in SENATE BILL No. 27—page 39
the purchase of state or political subdivision obligations, to the extent
that the same is not included in federal adjusted gross income, on
obligations of any state or political subdivision thereof, but to the
extent that interest income on obligations of this state or a political
subdivision thereof issued prior to January 1, 1988, is specifically
exempt from income tax under the laws of this state authorizing the
issuance of such obligations, it shall be excluded from computation of
Kansas adjusted gross income whether or not included in federal
adjusted gross income. Interest income on obligations of this state or a
political subdivision thereof issued after December 31, 1987, shall be
excluded from computation of Kansas adjusted gross income whether
or not included in federal adjusted gross income.
(ii) Taxes on or measured by income or fees or payments in lieu of
income taxes imposed by this state or any other taxing jurisdiction to
the extent deductible in determining federal adjusted gross income and
not credited against federal income tax. This paragraph shall not apply
to taxes imposed under the provisions of K.S.A. 79-1107 or 79-1108,
and amendments thereto, for privilege tax year 1995, and all such years
thereafter.
(iii) The federal net operating loss deduction, except that the
federal net operating loss deduction shall not be added to an
individual's federal adjusted gross income for tax years beginning after
December 31, 2016.
(iv) Federal income tax refunds received by the taxpayer if the
deduction of the taxes being refunded resulted in a tax benefit for
Kansas income tax purposes during a prior taxable year. Such refunds
shall be included in income in the year actually received regardless of
the method of accounting used by the taxpayer. For purposes hereof, a
tax benefit shall be deemed to have resulted if the amount of the tax
had been deducted in determining income subject to a Kansas income
tax for a prior year regardless of the rate of taxation applied in such
prior year to the Kansas taxable income, but only that portion of the
refund shall be included as bears the same proportion to the total refund
received as the federal taxes deducted in the year to which such refund
is attributable bears to the total federal income taxes paid for such year.
For purposes of the foregoing sentence, federal taxes shall be
considered to have been deducted only to the extent such deduction
does not reduce Kansas taxable income below zero.
(v) The amount of any depreciation deduction or business expense
deduction claimed on the taxpayer's federal income tax return for any
capital expenditure in making any building or facility accessible to the
handicapped, for which expenditure the taxpayer claimed the credit
allowed by K.S.A. 79-32,177, and amendments thereto.
(vi) Any amount of designated employee contributions picked up
by an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-
4965, and amendments thereto.
(vii) The amount of any charitable contribution made to the extent
the same is claimed as the basis for the credit allowed pursuant to
K.S.A. 79-32,196, and amendments thereto.
(viii) The amount of any costs incurred for improvements to a
swine facility, claimed for deduction in determining federal adjusted
gross income, to the extent the same is claimed as the basis for any
credit allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
(ix) The amount of any ad valorem taxes and assessments paid and
the amount of any costs incurred for habitat management or
construction and maintenance of improvements on real property,
claimed for deduction in determining federal adjusted gross income, to
the extent the same is claimed as the basis for any credit allowed
pursuant to K.S.A. 79-32,203, and amendments thereto. SENATE BILL No. 27—page 40
(x) Amounts received as nonqualified withdrawals, as defined by
K.S.A. 75-643, and amendments thereto, if, at the time of contribution
to a family postsecondary education savings account, such amounts
were subtracted from the federal adjusted gross income pursuant to
subsection (c)(xv) or if such amounts are not already included in the
federal adjusted gross income.
(xi) The amount of any contribution made to the same extent the
same is claimed as the basis for the credit allowed pursuant to K.S.A.
74-50,154, and amendments thereto.
(xii) For taxable years commencing after December 31, 2004,
amounts received as withdrawals not in accordance with the provisions
of K.S.A. 74-50,204, and amendments thereto, if, at the time of
contribution to an individual development account, such amounts were
subtracted from the federal adjusted gross income pursuant to
subsection (c)(xiii), or if such amounts are not already included in the
federal adjusted gross income.
(xiii) The amount of any expenditures claimed for deduction in
determining federal adjusted gross income, to the extent the same is
claimed as the basis for any credit allowed pursuant to K.S.A. 79-
32,217 through 79-32,220 or 79-32,222, and amendments thereto.
(xiv) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
thereto.
(xv) The amount of any expenditures claimed for deduction in
determining federal adjusted gross income, to the extent the same is
claimed as the basis for any credit allowed pursuant to K.S.A. 79-
32,223 through 79-32,226, 79-32,228 through 79-32,231, 79-32,233
through 79-32,236, 79-32,238 through 79-32,241, 79-32,245 through
79-32,248 or 79-32,251 through 79-32,254, and amendments thereto.
(xvi) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
(xvii) The amount of any amortization deduction claimed in
determining federal adjusted gross income to the extent the same is
claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
thereto.
(xviii) For taxable years commencing after December 31, 2006,
the amount of any ad valorem or property taxes and assessments paid to
a state other than Kansas or local government located in a state other
than Kansas by a taxpayer who resides in a state other than Kansas,
when the law of such state does not allow a resident of Kansas who
earns income in such other state to claim a deduction for ad valorem or
property taxes or assessments paid to a political subdivision of the state
of Kansas in determining taxable income for income tax purposes in
such other state, to the extent that such taxes and assessments are
claimed as an itemized deduction for federal income tax purposes.
(xix) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any: (1) Loss from
business as determined under the federal internal revenue code and
reported from schedule C and on line 12 of the taxpayer's form 1040
federal individual income tax return; (2) loss from rental real estate,
royalties, partnerships, S corporations, except those with wholly owned
subsidiaries subject to the Kansas privilege tax, estates, trusts, residual
interest in real estate mortgage investment conduits and net farm rental
as determined under the federal internal revenue code and reported
from schedule E and on line 17 of the taxpayer's form 1040 federal
individual income tax return; and (3) farm loss as determined under the SENATE BILL No. 27—page 41
federal internal revenue code and reported from schedule F and on line
18 of the taxpayer's form 1040 federal income tax return; all to the
extent deducted or subtracted in determining the taxpayer's federal
adjusted gross income. For purposes of this subsection, references to
the federal form 1040 and federal schedule C, schedule E, and schedule
F, shall be to such form and schedules as they existed for tax year 2011,
and as revised thereafter by the internal revenue service.
(xx) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for self-
employment taxes under section 164(f) of the federal internal revenue
code as in effect on January 1, 2012, and amendments thereto, in
determining the federal adjusted gross income of an individual
taxpayer, to the extent the deduction is attributable to income reported
on schedule C, E or F and on line 12, 17 or 18 of the taxpayer's form
1040 federal income tax return.
(xxi) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for
pension, profit sharing, and annuity plans of self-employed individuals
under section 62(a)(6) of the federal internal revenue code as in effect
on January 1, 2012, and amendments thereto, in determining the federal
adjusted gross income of an individual taxpayer.
(xxii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for health
insurance under section 162(l) of the federal internal revenue code as in
effect on January 1, 2012, and amendments thereto, in determining the
federal adjusted gross income of an individual taxpayer.
(xxiii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any deduction for
domestic production activities under section 199 of the federal internal
revenue code as in effect on January 1, 2012, and amendments thereto,
in determining the federal adjusted gross income of an individual
taxpayer.
(xxiv) For taxable years commencing after December 31, 2013,
that portion of the amount of any expenditure deduction claimed in
determining federal adjusted gross income for expenses paid for
medical care of the taxpayer or the taxpayer's spouse or dependents
when such expenses were paid or incurred for an abortion, or for a
health benefit plan, as defined in K.S.A. 65-6731, and amendments
thereto, for the purchase of an optional rider for coverage of abortion in
accordance with K.S.A. 40-2,190, and amendments thereto, to the
extent that such taxes and assessments are claimed as an itemized
deduction for federal income tax purposes.
(xxv) For taxable years commencing after December 31, 2013,
that portion of the amount of any expenditure deduction claimed in
determining federal adjusted gross income for expenses paid by a
taxpayer for health care when such expenses were paid or incurred for
abortion coverage, a health benefit plan, as defined in K.S.A. 65-6731,
and amendments thereto, when such expenses were paid or incurred for
abortion coverage or amounts contributed to health savings accounts
for such taxpayer's employees for the purchase of an optional rider for
coverage of abortion in accordance with K.S.A. 40-2,190, and
amendments thereto, to the extent that such taxes and assessments are
claimed as a deduction for federal income tax purposes.
(xxvi) For all taxable years beginning after December 31, 2016,
the amount of any charitable contribution made to the extent the same
is claimed as the basis for the credit allowed pursuant to K.S.A. 72-
4357, and amendments thereto, and is also claimed as an itemized
deduction for federal income tax purposes.
(xxvii) For all taxable years commencing after December 31, SENATE BILL No. 27—page 42
2020, the amount deducted by reason of a of any interest expense paid
or accrued in a previous taxable year but allowed as a deduction
pursuant to section 163 of the federal internal revenue code in the
current taxable year by reason of the carryforward of disallowed
business interest pursuant to section 163(j) of the federal internal
revenue code of 1986, as in effect on January 1, 2018. For purposes of
this paragraph, an interest expense is considered paid or accrued only
in the first taxable year the deduction would have been allowable
pursuant to section 163 of the federal internal revenue code if the
limitation pursuant to section 163(j) of the federal internal revenue
code did not exist.
(xxviii) For all taxable years beginning after December 31, 2021,
the amount of any contributions to, or earnings from, a first-time home
buyer savings account if distributions from the account were not used
to pay for expenses or transactions authorized pursuant to K.S.A. 2023
Supp. 58-4904, and amendments thereto, or were not held for the
minimum length of time required pursuant to K.S.A. 2023 Supp. 58-
4904, and amendments thereto. Contributions to, or earnings from,
such account shall also include any amount resulting from the account
holder not designating a surviving payable on death beneficiary
pursuant to K.S.A. 2023 Supp. 58-4904(e), and amendments thereto.
(xxix) For all taxable years beginning after December 31, 2024,
the amount of any contributions to, or earnings from, an adoption
savings account if distributions from the account were not used to pay
for expenses or transactions authorized pursuant to section 4 of 2024
House Bill No. 2465, and amendments thereto, or were not held for the
minimum length of time required pursuant to section 4 of 2024 House
Bill No. 2465, and amendments thereto. Contributions to, or earnings
from, such account shall also include any amount resulting from the
account holder not designating a surviving payable on death
beneficiary pursuant to section 4(e) of 2024 House Bill No. 2465, and
amendments thereto.
(c) There shall be subtracted from federal adjusted gross income:
(i) Interest or dividend income on obligations or securities of any
authority, commission or instrumentality of the United States and its
possessions less any related expenses directly incurred in the purchase
of such obligations or securities, to the extent included in federal
adjusted gross income but exempt from state income taxes under the
laws of the United States.
(ii) Any amounts received which are included in federal adjusted
gross income but which are specifically exempt from Kansas income
taxation under the laws of the state of Kansas.
(iii) The portion of any gain or loss from the sale or other
disposition of property having a higher adjusted basis for Kansas
income tax purposes than for federal income tax purposes on the date
such property was sold or disposed of in a transaction in which gain or
loss was recognized for purposes of federal income tax that does not
exceed such difference in basis, but if a gain is considered a long-term
capital gain for federal income tax purposes, the modification shall be
limited to that portion of such gain which is included in federal
adjusted gross income.
(iv) The amount necessary to prevent the taxation under this act of
any annuity or other amount of income or gain which was properly
included in income or gain and was taxed under the laws of this state
for a taxable year prior to the effective date of this act, as amended, to
the taxpayer, or to a decedent by reason of whose death the taxpayer
acquired the right to receive the income or gain, or to a trust or estate
from which the taxpayer received the income or gain.
(v) The amount of any refund or credit for overpayment of taxes SENATE BILL No. 27—page 43
on or measured by income or fees or payments in lieu of income taxes
imposed by this state, or any taxing jurisdiction, to the extent included
in gross income for federal income tax purposes.
(vi) Accumulation distributions received by a taxpayer as a
beneficiary of a trust to the extent that the same are included in federal
adjusted gross income.
(vii) Amounts received as annuities under the federal civil service
retirement system from the civil service retirement and disability fund
and other amounts received as retirement benefits in whatever form
which were earned for being employed by the federal government or
for service in the armed forces of the United States.
(viii) Amounts received by retired railroad employees as a
supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
228c(a)(1) et seq.
(ix) Amounts received by retired employees of a city and by
retired employees of any board of such city as retirement allowances
pursuant to K.S.A. 13-14,106, and amendments thereto, or pursuant to
any charter ordinance exempting a city from the provisions of K.S.A.
13-14,106, and amendments thereto.
(x) (1) For taxable years beginning after December 31, 1976 2021,
the amount of the any federal tentative jobs tax credit disallowance
under the provisions of 26 U.S.C. § 280C(a). For taxable years ending
after December 31, 1978, the amount of the targeted jobs tax credit and
work incentive credit disallowances under 26 U.S.C. § 280C.
(2) For taxable years beginning after December 31, 2019, and
ending before January 1, 2022, 50% of the amount of the federal
employee retention credit disallowance under rules similar to the rules
of 26 U.S.C. § 280C(a). The taxpayer shall be required to prove that
such taxpayer previously filed Kansas income tax returns and paid
Kansas income tax on the disallowed amount. Notwithstanding any
other provision of law to the contrary, any claim for refund or amended
return relating to this subparagraph shall be allowed to be filed on or
before April 15, 2025, and no claim for refund or amended return shall
be allowed or filed after April 15, 2025.
(xi) For taxable years beginning after December 31, 1986,
dividend income on stock issued by Kansas venture capital, inc.
(xii) For taxable years beginning after December 31, 1989,
amounts received by retired employees of a board of public utilities as
pension and retirement benefits pursuant to K.S.A. 13-1246, 13-1246a
and 13-1249, and amendments thereto.
(xiii) For taxable years beginning after December 31, 2004,
amounts contributed to and the amount of income earned on
contributions deposited to an individual development account under
K.S.A. 74-50,201 et seq., and amendments thereto.
(xiv) For all taxable years commencing after December 31, 1996,
that portion of any income of a bank organized under the laws of this
state or any other state, a national banking association organized under
the laws of the United States, an association organized under the
savings and loan code of this state or any other state, or a federal
savings association organized under the laws of the United States, for
which an election as an S corporation under subchapter S of the federal
internal revenue code is in effect, which accrues to the taxpayer who is
a stockholder of such corporation and which is not distributed to the
stockholders as dividends of the corporation. For taxable years
beginning after December 31, 2012, and ending before January 1, 2017,
the amount of modification under this subsection shall exclude the
portion of income or loss reported on schedule E and included on line
17 of the taxpayer's form 1040 federal individual income tax return.
(xv) The cumulative amounts not exceeding $3,000, or $6,000 for SENATE BILL No. 27—page 44
a married couple filing a joint return, for each designated beneficiary
that are contributed to: (1) A family postsecondary education savings
account established under the Kansas postsecondary education savings
program or a qualified tuition program established and maintained by
another state or agency or instrumentality thereof pursuant to section
529 of the internal revenue code of 1986, as amended, for the purpose
of paying the qualified higher education expenses of a designated
beneficiary; or (2) an achieving a better life experience (ABLE)
account established under the Kansas ABLE savings program or a
qualified ABLE program established and maintained by another state or
agency or instrumentality thereof pursuant to section 529A of the
internal revenue code of 1986, as amended, for the purpose of saving
private funds to support an individual with a disability. The terms and
phrases used in this paragraph shall have the meaning respectively
ascribed thereto by the provisions of K.S.A. 75-643 and 75-652, and
amendments thereto, and the provisions of such sections are hereby
incorporated by reference for all purposes thereof. For all taxable years
beginning after December 31, 2022, contributions made to a qualified
tuition program account or a qualified ABLE program account pursuant
to this paragraph on and after January 1 but prior to the date required
for filing a return pursuant to K.S.A. 79-3221, and amendments thereto,
of the successive taxable year may be elected by the taxpayer to apply
to the prior taxable year if such election is made at the time of filing the
return. No contribution shall be used as a modification pursuant to this
paragraph in more than one taxable year.
(xvi) For all taxable years beginning after December 31, 2004,
amounts received by taxpayers who are or were members of the armed
forces of the United States, including service in the Kansas army and
air national guard, as a recruitment, sign up or retention bonus received
by such taxpayer as an incentive to join, enlist or remain in the armed
services of the United States, including service in the Kansas army and
air national guard, and amounts received for repayment of educational
or student loans incurred by or obligated to such taxpayer and received
by such taxpayer as a result of such taxpayer's service in the armed
forces of the United States, including service in the Kansas army and
air national guard.
(xvii) For all taxable years beginning after December 31, 2004,
amounts received by taxpayers who are eligible members of the Kansas
army and air national guard as a reimbursement pursuant to K.S.A. 48-
281, and amendments thereto, and amounts received for death benefits
pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
such death benefits are included in federal adjusted gross income of the
taxpayer.
(xviii) For the taxable year beginning after December 31, 2006,
amounts received as benefits under the federal social security act which
are included in federal adjusted gross income of a taxpayer with federal
adjusted gross income of $50,000 or less, whether such taxpayer's filing
status is single, head of household, married filing separate or married
filing jointly; and for all taxable years beginning after December 31,
2007, amounts received as benefits under the federal social security act
which are included in federal adjusted gross income of a taxpayer with
federal adjusted gross income of $75,000 or less, whether such
taxpayer's filing status is single, head of household, married filing
separate or married filing jointly.
(xix) Amounts received by retired employees of Washburn
university as retirement and pension benefits under the university's
retirement plan.
(xx) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of any: (1) Net profit from SENATE BILL No. 27—page 45
business as determined under the federal internal revenue code and
reported from schedule C and on line 12 of the taxpayer's form 1040
federal individual income tax return; (2) net income, not including
guaranteed payments as defined in section 707(c) of the federal internal
revenue code and as reported to the taxpayer from federal schedule K-
1, (form 1065-B), in box 9, code F or as reported to the taxpayer from
federal schedule K-1, (form 1065) in box 4, from rental real estate,
royalties, partnerships, S corporations, estates, trusts, residual interest
in real estate mortgage investment conduits and net farm rental as
determined under the federal internal revenue code and reported from
schedule E and on line 17 of the taxpayer's form 1040 federal
individual income tax return; and (3) net farm profit as determined
under the federal internal revenue code and reported from schedule F
and on line 18 of the taxpayer's form 1040 federal income tax return;
all to the extent included in the taxpayer's federal adjusted gross
income. For purposes of this subsection, references to the federal form
1040 and federal schedule C, schedule E, and schedule F, shall be to
such form and schedules as they existed for tax year 2011 and as
revised thereafter by the internal revenue service.
(xxi) For all taxable years beginning after December 31, 2013,
amounts equal to the unreimbursed travel, lodging and medical
expenditures directly incurred by a taxpayer while living, or a
dependent of the taxpayer while living, for the donation of one or more
human organs of the taxpayer, or a dependent of the taxpayer, to
another person for human organ transplantation. The expenses may be
claimed as a subtraction modification provided for in this section to the
extent the expenses are not already subtracted from the taxpayer's
federal adjusted gross income. In no circumstances shall the subtraction
modification provided for in this section for any individual, or a
dependent, exceed $5,000. As used in this section, "human organ"
means all or part of a liver, pancreas, kidney, intestine, lung or bone
marrow. The provisions of this paragraph shall take effect on the day
the secretary of revenue certifies to the director of the budget that the
cost for the department of revenue of modifications to the automated
tax system for the purpose of implementing this paragraph will not
exceed $20,000.
(xxii) For taxable years beginning after December 31, 2012, and
ending before January 1, 2017, the amount of net gain from the sale of:
(1) Cattle and horses, regardless of age, held by the taxpayer for draft,
breeding, dairy or sporting purposes, and held by such taxpayer for 24
months or more from the date of acquisition; and (2) other livestock,
regardless of age, held by the taxpayer for draft, breeding, dairy or
sporting purposes, and held by such taxpayer for 12 months or more
from the date of acquisition. The subtraction from federal adjusted
gross income shall be limited to the amount of the additions recognized
under the provisions of subsection (b)(xix) attributable to the business
in which the livestock sold had been used. As used in this paragraph,
the term "livestock" shall not include poultry.
(xxiii) For all taxable years beginning after December 31, 2012,
amounts received under either the Overland Park, Kansas police
department retirement plan or the Overland Park, Kansas fire
department retirement plan, both as established by the city of Overland
Park, pursuant to the city's home rule authority.
(xxiv) For taxable years beginning after December 31, 2013, and
ending before January 1, 2017, the net gain from the sale from
Christmas trees grown in Kansas and held by the taxpayer for six years
or more.
(xxv) For all taxable years commencing after December 31, 2020,
100% of global intangible low-taxed income under section 951A of the SENATE BILL No. 27—page 46
federal internal revenue code of 1986, before any deductions allowed
under section 250(a)(1)(B) of such code.
(xxvi) (1) For all taxable years commencing after December 31,
2020, the amount of any interest expense paid or accrued in the current
taxable year and disallowed as a deduction pursuant to section 163(j)
of the federal internal revenue code of 1986, as in effect on January 1,
2018.
(2) For purposes of this paragraph, an interest expense is
considered paid or accrued only in the first taxable year the deduction
would have been allowable pursuant to section 163 of the federal
internal revenue code if the limitation pursuant to section 163(j) of the
federal internal revenue code did not exist.
(3) For tax year 2021, an amount equal to the sum of any interest
expenses paid or accrued in tax years 2018, 2019 and 2020 less the
sum of amounts allowed as a deduction pursuant to section 163 of the
federal internal revenue code in tax years 2018, 2019 and 2020.
(xxvii) For taxable years commencing after December 31, 2020,
the amount disallowed as a deduction pursuant to section 274 of the
federal internal revenue code of 1986 for meal expenditures shall be
allowed to the extent such expense was deductible for determining
federal income tax and was allowed and in effect on December 31,
2017.
(xxviii) For all taxable years beginning after December 31, 2021:
(1) The amount contributed to a first-time home buyer savings account
pursuant to K.S.A. 2023 Supp. 58-4903, and amendments thereto, in an
amount not to exceed $3,000 for an individual or $6,000 for a married
couple filing a joint return; or (2) amounts received as income earned
from assets in a first-time home buyer savings account. For all taxable
years beginning after December 31, 2022, contributions made to a first-
time home buyer savings account pursuant to subparagraph (1) on and
after January 1 but prior to the date required for filing a return pursuant
to K.S.A. 79-3221, and amendments thereto, of the successive taxable
year may be elected by the taxpayer to apply to the prior taxable year if
such election is made at the time of filing the return. No contribution
shall be used as a modification pursuant to subparagraph (1) in more
than one taxable year.
(xxix) For taxable years beginning after December 31, 2017, for
an individual taxpayer who carried back federal net operating losses
arising in a taxable year beginning after December 31, 2017, and
before January 1, 2021, pursuant to section 172(b)(1) of the federal
internal revenue code as amended by the coronavirus aid, relief, and
economic security act (CARES act), the amount of such federal net
operating loss carryback for each applicable year. If the amount of
such federal net operating loss carryback exceeds the taxpayer's
Kansas adjusted gross income for such taxable year, the amount
thereof that exceeds such Kansas adjusted gross income may be carried
forward as a subtraction modification in the following taxable year or
years until the total amount of such federal net operating loss
carryback has been deducted, except that no such unused amount shall
be carried forward for deduction as a subtraction modification after
the 20
th
taxable year following the taxable year of the net operating
loss. Notwithstanding any other provision of law to the contrary, an
extension of time shall be allowed for a claim for refund or amended
return for tax years 2018, 2019 or 2020 limited to the application of
the provisions of this paragraph and such claim for refund or amended
return must be filed on or before April 15, 2025.
(xxx) For all taxable years beginning after December 31, 2024:
(1) The amount contributed to an adoption savings account pursuant to
section 3 of 2024 House Bill No. 2465, and amendments thereto, in an SENATE BILL No. 27—page 47
amount not to exceed $6,000 for an individual or $12,000 for a
married couple filing a joint return; or (2) amounts received as income
earned from assets in an adoption savings account.
(d) There shall be added to or subtracted from federal adjusted
gross income the taxpayer's share, as beneficiary of an estate or trust, of
the Kansas fiduciary adjustment determined under K.S.A. 79-32,135,
and amendments thereto.
(e) The amount of modifications required to be made under this
section by a partner which relates to items of income, gain, loss,
deduction or credit of a partnership shall be determined under K.S.A.
79-32,131, and amendments thereto, to the extent that such items affect
federal adjusted gross income of the partner.
Sec. 15. K.S.A. 2023 Supp. 79-3606, as amended by section 5 of
2023 House Bill No. 2098 is hereby amended to read as follows: 79-
3606. The following shall be exempt from the tax imposed by this act:
(a) All sales of motor-vehicle fuel or other articles upon which a
sales or excise tax has been paid, not subject to refund, under the laws
of this state except cigarettes and electronic cigarettes as defined by
K.S.A. 79-3301, and amendments thereto, including consumable
material for such electronic cigarettes, cereal malt beverages and malt
products as defined by K.S.A. 79-3817, and amendments thereto,
including wort, liquid malt, malt syrup and malt extract, that is not
subject to taxation under the provisions of K.S.A. 79-41a02, and
amendments thereto, motor vehicles taxed pursuant to K.S.A. 79-5117,
and amendments thereto, tires taxed pursuant to K.S.A. 65-3424d, and
amendments thereto, drycleaning and laundry services taxed pursuant
to K.S.A. 65-34,150, and amendments thereto, and gross receipts from
regulated sports contests taxed pursuant to the Kansas professional
regulated sports act, and amendments thereto;
(b) all sales of tangible personal property or service, including the
renting and leasing of tangible personal property, purchased directly by
the state of Kansas, a political subdivision thereof, other than a school
or educational institution, or purchased by a public or private nonprofit
hospital, public hospital authority, nonprofit blood, tissue or organ bank
or nonprofit integrated community care organization and used
exclusively for state, political subdivision, hospital, public hospital
authority, nonprofit blood, tissue or organ bank or nonprofit integrated
community care organization purposes, except when: (1) Such state,
hospital or public hospital authority is engaged or proposes to engage
in any business specifically taxable under the provisions of this act and
such items of tangible personal property or service are used or
proposed to be used in such business; or (2) such political subdivision
is engaged or proposes to engage in the business of furnishing gas,
electricity or heat to others and such items of personal property or
service are used or proposed to be used in such business;
(c) all sales of tangible personal property or services, including the
renting and leasing of tangible personal property, purchased directly by
a public or private elementary or secondary school or public or private
nonprofit educational institution and used primarily by such school or
institution for nonsectarian programs and activities provided or
sponsored by such school or institution or in the erection, repair or
enlargement of buildings to be used for such purposes. The exemption
herein provided shall not apply to erection, construction, repair,
enlargement or equipment of buildings used primarily for human
habitation, except that such exemption shall apply to the erection,
construction, repair, enlargement or equipment of buildings used for
human habitation by the cerebral palsy research foundation of Kansas
located in Wichita, Kansas, multi community diversified services,
incorporated, located in McPherson, Kansas, the Kansas state school SENATE BILL No. 27—page 48
for the blind and the Kansas state school for the deaf;
(d) all sales of tangible personal property or services purchased by
a contractor for the purpose of constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities for
any public or private nonprofit hospital or public hospital authority,
public or private elementary or secondary school, a public or private
nonprofit educational institution, state correctional institution including
a privately constructed correctional institution contracted for state use
and ownership, that would be exempt from taxation under the
provisions of this act if purchased directly by such hospital or public
hospital authority, school, educational institution or a state correctional
institution; and all sales of tangible personal property or services
purchased by a contractor for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or
remodeling facilities for any political subdivision of the state or district
described in subsection (s), the total cost of which is paid from funds of
such political subdivision or district and that would be exempt from
taxation under the provisions of this act if purchased directly by such
political subdivision or district. Nothing in this subsection or in the
provisions of K.S.A. 12-3418, and amendments thereto, shall be
deemed to exempt the purchase of any construction machinery,
equipment or tools used in the constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities for
any political subdivision of the state or any such district. As used in this
subsection, K.S.A. 12-3418 and 79-3640, and amendments thereto,
"funds of a political subdivision" shall mean general tax revenues, the
proceeds of any bonds and gifts or grants-in-aid. Gifts shall not mean
funds used for the purpose of constructing, equipping, reconstructing,
repairing, enlarging, furnishing or remodeling facilities that are to be
leased to the donor. When any political subdivision of the state, district
described in subsection (s), public or private nonprofit hospital or
public hospital authority, public or private elementary or secondary
school, public or private nonprofit educational institution, state
correctional institution including a privately constructed correctional
institution contracted for state use and ownership shall contract for the
purpose of constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities, it shall obtain
from the state and furnish to the contractor an exemption certificate for
the project involved, and the contractor may purchase materials for
incorporation in such project. The contractor shall furnish the number
of such certificate to all suppliers from whom such purchases are made,
and such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project the
contractor shall furnish to the political subdivision, district described in
subsection (s), hospital or public hospital authority, school, educational
institution or department of corrections concerned a sworn statement,
on a form to be provided by the director of taxation, that all purchases
so made were entitled to exemption under this subsection. As an
alternative to the foregoing procedure, any such contracting entity may
apply to the secretary of revenue for agent status for the sole purpose of
issuing and furnishing project exemption certificates to contractors
pursuant to rules and regulations adopted by the secretary establishing
conditions and standards for the granting and maintaining of such
status. All invoices shall be held by the contractor for a period of five
years and shall be subject to audit by the director of taxation. If any
materials purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been
returned for credit or the sales or compensating tax otherwise imposed
upon such materials that will not be so incorporated in the building or SENATE BILL No. 27—page 49
other project reported and paid by such contractor to the director of
taxation not later than the 20
th
day of the month following the close of
the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, the
political subdivision, district described in subsection (s), hospital or
public hospital authority, school, educational institution or the
contractor contracting with the department of corrections for a
correctional institution concerned shall be liable for tax on all materials
purchased for the project, and upon payment thereof it may recover the
same from the contractor together with reasonable attorney fees. Any
contractor or any agent, employee or subcontractor thereof, who shall
use or otherwise dispose of any materials purchased under such a
certificate for any purpose other than that for which such a certificate is
issued without the payment of the sales or compensating tax otherwise
imposed upon such materials, shall be guilty of a misdemeanor and,
upon conviction therefor, shall be subject to the penalties provided for
in K.S.A. 79-3615(h), and amendments thereto;
(e) all sales of tangible personal property or services purchased by
a contractor for the erection, repair or enlargement of buildings or other
projects for the government of the United States, its agencies or
instrumentalities, that would be exempt from taxation if purchased
directly by the government of the United States, its agencies or
instrumentalities. When the government of the United States, its
agencies or instrumentalities shall contract for the erection, repair, or
enlargement of any building or other project, it shall obtain from the
state and furnish to the contractor an exemption certificate for the
project involved, and the contractor may purchase materials for
incorporation in such project. The contractor shall furnish the number
of such certificates to all suppliers from whom such purchases are
made, and such suppliers shall execute invoices covering the same
bearing the number of such certificate. Upon completion of the project
the contractor shall furnish to the government of the United States, its
agencies or instrumentalities concerned a sworn statement, on a form to
be provided by the director of taxation, that all purchases so made were
entitled to exemption under this subsection. As an alternative to the
foregoing procedure, any such contracting entity may apply to the
secretary of revenue for agent status for the sole purpose of issuing and
furnishing project exemption certificates to contractors pursuant to
rules and regulations adopted by the secretary establishing conditions
and standards for the granting and maintaining of such status. All
invoices shall be held by the contractor for a period of five years and
shall be subject to audit by the director of taxation. Any contractor or
any agent, employee or subcontractor thereof, who shall use or
otherwise dispose of any materials purchased under such a certificate
for any purpose other than that for which such a certificate is issued
without the payment of the sales or compensating tax otherwise
imposed upon such materials, shall be guilty of a misdemeanor and,
upon conviction therefor, shall be subject to the penalties provided for
in K.S.A. 79-3615(h), and amendments thereto;
(f) tangible personal property purchased by a railroad or public
utility for consumption or movement directly and immediately in
interstate commerce;
(g) sales of aircraft including remanufactured and modified
aircraft sold to persons using directly or through an authorized agent
such aircraft as certified or licensed carriers of persons or property in
interstate or foreign commerce under authority of the laws of the
United States or any foreign government or sold to any foreign
government or agency or instrumentality of such foreign government
and all sales of aircraft for use outside of the United States and sales of SENATE BILL No. 27—page 50
aircraft repair, modification and replacement parts and sales of services
employed in the remanufacture, modification and repair of aircraft;
(h) all rentals of nonsectarian textbooks by public or private
elementary or secondary schools;
(i) the lease or rental of all films, records, tapes, or any type of
sound or picture transcriptions used by motion picture exhibitors;
(j) meals served without charge or food used in the preparation of
such meals to employees of any restaurant, eating house, dining car,
hotel, drugstore or other place where meals or drinks are regularly sold
to the public if such employees' duties are related to the furnishing or
sale of such meals or drinks;
(k) any motor vehicle, semitrailer or pole trailer, as such terms are
defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
delivered in this state to a bona fide resident of another state, which
motor vehicle, semitrailer, pole trailer or aircraft is not to be registered
or based in this state and which vehicle, semitrailer, pole trailer or
aircraft will not remain in this state more than 10 days;
(l) all isolated or occasional sales of tangible personal property,
services, substances or things, except isolated or occasional sale of
motor vehicles specifically taxed under the provisions of K.S.A. 79-
3603(o), and amendments thereto;
(m) all sales of tangible personal property that become an
ingredient or component part of tangible personal property or services
produced, manufactured or compounded for ultimate sale at retail
within or without the state of Kansas; and any such producer,
manufacturer or compounder may obtain from the director of taxation
and furnish to the supplier an exemption certificate number for tangible
personal property for use as an ingredient or component part of the
property or services produced, manufactured or compounded;
(n) all sales of tangible personal property that is consumed in the
production, manufacture, processing, mining, drilling, refining or
compounding of tangible personal property, the treating of by-products
or wastes derived from any such production process, the providing of
services or the irrigation of crops for ultimate sale at retail within or
without the state of Kansas; and any purchaser of such property may
obtain from the director of taxation and furnish to the supplier an
exemption certificate number for tangible personal property for
consumption in such production, manufacture, processing, mining,
drilling, refining, compounding, treating, irrigation and in providing
such services;
(o) all sales of animals, fowl and aquatic plants and animals, the
primary purpose of which is use in agriculture or aquaculture, as
defined in K.S.A. 47-1901, and amendments thereto, the production of
food for human consumption, the production of animal, dairy, poultry
or aquatic plant and animal products, fiber or fur, or the production of
offspring for use for any such purpose or purposes;
(p) all sales of drugs dispensed pursuant to a prescription order by
a licensed practitioner or a mid-level practitioner as defined by K.S.A.
65-1626, and amendments thereto. As used in this subsection, "drug"
means a compound, substance or preparation and any component of a
compound, substance or preparation, other than food and food
ingredients, dietary supplements or alcoholic beverages, recognized in
the official United States pharmacopeia, official homeopathic
pharmacopoeia of the United States or official national formulary, and
supplement to any of them, intended for use in the diagnosis, cure,
mitigation, treatment or prevention of disease or intended to affect the
structure or any function of the body, except that for taxable years
commencing after December 31, 2013, this subsection shall not apply
to any sales of drugs used in the performance or induction of an SENATE BILL No. 27—page 51
abortion, as defined in K.S.A. 65-6701, and amendments thereto;
(q) all sales of insulin dispensed by a person licensed by the state
board of pharmacy to a person for treatment of diabetes at the direction
of a person licensed to practice medicine by the state board of healing
arts;
(r) all sales of oxygen delivery equipment, kidney dialysis
equipment, enteral feeding systems, prosthetic devices and mobility
enhancing equipment prescribed in writing by a person licensed to
practice the healing arts, dentistry or optometry, and in addition to such
sales, all sales of hearing aids, as defined by K.S.A. 74-5807(c), and
amendments thereto, and repair and replacement parts therefor,
including batteries, by a person licensed in the practice of dispensing
and fitting hearing aids pursuant to the provisions of K.S.A. 74-5808,
and amendments thereto. For the purposes of this subsection: (1)
"Mobility enhancing equipment" means equipment including repair and
replacement parts to same, but does not include durable medical
equipment, which is primarily and customarily used to provide or
increase the ability to move from one place to another and which is
appropriate for use either in a home or a motor vehicle; is not generally
used by persons with normal mobility; and does not include any motor
vehicle or equipment on a motor vehicle normally provided by a motor
vehicle manufacturer; and (2) "prosthetic device" means a replacement,
corrective or supportive device including repair and replacement parts
for same worn on or in the body to artificially replace a missing portion
of the body, prevent or correct physical deformity or malfunction or
support a weak or deformed portion of the body;
(s) except as provided in K.S.A. 82a-2101, and amendments
thereto, all sales of tangible personal property or services purchased
directly or indirectly by a groundwater management district organized
or operating under the authority of K.S.A. 82a-1020 et seq., and
amendments thereto, by a rural water district organized or operating
under the authority of K.S.A. 82a-612, and amendments thereto, or by a
water supply district organized or operating under the authority of
K.S.A. 19-3501 et seq., 19-3522 et seq. or 19-3545, and amendments
thereto, which property or services are used in the construction
activities, operation or maintenance of the district;
(t) all sales of farm machinery and equipment or aquaculture
machinery and equipment, repair and replacement parts therefor and
services performed in the repair and maintenance of such machinery
and equipment. For the purposes of this subsection the term "farm
machinery and equipment or aquaculture machinery and equipment"
shall include a work-site utility vehicle, as defined in K.S.A. 8-126, and
amendments thereto, and is equipped with a bed or cargo box for
hauling materials, and shall also include machinery and equipment used
in the operation of Christmas tree farming but shall not include any
passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer,
other than a farm trailer, as such terms are defined by K.S.A. 8-126,
and amendments thereto. "Farm machinery and equipment" includes
precision farming equipment that is portable or is installed or purchased
to be installed on farm machinery and equipment. "Precision farming
equipment" includes the following items used only in computer-
assisted farming, ranching or aquaculture production operations: Soil
testing sensors, yield monitors, computers, monitors, software, global
positioning and mapping systems, guiding systems, modems, data
communications equipment and any necessary mounting hardware,
wiring and antennas. Each purchaser of farm machinery and equipment
or aquaculture machinery and equipment exempted herein must certify
in writing on the copy of the invoice or sales ticket to be retained by the
seller that the farm machinery and equipment or aquaculture machinery SENATE BILL No. 27—page 52
and equipment purchased will be used only in farming, ranching or
aquaculture production. Farming or ranching shall include the operation
of a feedlot and farm and ranch work for hire and the operation of a
nursery;
(u) all leases or rentals of tangible personal property used as a
dwelling if such tangible personal property is leased or rented for a
period of more than 28 consecutive days;
(v) all sales of tangible personal property to any contractor for use
in preparing meals for delivery to homebound elderly persons over 60
years of age and to homebound disabled persons or to be served at a
group-sitting at a location outside of the home to otherwise homebound
elderly persons over 60 years of age and to otherwise homebound
disabled persons, as all or part of any food service project funded in
whole or in part by government or as part of a private nonprofit food
service project available to all such elderly or disabled persons residing
within an area of service designated by the private nonprofit
organization, and all sales of tangible personal property for use in
preparing meals for consumption by indigent or homeless individuals
whether or not such meals are consumed at a place designated for such
purpose, and all sales of food products by or on behalf of any such
contractor or organization for any such purpose;
(w) all sales of natural gas, electricity, heat and water delivered
through mains, lines or pipes: (1) To residential premises for
noncommercial use by the occupant of such premises; (2) for
agricultural use and also, for such use, all sales of propane gas; (3) for
use in the severing of oil; and (4) to any property which is exempt from
property taxation pursuant to K.S.A. 79-201b, Second through Sixth.
As used in this paragraph, "severing" means the same as defined in
K.S.A. 79-4216(k), and amendments thereto. For all sales of natural
gas, electricity and heat delivered through mains, lines or pipes
pursuant to the provisions of subsection (w)(1) and (w)(2), the
provisions of this subsection shall expire on December 31, 2005;
(x) all sales of propane gas, LP-gas, coal, wood and other fuel
sources for the production of heat or lighting for noncommercial use of
an occupant of residential premises occurring prior to January 1, 2006;
(y) all sales of materials and services used in the repairing,
servicing, altering, maintaining, manufacturing, remanufacturing, or
modification of railroad rolling stock for use in interstate or foreign
commerce under authority of the laws of the United States;
(z) all sales of tangible personal property and services purchased
directly by a port authority or by a contractor therefor as provided by
the provisions of K.S.A. 12-3418, and amendments thereto;
(aa) all sales of materials and services applied to equipment that is
transported into the state from without the state for repair, service,
alteration, maintenance, remanufacture or modification and that is
subsequently transported outside the state for use in the transmission of
liquids or natural gas by means of pipeline in interstate or foreign
commerce under authority of the laws of the United States;
(bb) all sales of used mobile homes or manufactured homes. As
used in this subsection: (1) "Mobile homes" and "manufactured homes"
mean the same as defined in K.S.A. 58-4202, and amendments thereto;
and (2) "sales of used mobile homes or manufactured homes" means
sales other than the original retail sale thereof;
(cc) all sales of tangible personal property or services purchased
prior to January 1, 2012, except as otherwise provided, for the purpose
of and in conjunction with constructing, reconstructing, enlarging or
remodeling a business or retail business that meets the requirements
established in K.S.A. 74-50,115, and amendments thereto, and the sale
and installation of machinery and equipment purchased for installation SENATE BILL No. 27—page 53
at any such business or retail business, and all sales of tangible personal
property or services purchased on or after January 1, 2012, for the
purpose of and in conjunction with constructing, reconstructing,
enlarging or remodeling a business that meets the requirements
established in K.S.A. 74-50,115(e), and amendments thereto, and the
sale and installation of machinery and equipment purchased for
installation at any such business. When a person shall contract for the
construction, reconstruction, enlargement or remodeling of any such
business or retail business, such person shall obtain from the state and
furnish to the contractor an exemption certificate for the project
involved, and the contractor may purchase materials, machinery and
equipment for incorporation in such project. The contractor shall
furnish the number of such certificates to all suppliers from whom such
purchases are made, and such suppliers shall execute invoices covering
the same bearing the number of such certificate. Upon completion of
the project the contractor shall furnish to the owner of the business or
retail business a sworn statement, on a form to be provided by the
director of taxation, that all purchases so made were entitled to
exemption under this subsection. All invoices shall be held by the
contractor for a period of five years and shall be subject to audit by the
director of taxation. Any contractor or any agent, employee or
subcontractor thereof, who shall use or otherwise dispose of any
materials, machinery or equipment purchased under such a certificate
for any purpose other than that for which such a certificate is issued
without the payment of the sales or compensating tax otherwise
imposed thereon, shall be guilty of a misdemeanor and, upon
conviction therefor, shall be subject to the penalties provided for in
K.S.A. 79-3615(h), and amendments thereto. As used in this
subsection, "business" and "retail business" mean the same as defined
in K.S.A. 74-50,114, and amendments thereto. Project exemption
certificates that have been previously issued under this subsection by
the department of revenue pursuant to K.S.A. 74-50,115, and
amendments thereto, but not including K.S.A. 74-50,115(e), and
amendments thereto, prior to January 1, 2012, and have not expired
will be effective for the term of the project or two years from the
effective date of the certificate, whichever occurs earlier. Project
exemption certificates that are submitted to the department of revenue
prior to January 1, 2012, and are found to qualify will be issued a
project exemption certificate that will be effective for a two-year period
or for the term of the project, whichever occurs earlier;
(dd) all sales of tangible personal property purchased with food
stamps issued by the United States department of agriculture;
(ee) all sales of lottery tickets and shares made as part of a lottery
operated by the state of Kansas;
(ff) on and after July 1, 1988, all sales of new mobile homes or
manufactured homes to the extent of 40% of the gross receipts,
determined without regard to any trade-in allowance, received from
such sale. As used in this subsection, "mobile homes" and
"manufactured homes" mean the same as defined in K.S.A. 58-4202,
and amendments thereto;
(gg) all sales of tangible personal property purchased in
accordance with vouchers issued pursuant to the federal special
supplemental food program for women, infants and children;
(hh) all sales of medical supplies and equipment, including
durable medical equipment, purchased directly by a nonprofit skilled
nursing home or nonprofit intermediate nursing care home, as defined
by K.S.A. 39-923, and amendments thereto, for the purpose of
providing medical services to residents thereof. This exemption shall
not apply to tangible personal property customarily used for human SENATE BILL No. 27—page 54
habitation purposes. As used in this subsection, "durable medical
equipment" means equipment including repair and replacement parts
for such equipment, that can withstand repeated use, is primarily and
customarily used to serve a medical purpose, generally is not useful to a
person in the absence of illness or injury and is not worn in or on the
body, but does not include mobility enhancing equipment as defined in
subsection (r), oxygen delivery equipment, kidney dialysis equipment
or enteral feeding systems;
(ii) all sales of tangible personal property purchased directly by a
nonprofit organization for nonsectarian comprehensive multidiscipline
youth development programs and activities provided or sponsored by
such organization, and all sales of tangible personal property by or on
behalf of any such organization. This exemption shall not apply to
tangible personal property customarily used for human habitation
purposes;
(jj) all sales of tangible personal property or services, including
the renting and leasing of tangible personal property, purchased directly
on behalf of a community-based facility for people with intellectual
disability or mental health center organized pursuant to K.S.A. 19-4001
et seq., and amendments thereto, and licensed in accordance with the
provisions of K.S.A. 39-2001 et seq., and amendments thereto, and all
sales of tangible personal property or services purchased by contractors
during the time period from July, 2003, through June, 2006, for the
purpose of constructing, equipping, maintaining or furnishing a new
facility for a community-based facility for people with intellectual
disability or mental health center located in Riverton, Cherokee County,
Kansas, that would have been eligible for sales tax exemption pursuant
to this subsection if purchased directly by such facility or center. This
exemption shall not apply to tangible personal property customarily
used for human habitation purposes;
(kk) (1) (A) all sales of machinery and equipment that are used in
this state as an integral or essential part of an integrated production
operation by a manufacturing or processing plant or facility;
(B) all sales of installation, repair and maintenance services
performed on such machinery and equipment; and
(C) all sales of repair and replacement parts and accessories
purchased for such machinery and equipment.
(2) For purposes of this subsection:
(A) "Integrated production operation" means an integrated series
of operations engaged in at a manufacturing or processing plant or
facility to process, transform or convert tangible personal property by
physical, chemical or other means into a different form, composition or
character from that in which it originally existed. Integrated production
operations shall include: (i) Production line operations, including
packaging operations; (ii) preproduction operations to handle, store and
treat raw materials; (iii) post production handling, storage, warehousing
and distribution operations; and (iv) waste, pollution and environmental
control operations, if any;
(B) "production line" means the assemblage of machinery and
equipment at a manufacturing or processing plant or facility where the
actual transformation or processing of tangible personal property
occurs;
(C) "manufacturing or processing plant or facility" means a single,
fixed location owned or controlled by a manufacturing or processing
business that consists of one or more structures or buildings in a
contiguous area where integrated production operations are conducted
to manufacture or process tangible personal property to be ultimately
sold at retail. Such term shall not include any facility primarily
operated for the purpose of conveying or assisting in the conveyance of SENATE BILL No. 27—page 55
natural gas, electricity, oil or water. A business may operate one or
more manufacturing or processing plants or facilities at different
locations to manufacture or process a single product of tangible
personal property to be ultimately sold at retail;
(D) "manufacturing or processing business" means a business that
utilizes an integrated production operation to manufacture, process,
fabricate, finish or assemble items for wholesale and retail distribution
as part of what is commonly regarded by the general public as an
industrial manufacturing or processing operation or an agricultural
commodity processing operation. (i) Industrial manufacturing or
processing operations include, by way of illustration but not of
limitation, the fabrication of automobiles, airplanes, machinery or
transportation equipment, the fabrication of metal, plastic, wood or
paper products, electricity power generation, water treatment,
petroleum refining, chemical production, wholesale bottling, newspaper
printing, ready mixed concrete production, and the remanufacturing of
used parts for wholesale or retail sale. Such processing operations shall
include operations at an oil well, gas well, mine or other excavation site
where the oil, gas, minerals, coal, clay, stone, sand or gravel that has
been extracted from the earth is cleaned, separated, crushed, ground,
milled, screened, washed or otherwise treated or prepared before its
transmission to a refinery or before any other wholesale or retail
distribution. (ii) Agricultural commodity processing operations include,
by way of illustration but not of limitation, meat packing, poultry
slaughtering and dressing, processing and packaging farm and dairy
products in sealed containers for wholesale and retail distribution, feed
grinding, grain milling, frozen food processing, and grain handling,
cleaning, blending, fumigation, drying and aeration operations engaged
in by grain elevators or other grain storage facilities. (iii)
Manufacturing or processing businesses do not include, by way of
illustration but not of limitation, nonindustrial businesses whose
operations are primarily retail and that produce or process tangible
personal property as an incidental part of conducting the retail business,
such as retailers who bake, cook or prepare food products in the regular
course of their retail trade, grocery stores, meat lockers and meat
markets that butcher or dress livestock or poultry in the regular course
of their retail trade, contractors who alter, service, repair or improve
real property, and retail businesses that clean, service or refurbish and
repair tangible personal property for its owner;
(E) "repair and replacement parts and accessories" means all parts
and accessories for exempt machinery and equipment, including, but
not limited to, dies, jigs, molds, patterns and safety devices that are
attached to exempt machinery or that are otherwise used in production,
and parts and accessories that require periodic replacement such as
belts, drill bits, grinding wheels, grinding balls, cutting bars, saws,
refractory brick and other refractory items for exempt kiln equipment
used in production operations;
(F) "primary" or "primarily" mean more than 50% of the time.
(3) For purposes of this subsection, machinery and equipment
shall be deemed to be used as an integral or essential part of an
integrated production operation when used to:
(A) Receive, transport, convey, handle, treat or store raw materials
in preparation of its placement on the production line;
(B) transport, convey, handle or store the property undergoing
manufacturing or processing at any point from the beginning of the
production line through any warehousing or distribution operation of
the final product that occurs at the plant or facility;
(C) act upon, effect, promote or otherwise facilitate a physical
change to the property undergoing manufacturing or processing; SENATE BILL No. 27—page 56
(D) guide, control or direct the movement of property undergoing
manufacturing or processing;
(E) test or measure raw materials, the property undergoing
manufacturing or processing or the finished product, as a necessary part
of the manufacturer's integrated production operations;
(F) plan, manage, control or record the receipt and flow of
inventories of raw materials, consumables and component parts, the
flow of the property undergoing manufacturing or processing and the
management of inventories of the finished product;
(G) produce energy for, lubricate, control the operating of or
otherwise enable the functioning of other production machinery and
equipment and the continuation of production operations;
(H) package the property being manufactured or processed in a
container or wrapping in which such property is normally sold or
transported;
(I) transmit or transport electricity, coke, gas, water, steam or
similar substances used in production operations from the point of
generation, if produced by the manufacturer or processor at the plant
site, to that manufacturer's production operation; or, if purchased or
delivered from off-site, from the point where the substance enters the
site of the plant or facility to that manufacturer's production operations;
(J) cool, heat, filter, refine or otherwise treat water, steam, acid,
oil, solvents or other substances that are used in production operations;
(K) provide and control an environment required to maintain
certain levels of air quality, humidity or temperature in special and
limited areas of the plant or facility, where such regulation of
temperature or humidity is part of and essential to the production
process;
(L) treat, transport or store waste or other byproducts of
production operations at the plant or facility; or
(M) control pollution at the plant or facility where the pollution is
produced by the manufacturing or processing operation.
(4) The following machinery, equipment and materials shall be
deemed to be exempt even though it may not otherwise qualify as
machinery and equipment used as an integral or essential part of an
integrated production operation: (A) Computers and related peripheral
equipment that are utilized by a manufacturing or processing business
for engineering of the finished product or for research and development
or product design; (B) machinery and equipment that is utilized by a
manufacturing or processing business to manufacture or rebuild
tangible personal property that is used in manufacturing or processing
operations, including tools, dies, molds, forms and other parts of
qualifying machinery and equipment; (C) portable plants for aggregate
concrete, bulk cement and asphalt including cement mixing drums to be
attached to a motor vehicle; (D) industrial fixtures, devices, support
facilities and special foundations necessary for manufacturing and
production operations, and materials and other tangible personal
property sold for the purpose of fabricating such fixtures, devices,
facilities and foundations. An exemption certificate for such purchases
shall be signed by the manufacturer or processor. If the fabricator
purchases such material, the fabricator shall also sign the exemption
certificate; (E) a manufacturing or processing business' laboratory
equipment that is not located at the plant or facility, but that would
otherwise qualify for exemption under subsection (3)(E); (F) all
machinery and equipment used in surface mining activities as described
in K.S.A. 49-601 et seq., and amendments thereto, beginning from the
time a reclamation plan is filed to the acceptance of the completed final
site reclamation.
(5) "Machinery and equipment used as an integral or essential part SENATE BILL No. 27—page 57
of an integrated production operation" shall not include:
(A) Machinery and equipment used for nonproduction purposes,
including, but not limited to, machinery and equipment used for plant
security, fire prevention, first aid, accounting, administration, record
keeping, advertising, marketing, sales or other related activities, plant
cleaning, plant communications and employee work scheduling;
(B) machinery, equipment and tools used primarily in maintaining
and repairing any type of machinery and equipment or the building and
plant;
(C) transportation, transmission and distribution equipment not
primarily used in a production, warehousing or material handling
operation at the plant or facility, including the means of conveyance of
natural gas, electricity, oil or water, and equipment related thereto,
located outside the plant or facility;
(D) office machines and equipment including computers and
related peripheral equipment not used directly and primarily to control
or measure the manufacturing process;
(E) furniture and other furnishings;
(F) buildings, other than exempt machinery and equipment that is
permanently affixed to or becomes a physical part of the building, and
any other part of real estate that is not otherwise exempt;
(G) building fixtures that are not integral to the manufacturing
operation, such as utility systems for heating, ventilation, air
conditioning, communications, plumbing or electrical;
(H) machinery and equipment used for general plant heating,
cooling and lighting;
(I) motor vehicles that are registered for operation on public
highways; or
(J) employee apparel, except safety and protective apparel that is
purchased by an employer and furnished gratuitously to employees
who are involved in production or research activities.
(6) Paragraphs (3) and (5) shall not be construed as exclusive
listings of the machinery and equipment that qualify or do not qualify
as an integral or essential part of an integrated production operation.
When machinery or equipment is used as an integral or essential part of
production operations part of the time and for nonproduction purposes
at other times, the primary use of the machinery or equipment shall
determine whether or not such machinery or equipment qualifies for
exemption.
(7) The secretary of revenue shall adopt rules and regulations
necessary to administer the provisions of this subsection;
(ll) all sales of educational materials purchased for distribution to
the public at no charge by a nonprofit corporation organized for the
purpose of encouraging, fostering and conducting programs for the
improvement of public health, except that for taxable years
commencing after December 31, 2013, this subsection shall not apply
to any sales of such materials purchased by a nonprofit corporation
which performs any abortion, as defined in K.S.A. 65-6701, and
amendments thereto;
(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
herbicides, germicides, pesticides and fungicides; and services,
purchased and used for the purpose of producing plants in order to
prevent soil erosion on land devoted to agricultural use;
(nn) except as otherwise provided in this act, all sales of services
rendered by an advertising agency or licensed broadcast station or any
member, agent or employee thereof;
(oo) all sales of tangible personal property purchased by a
community action group or agency for the exclusive purpose of
repairing or weatherizing housing occupied by low-income individuals; SENATE BILL No. 27—page 58
(pp) all sales of drill bits and explosives actually utilized in the
exploration and production of oil or gas;
(qq) all sales of tangible personal property and services purchased
by a nonprofit museum or historical society or any combination thereof,
including a nonprofit organization that is organized for the purpose of
stimulating public interest in the exploration of space by providing
educational information, exhibits and experiences, that is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986;
(rr) all sales of tangible personal property that will admit the
purchaser thereof to any annual event sponsored by a nonprofit
organization that is exempt from federal income taxation pursuant to
section 501(c)(3) of the federal internal revenue code of 1986, except
that for taxable years commencing after December 31, 2013, this
subsection shall not apply to any sales of such tangible personal
property purchased by a nonprofit organization which performs any
abortion, as defined in K.S.A. 65-6701, and amendments thereto;
(ss) all sales of tangible personal property and services purchased
by a public broadcasting station licensed by the federal
communications commission as a noncommercial educational
television or radio station;
(tt) all sales of tangible personal property and services purchased
by or on behalf of a not-for-profit corporation that is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986, for the sole purpose of constructing a
Kansas Korean War memorial;
(uu) all sales of tangible personal property and services purchased
by or on behalf of any rural volunteer fire-fighting organization for use
exclusively in the performance of its duties and functions;
(vv) all sales of tangible personal property purchased by any of the
following organizations that are exempt from federal income taxation
pursuant to section 501(c)(3) of the federal internal revenue code of
1986, for the following purposes, and all sales of any such property by
or on behalf of any such organization for any such purpose:
(1) The American heart association, Kansas affiliate, inc. for the
purposes of providing education, training, certification in emergency
cardiac care, research and other related services to reduce disability and
death from cardiovascular diseases and stroke;
(2) the Kansas alliance for the mentally ill, inc. for the purpose of
advocacy for persons with mental illness and to education, research and
support for their families;
(3) the Kansas mental illness awareness council for the purposes
of advocacy for persons who are mentally ill and for education,
research and support for them and their families;
(4) the American diabetes association Kansas affiliate, inc. for the
purpose of eliminating diabetes through medical research, public
education focusing on disease prevention and education, patient
education including information on coping with diabetes, and
professional education and training;
(5) the American lung association of Kansas, inc. for the purpose
of eliminating all lung diseases through medical research, public
education including information on coping with lung diseases,
professional education and training related to lung disease and other
related services to reduce the incidence of disability and death due to
lung disease;
(6) the Kansas chapters of the Alzheimer's disease and related
disorders association, inc. for the purpose of providing assistance and
support to persons in Kansas with Alzheimer's disease, and their
families and caregivers; SENATE BILL No. 27—page 59
(7) the Kansas chapters of the Parkinson's disease association for
the purpose of eliminating Parkinson's disease through medical
research and public and professional education related to such disease;
(8) the national kidney foundation of Kansas and western Missouri
for the purpose of eliminating kidney disease through medical research
and public and private education related to such disease;
(9) the heartstrings community foundation for the purpose of
providing training, employment and activities for adults with
developmental disabilities;
(10) the cystic fibrosis foundation, heart of America chapter, for
the purposes of assuring the development of the means to cure and
control cystic fibrosis and improving the quality of life for those with
the disease;
(11) the spina bifida association of Kansas for the purpose of
providing financial, educational and practical aid to families and
individuals with spina bifida. Such aid includes, but is not limited to,
funding for medical devices, counseling and medical educational
opportunities;
(12) the CHWC, Inc., for the purpose of rebuilding urban core
neighborhoods through the construction of new homes, acquiring and
renovating existing homes and other related activities, and promoting
economic development in such neighborhoods;
(13) the cross-lines cooperative council for the purpose of
providing social services to low income individuals and families;
(14) the dreams work, inc., for the purpose of providing young
adult day services to individuals with developmental disabilities and
assisting families in avoiding institutional or nursing home care for a
developmentally disabled member of their family;
(15) the KSDS, Inc., for the purpose of promoting the
independence and inclusion of people with disabilities as fully
participating and contributing members of their communities and
society through the training and providing of guide and service dogs to
people with disabilities, and providing disability education and
awareness to the general public;
(16) the lyme association of greater Kansas City, Inc., for the
purpose of providing support to persons with lyme disease and public
education relating to the prevention, treatment and cure of lyme
disease;
(17) the dream factory, inc., for the purpose of granting the dreams
of children with critical and chronic illnesses;
(18) the Ottawa Suzuki strings, inc., for the purpose of providing
students and families with education and resources necessary to enable
each child to develop fine character and musical ability to the fullest
potential;
(19) the international association of lions clubs for the purpose of
creating and fostering a spirit of understanding among all people for
humanitarian needs by providing voluntary services through
community involvement and international cooperation;
(20) the Johnson county young matrons, inc., for the purpose of
promoting a positive future for members of the community through
volunteerism, financial support and education through the efforts of an
all volunteer organization;
(21) the American cancer society, inc., for the purpose of
eliminating cancer as a major health problem by preventing cancer,
saving lives and diminishing suffering from cancer, through research,
education, advocacy and service;
(22) the community services of Shawnee, inc., for the purpose of
providing food and clothing to those in need;
(23) the angel babies association, for the purpose of providing SENATE BILL No. 27—page 60
assistance, support and items of necessity to teenage mothers and their
babies; and
(24) the Kansas fairgrounds foundation for the purpose of the
preservation, renovation and beautification of the Kansas state
fairgrounds;
(ww) all sales of tangible personal property purchased by the
habitat for humanity for the exclusive use of being incorporated within
a housing project constructed by such organization;
(xx) all sales of tangible personal property and services purchased
by a nonprofit zoo that is exempt from federal income taxation pursuant
to section 501(c)(3) of the federal internal revenue code of 1986, or on
behalf of such zoo by an entity itself exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue
code of 1986 contracted with to operate such zoo and all sales of
tangible personal property or services purchased by a contractor for the
purpose of constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities for any
nonprofit zoo that would be exempt from taxation under the provisions
of this section if purchased directly by such nonprofit zoo or the entity
operating such zoo. Nothing in this subsection shall be deemed to
exempt the purchase of any construction machinery, equipment or tools
used in the constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities for any
nonprofit zoo. When any nonprofit zoo shall contract for the purpose of
constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities, it shall obtain from the
state and furnish to the contractor an exemption certificate for the
project involved, and the contractor may purchase materials for
incorporation in such project. The contractor shall furnish the number
of such certificate to all suppliers from whom such purchases are made,
and such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project the
contractor shall furnish to the nonprofit zoo concerned a sworn
statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection.
All invoices shall be held by the contractor for a period of five years
and shall be subject to audit by the director of taxation. If any materials
purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been
returned for credit or the sales or compensating tax otherwise imposed
upon such materials that will not be so incorporated in the building or
other project reported and paid by such contractor to the director of
taxation not later than the 20
th
day of the month following the close of
the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, the
nonprofit zoo concerned shall be liable for tax on all materials
purchased for the project, and upon payment thereof it may recover the
same from the contractor together with reasonable attorney fees. Any
contractor or any agent, employee or subcontractor thereof, who shall
use or otherwise dispose of any materials purchased under such a
certificate for any purpose other than that for which such a certificate is
issued without the payment of the sales or compensating tax otherwise
imposed upon such materials, shall be guilty of a misdemeanor and,
upon conviction therefor, shall be subject to the penalties provided for
in K.S.A. 79-3615(h), and amendments thereto;
(yy) all sales of tangible personal property and services purchased
by a parent-teacher association or organization, and all sales of tangible
personal property by or on behalf of such association or organization;
(zz) all sales of machinery and equipment purchased by over-the- SENATE BILL No. 27—page 61
air, free access radio or television station that is used directly and
primarily for the purpose of producing a broadcast signal or is such that
the failure of the machinery or equipment to operate would cause
broadcasting to cease. For purposes of this subsection, machinery and
equipment shall include, but not be limited to, that required by rules
and regulations of the federal communications commission, and all
sales of electricity which are essential or necessary for the purpose of
producing a broadcast signal or is such that the failure of the electricity
would cause broadcasting to cease;
(aaa) all sales of tangible personal property and services purchased
by a religious organization that is exempt from federal income taxation
pursuant to section 501(c)(3) of the federal internal revenue code, and
used exclusively for religious purposes, and all sales of tangible
personal property or services purchased by a contractor for the purpose
of constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities for any such organization
that would be exempt from taxation under the provisions of this section
if purchased directly by such organization. Nothing in this subsection
shall be deemed to exempt the purchase of any construction machinery,
equipment or tools used in the constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities for
any such organization. When any such organization shall contract for
the purpose of constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities, it shall obtain
from the state and furnish to the contractor an exemption certificate for
the project involved, and the contractor may purchase materials for
incorporation in such project. The contractor shall furnish the number
of such certificate to all suppliers from whom such purchases are made,
and such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project the
contractor shall furnish to such organization concerned a sworn
statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection.
All invoices shall be held by the contractor for a period of five years
and shall be subject to audit by the director of taxation. If any materials
purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been
returned for credit or the sales or compensating tax otherwise imposed
upon such materials that will not be so incorporated in the building or
other project reported and paid by such contractor to the director of
taxation not later than the 20
th
day of the month following the close of
the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, such
organization concerned shall be liable for tax on all materials purchased
for the project, and upon payment thereof it may recover the same from
the contractor together with reasonable attorney fees. Any contractor or
any agent, employee or subcontractor thereof, who shall use or
otherwise dispose of any materials purchased under such a certificate
for any purpose other than that for which such a certificate is issued
without the payment of the sales or compensating tax otherwise
imposed upon such materials, shall be guilty of a misdemeanor and,
upon conviction therefor, shall be subject to the penalties provided for
in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and
after July 1, 1998, but prior to the effective date of this act upon the
gross receipts received from any sale exempted by the amendatory
provisions of this subsection shall be refunded. Each claim for a sales
tax refund shall be verified and submitted to the director of taxation
upon forms furnished by the director and shall be accompanied by any
additional documentation required by the director. The director shall SENATE BILL No. 27—page 62
review each claim and shall refund that amount of sales tax paid as
determined under the provisions of this subsection. All refunds shall be
paid from the sales tax refund fund upon warrants of the director of
accounts and reports pursuant to vouchers approved by the director or
the director's designee;
(bbb) all sales of food for human consumption by an organization
that is exempt from federal income taxation pursuant to section 501(c)
(3) of the federal internal revenue code of 1986, pursuant to a food
distribution program that offers such food at a price below cost in
exchange for the performance of community service by the purchaser
thereof;
(ccc) on and after July 1, 1999, all sales of tangible personal
property and services purchased by a primary care clinic or health
center the primary purpose of which is to provide services to medically
underserved individuals and families, and that is exempt from federal
income taxation pursuant to section 501(c)(3) of the federal internal
revenue code, and all sales of tangible personal property or services
purchased by a contractor for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or
remodeling facilities for any such clinic or center that would be exempt
from taxation under the provisions of this section if purchased directly
by such clinic or center, except that for taxable years commencing after
December 31, 2013, this subsection shall not apply to any sales of such
tangible personal property and services purchased by a primary care
clinic or health center which performs any abortion, as defined in
K.S.A. 65-6701, and amendments thereto. Nothing in this subsection
shall be deemed to exempt the purchase of any construction machinery,
equipment or tools used in the constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities for
any such clinic or center. When any such clinic or center shall contract
for the purpose of constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities, it shall obtain
from the state and furnish to the contractor an exemption certificate for
the project involved, and the contractor may purchase materials for
incorporation in such project. The contractor shall furnish the number
of such certificate to all suppliers from whom such purchases are made,
and such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project the
contractor shall furnish to such clinic or center concerned a sworn
statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection.
All invoices shall be held by the contractor for a period of five years
and shall be subject to audit by the director of taxation. If any materials
purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been
returned for credit or the sales or compensating tax otherwise imposed
upon such materials that will not be so incorporated in the building or
other project reported and paid by such contractor to the director of
taxation not later than the 20
th
day of the month following the close of
the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, such
clinic or center concerned shall be liable for tax on all materials
purchased for the project, and upon payment thereof it may recover the
same from the contractor together with reasonable attorney fees. Any
contractor or any agent, employee or subcontractor thereof, who shall
use or otherwise dispose of any materials purchased under such a
certificate for any purpose other than that for which such a certificate is
issued without the payment of the sales or compensating tax otherwise
imposed upon such materials, shall be guilty of a misdemeanor and, SENATE BILL No. 27—page 63
upon conviction therefor, shall be subject to the penalties provided for
in K.S.A. 79-3615(h), and amendments thereto;
(ddd) on and after January 1, 1999, and before January 1, 2000, all
sales of materials and services purchased by any class II or III railroad
as classified by the federal surface transportation board for the
construction, renovation, repair or replacement of class II or III railroad
track and facilities used directly in interstate commerce. In the event
any such track or facility for which materials and services were
purchased sales tax exempt is not operational for five years succeeding
the allowance of such exemption, the total amount of sales tax that
would have been payable except for the operation of this subsection
shall be recouped in accordance with rules and regulations adopted for
such purpose by the secretary of revenue;
(eee) on and after January 1, 1999, and before January 1, 2001, all
sales of materials and services purchased for the original construction,
reconstruction, repair or replacement of grain storage facilities,
including railroad sidings providing access thereto;
(fff) all sales of material handling equipment, racking systems and
other related machinery and equipment that is used for the handling,
movement or storage of tangible personal property in a warehouse or
distribution facility in this state; all sales of installation, repair and
maintenance services performed on such machinery and equipment;
and all sales of repair and replacement parts for such machinery and
equipment. For purposes of this subsection, a warehouse or distribution
facility means a single, fixed location that consists of buildings or
structures in a contiguous area where storage or distribution operations
are conducted that are separate and apart from the business' retail
operations, if any, and that do not otherwise qualify for exemption as
occurring at a manufacturing or processing plant or facility. Material
handling and storage equipment shall include aeration, dust control,
cleaning, handling and other such equipment that is used in a public
grain warehouse or other commercial grain storage facility, whether
used for grain handling, grain storage, grain refining or processing, or
other grain treatment operation;
(ggg) all sales of tangible personal property and services
purchased by or on behalf of the Kansas academy of science, which is
exempt from federal income taxation pursuant to section 501(c)(3) of
the federal internal revenue code of 1986, and used solely by such
academy for the preparation, publication and dissemination of
education materials;
(hhh) all sales of tangible personal property and services
purchased by or on behalf of all domestic violence shelters that are
member agencies of the Kansas coalition against sexual and domestic
violence;
(iii) all sales of personal property and services purchased by an
organization that is exempt from federal income taxation pursuant to
section 501(c)(3) of the federal internal revenue code of 1986, and such
personal property and services are used by any such organization in the
collection, storage and distribution of food products to nonprofit
organizations that distribute such food products to persons pursuant to a
food distribution program on a charitable basis without fee or charge,
and all sales of tangible personal property or services purchased by a
contractor for the purpose of constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities
used for the collection and storage of such food products for any such
organization which is exempt from federal income taxation pursuant to
section 501(c)(3) of the federal internal revenue code of 1986, that
would be exempt from taxation under the provisions of this section if
purchased directly by such organization. Nothing in this subsection SENATE BILL No. 27—page 64
shall be deemed to exempt the purchase of any construction machinery,
equipment or tools used in the constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities for
any such organization. When any such organization shall contract for
the purpose of constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities, it shall obtain
from the state and furnish to the contractor an exemption certificate for
the project involved, and the contractor may purchase materials for
incorporation in such project. The contractor shall furnish the number
of such certificate to all suppliers from whom such purchases are made,
and such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project the
contractor shall furnish to such organization concerned a sworn
statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection.
All invoices shall be held by the contractor for a period of five years
and shall be subject to audit by the director of taxation. If any materials
purchased under such a certificate are found not to have been
incorporated in such facilities or not to have been returned for credit or
the sales or compensating tax otherwise imposed upon such materials
that will not be so incorporated in such facilities reported and paid by
such contractor to the director of taxation not later than the 20
th
day of
the month following the close of the month in which it shall be
determined that such materials will not be used for the purpose for
which such certificate was issued, such organization concerned shall be
liable for tax on all materials purchased for the project, and upon
payment thereof it may recover the same from the contractor together
with reasonable attorney fees. Any contractor or any agent, employee
or subcontractor thereof, who shall use or otherwise dispose of any
materials purchased under such a certificate for any purpose other than
that for which such a certificate is issued without the payment of the
sales or compensating tax otherwise imposed upon such materials, shall
be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in K.S.A. 79-3615(h), and
amendments thereto. Sales tax paid on and after July 1, 2005, but prior
to the effective date of this act upon the gross receipts received from
any sale exempted by the amendatory provisions of this subsection
shall be refunded. Each claim for a sales tax refund shall be verified
and submitted to the director of taxation upon forms furnished by the
director and shall be accompanied by any additional documentation
required by the director. The director shall review each claim and shall
refund that amount of sales tax paid as determined under the provisions
of this subsection. All refunds shall be paid from the sales tax refund
fund upon warrants of the director of accounts and reports pursuant to
vouchers approved by the director or the director's designee;
(jjj) all sales of dietary supplements dispensed pursuant to a
prescription order by a licensed practitioner or a mid-level practitioner
as defined by K.S.A. 65-1626, and amendments thereto. As used in this
subsection, "dietary supplement" means any product, other than
tobacco, intended to supplement the diet that: (1) Contains one or more
of the following dietary ingredients: A vitamin, a mineral, an herb or
other botanical, an amino acid, a dietary substance for use by humans
to supplement the diet by increasing the total dietary intake or a
concentrate, metabolite, constituent, extract or combination of any such
ingredient; (2) is intended for ingestion in tablet, capsule, powder,
softgel, gelcap or liquid form, or if not intended for ingestion, in such a
form, is not represented as conventional food and is not represented for
use as a sole item of a meal or of the diet; and (3) is required to be
labeled as a dietary supplement, identifiable by the supplemental facts SENATE BILL No. 27—page 65
box found on the label and as required pursuant to 21 C.F.R. § 101.36;
(lll) all sales of tangible personal property and services purchased
by special olympics Kansas, inc. for the purpose of providing year-
round sports training and athletic competition in a variety of olympic-
type sports for individuals with intellectual disabilities by giving them
continuing opportunities to develop physical fitness, demonstrate
courage, experience joy and participate in a sharing of gifts, skills and
friendship with their families, other special olympics athletes and the
community, and activities provided or sponsored by such organization,
and all sales of tangible personal property by or on behalf of any such
organization;
(mmm) all sales of tangible personal property purchased by or on
behalf of the Marillac center, inc., which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue
code, for the purpose of providing psycho-social-biological and special
education services to children, and all sales of any such property by or
on behalf of such organization for such purpose;
(nnn) all sales of tangible personal property and services
purchased by the west Sedgwick county-sunrise rotary club and sunrise
charitable fund for the purpose of constructing a boundless playground
which is an integrated, barrier free and developmentally advantageous
play environment for children of all abilities and disabilities;
(ooo) all sales of tangible personal property by or on behalf of a
public library serving the general public and supported in whole or in
part with tax money or a not-for-profit organization whose purpose is to
raise funds for or provide services or other benefits to any such public
library;
(ppp) all sales of tangible personal property and services
purchased by or on behalf of a homeless shelter that is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
income tax code of 1986, and used by any such homeless shelter to
provide emergency and transitional housing for individuals and
families experiencing homelessness, and all sales of any such property
by or on behalf of any such homeless shelter for any such purpose;
(qqq) all sales of tangible personal property and services
purchased by TLC for children and families, inc., hereinafter referred to
as TLC, which is exempt from federal income taxation pursuant to
section 501(c)(3) of the federal internal revenue code of 1986, and such
property and services are used for the purpose of providing emergency
shelter and treatment for abused and neglected children as well as
meeting additional critical needs for children, juveniles and family, and
all sales of any such property by or on behalf of TLC for any such
purpose; and all sales of tangible personal property or services
purchased by a contractor for the purpose of constructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities for the
operation of services for TLC for any such purpose that would be
exempt from taxation under the provisions of this section if purchased
directly by TLC. Nothing in this subsection shall be deemed to exempt
the purchase of any construction machinery, equipment or tools used in
the constructing, maintaining, repairing, enlarging, furnishing or
remodeling such facilities for TLC. When TLC contracts for the
purpose of constructing, maintaining, repairing, enlarging, furnishing or
remodeling such facilities, it shall obtain from the state and furnish to
the contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project.
The contractor shall furnish the number of such certificate to all
suppliers from whom such purchases are made, and such suppliers shall
execute invoices covering the same bearing the number of such
certificate. Upon completion of the project the contractor shall furnish SENATE BILL No. 27—page 66
to TLC a sworn statement, on a form to be provided by the director of
taxation, that all purchases so made were entitled to exemption under
this subsection. All invoices shall be held by the contractor for a period
of five years and shall be subject to audit by the director of taxation. If
any materials purchased under such a certificate are found not to have
been incorporated in the building or other project or not to have been
returned for credit or the sales or compensating tax otherwise imposed
upon such materials that will not be so incorporated in the building or
other project reported and paid by such contractor to the director of
taxation not later than the 20
th
day of the month following the close of
the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, TLC
shall be liable for tax on all materials purchased for the project, and
upon payment thereof it may recover the same from the contractor
together with reasonable attorney fees. Any contractor or any agent,
employee or subcontractor thereof, who shall use or otherwise dispose
of any materials purchased under such a certificate for any purpose
other than that for which such a certificate is issued without the
payment of the sales or compensating tax otherwise imposed upon such
materials, shall be guilty of a misdemeanor and, upon conviction
therefor, shall be subject to the penalties provided for in K.S.A. 79-
3615(h), and amendments thereto;
(rrr) all sales of tangible personal property and services purchased
by any county law library maintained pursuant to law and sales of
tangible personal property and services purchased by an organization
that would have been exempt from taxation under the provisions of this
subsection if purchased directly by the county law library for the
purpose of providing legal resources to attorneys, judges, students and
the general public, and all sales of any such property by or on behalf of
any such county law library;
(sss) all sales of tangible personal property and services purchased
by catholic charities or youthville, hereinafter referred to as charitable
family providers, which is exempt from federal income taxation
pursuant to section 501(c)(3) of the federal internal revenue code of
1986, and which such property and services are used for the purpose of
providing emergency shelter and treatment for abused and neglected
children as well as meeting additional critical needs for children,
juveniles and family, and all sales of any such property by or on behalf
of charitable family providers for any such purpose; and all sales of
tangible personal property or services purchased by a contractor for the
purpose of constructing, maintaining, repairing, enlarging, furnishing or
remodeling facilities for the operation of services for charitable family
providers for any such purpose which would be exempt from taxation
under the provisions of this section if purchased directly by charitable
family providers. Nothing in this subsection shall be deemed to exempt
the purchase of any construction machinery, equipment or tools used in
the constructing, maintaining, repairing, enlarging, furnishing or
remodeling such facilities for charitable family providers. When
charitable family providers contracts for the purpose of constructing,
maintaining, repairing, enlarging, furnishing or remodeling such
facilities, it shall obtain from the state and furnish to the contractor an
exemption certificate for the project involved, and the contractor may
purchase materials for incorporation in such project. The contractor
shall furnish the number of such certificate to all suppliers from whom
such purchases are made, and such suppliers shall execute invoices
covering the same bearing the number of such certificate. Upon
completion of the project the contractor shall furnish to charitable
family providers a sworn statement, on a form to be provided by the
director of taxation, that all purchases so made were entitled to SENATE BILL No. 27—page 67
exemption under this subsection. All invoices shall be held by the
contractor for a period of five years and shall be subject to audit by the
director of taxation. If any materials purchased under such a certificate
are found not to have been incorporated in the building or other project
or not to have been returned for credit or the sales or compensating tax
otherwise imposed upon such materials that will not be so incorporated
in the building or other project reported and paid by such contractor to
the director of taxation not later than the 20
th
day of the month
following the close of the month in which it shall be determined that
such materials will not be used for the purpose for which such
certificate was issued, charitable family providers shall be liable for tax
on all materials purchased for the project, and upon payment thereof it
may recover the same from the contractor together with reasonable
attorney fees. Any contractor or any agent, employee or subcontractor
thereof, who shall use or otherwise dispose of any materials purchased
under such a certificate for any purpose other than that for which such a
certificate is issued without the payment of the sales or compensating
tax otherwise imposed upon such materials, shall be guilty of a
misdemeanor and, upon conviction therefor, shall be subject to the
penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
(ttt) all sales of tangible personal property or services purchased
by a contractor for a project for the purpose of restoring, constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing
or remodeling a home or facility owned by a nonprofit museum that has
been granted an exemption pursuant to subsection (qq), which such
home or facility is located in a city that has been designated as a
qualified hometown pursuant to the provisions of K.S.A. 75-5071 et
seq., and amendments thereto, and which such project is related to the
purposes of K.S.A. 75-5071 et seq., and amendments thereto, and that
would be exempt from taxation under the provisions of this section if
purchased directly by such nonprofit museum. Nothing in this
subsection shall be deemed to exempt the purchase of any construction
machinery, equipment or tools used in the restoring, constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing
or remodeling a home or facility for any such nonprofit museum. When
any such nonprofit museum shall contract for the purpose of restoring,
constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling a home or facility, it shall obtain
from the state and furnish to the contractor an exemption certificate for
the project involved, and the contractor may purchase materials for
incorporation in such project. The contractor shall furnish the number
of such certificates to all suppliers from whom such purchases are
made, and such suppliers shall execute invoices covering the same
bearing the number of such certificate. Upon completion of the project,
the contractor shall furnish to such nonprofit museum a sworn
statement on a form to be provided by the director of taxation that all
purchases so made were entitled to exemption under this subsection.
All invoices shall be held by the contractor for a period of five years
and shall be subject to audit by the director of taxation. If any materials
purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been
returned for credit or the sales or compensating tax otherwise imposed
upon such materials that will not be so incorporated in a home or
facility or other project reported and paid by such contractor to the
director of taxation not later than the 20
th
day of the month following
the close of the month in which it shall be determined that such
materials will not be used for the purpose for which such certificate
was issued, such nonprofit museum shall be liable for tax on all
materials purchased for the project, and upon payment thereof it may SENATE BILL No. 27—page 68
recover the same from the contractor together with reasonable attorney
fees. Any contractor or any agent, employee or subcontractor thereof,
who shall use or otherwise dispose of any materials purchased under
such a certificate for any purpose other than that for which such a
certificate is issued without the payment of the sales or compensating
tax otherwise imposed upon such materials, shall be guilty of a
misdemeanor and, upon conviction therefor, shall be subject to the
penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
(uuu) all sales of tangible personal property and services
purchased by Kansas children's service league, hereinafter referred to
as KCSL, which is exempt from federal income taxation pursuant to
section 501(c)(3) of the federal internal revenue code of 1986, and
which such property and services are used for the purpose of providing
for the prevention and treatment of child abuse and maltreatment as
well as meeting additional critical needs for children, juveniles and
family, and all sales of any such property by or on behalf of KCSL for
any such purpose; and all sales of tangible personal property or services
purchased by a contractor for the purpose of constructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities for the
operation of services for KCSL for any such purpose that would be
exempt from taxation under the provisions of this section if purchased
directly by KCSL. Nothing in this subsection shall be deemed to
exempt the purchase of any construction machinery, equipment or tools
used in the constructing, maintaining, repairing, enlarging, furnishing
or remodeling such facilities for KCSL. When KCSL contracts for the
purpose of constructing, maintaining, repairing, enlarging, furnishing or
remodeling such facilities, it shall obtain from the state and furnish to
the contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project.
The contractor shall furnish the number of such certificate to all
suppliers from whom such purchases are made, and such suppliers shall
execute invoices covering the same bearing the number of such
certificate. Upon completion of the project the contractor shall furnish
to KCSL a sworn statement, on a form to be provided by the director of
taxation, that all purchases so made were entitled to exemption under
this subsection. All invoices shall be held by the contractor for a period
of five years and shall be subject to audit by the director of taxation. If
any materials purchased under such a certificate are found not to have
been incorporated in the building or other project or not to have been
returned for credit or the sales or compensating tax otherwise imposed
upon such materials that will not be so incorporated in the building or
other project reported and paid by such contractor to the director of
taxation not later than the 20
th
day of the month following the close of
the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, KCSL
shall be liable for tax on all materials purchased for the project, and
upon payment thereof it may recover the same from the contractor
together with reasonable attorney fees. Any contractor or any agent,
employee or subcontractor thereof, who shall use or otherwise dispose
of any materials purchased under such a certificate for any purpose
other than that for which such a certificate is issued without the
payment of the sales or compensating tax otherwise imposed upon such
materials, shall be guilty of a misdemeanor and, upon conviction
therefor, shall be subject to the penalties provided for in K.S.A. 79-
3615(h), and amendments thereto;
(vvv) all sales of tangible personal property or services, including
the renting and leasing of tangible personal property or services,
purchased by jazz in the woods, inc., a Kansas corporation that is
exempt from federal income taxation pursuant to section 501(c)(3) of SENATE BILL No. 27—page 69
the federal internal revenue code, for the purpose of providing jazz in
the woods, an event benefiting children-in-need and other nonprofit
charities assisting such children, and all sales of any such property by
or on behalf of such organization for such purpose;
(www) all sales of tangible personal property purchased by or on
behalf of the Frontenac education foundation, which is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code, for the purpose of providing education support
for students, and all sales of any such property by or on behalf of such
organization for such purpose;
(xxx) all sales of personal property and services purchased by the
booth theatre foundation, inc., an organization, which is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986, and which such personal property and
services are used by any such organization in the constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing
or remodeling of the booth theatre, and all sales of tangible personal
property or services purchased by a contractor for the purpose of
constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling the booth theatre for such
organization, that would be exempt from taxation under the provisions
of this section if purchased directly by such organization. Nothing in
this subsection shall be deemed to exempt the purchase of any
construction machinery, equipment or tools used in the constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing
or remodeling facilities for any such organization. When any such
organization shall contract for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or
remodeling facilities, it shall obtain from the state and furnish to the
contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project.
The contractor shall furnish the number of such certificate to all
suppliers from whom such purchases are made, and such suppliers shall
execute invoices covering the same bearing the number of such
certificate. Upon completion of the project the contractor shall furnish
to such organization concerned a sworn statement, on a form to be
provided by the director of taxation, that all purchases so made were
entitled to exemption under this subsection. All invoices shall be held
by the contractor for a period of five years and shall be subject to audit
by the director of taxation. If any materials purchased under such a
certificate are found not to have been incorporated in such facilities or
not to have been returned for credit or the sales or compensating tax
otherwise imposed upon such materials that will not be so incorporated
in such facilities reported and paid by such contractor to the director of
taxation not later than the 20
th
day of the month following the close of
the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, such
organization concerned shall be liable for tax on all materials purchased
for the project, and upon payment thereof it may recover the same from
the contractor together with reasonable attorney fees. Any contractor or
any agent, employee or subcontractor thereof, who shall use or
otherwise dispose of any materials purchased under such a certificate
for any purpose other than that for which such a certificate is issued
without the payment of the sales or compensating tax otherwise
imposed upon such materials, shall be guilty of a misdemeanor and,
upon conviction therefor, shall be subject to the penalties provided for
in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and
after January 1, 2007, but prior to the effective date of this act upon the
gross receipts received from any sale which would have been exempted SENATE BILL No. 27—page 70
by the provisions of this subsection had such sale occurred after the
effective date of this act shall be refunded. Each claim for a sales tax
refund shall be verified and submitted to the director of taxation upon
forms furnished by the director and shall be accompanied by any
additional documentation required by the director. The director shall
review each claim and shall refund that amount of sales tax paid as
determined under the provisions of this subsection. All refunds shall be
paid from the sales tax refund fund upon warrants of the director of
accounts and reports pursuant to vouchers approved by the director or
the director's designee;
(yyy) all sales of tangible personal property and services
purchased by TLC charities foundation, inc., hereinafter referred to as
TLC charities, which is exempt from federal income taxation pursuant
to section 501(c)(3) of the federal internal revenue code of 1986, and
which such property and services are used for the purpose of
encouraging private philanthropy to further the vision, values, and
goals of TLC for children and families, inc.; and all sales of such
property and services by or on behalf of TLC charities for any such
purpose and all sales of tangible personal property or services
purchased by a contractor for the purpose of constructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities for the
operation of services for TLC charities for any such purpose that would
be exempt from taxation under the provisions of this section if
purchased directly by TLC charities. Nothing in this subsection shall be
deemed to exempt the purchase of any construction machinery,
equipment or tools used in the constructing, maintaining, repairing,
enlarging, furnishing or remodeling such facilities for TLC charities.
When TLC charities contracts for the purpose of constructing,
maintaining, repairing, enlarging, furnishing or remodeling such
facilities, it shall obtain from the state and furnish to the contractor an
exemption certificate for the project involved, and the contractor may
purchase materials for incorporation in such project. The contractor
shall furnish the number of such certificate to all suppliers from whom
such purchases are made, and such suppliers shall execute invoices
covering the same bearing the number of such certificate. Upon
completion of the project the contractor shall furnish to TLC charities a
sworn statement, on a form to be provided by the director of taxation,
that all purchases so made were entitled to exemption under this
subsection. All invoices shall be held by the contractor for a period of
five years and shall be subject to audit by the director of taxation. If any
materials purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been
returned for credit or the sales or compensating tax otherwise imposed
upon such materials that will not be incorporated into the building or
other project reported and paid by such contractor to the director of
taxation not later than the 20
th
day of the month following the close of
the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, TLC
charities shall be liable for tax on all materials purchased for the
project, and upon payment thereof it may recover the same from the
contractor together with reasonable attorney fees. Any contractor or any
agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials purchased under such a certificate for any
purpose other than that for which such a certificate is issued without the
payment of the sales or compensating tax otherwise imposed upon such
materials, shall be guilty of a misdemeanor and, upon conviction
therefor, shall be subject to the penalties provided for in K.S.A. 79-
3615(h), and amendments thereto;
(zzz) all sales of tangible personal property purchased by the SENATE BILL No. 27—page 71
rotary club of shawnee foundation, which is exempt from federal
income taxation pursuant to section 501(c)(3) of the federal internal
revenue code of 1986, as amended, used for the purpose of providing
contributions to community service organizations and scholarships;
(aaaa) all sales of personal property and services purchased by or
on behalf of victory in the valley, inc., which is exempt from federal
income taxation pursuant to section 501(c)(3) of the federal internal
revenue code, for the purpose of providing a cancer support group and
services for persons with cancer, and all sales of any such property by
or on behalf of any such organization for any such purpose;
(bbbb) all sales of entry or participation fees, charges or tickets by
Guadalupe health foundation, which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue
code, for such organization's annual fundraising event which purpose is
to provide health care services for uninsured workers;
(cccc) all sales of tangible personal property or services purchased
by or on behalf of wayside waifs, inc., which is exempt from federal
income taxation pursuant to section 501(c)(3) of the federal internal
revenue code, for the purpose of providing such organization's annual
fundraiser, an event whose purpose is to support the care of homeless
and abandoned animals, animal adoption efforts, education programs
for children and efforts to reduce animal over-population and animal
welfare services, and all sales of any such property, including entry or
participation fees or charges, by or on behalf of such organization for
such purpose;
(dddd) all sales of tangible personal property or services
purchased by or on behalf of goodwill industries or Easter seals of
Kansas, inc., both of which are exempt from federal income taxation
pursuant to section 501(c)(3) of the federal internal revenue code, for
the purpose of providing education, training and employment
opportunities for people with disabilities and other barriers to
employment;
(eeee) all sales of tangible personal property or services purchased
by or on behalf of all American beef battalion, inc., which is exempt
from federal income taxation pursuant to section 501(c)(3) of the
federal internal revenue code, for the purpose of educating, promoting
and participating as a contact group through the beef cattle industry in
order to carry out such projects that provide support and morale to
members of the United States armed forces and military services;
(ffff) all sales of tangible personal property and services purchased
by sheltered living, inc., which is exempt from federal income taxation
pursuant to section 501(c)(3) of the federal internal revenue code of
1986, and which such property and services are used for the purpose of
providing residential and day services for people with developmental
disabilities or intellectual disability, or both, and all sales of any such
property by or on behalf of sheltered living, inc., for any such purpose;
and all sales of tangible personal property or services purchased by a
contractor for the purpose of rehabilitating, constructing, maintaining,
repairing, enlarging, furnishing or remodeling homes and facilities for
sheltered living, inc., for any such purpose that would be exempt from
taxation under the provisions of this section if purchased directly by
sheltered living, inc. Nothing in this subsection shall be deemed to
exempt the purchase of any construction machinery, equipment or tools
used in the constructing, maintaining, repairing, enlarging, furnishing
or remodeling such homes and facilities for sheltered living, inc. When
sheltered living, inc., contracts for the purpose of rehabilitating,
constructing, maintaining, repairing, enlarging, furnishing or
remodeling such homes and facilities, it shall obtain from the state and
furnish to the contractor an exemption certificate for the project SENATE BILL No. 27—page 72
involved, and the contractor may purchase materials for incorporation
in such project. The contractor shall furnish the number of such
certificate to all suppliers from whom such purchases are made, and
such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project the
contractor shall furnish to sheltered living, inc., a sworn statement, on a
form to be provided by the director of taxation, that all purchases so
made were entitled to exemption under this subsection. All invoices
shall be held by the contractor for a period of five years and shall be
subject to audit by the director of taxation. If any materials purchased
under such a certificate are found not to have been incorporated in the
building or other project or not to have been returned for credit or the
sales or compensating tax otherwise imposed upon such materials that
will not be so incorporated in the building or other project reported and
paid by such contractor to the director of taxation not later than the 20
th
day of the month following the close of the month in which it shall be
determined that such materials will not be used for the purpose for
which such certificate was issued, sheltered living, inc., shall be liable
for tax on all materials purchased for the project, and upon payment
thereof it may recover the same from the contractor together with
reasonable attorney fees. Any contractor or any agent, employee or
subcontractor thereof, who shall use or otherwise dispose of any
materials purchased under such a certificate for any purpose other than
that for which such a certificate is issued without the payment of the
sales or compensating tax otherwise imposed upon such materials, shall
be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in K.S.A. 79-3615(h), and
amendments thereto;
(gggg) all sales of game birds for which the primary purpose is
use in hunting;
(hhhh) all sales of tangible personal property or services
purchased on or after July 1, 2014, for the purpose of and in
conjunction with constructing, reconstructing, enlarging or remodeling
a business identified under the North American industry classification
system (NAICS) subsectors 1123, 1124, 112112, 112120 or 112210,
and the sale and installation of machinery and equipment purchased for
installation at any such business. The exemption provided in this
subsection shall not apply to projects that have actual total costs less
than $50,000. When a person contracts for the construction,
reconstruction, enlargement or remodeling of any such business, such
person shall obtain from the state and furnish to the contractor an
exemption certificate for the project involved, and the contractor may
purchase materials, machinery and equipment for incorporation in such
project. The contractor shall furnish the number of such certificates to
all suppliers from whom such purchases are made, and such suppliers
shall execute invoices covering the same bearing the number of such
certificate. Upon completion of the project, the contractor shall furnish
to the owner of the business a sworn statement, on a form to be
provided by the director of taxation, that all purchases so made were
entitled to exemption under this subsection. All invoices shall be held
by the contractor for a period of five years and shall be subject to audit
by the director of taxation. Any contractor or any agent, employee or
subcontractor of the contractor, who shall use or otherwise dispose of
any materials, machinery or equipment purchased under such a
certificate for any purpose other than that for which such a certificate is
issued without the payment of the sales or compensating tax otherwise
imposed thereon, shall be guilty of a misdemeanor and, upon
conviction therefor, shall be subject to the penalties provided for in
K.S.A. 79-3615(h), and amendments thereto; SENATE BILL No. 27—page 73
(iiii) all sales of tangible personal property or services purchased
by a contractor for the purpose of constructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities for the operation of
services for Wichita children's home for any such purpose that would
be exempt from taxation under the provisions of this section if
purchased directly by Wichita children's home. Nothing in this
subsection shall be deemed to exempt the purchase of any construction
machinery, equipment or tools used in the constructing, maintaining,
repairing, enlarging, furnishing or remodeling such facilities for
Wichita children's home. When Wichita children's home contracts for
the purpose of constructing, maintaining, repairing, enlarging,
furnishing or remodeling such facilities, it shall obtain from the state
and furnish to the contractor an exemption certificate for the project
involved, and the contractor may purchase materials for incorporation
in such project. The contractor shall furnish the number of such
certificate to all suppliers from whom such purchases are made, and
such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project, the
contractor shall furnish to Wichita children's home a sworn statement,
on a form to be provided by the director of taxation, that all purchases
so made were entitled to exemption under this subsection. All invoices
shall be held by the contractor for a period of five years and shall be
subject to audit by the director of taxation. If any materials purchased
under such a certificate are found not to have been incorporated in the
building or other project or not to have been returned for credit or the
sales or compensating tax otherwise imposed upon such materials that
will not be so incorporated in the building or other project reported and
paid by such contractor to the director of taxation not later than the 20
th
day of the month following the close of the month in which it shall be
determined that such materials will not be used for the purpose for
which such certificate was issued, Wichita children's home shall be
liable for the tax on all materials purchased for the project, and upon
payment, it may recover the same from the contractor together with
reasonable attorney fees. Any contractor or any agent, employee or
subcontractor, who shall use or otherwise dispose of any materials
purchased under such a certificate for any purpose other than that for
which such a certificate is issued without the payment of the sales or
compensating tax otherwise imposed upon such materials, shall be
guilty of a misdemeanor and, upon conviction, shall be subject to the
penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
(jjjj) all sales of tangible personal property or services purchased
by or on behalf of the beacon, inc., that is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue
code, for the purpose of providing those desiring help with food,
shelter, clothing and other necessities of life during times of special
need;
(kkkk) all sales of tangible personal property and services
purchased by or on behalf of reaching out from within, inc., which is
exempt from federal income taxation pursuant to section 501(c)(3) of
the federal internal revenue code, for the purpose of sponsoring self-
help programs for incarcerated persons that will enable such
incarcerated persons to become role models for non-violence while in
correctional facilities and productive family members and citizens upon
return to the community;
(llll) all sales of tangible personal property and services purchased
by Gove county healthcare endowment foundation, inc., which is
exempt from federal income taxation pursuant to section 501(c)(3) of
the federal internal revenue code of 1986, and which such property and
services are used for the purpose of constructing and equipping an SENATE BILL No. 27—page 74
airport in Quinter, Kansas, and all sales of tangible personal property or
services purchased by a contractor for the purpose of constructing and
equipping an airport in Quinter, Kansas, for such organization, that
would be exempt from taxation under the provisions of this section if
purchased directly by such organization. Nothing in this subsection
shall be deemed to exempt the purchase of any construction machinery,
equipment or tools used in the constructing or equipping of facilities for
such organization. When such organization shall contract for the
purpose of constructing or equipping an airport in Quinter, Kansas, it
shall obtain from the state and furnish to the contractor an exemption
certificate for the project involved, and the contractor may purchase
materials for incorporation in such project. The contractor shall furnish
the number of such certificate to all suppliers from whom such
purchases are made, and such suppliers shall execute invoices covering
the same bearing the number of such certificate. Upon completion of
the project, the contractor shall furnish to such organization concerned
a sworn statement, on a form to be provided by the director of taxation,
that all purchases so made were entitled to exemption under this
subsection. All invoices shall be held by the contractor for a period of
five years and shall be subject to audit by the director of taxation. If any
materials purchased under such a certificate are found not to have been
incorporated in such facilities or not to have been returned for credit or
the sales or compensating tax otherwise imposed upon such materials
that will not be so incorporated in such facilities reported and paid by
such contractor to the director of taxation no later than the 20
th
day of
the month following the close of the month in which it shall be
determined that such materials will not be used for the purpose for
which such certificate was issued, such organization concerned shall be
liable for tax on all materials purchased for the project, and upon
payment thereof it may recover the same from the contractor together
with reasonable attorney fees. Any contractor or any agent, employee
or subcontractor thereof, who purchased under such a certificate for
any purpose other than that for which such a certificate is issued
without the payment of the sales or compensating tax otherwise
imposed upon such materials, shall be guilty of a misdemeanor and,
upon conviction therefor, shall be subject to the penalties provided for
in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
subsection shall expire and have no effect on and after July 1, 2019;
(mmmm) all sales of gold or silver coins; and palladium,
platinum, gold or silver bullion. For the purposes of this subsection,
"bullion" means bars, ingots or commemorative medallions of gold,
silver, platinum, palladium, or a combination thereof, for which the
value of the metal depends on its content and not the form;
(nnnn) all sales of tangible personal property or services
purchased by friends of hospice of Jefferson county, an organization
that is exempt from federal income taxation pursuant to section 501(c)
(3) of the federal internal revenue code of 1986, for the purpose of
providing support to the Jefferson county hospice agency in end-of-life
care of Jefferson county families, friends and neighbors, and all sales of
entry or participation fees, charges or tickets by friends of hospice of
Jefferson county for such organization's fundraising event for such
purpose;
(oooo) all sales of tangible personal property or services
purchased for the purpose of and in conjunction with constructing,
reconstructing, enlarging or remodeling a qualified business facility by
a qualified firm or qualified supplier that meets the requirements
established in K.S.A. 2023 Supp. 74-50,312 and 74-50,319, and
amendments thereto, and that has been approved for a project
exemption certificate by the secretary of commerce, and the sale and SENATE BILL No. 27—page 75
installation of machinery and equipment purchased by such qualified
firm or qualified supplier for installation at any such qualified business
facility. When a person shall contract for the construction,
reconstruction, enlargement or remodeling of any such qualified
business facility, such person shall obtain from the state and furnish to
the contractor an exemption certificate for the project involved, and the
contractor may purchase materials, machinery and equipment for
incorporation in such project. The contractor shall furnish the number
of such certificates to all suppliers from whom such purchases are
made, and such suppliers shall execute invoices covering the same
bearing the number of such certificate. Upon completion of the project,
the contractor shall furnish to the owner of the qualified firm or
qualified supplier a sworn statement, on a form to be provided by the
director of taxation, that all purchases so made were entitled to
exemption under this subsection. All invoices shall be held by the
contractor for a period of five years and shall be subject to audit by the
director of taxation. Any contractor or any agent, employee or
subcontractor thereof who shall use or otherwise dispose of any
materials, machinery or equipment purchased under such a certificate
for any purpose other than that for which such a certificate is issued
without the payment of the sales or compensating tax otherwise
imposed thereon, shall be guilty of a misdemeanor and, upon
conviction therefor, shall be subject to the penalties provided for in
K.S.A. 79-3615(h), and amendments thereto. As used in this
subsection, "qualified business facility," "qualified firm" and "qualified
supplier" mean the same as defined in K.S.A. 2023 Supp. 74-50,311,
and amendments thereto;
(pppp) (1) all sales of tangible personal property or services
purchased by a not-for-profit corporation that is designated as an area
agency on aging by the secretary for aging and disabilities services and
is exempt from federal income taxation pursuant to section 501(c)(3) of
the federal internal revenue code for the purpose of coordinating and
providing seniors and those living with disabilities with services that
promote person-centered care, including home-delivered meals,
congregate meal settings, long-term case management, transportation,
information, assistance and other preventative and intervention services
to help service recipients remain in their homes and communities or for
the purpose of constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities for such area
agency on aging; and
(2) all sales of tangible personal property or services purchased by
a contractor for the purpose of constructing, equipping, reconstructing,
maintaining, repairing, enlarging, furnishing or remodeling facilities for
an area agency on aging that would be exempt from taxation under the
provisions of this section if purchased directly by such area agency on
aging. Nothing in this paragraph shall be deemed to exempt the
purchase of any construction machinery, equipment or tools used in the
constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities for an area agency on
aging. When an area agency on aging contracts for the purpose of
constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities, it shall obtain from the
state and furnish to the contractor an exemption certificate for the
project involved, and such contractor may purchase materials for
incorporation in such project. The contractor shall furnish the number
of such certificate to all suppliers from whom such purchases are made,
and such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project, the
contractor shall furnish to such area agency on aging a sworn SENATE BILL No. 27—page 76
statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection.
All invoices shall be held by the contractor for a period of five years
and shall be subject to audit by the director of taxation. If any materials
purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been
returned for credit or the sales or compensating tax otherwise imposed
upon such materials that will not be so incorporated in the building or
other project reported and paid by such contractor to the director of
taxation not later than the 20
th
day of the month following the close of
the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, the area
agency on aging concerned shall be liable for tax on all materials
purchased for the project, and upon payment thereof, the area agency
on aging may recover the same from the contractor together with
reasonable attorney fees. Any contractor or any agent, employee or
subcontractor thereof who shall use or otherwise dispose of any
materials purchased under such a certificate for any purpose other than
that for which such a certificate is issued without the payment of the
sales or compensating tax otherwise imposed upon such materials shall
be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in K.S.A. 79-3615(h), and
amendments thereto;
(qqqq) all sales of tangible personal property or services
purchased by Kansas suicide prevention HQ, inc., an organization that
is exempt from federal income taxation pursuant to section 501(c)(3) of
the federal internal revenue code of 1986, for the purpose of bringing
suicide prevention training and awareness to communities across the
state;
(rrrr) all sales of the services of slaughtering, butchering, custom
cutting, dressing, processing and packaging of an animal for human
consumption when the animal is delivered or furnished by a customer
that owns the animal and such meat or poultry is for use or
consumption by such customer;
(ssss) all sales of tangible personal property or services purchased
by or on behalf of doorstep inc., an organization that is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986, for the purpose of providing short-term
emergency aid to families and individuals in need, including assistance
with food, clothing, rent, prescription medications, transportation and
utilities, and providing information on services to promote long-term
self-sufficiency;
(tttt) on and after January 1, 2024, all sales of tangible personal
property or services purchased by exploration place, inc., an
organization that is exempt from federal income taxation pursuant to
section 501(c)(3) of the federal internal revenue code, and which such
property and services are used for the purpose of constructing,
remodeling, furnishing or equipping a riverfront amphitheater, a
destination playscape, an education center and indoor renovations at
exploration place in Wichita, Kansas, all sales of tangible personal
property or services purchased by Kansas children's discovery center
inc. in Topeka, Kansas, and which such property and services are used
for the purpose of constructing, remodeling, furnishing or equipping
projects that include indoor-outdoor classrooms, an expanded multi-
media gallery, a workshop and loading dock and safety upgrades such
as a tornado shelter, lactation room, first aid room and sensory room
and all sales of tangible personal property or services purchased by a
contractor for the purpose of constructing, remodeling, furnishing or
equipping such projects, for such organizations, that would be exempt SENATE BILL No. 27—page 77
from taxation under the provisions of this section if purchased directly
by such organizations. Nothing in this subsection shall be deemed to
exempt the purchase of any construction machinery, equipment or tools
used in the constructing, remodeling, furnishing or equipping of
facilities for such organization. When such organization shall contract
for the purpose of constructing, remodeling, furnishing or equipping
such projects, it shall obtain from the state and furnish to the contractor
an exemption certificate for the project involved, and the contractor
may purchase materials for incorporation in such project. The
contractor shall furnish the number of such certificate to all suppliers
from whom such purchases are made, and such suppliers shall execute
invoices covering the same bearing the number of such certificate.
Upon completion of the project, the contractor shall furnish to such
organization a sworn statement, on a form to be provided by the
director of taxation, that all purchases so made were entitled to
exemption under this subsection. All invoices shall be held by the
contractor for a period of five years and shall be subject to audit by the
director of taxation. If any materials purchased under such a certificate
are found not to have been incorporated in such facilities or not to have
been returned for credit or the sales or compensating tax otherwise
imposed upon such materials that will not be so incorporated in such
facilities reported and paid by such contractor to the director of taxation
no later than the 20
th
day of the month following the close of the month
in which it shall be determined that such materials will not be used for
the purpose for which such certificate was issued, such organization
shall be liable for tax on all materials purchased for the project, and
upon payment thereof may recover the same from the contractor
together with reasonable attorney fees. Any contractor or agent,
employee or subcontractor thereof, who purchased under such a
certificate for any purpose other than that for which such a certificate is
issued without the payment of the sales or compensating tax otherwise
imposed upon such materials, shall be guilty of a misdemeanor and,
upon conviction therefor, shall be subject to the penalties provided for
in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and
after January 1, 2024, but prior to the effective date of this act, upon the
gross receipts received from any sale exempted by the amendatory
provisions of this subsection shall be refunded. Each claim for a sales
tax refund shall be verified and submitted to the director of taxation
upon forms furnished by the director and shall be accompanied by any
additional documentation required by the director. The director shall
review each claim and shall refund that amount of sales tax paid as
determined under the provisions of this subsection. All refunds shall be
paid from the sales tax refund fund upon warrants of the director of
accounts and reports pursuant to vouchers approved by the director or
the director's designee. The provisions of this subsection shall expire
and have no effect on and after December 31, 2030;
(uuuu) (1) (A) all sales of equipment, machinery, software,
ancillary components, appurtenances, accessories or other
infrastructure purchased for use in the provision of communications
services; and
(B) all services purchased by a provider in the provision of the
communications service used in the repair, maintenance or installation
in such communications service.
(2) As used in this subsection:
(A) "Communications service" means internet access service,
telecommunications service, video service or any combination thereof.
(B) "Equipment, machinery, software, ancillary components,
appurtenances, accessories or other infrastructure" includes, but is not
limited to: SENATE BILL No. 27—page 78
(i) Wires, cables, fiber, conduits, antennas, poles, switches,
routers, amplifiers, rectifiers, repeaters, receivers, multiplexers,
duplexers, transmitters, circuit cards, insulating and protective
materials and cases, power equipment, backup power equipment,
diagnostic equipment, storage devices, modems, cable modem
termination systems and servers;
(ii) other general central office or headend equipment, such as
channel cards, frames and cabinets;
(iii) equipment used in successor technologies, including items
used to monitor, test, maintain, enable or facilitate qualifying
equipment, machinery, software, ancillary components, appurtenances
and accessories; and
(iv) other infrastructure that is used in whole or in part to provide
communications services, including broadcasting, distributing, sending,
receiving, storing, transmitting, retransmitting, amplifying, switching,
providing connectivity for or routing communications services.
(C) "Internet access service" means the same as internet access as
defined in section 1105 of the internet tax freedom act amendments of
2007, public law 110-108.
(D) "Provider" means a person or entity that sells communications
service, including an affiliate or subsidiary.
(E) "Telecommunications service" means the same as defined in
K.S.A. 79-3602, and amendments thereto.
(F) "Video service" means the same as defined in K.S.A. 12-2022,
and amendments thereto.
(3) The provisions of this subsection shall expire and have no
effect on and after July 1, 2029; and
(vvvv) (1) all sales of tangible personal property or services
purchased by a contractor for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or
remodeling a building that is operated by, or is intended to be operated
by, the Kansas fairgrounds foundation, a not-for-profit corporation
exempt from federal income taxation pursuant to section 501(c)(3) of
the federal internal revenue code of 1986, and located on the grounds of
the Kansas state fair, and such tangible personal property would be
exempt from taxation under the provisions of this paragraph if
purchased directly by such eligible not-for-profit corporation. Nothing
in this subsection shall be deemed to exempt the purchase of any
construction machinery, equipment or tools used in the constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing
or remodeling a building for such eligible not-for-profit corporation.
When such eligible not-for-profit corporation contracts for the purpose
of constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling a building, such corporation shall
obtain from the state and furnish to the contractor an exemption
certificate for the project involved, and such contractor may purchase
materials for incorporation in such project. The contractor shall furnish
the number of such certificate to all suppliers from whom such
purchases are made, and such suppliers shall execute invoices covering
such purchases bearing the number of such certificate. Upon
completion of the project, the contractor shall furnish to such eligible
not-for-profit corporation a sworn statement, on a form to be provided
by the director of taxation, that all purchases so made were entitled to
exemption under this subsection. All invoices shall be held by the
contractor for a period of five years and shall be subject to audit by the
director of taxation. If any materials purchased under such a certificate
are found not to have been incorporated in the building or returned for
credit, the contractor shall report and pay the sales or compensating tax
to the director of taxation not later than the 20
th
day of the month SENATE BILL No. 27—page 79
following the close of the month in which it is determined that such
materials will not be used for the purpose for which such certificate
was issued. The eligible not-for-profit corporation concerned shall be
liable for tax on all materials purchased for the project, and upon
payment thereof, the eligible not-for-profit corporation may recover the
same from the contractor together with reasonable attorney fees. Any
contractor or any agent, employee or subcontractor thereof who shall
use or otherwise dispose of any materials purchased under such a
certificate for any purpose other than that for which such a certificate is
issued without the payment of the sales or compensating tax otherwise
imposed upon such materials shall be guilty of a misdemeanor and,
upon conviction therefor, shall be subject to the penalties provided for
in K.S.A. 79-3615(h), and amendments thereto.
(2) Sales tax paid on and after May 19, 2023, but prior to the
effective date of this act upon the gross receipts received from any sale
which would have been exempted by the provisions of this subsection
had such sale occurred after the effective date of this act shall be
refunded. Each claim for a sales tax refund shall be verified and
submitted to the director of taxation upon forms furnished by the
director and shall be accompanied by any additional documentation
required by the director. The director shall review each claim and shall
refund that amount of sales tax paid as determined under the provisions
of this subsection. All refunds shall be paid from the sales tax refund
fund upon warrants of the director of accounts and reports pursuant to
vouchers approved by the director or the director's designee; and
(wwww) (1) All sales of tangible personal property or services
purchased by a pregnancy resource center or residential maternity
facility.
(2) As used in this subsection, "pregnancy resource center" or
"residential maternity facility" means an organization that is:
(A) Exempt from federal income taxation pursuant to section
501(c)(3) of the federal internal revenue code of 1986;
(B) a nonprofit organization organized under the laws of this
state; and
(C) a pregnancy resource center or residential maternity facility
that:
(i) Maintains a dedicated phone number for clients;
(ii) maintains in this state its primary physical office, clinic or
residential home that is open for clients for a minimum of 20 hours per
week, excluding state holidays;
(iii) offers services, at no cost to the client, for the express
purpose of providing assistance to women in order to carry their
pregnancy to term, encourage parenting or adoption, prevent abortion
and promote healthy childbirth; and
(iv) utilizes trained healthcare providers, as defined by section 8
of 2024 House Bill No. 2465, and amendments thereto, to perform any
available medical procedures.
Sec. 16. K.S.A. 17-12a412, as amended by section 1 of 2024
Senate Bill No. 405, 17-12a412, as amended by section 15 of 2024
House Bill No. 2562, 44-706, as amended by section 12 of 2024 House
Bill No. 2760, 44-706, as amended by section 4 of 2024 House Bill No.
2570, 65-2401, as amended by section 1 of 2023 House Bill No. 2358,
65-2401, as amended by section 51 of 2024 Senate Bill No. 491, 73-
1210a, as amended by section 27 of 2024 House Bill No. 2760, and 73-
1210a, as amended by section 63 of 2024 Senate Bill No. 491, and
K.S.A. 2023 Supp. 38-2203, as amended by section 3 of 2024 House
Bill No. 2536, 38-2203a, 38-2212, as amended by section 8 of 2023
Senate Bill No. 115, 38-2212, as amended by section 1 of 2024 House
Bill No. 2628, 38-2243, 38-2243a, 65-536, 65-536a, 65-5808, 65- SENATE BILL No. 27—page 80
5808a, 65-6129, as amended by section 21 of 2024 House Bill No.
2760, 65-6129, as amended by section 62 of 2024 Senate Bill No. 491,
75-5665a, 79-32,117, as amended by section 2 of 2024 Senate Bill No.
360, 79-32,117, as amended by section 18 of 2024 Senate Bill No. 410,
79-32,117, as amended by section 9 of 2024 House Bill No. 2465, 79-
3606, as amended by section 5 of 2023 House Bill No. 2098, and 79-
3606, as amended by section 11 of 2024 House Bill No. 2465, are
hereby repealed.
Sec. 17. On and after January 1, 2025, K.S.A. 9-508, as amended
by section 11 of 2024 Senate Bill No. 491, 9-509, as amended by
section 12 of 2024 Senate Bill No. 491, 9-513e, as amended by section
13 of 2024 Senate Bill No. 491, 9-2201, as amended by section 16 of
2024 Senate Bill No. 491, 9-2201, as amended by section 17 of 2024
House Bill No. 2247, 9-2209, as amended by section 17 of 2024 Senate
Bill No. 491, 9-2209, as amended by section 21 of 2024 House Bill No.
2247, 16a-6-104, as amended by section 22 of 2024 Senate Bill No.
491, 16a-6-104, as amended by section 104 of 2024 House Bill No.
2247, are hereby repealed.
Sec. 18. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the
SENATE, and passed that body
__________________________
SENATE adopted
Conference Committee Report ________________
_________________________
President of the Senate.
_________________________
Secretary of the Senate.
Passed the HOUSE
as amended _________________________
HOUSE adopted
Conference Committee Report ________________
_________________________
Speaker of the House.
_________________________
Chief Clerk of the House.
APPROVED _____________________________
_________________________
Governor.