Kansas 2023-2024 Regular Session

Kansas Senate Bill SB286 Compare Versions

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

Old	New	Differences
1	1	Session of 2023
2	2	SENATE BILL No. 286
3	3	By Committee on Federal and State Affairs
4	4	3-2
5	5	AN ACT concerning abortion; prohibiting abortion procedures,
6	6	exceptions; providing a private cause of action for civil enforcement of
7	7	such prohibition; amending K.S.A. 65-2401, 65-2837, 65-6731, 65-
8	8	67a01, 76-3308 and 79-32,195 and K.S.A. 2022 Supp. 60-1906, 79-
9	9	32,182b, 79-32,261 and 79-3606 and repealing the existing sections;
10	10	also repealing K.S.A. 65-4a01, 65-4a02, 65-4a03, 65-4a04, 65-4a05,
11	11	65-4a06, 65-4a07, 65-4a08, 65-4a09, 65-4a10, 65-4a11, 65-4a12, 65-
12	12	6701, 65-6702, 65-6703, 65-6704, 65-6705, 65-6707, 65-6708, 65-
13	13	6709, 65-6710, 65-6711, 65-6712, 65-6714, 65-6715, 65-6721, 65-
14	14	6722, 65-6723, 65-6724, 65-6725, 65-6726, 65-6741, 65-6742, 65-
15	15	6743, 65-6744, 65-6745, 65-6746, 65-6747, 65-6748 and 65-6749.
16	16	Be it enacted by the Legislature of the State of Kansas:
17	17	New Section 1. (a) It shall be unlawful for any person to knowingly
18	18	perform or induce or attempt to perform or induce an abortion except
19	19	when necessary to preserve the life of a pregnant woman in a medical
20	20	emergency.
21	21	(b) It shall not be a violation of this section if a physician provides
22	22	medical treatment to a pregnant woman that results in accidental or
23	23	unintentional injury to or the death of the unborn child.
24	24	(c) Nothing in this section shall be construed to authorize the
25	25	performance or induction of an abortion that is otherwise prohibited by
26	26	federal or state law.
27	27	New Sec. 2. It shall be unlawful for any person to manufacture,
28	28	distribute, prescribe, dispense, sell, give or otherwise provide mifepristone,
29	29	mifegyne, mifeperex or any other substantially similar generic or
30	30	nongeneric abortifacient drug in this state for the purpose of inducing an
31	31	abortion in violation of section 1, and amendments thereto.
32	32	New Sec. 3. Nothing in section 1 or 2, and amendments thereto, shall
33	33	be construed to:
34	34	(a) Impose any liability against the woman upon whom an abortion is
35	35	performed or induced or attempted to be performed or induced; or
36	36	(b) prohibit the administration of misoprostol for the purpose of
37	37	treatment of a miscarriage.
38	38	New Sec. 4. (a) Violations of section 1 or 2, and amendments thereto,
39	39	shall be enforced exclusively through the private civil enforcement actions
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76	76	provided under section 5, and amendments thereto. Notwithstanding any
77	77	other provision of law, no enforcement of sections 1 and 2, and
78	78	amendments thereto, may be taken or threatened by any state agency,
79	79	political subdivision, county attorney or district attorney or any officer or
80	80	employee thereof against any person.
81	81	(b) Nothing in this section shall be construed to:
82	82	(1) Render any of the conduct prohibited by sections 1 and 2, and
83	83	amendments thereto, or by any other provision of law to be lawful;
84	84	(2) limit or affect, in any way, the availability of any relief established
85	85	under section 5, and amendments thereto; or
86	86	(3) limit the enforceability of any other laws that regulate or prohibit
87	87	abortion.
88	88	New Sec. 5. (a) Except for the entities and individuals described in
89	89	section 4, and amendments thereto, any person may bring a civil action
90	90	against any person who:
91	91	(1) Violates section 1 or 2, and amendments thereto; or
92	92	(2) knowingly engages in conduct that aids or abets a violation of
93	93	section 1 or 2, and amendments thereto, including paying for or
94	94	reimbursing the costs of an abortion through insurance or otherwise,
95	95	regardless of whether the person knew or should have known that the
96	96	performance or induction of the abortion would violate section 1, and
97	97	amendments thereto.
98	98	(b) (1) Except as otherwise provided, if the party bringing a cause of
99	99	action pursuant to this section prevails, the court shall award:
100	100	(A) Injunctive relief sufficient to prevent the defendant from violating
101	101	section 1 or 2, and amendments thereto, or engaging in acts that aid or abet
102	102	violations of section 1 or 2, and amendments thereto;
103	103	(B) (i) statutory damages in an amount of not less than $10,000 for
104	104	each abortion that the defendant performed or induced or attempted to
105	105	perform or induce in violation of section 1, and amendments thereto, and
106	106	for each abortion performed or induced or attempted to perform or induce
107	107	in violation of section 1, and amendments thereto, that the defendant aided
108	108	or abetted; and
109	109	(ii) statutory damages in an amount of not less than $10,000 for each
110	110	violation of section 2, and amendments thereto; and
111	111	(C) attorney fees and court costs.
112	112	(2) A court shall not award attorney fees or court costs to any
113	113	defendant who is the prevailing party in such action.
114	114	(c) A court shall not make any award under this section if the
115	115	defendant demonstrates that the defendant previously paid statutory
116	116	damages in a prior action that was brought for the same violation of
117	117	section 1 or 2, and amendments thereto, or for the same conduct that aided
118	118	or abetted a violation of section 1 or 2, and amendments thereto.
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162	162	(d) No action shall be maintained under this section after six years
163	163	from the time the cause of action accrues.
164	164	(e) Notwithstanding any other law, the following may not be asserted
165	165	as an affirmative defense to any claims in an action brought under this
166	166	section:
167	167	(1) Ignorance or mistake of law;
168	168	(2) a defendant's belief that the provisions of sections 1 through 8,
169	169	and amendments thereto, are unconstitutional;
170	170	(3) a defendant's reliance on any court decision that has been
171	171	overruled on appeal or by a subsequent court, even if such court decision
172	172	had not been overruled when the defendant engaged in conduct that
173	173	violates section 1 or 2, and amendments thereto;
174	174	(4) a defendant's reliance on any state or federal court decision that is
175	175	not binding on the court in which the action has been brought;
176	176	(5) nonmutual issue preclusion or nonmutual claim preclusion; or
177	177	(6) the consent of the pregnant woman to the abortion.
178	178	(f) In any action brought pursuant to subsection (a)(2), it is an
179	179	affirmative defense that the defendant reasonably believed, after
180	180	conducting a reasonable investigation, that the physician performing or
181	181	inducing or attempting to perform or induce the abortion had complied or
182	182	would comply with section 1, and amendments thereto. The defendant
183	183	shall have the burden of proving the affirmative defense under this
184	184	subsection by a preponderance of the evidence.
185	185	(g) No entity or person described in section 4, and amendments
186	186	thereto, shall intervene in any action brought under this section. No entity
187	187	or person shall be prohibited from filing an amicus curiae brief in any such
188	188	action.
189	189	(h) Nothing in this section shall be construed to impose liability on
190	190	any speech or conduct protected by the amendment 1 to the constitution of
191	191	the United States or by section 11 of the bill of rights of the constitution of
192	192	the state of Kansas.
193	193	New Sec. 6. Any action brought under section 5, and amendments
194	194	thereto, shall be brought in:
195	195	(a) The county where all or a substantial part of the events or
196	196	omissions giving rise to the claim occurred;
197	197	(b) the county of residence for the defendant who is a natural person,
198	198	if any, at the time the cause of action accrued;
199	199	(c) the county where the principal office in this state of the defendant
200	200	that is not a natural person, if any, is located; or
201	201	(d) the county of residence for the plaintiff if the plaintiff is a natural
202	202	person residing in this state.
203	203	New Sec. 7. As used in sections 1 through 7, and amendments
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248	248	(a) (1) "Abortion" means the use or prescription of any instrument,
249	249	medicine, drug or any other substance or device to terminate the
250	250	pregnancy of a woman with an intention to cause the premature
251	251	termination of the pregnancy knowing that such termination will with
252	252	reasonable likelihood cause the death of the unborn child. Such use or
253	253	prescription is not an "abortion" if done with the intent to:
254	254	(A) Preserve the life or health of the unborn child;
255	255	(B) increase the probability of a live birth;
256	256	(C) remove a dead unborn child who died as the result of natural
257	257	causes in utero,
258	258	accidental trauma or a criminal assault on the pregnant woman or the
259	259	unborn child; or
260	260	(D) remove an ectopic pregnancy.
261	261	(2) "Abortion" does not include the prescription, dispensing,
262	262	administration, sale or use of any method of contraception, including, but
263	263	not limited to, any type of emergency contraception intended to be taken
264	264	or used immediately subsequent to sexual intercourse.
265	265	(b) "Imminent harm" exclusively includes a physical condition and
266	266	does not include any mental condition, including, but not limited to, any
267	267	claim or diagnosis that the pregnant woman will engage in conduct
268	268	intended to result in her own death or some other form of self-harm.
269	269	(c) "Medical emergency" means a condition that, in reasonable
270	270	medical judgment, necessitates the immediate abortion of a woman's
271	271	pregnancy to preserve the life of the pregnant woman because such
272	272	woman's life is endangered and subject to imminent harm arising from the
273	273	pregnancy by a physical disorder, illness or injury, including a life-
274	274	endangering physical condition caused by or arising from the pregnancy
275	275	itself.
276	276	(d) "Miscarriage" means the nondeliberate and spontaneous expulsion
277	277	of a nonviable fetus that has a gestational age of fewer than 20 weeks.
278	278	(e) "Unborn child" means a living individual of the species homo
279	279	sapiens at any stage of gestation from fertilization to birth.
280	280	New Sec. 8. The provisions of sections 1 through 7, and amendments
281	281	thereto, are hereby declared severable. If any part or provision of sections
282	282	1 through 7, and amendments thereto, is held to be void, invalid or
283	283	unconstitutional, such part or provision shall not affect or impair any of the
284	284	remaining parts or provisions of sections 1 through 7, and amendments
285	285	thereto, and any such remaining provisions shall continue in full force and
286	286	effect.
287	287	Sec. 9. K.S.A. 2022 Supp. 60-1906 is hereby amended to read as
288	288	follows: 60-1906. (a) No civil action may be commenced in any court for a
289	289	claim of wrongful life or wrongful birth, and no damages may be
290	290	recovered in any civil action for any physical condition of a minor that
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334	334	existed at the time of such minor's birth if the damages sought arise out of
335	335	a claim that a person's action or omission contributed to such minor's
336	336	mother not obtaining an abortion.
337	337	(b) Nothing in this section shall be deemed to create any new cause of
338	338	action, nor preclude any otherwise proper cause of action based on a claim
339	339	that, but for a person's wrongful action or omission, the death or physical
340	340	injury of the mother would not have occurred, or the handicap, disease or
341	341	disability of an individual prior to birth would have been prevented, cured
342	342	or ameliorated in a manner that preserved the health and life of such
343	343	individual.
344	344	(c) If any provision or clause of this act or application thereof to any
345	345	person or circumstance is held invalid, such invalidity shall not affect other
346	346	provisions or applications of the act which can be given effect without the
347	347	invalid provision or application, and to this end the provisions of this act
348	348	are declared to be severable.
349	349	(d) As used in this section:
350	350	(1) "Abortion" has the same meaning as such term is means the same
351	351	as defined in K.S.A. 65-6701 section 7, and amendments thereto.
352	352	(2) "Claim of wrongful birth" means a cause of action brought by a
353	353	parent, legal guardian or other individual legally required to provide for
354	354	the support of a minor, which seeks damages, whether economic or
355	355	noneconomic, as a result of a physical condition of such minor that existed
356	356	at the time of such minor's birth, and which is based on a claim that a
357	357	person's action or omission contributed to such minor's mother not
358	358	obtaining an abortion.
359	359	(3) "Claim of wrongful life" means a cause of action brought by, or
360	360	on behalf of, a minor, which seeks damages, whether economic or
361	361	noneconomic, for such minor as a result of a physical condition of such
362	362	minor that existed at the time of such minor's birth, and which is based on
363	363	a claim that a person's action or omission contributed to such minor's
364	364	mother not obtaining an abortion.
365	365	Sec. 10. K.S.A. 65-2401 is hereby amended to read as follows: 65-
366	366	2401. As used in this act:
367	367	(a) "Vital statistics" includes the registration, preparation,
368	368	transcription, collection, compilation, and preservation of data pertaining
369	369	to birth, adoption, legitimation, death, stillbirth, marriage, divorce,
370	370	annulment of marriage, induced termination of pregnancy, and data
371	371	incidental thereto.
372	372	(b) "Live birth" means the complete expulsion or extraction from its
373	373	mother of a human child, irrespective of the duration of pregnancy, which,
374	374	after such expulsion or extraction, breathes or shows any other evidence of
375	375	life such as beating of the heart, pulsation of the umbilical cord, or definite
376	376	movement of voluntary muscles, whether or not the umbilical cord has
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420	420	been cut or the placenta is attached.
421	421	(c) "Gestational age" means the age of the human child as measured
422	422	in weeks as determined by either the last date of the mother's menstrual
423	423	period, a sonogram conducted prior to the 20
424	424	th
425	425	week of pregnancy or the
426	426	confirmed known date of conception.
427	427	(d) "Stillbirth" means any complete expulsion or extraction from its
428	428	mother of a human child the gestational age of which is not less than 20
429	429	completed weeks, resulting in other than a live birth, as defined in this
430	430	section, and which is not an induced termination of pregnancy.
431	431	(e) "Induced termination of pregnancy" means abortion, as defined in
432	432	K.S.A. 65-6701 section 7, and amendments thereto.
433	433	(f) "Dead body" means a lifeless human body or such parts of a
434	434	human body or the bones thereof from the state of which it reasonably may
435	435	be concluded that death recently occurred.
436	436	(g) "Person in charge of interment" means any person who places or
437	437	causes to be placed a stillborn child or dead body or the ashes, after
438	438	cremation, in a grave, vault, urn or other receptacle, or otherwise disposes
439	439	thereof.
440	440	(h) "Secretary" means the secretary of health and environment.
441	441	Sec. 11. K.S.A. 65-2837 is hereby amended to read as follows: 65-
442	442	2837. As used in K.S.A. 65-2836, and amendments thereto, and in this
443	443	section:
444	444	(a) "Professional incompetency" means:
445	445	(1) One or more instances involving failure to adhere to the
446	446	applicable standard of care to a degree that constitutes gross negligence, as
447	447	determined by the board.
448	448	(2) Repeated instances involving failure to adhere to the applicable
449	449	standard of care to a degree that constitutes ordinary negligence, as
450	450	determined by the board.
451	451	(3) A pattern of practice or other behavior that demonstrates a
452	452	manifest incapacity or incompetence to practice the healing arts.
453	453	(b) "Unprofessional conduct" means:
454	454	(1) Solicitation of professional patronage through the use of
455	455	fraudulent or false advertisements, or profiting by the acts of those
456	456	representing themselves to be agents of the licensee.
457	457	(2) Representing to a patient that a manifestly incurable disease,
458	458	condition or injury can be permanently cured.
459	459	(3) Assisting in the care or treatment of a patient without the consent
460	460	of the patient, the attending physician or the patient's legal representatives.
461	461	(4) The use of any letters, words or terms as an affix, on stationery, in
462	462	advertisements or otherwise indicating that such person is entitled to
463	463	practice a branch of the healing arts for which such person is not licensed.
464	464	(5) Performing, procuring or aiding and abetting in the performance
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508	508	or procurement of a criminal an abortion.
509	509	(6) Willful betrayal of confidential information.
510	510	(7) Advertising professional superiority or the performance of
511	511	professional services in a superior manner.
512	512	(8) Advertising to guarantee any professional service or to perform
513	513	any operation painlessly.
514	514	(9) Participating in any action as a staff member of a medical care
515	515	facility that is designed to exclude or that results in the exclusion of any
516	516	person licensed to practice medicine and surgery from the medical staff of
517	517	a nonprofit medical care facility licensed in this state because of the
518	518	branch of the healing arts practiced by such person or without just cause.
519	519	(10) Failure to effectuate the declaration of a qualified patient as
520	520	provided in K.S.A. 65-28,107(a), and amendments thereto.
521	521	(11) Prescribing, ordering, dispensing, administering, selling,
522	522	supplying or giving any amphetamines or sympathomimetic amines,
523	523	except as authorized by K.S.A. 65-2837a, and amendments thereto.
524	524	(12) Conduct likely to deceive, defraud or harm the public.
525	525	(13) Making a false or misleading statement regarding the licensee's
526	526	skill or the efficacy or value of the drug, treatment or remedy prescribed
527	527	by the licensee or at the licensee's direction in the treatment of any disease
528	528	or other condition of the body or mind.
529	529	(14) Aiding or abetting the practice of the healing arts by an
530	530	unlicensed, incompetent or impaired person.
531	531	(15) Allowing another person or organization to use the licensee's
532	532	license to practice the healing arts.
533	533	(16) Commission of any act of sexual abuse, misconduct or other
534	534	improper sexual contact that exploits the licensee-patient relationship with
535	535	a patient or a person responsible for health care decisions concerning such
536	536	patient.
537	537	(17) The use of any false, fraudulent or deceptive statement in any
538	538	document connected with the practice of the healing arts including the
539	539	intentional falsifying or fraudulent altering of a patient or medical care
540	540	facility record.
541	541	(18) Obtaining any fee by fraud, deceit or misrepresentation.
542	542	(19) Directly or indirectly giving or receiving any fee, commission,
543	543	rebate or other compensation for professional services not actually and
544	544	personally rendered, other than through the legal functioning of lawful
545	545	professional partnerships, corporations, limited liability companies or
546	546	associations.
547	547	(20) Failure to transfer patient records to another licensee when
548	548	requested to do so by the subject patient or by such patient's legally
549	549	designated representative.
550	550	(21) Performing unnecessary tests, examinations or services that have
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594	594	no legitimate medical purpose.
595	595	(22) Charging an excessive fee for services rendered.
596	596	(23) Prescribing, dispensing, administering or distributing a
597	597	prescription drug or substance, including a controlled substance, in an
598	598	improper or inappropriate manner, or for other than a valid medical
599	599	purpose, or not in the course of the licensee's professional practice.
600	600	(24) Repeated failure to practice healing arts with that level of care,
601	601	skill and treatment that is recognized by a reasonably prudent similar
602	602	practitioner as being acceptable under similar conditions and
603	603	circumstances.
604	604	(25) Failure to keep written medical records that accurately describe
605	605	the services rendered to the patient, including patient histories, pertinent
606	606	findings, examination results and test results.
607	607	(26) Delegating professional responsibilities to a person when the
608	608	licensee knows or has reason to know that such person is not qualified by
609	609	training, experience or licensure to perform them.
610	610	(27) Using experimental forms of therapy without proper informed
611	611	patient consent, without conforming to generally accepted criteria or
612	612	standard protocols, without keeping detailed legible records or without
613	613	having periodic analysis of the study and results reviewed by a committee
614	614	or peers.
615	615	(28) Prescribing, dispensing, administering or distributing an anabolic
616	616	steroid or human growth hormone for other than a valid medical purpose.
617	617	Bodybuilding, muscle enhancement or increasing muscle bulk or strength
618	618	through the use of an anabolic steroid or human growth hormone by a
619	619	person who is in good health is not a valid medical purpose.
620	620	(29) Referring a patient to a health care entity for services if the
621	621	licensee has a significant investment interest in the health care entity,
622	622	unless the licensee informs the patient in writing of such significant
623	623	investment interest and that the patient may obtain such services
624	624	elsewhere.
625	625	(30) Failing to properly supervise, direct or delegate acts that
626	626	constitute the healing arts to persons who perform professional services
627	627	pursuant to such licensee's direction, supervision, order, referral,
628	628	delegation or practice protocols.
629	629	(31) Violating K.S.A. 65-6703, and amendments thereto.
630	630	(32) Charging, billing or otherwise soliciting payment from any
631	631	patient, patient's representative or insurer for anatomic pathology services,
632	632	if such services are not personally rendered by the licensee or under such
633	633	licensee's direct supervision. As used in this subsection, "anatomic
634	634	pathology services" means the gross or microscopic examination of
635	635	histologic processing of human organ tissue or the examination of human
636	636	cells from fluids, aspirates, washings, brushings or smears, including blood
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680	680	banking services, and subcellular or molecular pathology services,
681	681	performed by or under the supervision of a person licensed to practice
682	682	medicine and surgery or a clinical laboratory. Nothing in this subsection
683	683	shall be construed to prohibit billing for anatomic pathology services by:
684	684	(A) A hospital;
685	685	(B) a clinical laboratory when samples are transferred between
686	686	clinical laboratories for the provision of anatomic pathology services; or
687	687	(C) a physician providing services to a patient pursuant to a medical
688	688	retainer agreement in compliance with K.S.A. 65-4978, and amendments
689	689	thereto, when the bill to the patient for such services:
690	690	(i) Identifies the laboratory or physician that performed the services;
691	691	(ii) discloses in writing to the patient the actual amount charged by
692	692	the physician or laboratory that performed the service; and
693	693	(iii) is consistent with rules and regulations adopted by the board for
694	694	appropriate billing standards applicable to such services when furnished
695	695	under these agreements.
696	696	(33)(32) Engaging in conduct that violates patient trust and exploits
697	697	the licensee-patient relationship for personal gain.
698	698	(34)(33) Obstructing a board investigation including, but not limited
699	699	to, engaging in one or more of the following acts:
700	700	(A) Falsifying or concealing a material fact;
701	701	(B) knowingly making or causing to be made any false or misleading
702	702	statement or writing; or
703	703	(C) other acts or conduct likely to deceive or defraud the board.
704	704	(c) "False advertisement" means any advertisement that is false,
705	705	misleading or deceptive in a material respect. In determining whether any
706	706	advertisement is misleading, there shall be taken into account not only
707	707	representations made or suggested by statement, word, design, device,
708	708	sound or any combination thereof, but also the extent to which the
709	709	advertisement fails to reveal facts material in the light of such
710	710	representations made.
711	711	(d) "Advertisement" means all representations disseminated in any
712	712	manner or by any means for the purpose of inducing, or that are likely to
713	713	induce, directly or indirectly, the purchase of professional services.
714	714	(e) "Licensee" for purposes of this section and K.S.A. 65-2836, and
715	715	amendments thereto, means all persons issued a license, permit or special
716	716	permit pursuant to article 28 of chapter 65 of the Kansas Statutes
717	717	Annotated, and amendments thereto.
718	718	(f) "License" for purposes of this section and K.S.A. 65-2836, and
719	719	amendments thereto, means any license, permit or special permit granted
720	720	under article 28 of chapter 65 of the Kansas Statutes Annotated, and
721	721	amendments thereto.
722	722	(g) "Health care entity" means any corporation, firm, partnership or
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766	766	other business entity that provides services for diagnosis or treatment of
767	767	human health conditions and that is owned separately from a referring
768	768	licensee's principle practice.
769	769	(h) "Significant investment interest" means ownership of at least 10%
770	770	of the value of the firm, partnership or other business entity that owns or
771	771	leases the health care entity, or ownership of at least 10% of the shares of
772	772	stock of the corporation that owns or leases the health care entity.
773	773	Sec. 12. K.S.A. 65-6731 is hereby amended to read as follows: 65-
774	774	6731. As used in K.S.A. 65-6731 through 65-6738, and amendments
775	775	thereto:
776	776	(a) "Abortion" has the same meaning as such term is means the same
777	777	as defined in K.S.A. 65-6701 section 7, and amendments thereto.
778	778	(b) "Health benefit plan" means any hospital or medical expense
779	779	policy, health, hospital or medical services corporation contract, and a plan
780	780	provided by a municipal group-funded pool, or a health maintenance
781	781	organization contract offered by any employer or any certificate issued
782	782	under any such policy, contract or plan.
783	783	(c) "Health care entity" means an individual physician or other health
784	784	care professional, a hospital, a provider-sponsored organization, a health
785	785	maintenance organization or any other health care facility or organization.
786	786	(d) "School district" means any public school district organized under
787	787	the laws of this state.
788	788	(e) "State agency" has the same meaning as such term is means the
789	789	same as defined in K.S.A. 75-3701, and amendments thereto.
790	790	Sec. 13. K.S.A. 65-67a01 is hereby amended to read as follows: 65-
791	791	67a01. As used in this act:
792	792	(a) "Abortion" means an abortion as defined by K.S.A. 65-6701 in
793	793	section 7, and amendments thereto.
794	794	(b) (1) "Consideration" means:
795	795	(A) Any payment made or debt incurred;
796	796	(B) any gift, honorarium or recognition of value bestowed;
797	797	(C) any price, charge or fee which is waived, forgiven, reduced or
798	798	indefinitely delayed;
799	799	(D) any loan or debt which is canceled or otherwise forgiven; or
800	800	(E) the transfer of any item from one person to another or provision
801	801	of any service or granting of any opportunity for which a charge is
802	802	customarily made, without charge or for a reduced charge.
803	803	(2) "Consideration" shall does not mean:
804	804	(A) A payment in an amount not to exceed $25 for the cost of
805	805	transporting, processing, preserving and storing fetal tissue; or
806	806	(B) a payment in an amount not to exceed the actual cost, as
807	807	documented by the delivery service, of transporting fetal tissue.
808	808	(c) "Delivery service" means a common carrier as defined by K.S.A.
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852	852	66-105, and amendments thereto, or other person or entity used to
853	853	transport fetal tissue.
854	854	(d) "Fetal tissue" means any tissue, cells or organs obtained from a
855	855	dead human embryo or fetus after an abortion or after a stillbirth.
856	856	(e) "Person" means a person as defined by K.S.A. 65-425, and
857	857	amendments thereto.
858	858	(f) "Stillbirth" means a stillbirth as defined by K.S.A. 65-2401, and
859	859	amendments thereto.
860	860	Sec. 14. K.S.A. 76-3308 is hereby amended to read as follows: 76-
861	861	3308.(a) The authority shall have all the powers necessary to carry out the
862	862	purposes and provisions of this act, including, without limitation, the
863	863	following powers to:
864	864	(1) Have the duties, privileges, immunities, rights, liabilities and
865	865	disabilities of a body corporate and a political instrumentality of the state;
866	866	(2) have perpetual existence and succession;
867	867	(3) adopt, have and use a seal and to alter the same at its pleasure;
868	868	(4) sue and be sued in its own name;
869	869	(5) make and execute contracts, guarantees or any other instruments
870	870	and agreements necessary or convenient for the exercise of its powers and
871	871	functions including, without limitation, to make and execute contracts with
872	872	hospitals or other health care businesses to operate and manage any or all
873	873	of the hospital facilities or operations and to incur liabilities and secure the
874	874	obligations of any entity or individual;
875	875	(6) borrow money and to issue bonds evidencing the same and pledge
876	876	all or any part of the authority's assets therefor;
877	877	(7) purchase, lease, trade, exchange or otherwise acquire, maintain,
878	878	hold, improve, mortgage, sell, lease and dispose of personal property,
879	879	whether tangible or intangible, and any interest therein; and to purchase,
880	880	lease, trade, exchange or otherwise acquire real property or any interest
881	881	therein, and to maintain, hold, improve, mortgage, lease and otherwise
882	882	transfer such real property, so long as such transactions do not conflict
883	883	with the mission of the authority as specified in this act;
884	884	(8) incur or assume indebtedness to, and enter into contracts with the
885	885	Kansas development finance authority, which is authorized to borrow
886	886	money and provide financing for the authority;
887	887	(9) develop policies and procedures generally applicable to the
888	888	procurement of goods, services and construction, based upon sound
889	889	business practices;
890	890	(10) contract for and to accept any gifts, grants and loans of funds,
891	891	property, or any other aid in any form from the federal government, the
892	892	state, any state agency, or any other source, or any combination thereof,
893	893	and to comply with the provisions of the terms and conditions thereof;
894	894	(11) acquire space, equipment, services, supplies and insurance
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938	938	necessary to carry out the purposes of this act;
939	939	(12) deposit any moneys of the authority in any banking institution
940	940	within or without the state or in any depository authorized to receive such
941	941	deposits, one or more persons to act as custodians of the moneys of the
942	942	authority, to give surety bonds in such amounts in form and for such
943	943	purposes as the board requires;
944	944	(13) procure such insurance, participate in such insurance plans or
945	945	provide such self insurance or both as it deems necessary or convenient to
946	946	carry out the purposes and provisions of this act; the purchase of
947	947	insurance, participation in an insurance plan or creation of a self-insurance
948	948	fund by the authority shall not be deemed as a waiver or relinquishment of
949	949	any sovereign immunity to which the authority or its officers, directors,
950	950	employees or agents are otherwise entitled;
951	951	(14) appoint, supervise and set the salary and compensation of a
952	952	president of the authority who shall be appointed by and serve at the
953	953	pleasure of the board;
954	954	(15) fix, revise, charge and collect rates, rentals, fees and other
955	955	charges for the services or facilities furnished by or on behalf of the
956	956	authority, and to establish policies and procedures regarding any such
957	957	service rendered for the use, occupancy or operation of any such facility;
958	958	such charges and policies and procedures not to be subject to supervision
959	959	or regulation by any commission, board, bureau or agency of the state; and
960	960	(16) do any and all things necessary or convenient to carry out the
961	961	authority's purposes and exercise the powers given in this act.
962	962	(b) The authority may create, own in whole or in part, or otherwise
963	963	acquire or dispose of any entity organized for a purpose related to or in
964	964	support of the mission of the authority.
965	965	(c) The authority may participate in joint ventures with individuals,
966	966	corporations, governmental bodies or agencies, partnerships, associations,
967	967	insurers or other entities to facilitate any activities or programs consistent
968	968	with the public purpose and intent of this act.
969	969	(d) The authority may create a nonprofit entity or entities for the
970	970	purpose of soliciting, accepting and administering grants, outright gifts and
971	971	bequests, endowment gifts and bequests and gifts and bequests in trust
972	972	which entity or entities shall not engage in trust business.
973	973	(e) In carrying out any activities authorized by this act, the authority
974	974	may provide appropriate assistance, including the making of loans and
975	975	providing time of employees, to corporations, partnerships, associations,
976	976	joint ventures or other entities, whether or not such corporations,
977	977	partnerships, associations, joint ventures or other entities are owned or
978	978	controlled in whole or in part, directly or indirectly, by the authority.
979	979	(f) Effective with the transfer date, all moneys of the authority shall
980	980	be deposited in one or more banks or trust companies in one or more
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1023	1023	43 SB 286 13
1024	1024	special accounts. All banks and trust companies are authorized to give
1025	1025	security for such deposits if required by the authority. The moneys in such
1026	1026	accounts shall be paid out on a warrant or other orders of the treasurer of
1027	1027	the authority or any such other person or persons as the authority may
1028	1028	authorize to execute such warrants or orders.
1029	1029	(g) Notwithstanding any provision of law to the contrary, the
1030	1030	authority, effective with the transfer date, may invest the authority's
1031	1031	operating funds in any obligations or securities as authorized by the board.
1032	1032	The board shall adopt written investment guidelines.
1033	1033	(h) The authority is authorized to negotiate contracts with one or
1034	1034	more qualified parties to provide collection services. The selection of a
1035	1035	collection services provider shall be based on responses to a request for
1036	1036	proposals from qualified professional firms and shall be administered in
1037	1037	accordance with policies adopted by the board.
1038	1038	(i) Notwithstanding any provision of law to the contrary, no abortion,
1039	1039	as defined in section 7, and amendments thereto, shall be performed,
1040	1040	except in the event of a medical emergency, in any medical facility,
1041	1041	hospital or clinic owned, leased or operated by the authority, except as
1042	1042	provided in section 1, and amendments thereto. The provisions of this
1043	1043	subsection are not applicable to any member of the physician faculty of the
1044	1044	university of Kansas school of medicine when such abortion is performed
1045	1045	outside the scope of such member's employment on property not owned,
1046	1046	leased or operated by the authority. As used in this subsection, "medical
1047	1047	emergency" means a condition that, in reasonable medical judgment, so
1048	1048	complicates the medical condition of the pregnant woman as to necessitate
1049	1049	the immediate abortion of her pregnancy to avert the death of the woman
1050	1050	or for which a delay necessary to comply with the applicable statutory
1051	1051	requirements will create serious risk of substantial and irreversible
1052	1052	physical impairment of a major bodily function. No condition shall be
1053	1053	deemed a medical emergency if based on a claim or diagnosis that the
1054	1054	woman will engage in conduct which would result in her death or in
1055	1055	substantial and irreversible physical impairment of a major bodily
1056	1056	function.
1057	1057	Sec. 15. K.S.A. 2022 Supp. 79-32,182b is hereby amended to read as
1058	1058	follows: 79-32,182b. (a) For all taxable years commencing after December
1059	1059	31, 2022, a credit shall be allowed against the tax imposed by the Kansas
1060	1060	income tax act on the Kansas taxable income of a taxpayer for
1061	1061	expenditures in research and development activities conducted within this
1062	1062	state in an amount equal to 10% of the amount by which the amount
1063	1063	expended for such activities in the taxable year of the taxpayer exceeds the
1064	1064	taxpayer's average of the actual expenditures for such purposes made in
1065	1065	such taxable year and the next preceding two taxable years.
1066	1066	(b) In any one taxable year, the amount of such credit allowable for
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1109	1109	43 SB 286 14
1110	1110	deduction from the taxpayer's tax liability shall not exceed 25% of the total
1111	1111	amount of such credit plus any applicable carry forward amount. The
1112	1112	amount by which that portion of the credit allowed by subsections (a) and
1113	1113	(b) to be claimed in any one taxable year exceeds the taxpayer's tax
1114	1114	liability in such year may be carried forward until the total amount of the
1115	1115	credit is used.
1116	1116	(c) As used in this section, the term "expenditures in research and
1117	1117	development activities" means expenditures made for such purposes, other
1118	1118	than expenditures of moneys made available to the taxpayer pursuant to
1119	1119	federal or state law, which are treated as expenses allowable for deduction
1120	1120	under the provisions of the federal internal revenue code of 1986, as
1121	1121	amended, except that for taxable years commencing after December 31,
1122	1122	2013, expenditures in research and development activities shall not include
1123	1123	any expenditures for the performance of any abortion, as defined in K.S.A.
1124	1124	65-6701 section 7, and amendments thereto.
1125	1125	(d) For tax year 2023 and all tax years thereafter, the income tax
1126	1126	credit allowed pursuant to this section shall be transferable by a taxpayer
1127	1127	without a current tax liability. The tax credit may be transferred to any
1128	1128	person and be claimed by the transferee as a credit against the transferee's
1129	1129	Kansas income tax liability in the tax year when it was transferred. The
1130	1130	credit shall be claimed and may be carried forward by the transferee as
1131	1131	provided and limited by subsection (b). No person shall be entitled to a
1132	1132	refund for the transferred tax credit. Only the full credit may be
1133	1133	transferred, and the credit may only be transferred one time.
1134	1134	Documentation of any credit acquired by transfer shall be provided by the
1135	1135	taxpayer or the transferee in the manner required by the secretary of
1136	1136	revenue.
1137	1137	Sec. 16. K.S.A. 79-32,195 is hereby amended to read as follows: 79-
1138	1138	32,195. As used in this act, the following words and phrases shall have the
1139	1139	meanings ascribed to them herein: (a) "Business firm" means any business
1140	1140	entity authorized to do business in the state of Kansas which that is subject
1141	1141	to the state income tax imposed by the provisions of the Kansas income
1142	1142	tax act, any individual subject to the state income tax imposed by the
1143	1143	provisions of the Kansas income tax act, any national banking association,
1144	1144	state bank, trust company or savings and loan association paying an annual
1145	1145	tax on its net income pursuant to article 11 of chapter 79 of the Kansas
1146	1146	Statutes Annotated, and amendments thereto, or any insurance company
1147	1147	paying the premium tax and privilege fees imposed pursuant to K.S.A. 40-
1148	1148	252, and amendments thereto;
1149	1149	(b) "Community services" means:
1150	1150	(1) The conduct of activities which that meet a demonstrated
1151	1151	community need and which that are designed to achieve improved
1152	1152	educational and social services for Kansas children and their families, and
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1196	1196	which that are coordinated with communities including, but not limited to,
1197	1197	social and human services organizations that address the causes of poverty
1198	1198	through programs and services that assist low income persons in the areas
1199	1199	of employment, food, housing, emergency assistance and health care;
1200	1200	(2) crime prevention;
1201	1201	(3) health care services; and
1202	1202	(4) youth apprenticeship and technical training.
1203	1203	(c) "Crime prevention" means any nongovernmental activity which
1204	1204	that aids in the prevention of crime.
1205	1205	(d) "Youth apprenticeship and technical training" means conduct of
1206	1206	activities which that are designed to improve the access to and quality of
1207	1207	apprenticeship and technical training which that support an emphasis on
1208	1208	rural construction projects as well as the necessary equipment, facilities
1209	1209	and supportive mentorship for youth apprenticeships and technical
1210	1210	training.
1211	1211	(e) "Community service organization" means any organization
1212	1212	performing community services in Kansas and which that:
1213	1213	(1) Has obtained a ruling from the internal revenue service of the
1214	1214	United States department of the treasury that such organization is exempt
1215	1215	from income taxation under the provisions of section 501(c)(3) of the
1216	1216	federal internal revenue code; or
1217	1217	(2) is incorporated in the state of Kansas or another state as a
1218	1218	nonstock, nonprofit corporation; or
1219	1219	(3) has been designated as a community development corporation by
1220	1220	the United States government under the provisions of title VII of the
1221	1221	economic opportunity act of 1964; or
1222	1222	(4) is chartered by the United States congress.
1223	1223	(f) "Contributions" shall mean and include means and includes the
1224	1224	donation of cash, services or property other than used clothing in an
1225	1225	amount or value of $250 or more. Stocks and bonds contributed shall be
1226	1226	valued at the stock market price on the date of transfer. Services
1227	1227	contributed shall be valued at the standard billing rate for not-for-profit
1228	1228	clients. Personal property items contributed shall be valued at the lesser of
1229	1229	its fair market value or cost to the donor and may be inclusive of costs
1230	1230	incurred in making the contribution, but shall not include sales tax.
1231	1231	Contributions of real estate are allowable for credit only when title thereto
1232	1232	is in fee simple absolute and is clear of any encumbrances. The amount of
1233	1233	credit allowable shall be based upon the lesser of two current independent
1234	1234	appraisals conducted by state licensed appraisers.
1235	1235	(g) "Health care services" shall include, but not be includes, but is not
1236	1236	limited to, the following: Services provided by local health departments,
1237	1237	city, county or district hospitals, city or county nursing homes, or other
1238	1238	residential institutions, preventive health care services offered by a
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1282	1282	community service organization including immunizations, prenatal care,
1283	1283	the postponement of entry into nursing homes by home health care
1284	1284	services, and community based services for persons with a disability,
1285	1285	mental health services, indigent health care, physician or health care
1286	1286	worker recruitment, health education, emergency medical services,
1287	1287	services provided by rural health clinics, integration of health care
1288	1288	services, home health services and services provided by rural health
1289	1289	networks, except that for taxable years commencing after December 31,
1290	1290	2013, "health care services shall" does not include any service involving
1291	1291	the performance of any abortion, as defined in K.S.A. 65-6701 section 7,
1292	1292	and amendments thereto.
1293	1293	(h) "Rural community" means any city having a population of fewer
1294	1294	than 15,000 located in a county that is not part of a standard metropolitan
1295	1295	statistical area as defined by the United States department of commerce or
1296	1296	its successor agency. However, any such city located in a county defined
1297	1297	as a standard metropolitan statistical area shall be deemed a rural
1298	1298	community if a substantial number of persons in such county derive their
1299	1299	income from agriculture and, in any county where there is only one city
1300	1300	within the county which has a population of more than 15,000 and which
1301	1301	classifies as a standard metropolitan statistical area, all other cities in that
1302	1302	county having a population of less than 15,000 shall be deemed a rural
1303	1303	community.
1304	1304	Sec. 17. K.S.A. 2022 Supp. 79-32,261 is hereby amended to read as
1305	1305	follows: 79-32,261. (a) (1) On and after July 1, 2008, Any taxpayer who
1306	1306	contributes in the manner prescribed by this paragraph to a community
1307	1307	college located in Kansas for capital improvements, to a technical college
1308	1308	for deferred maintenance or the purchase of technology or equipment or to
1309	1309	a postsecondary educational institution located in Kansas for deferred
1310	1310	maintenance, shall be allowed a credit against the tax imposed by the
1311	1311	Kansas income tax act, the premium tax or privilege fees imposed
1312	1312	pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as
1313	1313	measured by net income of financial institutions imposed pursuant to
1314	1314	article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments
1315	1315	thereto. The tax credit allowed by this paragraph is applicable for the tax
1316	1316	year 2008 for any contributions made on and after July 1, 2008, and for the
1317	1317	tax years 2009, 2010, 2011 and 2012 for any contributions made during
1318	1318	the entire tax year. The amount of the credit allowed by this paragraph
1319	1319	shall not exceed 60% of the total amount contributed during the taxable
1320	1320	year by the taxpayer to a community college or a technical college located
1321	1321	in Kansas for such purposes. The amount of the credit allowed by this
1322	1322	paragraph shall not exceed 50% of the total amount contributed during the
1323	1323	taxable year by the taxpayer to a postsecondary educational institution for
1324	1324	such purposes. If the amount of the credit allowed by this paragraph for a
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1368	1368	taxpayer who contributes to a community college or a technical college
1369	1369	exceeds the taxpayer's income tax liability imposed by the Kansas income
1370	1370	tax act, such excess amount shall be refunded to the taxpayer. If the
1371	1371	amount of the tax credit for a taxpayer who contributes to a postsecondary
1372	1372	educational institution exceeds the taxpayer's income tax liability for the
1373	1373	taxable year, the amount which exceeds the tax liability may be carried
1374	1374	over for deduction from the taxpayer's income tax liability in the next
1375	1375	succeeding taxable year or years until the total amount of the tax credit has
1376	1376	been deducted from tax liability, except that no such tax credit shall be
1377	1377	carried over for deduction after the third taxable year succeeding the
1378	1378	taxable year in which the contribution is made. Prior to the issuance of any
1379	1379	tax credits pursuant to this paragraph, the structure of the process in which
1380	1380	contributions received by a community college, a technical college or a
1381	1381	postsecondary educational institution qualify as tax credits allowed and
1382	1382	issued pursuant to this paragraph shall be developed by a community
1383	1383	college, a technical college and a postsecondary educational institution in
1384	1384	consultation with the secretary of revenue and the foundation or
1385	1385	endowment association of any such community college, technical college
1386	1386	or postsecondary educational institution in a manner that complies with
1387	1387	requirements specified in the federal internal revenue code of 1986, as
1388	1388	amended, so that contributions qualify as charitable contributions
1389	1389	allowable as deductions from federal adjusted gross income.
1390	1390	(2) On and after July 1, 2022, any taxpayer who contributes in the
1391	1391	manner prescribed by this paragraph to a community college or technical
1392	1392	college located in Kansas for capital improvements, deferred maintenance
1393	1393	or the purchase of technology or equipment shall be allowed a credit
1394	1394	against the tax imposed by the Kansas income tax act, the premium tax or
1395	1395	privilege fees imposed pursuant to K.S.A. 40-252, and amendments
1396	1396	thereto, or the privilege tax as measured by net income of financial
1397	1397	institutions imposed pursuant to article 11 of chapter 79 of the Kansas
1398	1398	Statutes Annotated, and amendments thereto. The tax credit allowed by
1399	1399	this paragraph is applicable for the tax year 2022 for any contributions
1400	1400	made on and after July 1, 2022, and for the tax years 2023, 2024, 2025 and
1401	1401	2026 for any contributions made during the entire tax year. The amount of
1402	1402	the credit allowed by this paragraph shall equal 60% of the total amount
1403	1403	contributed during the taxable year by the taxpayer to a community college
1404	1404	or a technical college located in Kansas for such purposes. Prior to the
1405	1405	issuance of any tax credits pursuant to this paragraph, the structure of the
1406	1406	process in which contributions received by a community college or
1407	1407	technical college qualify as tax credits allowed and issued pursuant to this
1408	1408	paragraph shall be developed by a community college and technical
1409	1409	college in consultation with the secretary of revenue and the foundation or
1410	1410	endowment association of any such community college or technical
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1454	1454	college in a manner that complies with requirements specified in the
1455	1455	federal internal revenue code of 1986, as amended, so that contributions
1456	1456	qualify as charitable contributions allowable as deductions from federal
1457	1457	adjusted gross income.
1458	1458	(b) (1) Upon receipt of any contributions to a community college
1459	1459	made pursuant to the provisions of subsection (a)(1), the treasurer of the
1460	1460	community college shall deposit such contributions to the credit of the
1461	1461	capital outlay fund of such community college established as provided by
1462	1462	K.S.A. 71-501a, and amendments thereto. Expenditures from such fund
1463	1463	shall be made for the purposes described in K.S.A. 71-501(a), and
1464	1464	amendments thereto, except that expenditures shall not be made from such
1465	1465	fund for new construction or the acquisition of real property for use as
1466	1466	building sites or for educational programs.
1467	1467	(2) Upon receipt of any contributions to a technical college made
1468	1468	pursuant to the provisions of subsection (a)(1), such contributions shall be
1469	1469	deposited to the credit of a deferred maintenance fund or a technology and
1470	1470	equipment fund established by the technical college which received the
1471	1471	contribution. Expenditures from such fund shall be made only for the
1472	1472	purpose as provided in subsection (b)(1).
1473	1473	(3) Upon receipt of any such contributions to a postsecondary
1474	1474	educational institution made pursuant to the provisions of subsection (a)
1475	1475	(1), such contributions shall be deposited to the credit of the appropriate
1476	1476	deferred maintenance support fund of the postsecondary educational
1477	1477	institution that received the contribution. Expenditures from such fund
1478	1478	shall be made only for the purposes designated for such fund pursuant to
1479	1479	law.
1480	1480	(4) Upon receipt of any such contributions to a community college or
1481	1481	technical college made pursuant to the provisions of subsection (a)(2), the
1482	1482	treasurer of the community college or technical college shall deposit such
1483	1483	contributions to the credit of the capital outlay fund of such community
1484	1484	college or technical college established as provided by K.S.A. 71-501a,
1485	1485	and amendments thereto. Expenditures from such fund shall be made for
1486	1486	the purposes designated for such fund pursuant to law.
1487	1487	(c) (1) In no event shall the total amount of credits allowed under
1488	1488	subsection (a)(1) for taxpayers who contribute to any one such community
1489	1489	college or technical college exceed the following amounts: For the tax year
1490	1490	2008, an amount not to exceed $78,125; for the tax year 2009, an amount
1491	1491	not to exceed $156,250; and for the tax years 2010, 2011 and 2012, an
1492	1492	amount not to exceed $208,233.33.
1493	1493	(2) In no event shall the total of credits allowed under subsection (a)
1494	1494	(1) for taxpayers who contribute to postsecondary educational institutions
1495	1495	exceed the following amounts: For the tax year 2008, an amount not to
1496	1496	exceed $5,625,000; for the tax year 2009, an amount not to exceed
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1540	1540	$11,250,000; and for the tax years 2010, 2011 and 2012, an amount not to
1541	1541	exceed $15,000,000. Except as otherwise provided, the allocation of such
1542	1542	tax credits for each individual state educational institution shall be
1543	1543	determined by the state board of regents in consultation with the secretary
1544	1544	of revenue and the university foundation or endowment association of
1545	1545	each postsecondary educational institution, and such determination shall
1546	1546	be completed prior to the issuance of any tax credits pursuant to subsection
1547	1547	(a)(1). Not more than 40% of the total of credits allowed under subsection
1548	1548	(a)(1) shall be allocated to any one postsecondary educational institution
1549	1549	unless all such postsecondary educational institutions approve an
1550	1550	allocation to any one such postsecondary educational institution which
1551	1551	exceeds 40% of the total of such credits allowed under subsection (a)(1).
1552	1552	(3) For the tax years 2022 through 2026, the amount of such credit
1553	1553	awarded under subsection (a)(2) for each taxpayer shall not exceed
1554	1554	$250,000 per tax year.
1555	1555	(4) In no event shall the total of credits allowed under subsection (a)
1556	1556	(2) for contributions to any one community college or technical college
1557	1557	exceed $500,000 per tax year.
1558	1558	(5) In no event shall the total of credits allowed under subsection (a)
1559	1559	(2) exceed $5,000,000 for each tax year that the credit remains in effect.
1560	1560	(d) As used in this section:
1561	1561	(1) "Community college" means a community college established
1562	1562	under the provisions of the community college act;
1563	1563	(2) "deferred maintenance" means the maintenance, repair,
1564	1564	reconstruction or rehabilitation of a building located at a technical college
1565	1565	or a postsecondary educational institution which has been deferred, any
1566	1566	utility systems relating to such building, any life-safety upgrades to such
1567	1567	building and any improvements necessary to be made to such building in
1568	1568	order to comply with the requirements of the Americans with disabilities
1569	1569	act or other federal or state law, except that for taxable years commencing
1570	1570	after December 31, 2013, deferred maintenance shall not include any
1571	1571	maintenance, repair, reconstruction or rehabilitation of any building in
1572	1572	which any abortion, as defined in K.S.A. 65-6701 section 7, and
1573	1573	amendments thereto, is performed;
1574	1574	(3) "postsecondary educational institution" means the university of
1575	1575	Kansas, Kansas state university of agriculture and applied science, Wichita
1576	1576	state university, Emporia state university, Pittsburg state university, Fort
1577	1577	Hays state university and Washburn university of Topeka; and
1578	1578	(4) "technical college" means a technical college as designated
1579	1579	pursuant to K.S.A. 74-32,458, 74-32,460, 74-32,461, 74-32,462, 74-
1580	1580	32,464 and 74-32,465, and amendments thereto, and the institute of
1581	1581	technology at Washburn university.
1582	1582	(e) (1) Any taxpayer not subject to Kansas income, privilege or
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1626	1626	premiums tax who contributes to a community college, technical college
1627	1627	or postsecondary educational institution, hereinafter designated the
1628	1628	transferor, may sell, assign, convey or otherwise transfer tax credits
1629	1629	allowed and earned pursuant to this section. The sale price of a tax credit
1630	1630	shall be at least 50% of the full value of the credit. Such credit shall be
1631	1631	deemed to be allowed and earned by any such taxpayer which is only
1632	1632	disqualified therefrom by reason of not being subject to such Kansas taxes.
1633	1633	The taxpayer acquiring earned credits, hereinafter designated the
1634	1634	transferee, may use the amount of the acquired credits to offset up to 100%
1635	1635	of the taxpayer's income, privilege or premiums tax liability for the taxable
1636	1636	year in which such acquisition was made. Such credits may be sold or
1637	1637	transferred only one time and, if sold or transferred, shall be transferred in
1638	1638	the tax year such credit is earned or the two successive tax years. A
1639	1639	transferred credit shall be claimed in the year purchased. The transferor
1640	1640	shall enter into a written agreement with the transferee establishing the
1641	1641	terms and conditions of the sale or transfer and shall perfect such transfer
1642	1642	by notifying the secretary of revenue in writing within 30 calendar days
1643	1643	following the effective date of the transfer, subject to the review and
1644	1644	approval or denial of such transfer by the secretary of revenue. The
1645	1645	transferor and transferee shall provide any information pertaining to the
1646	1646	sale or transfer as may be required by the secretary of revenue to
1647	1647	administer and carry out the provisions of this section. The amount
1648	1648	received by the transferor of such tax credit shall be taxable as income of
1649	1649	the transferor, and the excess of the value of such credit over the amount
1650	1650	paid by the transferee for such credit shall be taxable as income of the
1651	1651	transferee.
1652	1652	(2) The provisions of this subsection shall not apply to tax credits
1653	1653	earned pursuant to subsection (a)(2).
1654	1654	(f) The secretary of revenue shall submit an annual report to the
1655	1655	legislature to assist the legislature in the evaluation of the utilization of any
1656	1656	credits claimed pursuant to this act, including information specific as to
1657	1657	each community college, technical college or postsecondary educational
1658	1658	institution. Such report shall be due on or before the first day of the
1659	1659	legislative session following the tax year in which the credits were
1660	1660	claimed.
1661	1661	(g) The secretary of revenue shall adopt rules and regulations
1662	1662	necessary to administer the provisions of this section.
1663	1663	Sec. 18. K.S.A. 2022 Supp. 79-3606 is hereby amended to read as
1664	1664	follows: 79-3606. The following shall be exempt from the tax imposed by
1665	1665	this act:
1666	1666	(a) All sales of motor-vehicle fuel or other articles upon which a sales
1667	1667	or excise tax has been paid, not subject to refund, under the laws of this
1668	1668	state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
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1712	1712	3301, and amendments thereto, including consumable material for such
1713	1713	electronic cigarettes, cereal malt beverages and malt products as defined
1714	1714	by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
1715	1715	malt syrup and malt extract, that is not subject to taxation under the
1716	1716	provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
1717	1717	taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
1718	1718	pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
1719	1719	laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
1720	1720	thereto, and gross receipts from regulated sports contests taxed pursuant to
1721	1721	the Kansas professional regulated sports act, and amendments thereto;
1722	1722	(b) all sales of tangible personal property or service, including the
1723	1723	renting and leasing of tangible personal property, purchased directly by the
1724	1724	state of Kansas, a political subdivision thereof, other than a school or
1725	1725	educational institution, or purchased by a public or private nonprofit
1726	1726	hospital, public hospital authority, nonprofit blood, tissue or organ bank or
1727	1727	nonprofit integrated community care organization and used exclusively for
1728	1728	state, political subdivision, hospital, public hospital authority, nonprofit
1729	1729	blood, tissue or organ bank or nonprofit integrated community care
1730	1730	organization purposes, except when: (1) Such state, hospital or public
1731	1731	hospital authority is engaged or proposes to engage in any business
1732	1732	specifically taxable under the provisions of this act and such items of
1733	1733	tangible personal property or service are used or proposed to be used in
1734	1734	such business; or (2) such political subdivision is engaged or proposes to
1735	1735	engage in the business of furnishing gas, electricity or heat to others and
1736	1736	such items of personal property or service are used or proposed to be used
1737	1737	in such business;
1738	1738	(c) all sales of tangible personal property or services, including the
1739	1739	renting and leasing of tangible personal property, purchased directly by a
1740	1740	public or private elementary or secondary school or public or private
1741	1741	nonprofit educational institution and used primarily by such school or
1742	1742	institution for nonsectarian programs and activities provided or sponsored
1743	1743	by such school or institution or in the erection, repair or enlargement of
1744	1744	buildings to be used for such purposes. The exemption herein provided
1745	1745	shall not apply to erection, construction, repair, enlargement or equipment
1746	1746	of buildings used primarily for human habitation, except that such
1747	1747	exemption shall apply to the erection, construction, repair, enlargement or
1748	1748	equipment of buildings used for human habitation by the cerebral palsy
1749	1749	research foundation of Kansas located in Wichita, Kansas, and multi
1750	1750	community diversified services, incorporated, located in McPherson,
1751	1751	Kansas;
1752	1752	(d) all sales of tangible personal property or services purchased by a
1753	1753	contractor for the purpose of constructing, equipping, reconstructing,
1754	1754	maintaining, repairing, enlarging, furnishing or remodeling facilities for
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1797	1797	43 SB 286 22
1798	1798	any public or private nonprofit hospital or public hospital authority, public
1799	1799	or private elementary or secondary school, a public or private nonprofit
1800	1800	educational institution, state correctional institution including a privately
1801	1801	constructed correctional institution contracted for state use and ownership,
1802	1802	that would be exempt from taxation under the provisions of this act if
1803	1803	purchased directly by such hospital or public hospital authority, school,
1804	1804	educational institution or a state correctional institution; and all sales of
1805	1805	tangible personal property or services purchased by a contractor for the
1806	1806	purpose of constructing, equipping, reconstructing, maintaining, repairing,
1807	1807	enlarging, furnishing or remodeling facilities for any political subdivision
1808	1808	of the state or district described in subsection (s), the total cost of which is
1809	1809	paid from funds of such political subdivision or district and that would be
1810	1810	exempt from taxation under the provisions of this act if purchased directly
1811	1811	by such political subdivision or district. Nothing in this subsection or in
1812	1812	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
1813	1813	deemed to exempt the purchase of any construction machinery, equipment
1814	1814	or tools used in the constructing, equipping, reconstructing, maintaining,
1815	1815	repairing, enlarging, furnishing or remodeling facilities for any political
1816	1816	subdivision of the state or any such district. As used in this subsection,
1817	1817	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
1818	1818	political subdivision" shall mean general tax revenues, the proceeds of any
1819	1819	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
1820	1820	purpose of constructing, equipping, reconstructing, repairing, enlarging,
1821	1821	furnishing or remodeling facilities that are to be leased to the donor. When
1822	1822	any political subdivision of the state, district described in subsection (s),
1823	1823	public or private nonprofit hospital or public hospital authority, public or
1824	1824	private elementary or secondary school, public or private nonprofit
1825	1825	educational institution, state correctional institution including a privately
1826	1826	constructed correctional institution contracted for state use and ownership
1827	1827	shall contract for the purpose of constructing, equipping, reconstructing,
1828	1828	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
1829	1829	shall obtain from the state and furnish to the contractor an exemption
1830	1830	certificate for the project involved, and the contractor may purchase
1831	1831	materials for incorporation in such project. The contractor shall furnish the
1832	1832	number of such certificate to all suppliers from whom such purchases are
1833	1833	made, and such suppliers shall execute invoices covering the same bearing
1834	1834	the number of such certificate. Upon completion of the project the
1835	1835	contractor shall furnish to the political subdivision, district described in
1836	1836	subsection (s), hospital or public hospital authority, school, educational
1837	1837	institution or department of corrections concerned a sworn statement, on a
1838	1838	form to be provided by the director of taxation, that all purchases so made
1839	1839	were entitled to exemption under this subsection. As an alternative to the
1840	1840	foregoing procedure, any such contracting entity may apply to the
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1883	1883	43 SB 286 23
1884	1884	secretary of revenue for agent status for the sole purpose of issuing and
1885	1885	furnishing project exemption certificates to contractors pursuant to rules
1886	1886	and regulations adopted by the secretary establishing conditions and
1887	1887	standards for the granting and maintaining of such status. All invoices
1888	1888	shall be held by the contractor for a period of five years and shall be
1889	1889	subject to audit by the director of taxation. If any materials purchased
1890	1890	under such a certificate are found not to have been incorporated in the
1891	1891	building or other project or not to have been returned for credit or the sales
1892	1892	or compensating tax otherwise imposed upon such materials that will not
1893	1893	be so incorporated in the building or other project reported and paid by
1894	1894	such contractor to the director of taxation not later than the 20
1895	1895	th
1896	1896	day of the
1897	1897	month following the close of the month in which it shall be determined
1898	1898	that such materials will not be used for the purpose for which such
1899	1899	certificate was issued, the political subdivision, district described in
1900	1900	subsection (s), hospital or public hospital authority, school, educational
1901	1901	institution or the contractor contracting with the department of corrections
1902	1902	for a correctional institution concerned shall be liable for tax on all
1903	1903	materials purchased for the project, and upon payment thereof it may
1904	1904	recover the same from the contractor together with reasonable attorney
1905	1905	fees. Any contractor or any agent, employee or subcontractor thereof, who
1906	1906	shall use or otherwise dispose of any materials purchased under such a
1907	1907	certificate for any purpose other than that for which such a certificate is
1908	1908	issued without the payment of the sales or compensating tax otherwise
1909	1909	imposed upon such materials, shall be guilty of a misdemeanor and, upon
1910	1910	conviction therefor, shall be subject to the penalties provided for in K.S.A.
1911	1911	79-3615(h), and amendments thereto;
1912	1912	(e) all sales of tangible personal property or services purchased by a
1913	1913	contractor for the erection, repair or enlargement of buildings or other
1914	1914	projects for the government of the United States, its agencies or
1915	1915	instrumentalities, that would be exempt from taxation if purchased directly
1916	1916	by the government of the United States, its agencies or instrumentalities.
1917	1917	When the government of the United States, its agencies or
1918	1918	instrumentalities shall contract for the erection, repair, or enlargement of
1919	1919	any building or other project, it shall obtain from the state and furnish to
1920	1920	the contractor an exemption certificate for the project involved, and the
1921	1921	contractor may purchase materials for incorporation in such project. The
1922	1922	contractor shall furnish the number of such certificates to all suppliers
1923	1923	from whom such purchases are made, and such suppliers shall execute
1924	1924	invoices covering the same bearing the number of such certificate. Upon
1925	1925	completion of the project the contractor shall furnish to the government of
1926	1926	the United States, its agencies or instrumentalities concerned a sworn
1927	1927	statement, on a form to be provided by the director of taxation, that all
1928	1928	purchases so made were entitled to exemption under this subsection. As an
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1971	1971	43 SB 286 24
1972	1972	alternative to the foregoing procedure, any such contracting entity may
1973	1973	apply to the secretary of revenue for agent status for the sole purpose of
1974	1974	issuing and furnishing project exemption certificates to contractors
1975	1975	pursuant to rules and regulations adopted by the secretary establishing
1976	1976	conditions and standards for the granting and maintaining of such status.
1977	1977	All invoices shall be held by the contractor for a period of five years and
1978	1978	shall be subject to audit by the director of taxation. Any contractor or any
1979	1979	agent, employee or subcontractor thereof, who shall use or otherwise
1980	1980	dispose of any materials purchased under such a certificate for any purpose
1981	1981	other than that for which such a certificate is issued without the payment
1982	1982	of the sales or compensating tax otherwise imposed upon such materials,
1983	1983	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
1984	1984	subject to the penalties provided for in K.S.A. 79-3615(h), and
1985	1985	amendments thereto;
1986	1986	(f) tangible personal property purchased by a railroad or public utility
1987	1987	for consumption or movement directly and immediately in interstate
1988	1988	commerce;
1989	1989	(g) sales of aircraft including remanufactured and modified aircraft
1990	1990	sold to persons using directly or through an authorized agent such aircraft
1991	1991	as certified or licensed carriers of persons or property in interstate or
1992	1992	foreign commerce under authority of the laws of the United States or any
1993	1993	foreign government or sold to any foreign government or agency or
1994	1994	instrumentality of such foreign government and all sales of aircraft for use
1995	1995	outside of the United States and sales of aircraft repair, modification and
1996	1996	replacement parts and sales of services employed in the remanufacture,
1997	1997	modification and repair of aircraft;
1998	1998	(h) all rentals of nonsectarian textbooks by public or private
1999	1999	elementary or secondary schools;
2000	2000	(i) the lease or rental of all films, records, tapes, or any type of sound
2001	2001	or picture transcriptions used by motion picture exhibitors;
2002	2002	(j) meals served without charge or food used in the preparation of
2003	2003	such meals to employees of any restaurant, eating house, dining car, hotel,
2004	2004	drugstore or other place where meals or drinks are regularly sold to the
2005	2005	public if such employees' duties are related to the furnishing or sale of
2006	2006	such meals or drinks;
2007	2007	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
2008	2008	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
2009	2009	delivered in this state to a bona fide resident of another state, which motor
2010	2010	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
2011	2011	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
2012	2012	remain in this state more than 10 days;
2013	2013	(l) all isolated or occasional sales of tangible personal property,
2014	2014	services, substances or things, except isolated or occasional sale of motor
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2057	2057	43 SB 286 25
2058	2058	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
2059	2059	amendments thereto;
2060	2060	(m) all sales of tangible personal property that become an ingredient
2061	2061	or component part of tangible personal property or services produced,
2062	2062	manufactured or compounded for ultimate sale at retail within or without
2063	2063	the state of Kansas; and any such producer, manufacturer or compounder
2064	2064	may obtain from the director of taxation and furnish to the supplier an
2065	2065	exemption certificate number for tangible personal property for use as an
2066	2066	ingredient or component part of the property or services produced,
2067	2067	manufactured or compounded;
2068	2068	(n) all sales of tangible personal property that is consumed in the
2069	2069	production, manufacture, processing, mining, drilling, refining or
2070	2070	compounding of tangible personal property, the treating of by-products or
2071	2071	wastes derived from any such production process, the providing of
2072	2072	services or the irrigation of crops for ultimate sale at retail within or
2073	2073	without the state of Kansas; and any purchaser of such property may
2074	2074	obtain from the director of taxation and furnish to the supplier an
2075	2075	exemption certificate number for tangible personal property for
2076	2076	consumption in such production, manufacture, processing, mining,
2077	2077	drilling, refining, compounding, treating, irrigation and in providing such
2078	2078	services;
2079	2079	(o) all sales of animals, fowl and aquatic plants and animals, the
2080	2080	primary purpose of which is use in agriculture or aquaculture, as defined in
2081	2081	K.S.A. 47-1901, and amendments thereto, the production of food for
2082	2082	human consumption, the production of animal, dairy, poultry or aquatic
2083	2083	plant and animal products, fiber or fur, or the production of offspring for
2084	2084	use for any such purpose or purposes;
2085	2085	(p) all sales of drugs dispensed pursuant to a prescription order by a
2086	2086	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
2087	2087	1626, and amendments thereto. As used in this subsection, "drug" means a
2088	2088	compound, substance or preparation and any component of a compound,
2089	2089	substance or preparation, other than food and food ingredients, dietary
2090	2090	supplements or alcoholic beverages, recognized in the official United
2091	2091	States pharmacopeia, official homeopathic pharmacopoeia of the United
2092	2092	States or official national formulary, and supplement to any of them,
2093	2093	intended for use in the diagnosis, cure, mitigation, treatment or prevention
2094	2094	of disease or intended to affect the structure or any function of the body,
2095	2095	except that for taxable years commencing after December 31, 2013, this
2096	2096	subsection shall not apply to any sales of drugs used in the performance or
2097	2097	induction of an abortion, as defined in K.S.A. 65-6701 section 7, and
2098	2098	amendments thereto;
2099	2099	(q) all sales of insulin dispensed by a person licensed by the state
2100	2100	board of pharmacy to a person for treatment of diabetes at the direction of
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2144	2144	a person licensed to practice medicine by the state board of healing arts;
2145	2145	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
2146	2146	enteral feeding systems, prosthetic devices and mobility enhancing
2147	2147	equipment prescribed in writing by a person licensed to practice the
2148	2148	healing arts, dentistry or optometry, and in addition to such sales, all sales
2149	2149	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
2150	2150	and repair and replacement parts therefor, including batteries, by a person
2151	2151	licensed in the practice of dispensing and fitting hearing aids pursuant to
2152	2152	the provisions of K.S.A. 74-5808, and amendments thereto. For the
2153	2153	purposes of this subsection: (1) "Mobility enhancing equipment" means
2154	2154	equipment including repair and replacement parts to same, but does not
2155	2155	include durable medical equipment, which is primarily and customarily
2156	2156	used to provide or increase the ability to move from one place to another
2157	2157	and which is appropriate for use either in a home or a motor vehicle; is not
2158	2158	generally used by persons with normal mobility; and does not include any
2159	2159	motor vehicle or equipment on a motor vehicle normally provided by a
2160	2160	motor vehicle manufacturer; and (2) "prosthetic device" means a
2161	2161	replacement, corrective or supportive device including repair and
2162	2162	replacement parts for same worn on or in the body to artificially replace a
2163	2163	missing portion of the body, prevent or correct physical deformity or
2164	2164	malfunction or support a weak or deformed portion of the body;
2165	2165	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
2166	2166	all sales of tangible personal property or services purchased directly or
2167	2167	indirectly by a groundwater management district organized or operating
2168	2168	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
2169	2169	by a rural water district organized or operating under the authority of
2170	2170	K.S.A. 82a-612, and amendments thereto, or by a water supply district
2171	2171	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
2172	2172	3522 et seq. or 19-3545, and amendments thereto, which property or
2173	2173	services are used in the construction activities, operation or maintenance of
2174	2174	the district;
2175	2175	(t) all sales of farm machinery and equipment or aquaculture
2176	2176	machinery and equipment, repair and replacement parts therefor and
2177	2177	services performed in the repair and maintenance of such machinery and
2178	2178	equipment. For the purposes of this subsection the term "farm machinery
2179	2179	and equipment or aquaculture machinery and equipment" shall include a
2180	2180	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
2181	2181	thereto, and is equipped with a bed or cargo box for hauling materials, and
2182	2182	shall also include machinery and equipment used in the operation of
2183	2183	Christmas tree farming but shall not include any passenger vehicle, truck,
2184	2184	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
2185	2185	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
2186	2186	machinery and equipment" includes precision farming equipment that is
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2229	2229	43 SB 286 27
2230	2230	portable or is installed or purchased to be installed on farm machinery and
2231	2231	equipment. "Precision farming equipment" includes the following items
2232	2232	used only in computer-assisted farming, ranching or aquaculture
2233	2233	production operations: Soil testing sensors, yield monitors, computers,
2234	2234	monitors, software, global positioning and mapping systems, guiding
2235	2235	systems, modems, data communications equipment and any necessary
2236	2236	mounting hardware, wiring and antennas. Each purchaser of farm
2237	2237	machinery and equipment or aquaculture machinery and equipment
2238	2238	exempted herein must certify in writing on the copy of the invoice or sales
2239	2239	ticket to be retained by the seller that the farm machinery and equipment
2240	2240	or aquaculture machinery and equipment purchased will be used only in
2241	2241	farming, ranching or aquaculture production. Farming or ranching shall
2242	2242	include the operation of a feedlot and farm and ranch work for hire and the
2243	2243	operation of a nursery;
2244	2244	(u) all leases or rentals of tangible personal property used as a
2245	2245	dwelling if such tangible personal property is leased or rented for a period
2246	2246	of more than 28 consecutive days;
2247	2247	(v) all sales of tangible personal property to any contractor for use in
2248	2248	preparing meals for delivery to homebound elderly persons over 60 years
2249	2249	of age and to homebound disabled persons or to be served at a group-
2250	2250	sitting at a location outside of the home to otherwise homebound elderly
2251	2251	persons over 60 years of age and to otherwise homebound disabled
2252	2252	persons, as all or part of any food service project funded in whole or in
2253	2253	part by government or as part of a private nonprofit food service project
2254	2254	available to all such elderly or disabled persons residing within an area of
2255	2255	service designated by the private nonprofit organization, and all sales of
2256	2256	tangible personal property for use in preparing meals for consumption by
2257	2257	indigent or homeless individuals whether or not such meals are consumed
2258	2258	at a place designated for such purpose, and all sales of food products by or
2259	2259	on behalf of any such contractor or organization for any such purpose;
2260	2260	(w) all sales of natural gas, electricity, heat and water delivered
2261	2261	through mains, lines or pipes: (1) To residential premises for
2262	2262	noncommercial use by the occupant of such premises; (2) for agricultural
2263	2263	use and also, for such use, all sales of propane gas; (3) for use in the
2264	2264	severing of oil; and (4) to any property which is exempt from property
2265	2265	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
2266	2266	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
2267	2267	and amendments thereto. For all sales of natural gas, electricity and heat
2268	2268	delivered through mains, lines or pipes pursuant to the provisions of
2269	2269	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
2270	2270	on December 31, 2005;
2271	2271	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
2272	2272	for the production of heat or lighting for noncommercial use of an
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2316	2316	occupant of residential premises occurring prior to January 1, 2006;
2317	2317	(y) all sales of materials and services used in the repairing, servicing,
2318	2318	altering, maintaining, manufacturing, remanufacturing, or modification of
2319	2319	railroad rolling stock for use in interstate or foreign commerce under
2320	2320	authority of the laws of the United States;
2321	2321	(z) all sales of tangible personal property and services purchased
2322	2322	directly by a port authority or by a contractor therefor as provided by the
2323	2323	provisions of K.S.A. 12-3418, and amendments thereto;
2324	2324	(aa) all sales of materials and services applied to equipment that is
2325	2325	transported into the state from without the state for repair, service,
2326	2326	alteration, maintenance, remanufacture or modification and that is
2327	2327	subsequently transported outside the state for use in the transmission of
2328	2328	liquids or natural gas by means of pipeline in interstate or foreign
2329	2329	commerce under authority of the laws of the United States;
2330	2330	(bb) all sales of used mobile homes or manufactured homes. As used
2331	2331	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
2332	2332	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
2333	2333	"sales of used mobile homes or manufactured homes" means sales other
2334	2334	than the original retail sale thereof;
2335	2335	(cc) all sales of tangible personal property or services purchased prior
2336	2336	to January 1, 2012, except as otherwise provided, for the purpose of and in
2337	2337	conjunction with constructing, reconstructing, enlarging or remodeling a
2338	2338	business or retail business that meets the requirements established in
2339	2339	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
2340	2340	machinery and equipment purchased for installation at any such business
2341	2341	or retail business, and all sales of tangible personal property or services
2342	2342	purchased on or after January 1, 2012, for the purpose of and in
2343	2343	conjunction with constructing, reconstructing, enlarging or remodeling a
2344	2344	business that meets the requirements established in K.S.A. 74-50,115(e),
2345	2345	and amendments thereto, and the sale and installation of machinery and
2346	2346	equipment purchased for installation at any such business. When a person
2347	2347	shall contract for the construction, reconstruction, enlargement or
2348	2348	remodeling of any such business or retail business, such person shall
2349	2349	obtain from the state and furnish to the contractor an exemption certificate
2350	2350	for the project involved, and the contractor may purchase materials,
2351	2351	machinery and equipment for incorporation in such project. The contractor
2352	2352	shall furnish the number of such certificates to all suppliers from whom
2353	2353	such purchases are made, and such suppliers shall execute invoices
2354	2354	covering the same bearing the number of such certificate. Upon
2355	2355	completion of the project the contractor shall furnish to the owner of the
2356	2356	business or retail business a sworn statement, on a form to be provided by
2357	2357	the director of taxation, that all purchases so made were entitled to
2358	2358	exemption under this subsection. All invoices shall be held by the
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2402	2402	contractor for a period of five years and shall be subject to audit by the
2403	2403	director of taxation. Any contractor or any agent, employee or
2404	2404	subcontractor thereof, who shall use or otherwise dispose of any materials,
2405	2405	machinery or equipment purchased under such a certificate for any
2406	2406	purpose other than that for which such a certificate is issued without the
2407	2407	payment of the sales or compensating tax otherwise imposed thereon, shall
2408	2408	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
2409	2409	to the penalties provided for in K.S.A. 79-3615(h), and amendments
2410	2410	thereto. As used in this subsection, "business" and "retail business" mean
2411	2411	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
2412	2412	exemption certificates that have been previously issued under this
2413	2413	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
2414	2414	and amendments thereto, but not including K.S.A. 74-50,115(e), and
2415	2415	amendments thereto, prior to January 1, 2012, and have not expired will be
2416	2416	effective for the term of the project or two years from the effective date of
2417	2417	the certificate, whichever occurs earlier. Project exemption certificates that
2418	2418	are submitted to the department of revenue prior to January 1, 2012, and
2419	2419	are found to qualify will be issued a project exemption certificate that will
2420	2420	be effective for a two-year period or for the term of the project, whichever
2421	2421	occurs earlier;
2422	2422	(dd) all sales of tangible personal property purchased with food
2423	2423	stamps issued by the United States department of agriculture;
2424	2424	(ee) all sales of lottery tickets and shares made as part of a lottery
2425	2425	operated by the state of Kansas;
2426	2426	(ff) on and after July 1, 1988, all sales of new mobile homes or
2427	2427	manufactured homes to the extent of 40% of the gross receipts, determined
2428	2428	without regard to any trade-in allowance, received from such sale. As used
2429	2429	in this subsection, "mobile homes" and "manufactured homes" mean the
2430	2430	same as defined in K.S.A. 58-4202, and amendments thereto;
2431	2431	(gg) all sales of tangible personal property purchased in accordance
2432	2432	with vouchers issued pursuant to the federal special supplemental food
2433	2433	program for women, infants and children;
2434	2434	(hh) all sales of medical supplies and equipment, including durable
2435	2435	medical equipment, purchased directly by a nonprofit skilled nursing home
2436	2436	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
2437	2437	and amendments thereto, for the purpose of providing medical services to
2438	2438	residents thereof. This exemption shall not apply to tangible personal
2439	2439	property customarily used for human habitation purposes. As used in this
2440	2440	subsection, "durable medical equipment" means equipment including
2441	2441	repair and replacement parts for such equipment, that can withstand
2442	2442	repeated use, is primarily and customarily used to serve a medical purpose,
2443	2443	generally is not useful to a person in the absence of illness or injury and is
2444	2444	not worn in or on the body, but does not include mobility enhancing
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2488	2488	equipment as defined in subsection (r), oxygen delivery equipment, kidney
2489	2489	dialysis equipment or enteral feeding systems;
2490	2490	(ii) all sales of tangible personal property purchased directly by a
2491	2491	nonprofit organization for nonsectarian comprehensive multidiscipline
2492	2492	youth development programs and activities provided or sponsored by such
2493	2493	organization, and all sales of tangible personal property by or on behalf of
2494	2494	any such organization. This exemption shall not apply to tangible personal
2495	2495	property customarily used for human habitation purposes;
2496	2496	(jj) all sales of tangible personal property or services, including the
2497	2497	renting and leasing of tangible personal property, purchased directly on
2498	2498	behalf of a community-based facility for people with intellectual disability
2499	2499	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
2500	2500	amendments thereto, and licensed in accordance with the provisions of
2501	2501	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
2502	2502	personal property or services purchased by contractors during the time
2503	2503	period from July, 2003, through June, 2006, for the purpose of
2504	2504	constructing, equipping, maintaining or furnishing a new facility for a
2505	2505	community-based facility for people with intellectual disability or mental
2506	2506	health center located in Riverton, Cherokee County, Kansas, that would
2507	2507	have been eligible for sales tax exemption pursuant to this subsection if
2508	2508	purchased directly by such facility or center. This exemption shall not
2509	2509	apply to tangible personal property customarily used for human habitation
2510	2510	purposes;
2511	2511	(kk) (1) (A) all sales of machinery and equipment that are used in this
2512	2512	state as an integral or essential part of an integrated production operation
2513	2513	by a manufacturing or processing plant or facility;
2514	2514	(B) all sales of installation, repair and maintenance services
2515	2515	performed on such machinery and equipment; and
2516	2516	(C) all sales of repair and replacement parts and accessories
2517	2517	purchased for such machinery and equipment.
2518	2518	(2) For purposes of this subsection:
2519	2519	(A) "Integrated production operation" means an integrated series of
2520	2520	operations engaged in at a manufacturing or processing plant or facility to
2521	2521	process, transform or convert tangible personal property by physical,
2522	2522	chemical or other means into a different form, composition or character
2523	2523	from that in which it originally existed. Integrated production operations
2524	2524	shall include: (i) Production line operations, including packaging
2525	2525	operations; (ii) preproduction operations to handle, store and treat raw
2526	2526	materials; (iii) post production handling, storage, warehousing and
2527	2527	distribution operations; and (iv) waste, pollution and environmental
2528	2528	control operations, if any;
2529	2529	(B) "production line" means the assemblage of machinery and
2530	2530	equipment at a manufacturing or processing plant or facility where the
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2574	2574	actual transformation or processing of tangible personal property occurs;
2575	2575	(C) "manufacturing or processing plant or facility" means a single,
2576	2576	fixed location owned or controlled by a manufacturing or processing
2577	2577	business that consists of one or more structures or buildings in a
2578	2578	contiguous area where integrated production operations are conducted to
2579	2579	manufacture or process tangible personal property to be ultimately sold at
2580	2580	retail. Such term shall not include any facility primarily operated for the
2581	2581	purpose of conveying or assisting in the conveyance of natural gas,
2582	2582	electricity, oil or water. A business may operate one or more manufacturing
2583	2583	or processing plants or facilities at different locations to manufacture or
2584	2584	process a single product of tangible personal property to be ultimately sold
2585	2585	at retail;
2586	2586	(D) "manufacturing or processing business" means a business that
2587	2587	utilizes an integrated production operation to manufacture, process,
2588	2588	fabricate, finish or assemble items for wholesale and retail distribution as
2589	2589	part of what is commonly regarded by the general public as an industrial
2590	2590	manufacturing or processing operation or an agricultural commodity
2591	2591	processing operation. (i) Industrial manufacturing or processing operations
2592	2592	include, by way of illustration but not of limitation, the fabrication of
2593	2593	automobiles, airplanes, machinery or transportation equipment, the
2594	2594	fabrication of metal, plastic, wood or paper products, electricity power
2595	2595	generation, water treatment, petroleum refining, chemical production,
2596	2596	wholesale bottling, newspaper printing, ready mixed concrete production,
2597	2597	and the remanufacturing of used parts for wholesale or retail sale. Such
2598	2598	processing operations shall include operations at an oil well, gas well,
2599	2599	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
2600	2600	sand or gravel that has been extracted from the earth is cleaned, separated,
2601	2601	crushed, ground, milled, screened, washed or otherwise treated or prepared
2602	2602	before its transmission to a refinery or before any other wholesale or retail
2603	2603	distribution. (ii) Agricultural commodity processing operations include, by
2604	2604	way of illustration but not of limitation, meat packing, poultry slaughtering
2605	2605	and dressing, processing and packaging farm and dairy products in sealed
2606	2606	containers for wholesale and retail distribution, feed grinding, grain
2607	2607	milling, frozen food processing, and grain handling, cleaning, blending,
2608	2608	fumigation, drying and aeration operations engaged in by grain elevators
2609	2609	or other grain storage facilities. (iii) Manufacturing or processing
2610	2610	businesses do not include, by way of illustration but not of limitation,
2611	2611	nonindustrial businesses whose operations are primarily retail and that
2612	2612	produce or process tangible personal property as an incidental part of
2613	2613	conducting the retail business, such as retailers who bake, cook or prepare
2614	2614	food products in the regular course of their retail trade, grocery stores,
2615	2615	meat lockers and meat markets that butcher or dress livestock or poultry in
2616	2616	the regular course of their retail trade, contractors who alter, service, repair
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2660	2660	or improve real property, and retail businesses that clean, service or
2661	2661	refurbish and repair tangible personal property for its owner;
2662	2662	(E) "repair and replacement parts and accessories" means all parts
2663	2663	and accessories for exempt machinery and equipment, including, but not
2664	2664	limited to, dies, jigs, molds, patterns and safety devices that are attached to
2665	2665	exempt machinery or that are otherwise used in production, and parts and
2666	2666	accessories that require periodic replacement such as belts, drill bits,
2667	2667	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
2668	2668	other refractory items for exempt kiln equipment used in production
2669	2669	operations;
2670	2670	(F) "primary" or "primarily" mean more than 50% of the time.
2671	2671	(3) For purposes of this subsection, machinery and equipment shall
2672	2672	be deemed to be used as an integral or essential part of an integrated
2673	2673	production operation when used to:
2674	2674	(A) Receive, transport, convey, handle, treat or store raw materials in
2675	2675	preparation of its placement on the production line;
2676	2676	(B) transport, convey, handle or store the property undergoing
2677	2677	manufacturing or processing at any point from the beginning of the
2678	2678	production line through any warehousing or distribution operation of the
2679	2679	final product that occurs at the plant or facility;
2680	2680	(C) act upon, effect, promote or otherwise facilitate a physical change
2681	2681	to the property undergoing manufacturing or processing;
2682	2682	(D) guide, control or direct the movement of property undergoing
2683	2683	manufacturing or processing;
2684	2684	(E) test or measure raw materials, the property undergoing
2685	2685	manufacturing or processing or the finished product, as a necessary part of
2686	2686	the manufacturer's integrated production operations;
2687	2687	(F) plan, manage, control or record the receipt and flow of inventories
2688	2688	of raw materials, consumables and component parts, the flow of the
2689	2689	property undergoing manufacturing or processing and the management of
2690	2690	inventories of the finished product;
2691	2691	(G) produce energy for, lubricate, control the operating of or
2692	2692	otherwise enable the functioning of other production machinery and
2693	2693	equipment and the continuation of production operations;
2694	2694	(H) package the property being manufactured or processed in a
2695	2695	container or wrapping in which such property is normally sold or
2696	2696	transported;
2697	2697	(I) transmit or transport electricity, coke, gas, water, steam or similar
2698	2698	substances used in production operations from the point of generation, if
2699	2699	produced by the manufacturer or processor at the plant site, to that
2700	2700	manufacturer's production operation; or, if purchased or delivered from
2701	2701	off-site, from the point where the substance enters the site of the plant or
2702	2702	facility to that manufacturer's production operations;
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2746	2746	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
2747	2747	solvents or other substances that are used in production operations;
2748	2748	(K) provide and control an environment required to maintain certain
2749	2749	levels of air quality, humidity or temperature in special and limited areas
2750	2750	of the plant or facility, where such regulation of temperature or humidity is
2751	2751	part of and essential to the production process;
2752	2752	(L) treat, transport or store waste or other byproducts of production
2753	2753	operations at the plant or facility; or
2754	2754	(M) control pollution at the plant or facility where the pollution is
2755	2755	produced by the manufacturing or processing operation.
2756	2756	(4) The following machinery, equipment and materials shall be
2757	2757	deemed to be exempt even though it may not otherwise qualify as
2758	2758	machinery and equipment used as an integral or essential part of an
2759	2759	integrated production operation: (A) Computers and related peripheral
2760	2760	equipment that are utilized by a manufacturing or processing business for
2761	2761	engineering of the finished product or for research and development or
2762	2762	product design; (B) machinery and equipment that is utilized by a
2763	2763	manufacturing or processing business to manufacture or rebuild tangible
2764	2764	personal property that is used in manufacturing or processing operations,
2765	2765	including tools, dies, molds, forms and other parts of qualifying machinery
2766	2766	and equipment; (C) portable plants for aggregate concrete, bulk cement
2767	2767	and asphalt including cement mixing drums to be attached to a motor
2768	2768	vehicle; (D) industrial fixtures, devices, support facilities and special
2769	2769	foundations necessary for manufacturing and production operations, and
2770	2770	materials and other tangible personal property sold for the purpose of
2771	2771	fabricating such fixtures, devices, facilities and foundations. An exemption
2772	2772	certificate for such purchases shall be signed by the manufacturer or
2773	2773	processor. If the fabricator purchases such material, the fabricator shall
2774	2774	also sign the exemption certificate; (E) a manufacturing or processing
2775	2775	business' laboratory equipment that is not located at the plant or facility,
2776	2776	but that would otherwise qualify for exemption under subsection (3)(E);
2777	2777	(F) all machinery and equipment used in surface mining activities as
2778	2778	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
2779	2779	from the time a reclamation plan is filed to the acceptance of the
2780	2780	completed final site reclamation.
2781	2781	(5) "Machinery and equipment used as an integral or essential part of
2782	2782	an integrated production operation" shall not include:
2783	2783	(A) Machinery and equipment used for nonproduction purposes,
2784	2784	including, but not limited to, machinery and equipment used for plant
2785	2785	security, fire prevention, first aid, accounting, administration, record
2786	2786	keeping, advertising, marketing, sales or other related activities, plant
2787	2787	cleaning, plant communications and employee work scheduling;
2788	2788	(B) machinery, equipment and tools used primarily in maintaining
2789	2789	1
2790	2790	2
2791	2791	3
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2828	2828	40
2829	2829	41
2830	2830	42
2831	2831	43 SB 286 34
2832	2832	and repairing any type of machinery and equipment or the building and
2833	2833	plant;
2834	2834	(C) transportation, transmission and distribution equipment not
2835	2835	primarily used in a production, warehousing or material handling
2836	2836	operation at the plant or facility, including the means of conveyance of
2837	2837	natural gas, electricity, oil or water, and equipment related thereto, located
2838	2838	outside the plant or facility;
2839	2839	(D) office machines and equipment including computers and related
2840	2840	peripheral equipment not used directly and primarily to control or measure
2841	2841	the manufacturing process;
2842	2842	(E) furniture and other furnishings;
2843	2843	(F) buildings, other than exempt machinery and equipment that is
2844	2844	permanently affixed to or becomes a physical part of the building, and any
2845	2845	other part of real estate that is not otherwise exempt;
2846	2846	(G) building fixtures that are not integral to the manufacturing
2847	2847	operation, such as utility systems for heating, ventilation, air conditioning,
2848	2848	communications, plumbing or electrical;
2849	2849	(H) machinery and equipment used for general plant heating, cooling
2850	2850	and lighting;
2851	2851	(I) motor vehicles that are registered for operation on public
2852	2852	highways; or
2853	2853	(J) employee apparel, except safety and protective apparel that is
2854	2854	purchased by an employer and furnished gratuitously to employees who
2855	2855	are involved in production or research activities.
2856	2856	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
2857	2857	of the machinery and equipment that qualify or do not qualify as an
2858	2858	integral or essential part of an integrated production operation. When
2859	2859	machinery or equipment is used as an integral or essential part of
2860	2860	production operations part of the time and for nonproduction purposes at
2861	2861	other times, the primary use of the machinery or equipment shall
2862	2862	determine whether or not such machinery or equipment qualifies for
2863	2863	exemption.
2864	2864	(7) The secretary of revenue shall adopt rules and regulations
2865	2865	necessary to administer the provisions of this subsection;
2866	2866	(ll) all sales of educational materials purchased for distribution to the
2867	2867	public at no charge by a nonprofit corporation organized for the purpose of
2868	2868	encouraging, fostering and conducting programs for the improvement of
2869	2869	public health, except that for taxable years commencing after December
2870	2870	31, 2013, this subsection shall not apply to any sales of such materials
2871	2871	purchased by a nonprofit corporation which performs any abortion, as
2872	2872	defined in K.S.A. 65-6701 section 7, and amendments thereto;
2873	2873	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
2874	2874	herbicides, germicides, pesticides and fungicides; and services, purchased
2875	2875	1
2876	2876	2
2877	2877	3
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2914	2914	40
2915	2915	41
2916	2916	42
2917	2917	43 SB 286 35
2918	2918	and used for the purpose of producing plants in order to prevent soil
2919	2919	erosion on land devoted to agricultural use;
2920	2920	(nn) except as otherwise provided in this act, all sales of services
2921	2921	rendered by an advertising agency or licensed broadcast station or any
2922	2922	member, agent or employee thereof;
2923	2923	(oo) all sales of tangible personal property purchased by a community
2924	2924	action group or agency for the exclusive purpose of repairing or
2925	2925	weatherizing housing occupied by low-income individuals;
2926	2926	(pp) all sales of drill bits and explosives actually utilized in the
2927	2927	exploration and production of oil or gas;
2928	2928	(qq) all sales of tangible personal property and services purchased by
2929	2929	a nonprofit museum or historical society or any combination thereof,
2930	2930	including a nonprofit organization that is organized for the purpose of
2931	2931	stimulating public interest in the exploration of space by providing
2932	2932	educational information, exhibits and experiences, that is exempt from
2933	2933	federal income taxation pursuant to section 501(c)(3) of the federal
2934	2934	internal revenue code of 1986;
2935	2935	(rr) all sales of tangible personal property that will admit the
2936	2936	purchaser thereof to any annual event sponsored by a nonprofit
2937	2937	organization that is exempt from federal income taxation pursuant to
2938	2938	section 501(c)(3) of the federal internal revenue code of 1986, except that
2939	2939	for taxable years commencing after December 31, 2013, this subsection
2940	2940	shall not apply to any sales of such tangible personal property purchased
2941	2941	by a nonprofit organization which performs any abortion, as defined in
2942	2942	K.S.A. 65-6701 section 7, and amendments thereto;
2943	2943	(ss) all sales of tangible personal property and services purchased by
2944	2944	a public broadcasting station licensed by the federal communications
2945	2945	commission as a noncommercial educational television or radio station;
2946	2946	(tt) all sales of tangible personal property and services purchased by
2947	2947	or on behalf of a not-for-profit corporation that is exempt from federal
2948	2948	income taxation pursuant to section 501(c)(3) of the federal internal
2949	2949	revenue code of 1986, for the sole purpose of constructing a Kansas
2950	2950	Korean War memorial;
2951	2951	(uu) all sales of tangible personal property and services purchased by
2952	2952	or on behalf of any rural volunteer fire-fighting organization for use
2953	2953	exclusively in the performance of its duties and functions;
2954	2954	(vv) all sales of tangible personal property purchased by any of the
2955	2955	following organizations that are exempt from federal income taxation
2956	2956	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
2957	2957	for the following purposes, and all sales of any such property by or on
2958	2958	behalf of any such organization for any such purpose:
2959	2959	(1) The American heart association, Kansas affiliate, inc. for the
2960	2960	purposes of providing education, training, certification in emergency
2961	2961	1
2962	2962	2
2963	2963	3
2964	2964	4
2965	2965	5
2966	2966	6
2967	2967	7
2968	2968	8
2969	2969	9
2970	2970	10
2971	2971	11
2972	2972	12
2973	2973	13
2974	2974	14
2975	2975	15
2976	2976	16
2977	2977	17
2978	2978	18
2979	2979	19
2980	2980	20
2981	2981	21
2982	2982	22
2983	2983	23
2984	2984	24
2985	2985	25
2986	2986	26
2987	2987	27
2988	2988	28
2989	2989	29
2990	2990	30
2991	2991	31
2992	2992	32
2993	2993	33
2994	2994	34
2995	2995	35
2996	2996	36
2997	2997	37
2998	2998	38
2999	2999	39
3000	3000	40
3001	3001	41
3002	3002	42
3003	3003	43 SB 286 36
3004	3004	cardiac care, research and other related services to reduce disability and
3005	3005	death from cardiovascular diseases and stroke;
3006	3006	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
3007	3007	advocacy for persons with mental illness and to education, research and
3008	3008	support for their families;
3009	3009	(3) the Kansas mental illness awareness council for the purposes of
3010	3010	advocacy for persons who are mentally ill and for education, research and
3011	3011	support for them and their families;
3012	3012	(4) the American diabetes association Kansas affiliate, inc. for the
3013	3013	purpose of eliminating diabetes through medical research, public education
3014	3014	focusing on disease prevention and education, patient education including
3015	3015	information on coping with diabetes, and professional education and
3016	3016	training;
3017	3017	(5) the American lung association of Kansas, inc. for the purpose of
3018	3018	eliminating all lung diseases through medical research, public education
3019	3019	including information on coping with lung diseases, professional education
3020	3020	and training related to lung disease and other related services to reduce the
3021	3021	incidence of disability and death due to lung disease;
3022	3022	(6) the Kansas chapters of the Alzheimer's disease and related
3023	3023	disorders association, inc. for the purpose of providing assistance and
3024	3024	support to persons in Kansas with Alzheimer's disease, and their families
3025	3025	and caregivers;
3026	3026	(7) the Kansas chapters of the Parkinson's disease association for the
3027	3027	purpose of eliminating Parkinson's disease through medical research and
3028	3028	public and professional education related to such disease;
3029	3029	(8) the national kidney foundation of Kansas and western Missouri
3030	3030	for the purpose of eliminating kidney disease through medical research
3031	3031	and public and private education related to such disease;
3032	3032	(9) the heartstrings community foundation for the purpose of
3033	3033	providing training, employment and activities for adults with
3034	3034	developmental disabilities;
3035	3035	(10) the cystic fibrosis foundation, heart of America chapter, for the
3036	3036	purposes of assuring the development of the means to cure and control
3037	3037	cystic fibrosis and improving the quality of life for those with the disease;
3038	3038	(11) the spina bifida association of Kansas for the purpose of
3039	3039	providing financial, educational and practical aid to families and
3040	3040	individuals with spina bifida. Such aid includes, but is not limited to,
3041	3041	funding for medical devices, counseling and medical educational
3042	3042	opportunities;
3043	3043	(12) the CHWC, Inc., for the purpose of rebuilding urban core
3044	3044	neighborhoods through the construction of new homes, acquiring and
3045	3045	renovating existing homes and other related activities, and promoting
3046	3046	economic development in such neighborhoods;
3047	3047	1
3048	3048	2
3049	3049	3
3050	3050	4
3051	3051	5
3052	3052	6
3053	3053	7
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3076	3076	30
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3081	3081	35
3082	3082	36
3083	3083	37
3084	3084	38
3085	3085	39
3086	3086	40
3087	3087	41
3088	3088	42
3089	3089	43 SB 286 37
3090	3090	(13) the cross-lines cooperative council for the purpose of providing
3091	3091	social services to low income individuals and families;
3092	3092	(14) the dreams work, inc., for the purpose of providing young adult
3093	3093	day services to individuals with developmental disabilities and assisting
3094	3094	families in avoiding institutional or nursing home care for a
3095	3095	developmentally disabled member of their family;
3096	3096	(15) the KSDS, Inc., for the purpose of promoting the independence
3097	3097	and inclusion of people with disabilities as fully participating and
3098	3098	contributing members of their communities and society through the
3099	3099	training and providing of guide and service dogs to people with
3100	3100	disabilities, and providing disability education and awareness to the
3101	3101	general public;
3102	3102	(16) the lyme association of greater Kansas City, Inc., for the purpose
3103	3103	of providing support to persons with lyme disease and public education
3104	3104	relating to the prevention, treatment and cure of lyme disease;
3105	3105	(17) the dream factory, inc., for the purpose of granting the dreams of
3106	3106	children with critical and chronic illnesses;
3107	3107	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
3108	3108	students and families with education and resources necessary to enable
3109	3109	each child to develop fine character and musical ability to the fullest
3110	3110	potential;
3111	3111	(19) the international association of lions clubs for the purpose of
3112	3112	creating and fostering a spirit of understanding among all people for
3113	3113	humanitarian needs by providing voluntary services through community
3114	3114	involvement and international cooperation;
3115	3115	(20) the Johnson county young matrons, inc., for the purpose of
3116	3116	promoting a positive future for members of the community through
3117	3117	volunteerism, financial support and education through the efforts of an all
3118	3118	volunteer organization;
3119	3119	(21) the American cancer society, inc., for the purpose of eliminating
3120	3120	cancer as a major health problem by preventing cancer, saving lives and
3121	3121	diminishing suffering from cancer, through research, education, advocacy
3122	3122	and service;
3123	3123	(22) the community services of Shawnee, inc., for the purpose of
3124	3124	providing food and clothing to those in need;
3125	3125	(23) the angel babies association, for the purpose of providing
3126	3126	assistance, support and items of necessity to teenage mothers and their
3127	3127	babies; and
3128	3128	(24) the Kansas fairgrounds foundation for the purpose of the
3129	3129	preservation, renovation and beautification of the Kansas state fairgrounds;
3130	3130	(ww) all sales of tangible personal property purchased by the habitat
3131	3131	for humanity for the exclusive use of being incorporated within a housing
3132	3132	project constructed by such organization;
3133	3133	1
3134	3134	2
3135	3135	3
3136	3136	4
3137	3137	5
3138	3138	6
3139	3139	7
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3141	3141	9
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3158	3158	26
3159	3159	27
3160	3160	28
3161	3161	29
3162	3162	30
3163	3163	31
3164	3164	32
3165	3165	33
3166	3166	34
3167	3167	35
3168	3168	36
3169	3169	37
3170	3170	38
3171	3171	39
3172	3172	40
3173	3173	41
3174	3174	42
3175	3175	43 SB 286 38
3176	3176	(xx) all sales of tangible personal property and services purchased by
3177	3177	a nonprofit zoo that is exempt from federal income taxation pursuant to
3178	3178	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
3179	3179	of such zoo by an entity itself exempt from federal income taxation
3180	3180	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
3181	3181	contracted with to operate such zoo and all sales of tangible personal
3182	3182	property or services purchased by a contractor for the purpose of
3183	3183	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3184	3184	furnishing or remodeling facilities for any nonprofit zoo that would be
3185	3185	exempt from taxation under the provisions of this section if purchased
3186	3186	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
3187	3187	this subsection shall be deemed to exempt the purchase of any construction
3188	3188	machinery, equipment or tools used in the constructing, equipping,
3189	3189	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3190	3190	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
3191	3191	the purpose of constructing, equipping, reconstructing, maintaining,
3192	3192	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
3193	3193	from the state and furnish to the contractor an exemption certificate for the
3194	3194	project involved, and the contractor may purchase materials for
3195	3195	incorporation in such project. The contractor shall furnish the number of
3196	3196	such certificate to all suppliers from whom such purchases are made, and
3197	3197	such suppliers shall execute invoices covering the same bearing the
3198	3198	number of such certificate. Upon completion of the project the contractor
3199	3199	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
3200	3200	to be provided by the director of taxation, that all purchases so made were
3201	3201	entitled to exemption under this subsection. All invoices shall be held by
3202	3202	the contractor for a period of five years and shall be subject to audit by the
3203	3203	director of taxation. If any materials purchased under such a certificate are
3204	3204	found not to have been incorporated in the building or other project or not
3205	3205	to have been returned for credit or the sales or compensating tax otherwise
3206	3206	imposed upon such materials that will not be so incorporated in the
3207	3207	building or other project reported and paid by such contractor to the
3208	3208	director of taxation not later than the 20
3209	3209	th
3210	3210	day of the month following the
3211	3211	close of the month in which it shall be determined that such materials will
3212	3212	not be used for the purpose for which such certificate was issued, the
3213	3213	nonprofit zoo concerned shall be liable for tax on all materials purchased
3214	3214	for the project, and upon payment thereof it may recover the same from
3215	3215	the contractor together with reasonable attorney fees. Any contractor or
3216	3216	any agent, employee or subcontractor thereof, who shall use or otherwise
3217	3217	dispose of any materials purchased under such a certificate for any purpose
3218	3218	other than that for which such a certificate is issued without the payment
3219	3219	of the sales or compensating tax otherwise imposed upon such materials,
3220	3220	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3221	3221	1
3222	3222	2
3223	3223	3
3224	3224	4
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3226	3226	6
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3249	3249	29
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3252	3252	32
3253	3253	33
3254	3254	34
3255	3255	35
3256	3256	36
3257	3257	37
3258	3258	38
3259	3259	39
3260	3260	40
3261	3261	41
3262	3262	42
3263	3263	43 SB 286 39
3264	3264	subject to the penalties provided for in K.S.A. 79-3615(h), and
3265	3265	amendments thereto;
3266	3266	(yy) all sales of tangible personal property and services purchased by
3267	3267	a parent-teacher association or organization, and all sales of tangible
3268	3268	personal property by or on behalf of such association or organization;
3269	3269	(zz) all sales of machinery and equipment purchased by over-the-air,
3270	3270	free access radio or television station that is used directly and primarily for
3271	3271	the purpose of producing a broadcast signal or is such that the failure of
3272	3272	the machinery or equipment to operate would cause broadcasting to cease.
3273	3273	For purposes of this subsection, machinery and equipment shall include,
3274	3274	but not be limited to, that required by rules and regulations of the federal
3275	3275	communications commission, and all sales of electricity which are
3276	3276	essential or necessary for the purpose of producing a broadcast signal or is
3277	3277	such that the failure of the electricity would cause broadcasting to cease;
3278	3278	(aaa) all sales of tangible personal property and services purchased by
3279	3279	a religious organization that is exempt from federal income taxation
3280	3280	pursuant to section 501(c)(3) of the federal internal revenue code, and used
3281	3281	exclusively for religious purposes, and all sales of tangible personal
3282	3282	property or services purchased by a contractor for the purpose of
3283	3283	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3284	3284	furnishing or remodeling facilities for any such organization that would be
3285	3285	exempt from taxation under the provisions of this section if purchased
3286	3286	directly by such organization. Nothing in this subsection shall be deemed
3287	3287	to exempt the purchase of any construction machinery, equipment or tools
3288	3288	used in the constructing, equipping, reconstructing, maintaining, repairing,
3289	3289	enlarging, furnishing or remodeling facilities for any such organization.
3290	3290	When any such organization shall contract for the purpose of constructing,
3291	3291	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3292	3292	remodeling facilities, it shall obtain from the state and furnish to the
3293	3293	contractor an exemption certificate for the project involved, and the
3294	3294	contractor may purchase materials for incorporation in such project. The
3295	3295	contractor shall furnish the number of such certificate to all suppliers from
3296	3296	whom such purchases are made, and such suppliers shall execute invoices
3297	3297	covering the same bearing the number of such certificate. Upon
3298	3298	completion of the project the contractor shall furnish to such organization
3299	3299	concerned a sworn statement, on a form to be provided by the director of
3300	3300	taxation, that all purchases so made were entitled to exemption under this
3301	3301	subsection. All invoices shall be held by the contractor for a period of five
3302	3302	years and shall be subject to audit by the director of taxation. If any
3303	3303	materials purchased under such a certificate are found not to have been
3304	3304	incorporated in the building or other project or not to have been returned
3305	3305	for credit or the sales or compensating tax otherwise imposed upon such
3306	3306	materials that will not be so incorporated in the building or other project
3307	3307	1
3308	3308	2
3309	3309	3
3310	3310	4
3311	3311	5
3312	3312	6
3313	3313	7
3314	3314	8
3315	3315	9
3316	3316	10
3317	3317	11
3318	3318	12
3319	3319	13
3320	3320	14
3321	3321	15
3322	3322	16
3323	3323	17
3324	3324	18
3325	3325	19
3326	3326	20
3327	3327	21
3328	3328	22
3329	3329	23
3330	3330	24
3331	3331	25
3332	3332	26
3333	3333	27
3334	3334	28
3335	3335	29
3336	3336	30
3337	3337	31
3338	3338	32
3339	3339	33
3340	3340	34
3341	3341	35
3342	3342	36
3343	3343	37
3344	3344	38
3345	3345	39
3346	3346	40
3347	3347	41
3348	3348	42
3349	3349	43 SB 286 40
3350	3350	reported and paid by such contractor to the director of taxation not later
3351	3351	than the 20
3352	3352	th
3353	3353	day of the month following the close of the month in which it
3354	3354	shall be determined that such materials will not be used for the purpose for
3355	3355	which such certificate was issued, such organization concerned shall be
3356	3356	liable for tax on all materials purchased for the project, and upon payment
3357	3357	thereof it may recover the same from the contractor together with
3358	3358	reasonable attorney fees. Any contractor or any agent, employee or
3359	3359	subcontractor thereof, who shall use or otherwise dispose of any materials
3360	3360	purchased under such a certificate for any purpose other than that for
3361	3361	which such a certificate is issued without the payment of the sales or
3362	3362	compensating tax otherwise imposed upon such materials, shall be guilty
3363	3363	of a misdemeanor and, upon conviction therefor, shall be subject to the
3364	3364	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
3365	3365	Sales tax paid on and after July 1, 1998, but prior to the effective date of
3366	3366	this act upon the gross receipts received from any sale exempted by the
3367	3367	amendatory provisions of this subsection shall be refunded. Each claim for
3368	3368	a sales tax refund shall be verified and submitted to the director of taxation
3369	3369	upon forms furnished by the director and shall be accompanied by any
3370	3370	additional documentation required by the director. The director shall
3371	3371	review each claim and shall refund that amount of sales tax paid as
3372	3372	determined under the provisions of this subsection. All refunds shall be
3373	3373	paid from the sales tax refund fund upon warrants of the director of
3374	3374	accounts and reports pursuant to vouchers approved by the director or the
3375	3375	director's designee;
3376	3376	(bbb) all sales of food for human consumption by an organization that
3377	3377	is exempt from federal income taxation pursuant to section 501(c)(3) of
3378	3378	the federal internal revenue code of 1986, pursuant to a food distribution
3379	3379	program that offers such food at a price below cost in exchange for the
3380	3380	performance of community service by the purchaser thereof;
3381	3381	(ccc) on and after July 1, 1999, all sales of tangible personal property
3382	3382	and services purchased by a primary care clinic or health center the
3383	3383	primary purpose of which is to provide services to medically underserved
3384	3384	individuals and families, and that is exempt from federal income taxation
3385	3385	pursuant to section 501(c)(3) of the federal internal revenue code, and all
3386	3386	sales of tangible personal property or services purchased by a contractor
3387	3387	for the purpose of constructing, equipping, reconstructing, maintaining,
3388	3388	repairing, enlarging, furnishing or remodeling facilities for any such clinic
3389	3389	or center that would be exempt from taxation under the provisions of this
3390	3390	section if purchased directly by such clinic or center, except that for
3391	3391	taxable years commencing after December 31, 2013, this subsection shall
3392	3392	not apply to any sales of such tangible personal property and services
3393	3393	purchased by a primary care clinic or health center which performs any
3394	3394	abortion, as defined in K.S.A. 65-6701 section 7, and amendments thereto.
3395	3395	1
3396	3396	2
3397	3397	3
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3412	3412	18
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3414	3414	20
3415	3415	21
3416	3416	22
3417	3417	23
3418	3418	24
3419	3419	25
3420	3420	26
3421	3421	27
3422	3422	28
3423	3423	29
3424	3424	30
3425	3425	31
3426	3426	32
3427	3427	33
3428	3428	34
3429	3429	35
3430	3430	36
3431	3431	37
3432	3432	38
3433	3433	39
3434	3434	40
3435	3435	41
3436	3436	42
3437	3437	43 SB 286 41
3438	3438	Nothing in this subsection shall be deemed to exempt the purchase of any
3439	3439	construction machinery, equipment or tools used in the constructing,
3440	3440	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3441	3441	remodeling facilities for any such clinic or center. When any such clinic or
3442	3442	center shall contract for the purpose of constructing, equipping,
3443	3443	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3444	3444	facilities, it shall obtain from the state and furnish to the contractor an
3445	3445	exemption certificate for the project involved, and the contractor may
3446	3446	purchase materials for incorporation in such project. The contractor shall
3447	3447	furnish the number of such certificate to all suppliers from whom such
3448	3448	purchases are made, and such suppliers shall execute invoices covering the
3449	3449	same bearing the number of such certificate. Upon completion of the
3450	3450	project the contractor shall furnish to such clinic or center concerned a
3451	3451	sworn statement, on a form to be provided by the director of taxation, that
3452	3452	all purchases so made were entitled to exemption under this subsection.
3453	3453	All invoices shall be held by the contractor for a period of five years and
3454	3454	shall be subject to audit by the director of taxation. If any materials
3455	3455	purchased under such a certificate are found not to have been incorporated
3456	3456	in the building or other project or not to have been returned for credit or
3457	3457	the sales or compensating tax otherwise imposed upon such materials that
3458	3458	will not be so incorporated in the building or other project reported and
3459	3459	paid by such contractor to the director of taxation not later than the 20
3460	3460	th
3461	3461	day of the month following the close of the month in which it shall be
3462	3462	determined that such materials will not be used for the purpose for which
3463	3463	such certificate was issued, such clinic or center concerned shall be liable
3464	3464	for tax on all materials purchased for the project, and upon payment
3465	3465	thereof it may recover the same from the contractor together with
3466	3466	reasonable attorney fees. Any contractor or any agent, employee or
3467	3467	subcontractor thereof, who shall use or otherwise dispose of any materials
3468	3468	purchased under such a certificate for any purpose other than that for
3469	3469	which such a certificate is issued without the payment of the sales or
3470	3470	compensating tax otherwise imposed upon such materials, shall be guilty
3471	3471	of a misdemeanor and, upon conviction therefor, shall be subject to the
3472	3472	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3473	3473	(ddd) on and after January 1, 1999, and before January 1, 2000, all
3474	3474	sales of materials and services purchased by any class II or III railroad as
3475	3475	classified by the federal surface transportation board for the construction,
3476	3476	renovation, repair or replacement of class II or III railroad track and
3477	3477	facilities used directly in interstate commerce. In the event any such track
3478	3478	or facility for which materials and services were purchased sales tax
3479	3479	exempt is not operational for five years succeeding the allowance of such
3480	3480	exemption, the total amount of sales tax that would have been payable
3481	3481	except for the operation of this subsection shall be recouped in accordance
3482	3482	1
3483	3483	2
3484	3484	3
3485	3485	4
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3487	3487	6
3488	3488	7
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3493	3493	12
3494	3494	13
3495	3495	14
3496	3496	15
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3513	3513	32
3514	3514	33
3515	3515	34
3516	3516	35
3517	3517	36
3518	3518	37
3519	3519	38
3520	3520	39
3521	3521	40
3522	3522	41
3523	3523	42
3524	3524	43 SB 286 42
3525	3525	with rules and regulations adopted for such purpose by the secretary of
3526	3526	revenue;
3527	3527	(eee) on and after January 1, 1999, and before January 1, 2001, all
3528	3528	sales of materials and services purchased for the original construction,
3529	3529	reconstruction, repair or replacement of grain storage facilities, including
3530	3530	railroad sidings providing access thereto;
3531	3531	(fff) all sales of material handling equipment, racking systems and
3532	3532	other related machinery and equipment that is used for the handling,
3533	3533	movement or storage of tangible personal property in a warehouse or
3534	3534	distribution facility in this state; all sales of installation, repair and
3535	3535	maintenance services performed on such machinery and equipment; and
3536	3536	all sales of repair and replacement parts for such machinery and
3537	3537	equipment. For purposes of this subsection, a warehouse or distribution
3538	3538	facility means a single, fixed location that consists of buildings or
3539	3539	structures in a contiguous area where storage or distribution operations are
3540	3540	conducted that are separate and apart from the business' retail operations,
3541	3541	if any, and that do not otherwise qualify for exemption as occurring at a
3542	3542	manufacturing or processing plant or facility. Material handling and
3543	3543	storage equipment shall include aeration, dust control, cleaning, handling
3544	3544	and other such equipment that is used in a public grain warehouse or other
3545	3545	commercial grain storage facility, whether used for grain handling, grain
3546	3546	storage, grain refining or processing, or other grain treatment operation;
3547	3547	(ggg) all sales of tangible personal property and services purchased
3548	3548	by or on behalf of the Kansas academy of science, which is exempt from
3549	3549	federal income taxation pursuant to section 501(c)(3) of the federal
3550	3550	internal revenue code of 1986, and used solely by such academy for the
3551	3551	preparation, publication and dissemination of education materials;
3552	3552	(hhh) all sales of tangible personal property and services purchased
3553	3553	by or on behalf of all domestic violence shelters that are member agencies
3554	3554	of the Kansas coalition against sexual and domestic violence;
3555	3555	(iii) all sales of personal property and services purchased by an
3556	3556	organization that is exempt from federal income taxation pursuant to
3557	3557	section 501(c)(3) of the federal internal revenue code of 1986, and such
3558	3558	personal property and services are used by any such organization in the
3559	3559	collection, storage and distribution of food products to nonprofit
3560	3560	organizations that distribute such food products to persons pursuant to a
3561	3561	food distribution program on a charitable basis without fee or charge, and
3562	3562	all sales of tangible personal property or services purchased by a
3563	3563	contractor for the purpose of constructing, equipping, reconstructing,
3564	3564	maintaining, repairing, enlarging, furnishing or remodeling facilities used
3565	3565	for the collection and storage of such food products for any such
3566	3566	organization which is exempt from federal income taxation pursuant to
3567	3567	section 501(c)(3) of the federal internal revenue code of 1986, that would
3568	3568	1
3569	3569	2
3570	3570	3
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3592	3592	25
3593	3593	26
3594	3594	27
3595	3595	28
3596	3596	29
3597	3597	30
3598	3598	31
3599	3599	32
3600	3600	33
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3603	3603	36
3604	3604	37
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3606	3606	39
3607	3607	40
3608	3608	41
3609	3609	42
3610	3610	43 SB 286 43
3611	3611	be exempt from taxation under the provisions of this section if purchased
3612	3612	directly by such organization. Nothing in this subsection shall be deemed
3613	3613	to exempt the purchase of any construction machinery, equipment or tools
3614	3614	used in the constructing, equipping, reconstructing, maintaining, repairing,
3615	3615	enlarging, furnishing or remodeling facilities for any such organization.
3616	3616	When any such organization shall contract for the purpose of constructing,
3617	3617	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3618	3618	remodeling facilities, it shall obtain from the state and furnish to the
3619	3619	contractor an exemption certificate for the project involved, and the
3620	3620	contractor may purchase materials for incorporation in such project. The
3621	3621	contractor shall furnish the number of such certificate to all suppliers from
3622	3622	whom such purchases are made, and such suppliers shall execute invoices
3623	3623	covering the same bearing the number of such certificate. Upon
3624	3624	completion of the project the contractor shall furnish to such organization
3625	3625	concerned a sworn statement, on a form to be provided by the director of
3626	3626	taxation, that all purchases so made were entitled to exemption under this
3627	3627	subsection. All invoices shall be held by the contractor for a period of five
3628	3628	years and shall be subject to audit by the director of taxation. If any
3629	3629	materials purchased under such a certificate are found not to have been
3630	3630	incorporated in such facilities or not to have been returned for credit or the
3631	3631	sales or compensating tax otherwise imposed upon such materials that will
3632	3632	not be so incorporated in such facilities reported and paid by such
3633	3633	contractor to the director of taxation not later than the 20
3634	3634	th
3635	3635	day of the
3636	3636	month following the close of the month in which it shall be determined
3637	3637	that such materials will not be used for the purpose for which such
3638	3638	certificate was issued, such organization concerned shall be liable for tax
3639	3639	on all materials purchased for the project, and upon payment thereof it
3640	3640	may recover the same from the contractor together with reasonable
3641	3641	attorney fees. Any contractor or any agent, employee or subcontractor
3642	3642	thereof, who shall use or otherwise dispose of any materials purchased
3643	3643	under such a certificate for any purpose other than that for which such a
3644	3644	certificate is issued without the payment of the sales or compensating tax
3645	3645	otherwise imposed upon such materials, shall be guilty of a misdemeanor
3646	3646	and, upon conviction therefor, shall be subject to the penalties provided for
3647	3647	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
3648	3648	July 1, 2005, but prior to the effective date of this act upon the gross
3649	3649	receipts received from any sale exempted by the amendatory provisions of
3650	3650	this subsection shall be refunded. Each claim for a sales tax refund shall be
3651	3651	verified and submitted to the director of taxation upon forms furnished by
3652	3652	the director and shall be accompanied by any additional documentation
3653	3653	required by the director. The director shall review each claim and shall
3654	3654	refund that amount of sales tax paid as determined under the provisions of
3655	3655	this subsection. All refunds shall be paid from the sales tax refund fund
3656	3656	1
3657	3657	2
3658	3658	3
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3697	3697	42
3698	3698	43 SB 286 44
3699	3699	upon warrants of the director of accounts and reports pursuant to vouchers
3700	3700	approved by the director or the director's designee;
3701	3701	(jjj) all sales of dietary supplements dispensed pursuant to a
3702	3702	prescription order by a licensed practitioner or a mid-level practitioner as
3703	3703	defined by K.S.A. 65-1626, and amendments thereto. As used in this
3704	3704	subsection, "dietary supplement" means any product, other than tobacco,
3705	3705	intended to supplement the diet that: (1) Contains one or more of the
3706	3706	following dietary ingredients: A vitamin, a mineral, an herb or other
3707	3707	botanical, an amino acid, a dietary substance for use by humans to
3708	3708	supplement the diet by increasing the total dietary intake or a concentrate,
3709	3709	metabolite, constituent, extract or combination of any such ingredient; (2)
3710	3710	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
3711	3711	liquid form, or if not intended for ingestion, in such a form, is not
3712	3712	represented as conventional food and is not represented for use as a sole
3713	3713	item of a meal or of the diet; and (3) is required to be labeled as a dietary
3714	3714	supplement, identifiable by the supplemental facts box found on the label
3715	3715	and as required pursuant to 21 C.F.R. § 101.36;
3716	3716	(lll) all sales of tangible personal property and services purchased by
3717	3717	special olympics Kansas, inc. for the purpose of providing year-round
3718	3718	sports training and athletic competition in a variety of olympic-type sports
3719	3719	for individuals with intellectual disabilities by giving them continuing
3720	3720	opportunities to develop physical fitness, demonstrate courage, experience
3721	3721	joy and participate in a sharing of gifts, skills and friendship with their
3722	3722	families, other special olympics athletes and the community, and activities
3723	3723	provided or sponsored by such organization, and all sales of tangible
3724	3724	personal property by or on behalf of any such organization;
3725	3725	(mmm) all sales of tangible personal property purchased by or on
3726	3726	behalf of the Marillac center, inc., which is exempt from federal income
3727	3727	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3728	3728	for the purpose of providing psycho-social-biological and special
3729	3729	education services to children, and all sales of any such property by or on
3730	3730	behalf of such organization for such purpose;
3731	3731	(nnn) all sales of tangible personal property and services purchased
3732	3732	by the west Sedgwick county-sunrise rotary club and sunrise charitable
3733	3733	fund for the purpose of constructing a boundless playground which is an
3734	3734	integrated, barrier free and developmentally advantageous play
3735	3735	environment for children of all abilities and disabilities;
3736	3736	(ooo) all sales of tangible personal property by or on behalf of a
3737	3737	public library serving the general public and supported in whole or in part
3738	3738	with tax money or a not-for-profit organization whose purpose is to raise
3739	3739	funds for or provide services or other benefits to any such public library;
3740	3740	(ppp) all sales of tangible personal property and services purchased
3741	3741	by or on behalf of a homeless shelter that is exempt from federal income
3742	3742	1
3743	3743	2
3744	3744	3
3745	3745	4
3746	3746	5
3747	3747	6
3748	3748	7
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3750	3750	9
3751	3751	10
3752	3752	11
3753	3753	12
3754	3754	13
3755	3755	14
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3757	3757	16
3758	3758	17
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3770	3770	29
3771	3771	30
3772	3772	31
3773	3773	32
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3775	3775	34
3776	3776	35
3777	3777	36
3778	3778	37
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3781	3781	40
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3783	3783	42
3784	3784	43 SB 286 45
3785	3785	taxation pursuant to section 501(c)(3) of the federal income tax code of
3786	3786	1986, and used by any such homeless shelter to provide emergency and
3787	3787	transitional housing for individuals and families experiencing
3788	3788	homelessness, and all sales of any such property by or on behalf of any
3789	3789	such homeless shelter for any such purpose;
3790	3790	(qqq) all sales of tangible personal property and services purchased
3791	3791	by TLC for children and families, inc., hereinafter referred to as TLC,
3792	3792	which is exempt from federal income taxation pursuant to section 501(c)
3793	3793	(3) of the federal internal revenue code of 1986, and such property and
3794	3794	services are used for the purpose of providing emergency shelter and
3795	3795	treatment for abused and neglected children as well as meeting additional
3796	3796	critical needs for children, juveniles and family, and all sales of any such
3797	3797	property by or on behalf of TLC for any such purpose; and all sales of
3798	3798	tangible personal property or services purchased by a contractor for the
3799	3799	purpose of constructing, maintaining, repairing, enlarging, furnishing or
3800	3800	remodeling facilities for the operation of services for TLC for any such
3801	3801	purpose that would be exempt from taxation under the provisions of this
3802	3802	section if purchased directly by TLC. Nothing in this subsection shall be
3803	3803	deemed to exempt the purchase of any construction machinery, equipment
3804	3804	or tools used in the constructing, maintaining, repairing, enlarging,
3805	3805	furnishing or remodeling such facilities for TLC. When TLC contracts for
3806	3806	the purpose of constructing, maintaining, repairing, enlarging, furnishing
3807	3807	or remodeling such facilities, it shall obtain from the state and furnish to
3808	3808	the contractor an exemption certificate for the project involved, and the
3809	3809	contractor may purchase materials for incorporation in such project. The
3810	3810	contractor shall furnish the number of such certificate to all suppliers from
3811	3811	whom such purchases are made, and such suppliers shall execute invoices
3812	3812	covering the same bearing the number of such certificate. Upon
3813	3813	completion of the project the contractor shall furnish to TLC a sworn
3814	3814	statement, on a form to be provided by the director of taxation, that all
3815	3815	purchases so made were entitled to exemption under this subsection. All
3816	3816	invoices shall be held by the contractor for a period of five years and shall
3817	3817	be subject to audit by the director of taxation. If any materials purchased
3818	3818	under such a certificate are found not to have been incorporated in the
3819	3819	building or other project or not to have been returned for credit or the sales
3820	3820	or compensating tax otherwise imposed upon such materials that will not
3821	3821	be so incorporated in the building or other project reported and paid by
3822	3822	such contractor to the director of taxation not later than the 20
3823	3823	th
3824	3824	day of the
3825	3825	month following the close of the month in which it shall be determined
3826	3826	that such materials will not be used for the purpose for which such
3827	3827	certificate was issued, TLC shall be liable for tax on all materials
3828	3828	purchased for the project, and upon payment thereof it may recover the
3829	3829	same from the contractor together with reasonable attorney fees. Any
3830	3830	1
3831	3831	2
3832	3832	3
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3857	3857	28
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3859	3859	30
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3861	3861	32
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3863	3863	34
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3865	3865	36
3866	3866	37
3867	3867	38
3868	3868	39
3869	3869	40
3870	3870	41
3871	3871	42
3872	3872	43 SB 286 46
3873	3873	contractor or any agent, employee or subcontractor thereof, who shall use
3874	3874	or otherwise dispose of any materials purchased under such a certificate
3875	3875	for any purpose other than that for which such a certificate is issued
3876	3876	without the payment of the sales or compensating tax otherwise imposed
3877	3877	upon such materials, shall be guilty of a misdemeanor and, upon
3878	3878	conviction therefor, shall be subject to the penalties provided for in K.S.A.
3879	3879	79-3615(h), and amendments thereto;
3880	3880	(rrr) all sales of tangible personal property and services purchased by
3881	3881	any county law library maintained pursuant to law and sales of tangible
3882	3882	personal property and services purchased by an organization that would
3883	3883	have been exempt from taxation under the provisions of this subsection if
3884	3884	purchased directly by the county law library for the purpose of providing
3885	3885	legal resources to attorneys, judges, students and the general public, and
3886	3886	all sales of any such property by or on behalf of any such county law
3887	3887	library;
3888	3888	(sss) all sales of tangible personal property and services purchased by
3889	3889	catholic charities or youthville, hereinafter referred to as charitable family
3890	3890	providers, which is exempt from federal income taxation pursuant to
3891	3891	section 501(c)(3) of the federal internal revenue code of 1986, and which
3892	3892	such property and services are used for the purpose of providing
3893	3893	emergency shelter and treatment for abused and neglected children as well
3894	3894	as meeting additional critical needs for children, juveniles and family, and
3895	3895	all sales of any such property by or on behalf of charitable family
3896	3896	providers for any such purpose; and all sales of tangible personal property
3897	3897	or services purchased by a contractor for the purpose of constructing,
3898	3898	maintaining, repairing, enlarging, furnishing or remodeling facilities for
3899	3899	the operation of services for charitable family providers for any such
3900	3900	purpose which would be exempt from taxation under the provisions of this
3901	3901	section if purchased directly by charitable family providers. Nothing in
3902	3902	this subsection shall be deemed to exempt the purchase of any construction
3903	3903	machinery, equipment or tools used in the constructing, maintaining,
3904	3904	repairing, enlarging, furnishing or remodeling such facilities for charitable
3905	3905	family providers. When charitable family providers contracts for the
3906	3906	purpose of constructing, maintaining, repairing, enlarging, furnishing or
3907	3907	remodeling such facilities, it shall obtain from the state and furnish to the
3908	3908	contractor an exemption certificate for the project involved, and the
3909	3909	contractor may purchase materials for incorporation in such project. The
3910	3910	contractor shall furnish the number of such certificate to all suppliers from
3911	3911	whom such purchases are made, and such suppliers shall execute invoices
3912	3912	covering the same bearing the number of such certificate. Upon
3913	3913	completion of the project the contractor shall furnish to charitable family
3914	3914	providers a sworn statement, on a form to be provided by the director of
3915	3915	taxation, that all purchases so made were entitled to exemption under this
3916	3916	1
3917	3917	2
3918	3918	3
3919	3919	4
3920	3920	5
3921	3921	6
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3944	3944	29
3945	3945	30
3946	3946	31
3947	3947	32
3948	3948	33
3949	3949	34
3950	3950	35
3951	3951	36
3952	3952	37
3953	3953	38
3954	3954	39
3955	3955	40
3956	3956	41
3957	3957	42
3958	3958	43 SB 286 47
3959	3959	subsection. All invoices shall be held by the contractor for a period of five
3960	3960	years and shall be subject to audit by the director of taxation. If any
3961	3961	materials purchased under such a certificate are found not to have been
3962	3962	incorporated in the building or other project or not to have been returned
3963	3963	for credit or the sales or compensating tax otherwise imposed upon such
3964	3964	materials that will not be so incorporated in the building or other project
3965	3965	reported and paid by such contractor to the director of taxation not later
3966	3966	than the 20
3967	3967	th
3968	3968	day of the month following the close of the month in which it
3969	3969	shall be determined that such materials will not be used for the purpose for
3970	3970	which such certificate was issued, charitable family providers shall be
3971	3971	liable for tax on all materials purchased for the project, and upon payment
3972	3972	thereof it may recover the same from the contractor together with
3973	3973	reasonable attorney fees. Any contractor or any agent, employee or
3974	3974	subcontractor thereof, who shall use or otherwise dispose of any materials
3975	3975	purchased under such a certificate for any purpose other than that for
3976	3976	which such a certificate is issued without the payment of the sales or
3977	3977	compensating tax otherwise imposed upon such materials, shall be guilty
3978	3978	of a misdemeanor and, upon conviction therefor, shall be subject to the
3979	3979	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3980	3980	(ttt) all sales of tangible personal property or services purchased by a
3981	3981	contractor for a project for the purpose of restoring, constructing,
3982	3982	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3983	3983	remodeling a home or facility owned by a nonprofit museum that has been
3984	3984	granted an exemption pursuant to subsection (qq), which such home or
3985	3985	facility is located in a city that has been designated as a qualified
3986	3986	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
3987	3987	amendments thereto, and which such project is related to the purposes of
3988	3988	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
3989	3989	exempt from taxation under the provisions of this section if purchased
3990	3990	directly by such nonprofit museum. Nothing in this subsection shall be
3991	3991	deemed to exempt the purchase of any construction machinery, equipment
3992	3992	or tools used in the restoring, constructing, equipping, reconstructing,
3993	3993	maintaining, repairing, enlarging, furnishing or remodeling a home or
3994	3994	facility for any such nonprofit museum. When any such nonprofit museum
3995	3995	shall contract for the purpose of restoring, constructing, equipping,
3996	3996	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3997	3997	a home or facility, it shall obtain from the state and furnish to the
3998	3998	contractor an exemption certificate for the project involved, and the
3999	3999	contractor may purchase materials for incorporation in such project. The
4000	4000	contractor shall furnish the number of such certificates to all suppliers
4001	4001	from whom such purchases are made, and such suppliers shall execute
4002	4002	invoices covering the same bearing the number of such certificate. Upon
4003	4003	completion of the project, the contractor shall furnish to such nonprofit
4004	4004	1
4005	4005	2
4006	4006	3
4007	4007	4
4008	4008	5
4009	4009	6
4010	4010	7
4011	4011	8
4012	4012	9
4013	4013	10
4014	4014	11
4015	4015	12
4016	4016	13
4017	4017	14
4018	4018	15
4019	4019	16
4020	4020	17
4021	4021	18
4022	4022	19
4023	4023	20
4024	4024	21
4025	4025	22
4026	4026	23
4027	4027	24
4028	4028	25
4029	4029	26
4030	4030	27
4031	4031	28
4032	4032	29
4033	4033	30
4034	4034	31
4035	4035	32
4036	4036	33
4037	4037	34
4038	4038	35
4039	4039	36
4040	4040	37
4041	4041	38
4042	4042	39
4043	4043	40
4044	4044	41
4045	4045	42
4046	4046	43 SB 286 48
4047	4047	museum a sworn statement on a form to be provided by the director of
4048	4048	taxation that all purchases so made were entitled to exemption under this
4049	4049	subsection. All invoices shall be held by the contractor for a period of five
4050	4050	years and shall be subject to audit by the director of taxation. If any
4051	4051	materials purchased under such a certificate are found not to have been
4052	4052	incorporated in the building or other project or not to have been returned
4053	4053	for credit or the sales or compensating tax otherwise imposed upon such
4054	4054	materials that will not be so incorporated in a home or facility or other
4055	4055	project reported and paid by such contractor to the director of taxation not
4056	4056	later than the 20
4057	4057	th
4058	4058	day of the month following the close of the month in
4059	4059	which it shall be determined that such materials will not be used for the
4060	4060	purpose for which such certificate was issued, such nonprofit museum
4061	4061	shall be liable for tax on all materials purchased for the project, and upon
4062	4062	payment thereof it may recover the same from the contractor together with
4063	4063	reasonable attorney fees. Any contractor or any agent, employee or
4064	4064	subcontractor thereof, who shall use or otherwise dispose of any materials
4065	4065	purchased under such a certificate for any purpose other than that for
4066	4066	which such a certificate is issued without the payment of the sales or
4067	4067	compensating tax otherwise imposed upon such materials, shall be guilty
4068	4068	of a misdemeanor and, upon conviction therefor, shall be subject to the
4069	4069	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
4070	4070	(uuu) all sales of tangible personal property and services purchased
4071	4071	by Kansas children's service league, hereinafter referred to as KCSL,
4072	4072	which is exempt from federal income taxation pursuant to section 501(c)
4073	4073	(3) of the federal internal revenue code of 1986, and which such property
4074	4074	and services are used for the purpose of providing for the prevention and
4075	4075	treatment of child abuse and maltreatment as well as meeting additional
4076	4076	critical needs for children, juveniles and family, and all sales of any such
4077	4077	property by or on behalf of KCSL for any such purpose; and all sales of
4078	4078	tangible personal property or services purchased by a contractor for the
4079	4079	purpose of constructing, maintaining, repairing, enlarging, furnishing or
4080	4080	remodeling facilities for the operation of services for KCSL for any such
4081	4081	purpose that would be exempt from taxation under the provisions of this
4082	4082	section if purchased directly by KCSL. Nothing in this subsection shall be
4083	4083	deemed to exempt the purchase of any construction machinery, equipment
4084	4084	or tools used in the constructing, maintaining, repairing, enlarging,
4085	4085	furnishing or remodeling such facilities for KCSL. When KCSL contracts
4086	4086	for the purpose of constructing, maintaining, repairing, enlarging,
4087	4087	furnishing or remodeling such facilities, it shall obtain from the state and
4088	4088	furnish to the contractor an exemption certificate for the project involved,
4089	4089	and the contractor may purchase materials for incorporation in such
4090	4090	project. The contractor shall furnish the number of such certificate to all
4091	4091	suppliers from whom such purchases are made, and such suppliers shall
4092	4092	1
4093	4093	2
4094	4094	3
4095	4095	4
4096	4096	5
4097	4097	6
4098	4098	7
4099	4099	8
4100	4100	9
4101	4101	10
4102	4102	11
4103	4103	12
4104	4104	13
4105	4105	14
4106	4106	15
4107	4107	16
4108	4108	17
4109	4109	18
4110	4110	19
4111	4111	20
4112	4112	21
4113	4113	22
4114	4114	23
4115	4115	24
4116	4116	25
4117	4117	26
4118	4118	27
4119	4119	28
4120	4120	29
4121	4121	30
4122	4122	31
4123	4123	32
4124	4124	33
4125	4125	34
4126	4126	35
4127	4127	36
4128	4128	37
4129	4129	38
4130	4130	39
4131	4131	40
4132	4132	41
4133	4133	42
4134	4134	43 SB 286 49
4135	4135	execute invoices covering the same bearing the number of such certificate.
4136	4136	Upon completion of the project the contractor shall furnish to KCSL a
4137	4137	sworn statement, on a form to be provided by the director of taxation, that
4138	4138	all purchases so made were entitled to exemption under this subsection.
4139	4139	All invoices shall be held by the contractor for a period of five years and
4140	4140	shall be subject to audit by the director of taxation. If any materials
4141	4141	purchased under such a certificate are found not to have been incorporated
4142	4142	in the building or other project or not to have been returned for credit or
4143	4143	the sales or compensating tax otherwise imposed upon such materials that
4144	4144	will not be so incorporated in the building or other project reported and
4145	4145	paid by such contractor to the director of taxation not later than the 20
4146	4146	th
4147	4147	day of the month following the close of the month in which it shall be
4148	4148	determined that such materials will not be used for the purpose for which
4149	4149	such certificate was issued, KCSL shall be liable for tax on all materials
4150	4150	purchased for the project, and upon payment thereof it may recover the
4151	4151	same from the contractor together with reasonable attorney fees. Any
4152	4152	contractor or any agent, employee or subcontractor thereof, who shall use
4153	4153	or otherwise dispose of any materials purchased under such a certificate
4154	4154	for any purpose other than that for which such a certificate is issued
4155	4155	without the payment of the sales or compensating tax otherwise imposed
4156	4156	upon such materials, shall be guilty of a misdemeanor and, upon
4157	4157	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4158	4158	79-3615(h), and amendments thereto;
4159	4159	(vvv) all sales of tangible personal property or services, including the
4160	4160	renting and leasing of tangible personal property or services, purchased by
4161	4161	jazz in the woods, inc., a Kansas corporation that is exempt from federal
4162	4162	income taxation pursuant to section 501(c)(3) of the federal internal
4163	4163	revenue code, for the purpose of providing jazz in the woods, an event
4164	4164	benefiting children-in-need and other nonprofit charities assisting such
4165	4165	children, and all sales of any such property by or on behalf of such
4166	4166	organization for such purpose;
4167	4167	(www) all sales of tangible personal property purchased by or on
4168	4168	behalf of the Frontenac education foundation, which is exempt from
4169	4169	federal income taxation pursuant to section 501(c)(3) of the federal
4170	4170	internal revenue code, for the purpose of providing education support for
4171	4171	students, and all sales of any such property by or on behalf of such
4172	4172	organization for such purpose;
4173	4173	(xxx) all sales of personal property and services purchased by the
4174	4174	booth theatre foundation, inc., an organization, which is exempt from
4175	4175	federal income taxation pursuant to section 501(c)(3) of the federal
4176	4176	internal revenue code of 1986, and which such personal property and
4177	4177	services are used by any such organization in the constructing, equipping,
4178	4178	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4179	4179	1
4180	4180	2
4181	4181	3
4182	4182	4
4183	4183	5
4184	4184	6
4185	4185	7
4186	4186	8
4187	4187	9
4188	4188	10
4189	4189	11
4190	4190	12
4191	4191	13
4192	4192	14
4193	4193	15
4194	4194	16
4195	4195	17
4196	4196	18
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4200	4200	22
4201	4201	23
4202	4202	24
4203	4203	25
4204	4204	26
4205	4205	27
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4207	4207	29
4208	4208	30
4209	4209	31
4210	4210	32
4211	4211	33
4212	4212	34
4213	4213	35
4214	4214	36
4215	4215	37
4216	4216	38
4217	4217	39
4218	4218	40
4219	4219	41
4220	4220	42
4221	4221	43 SB 286 50
4222	4222	of the booth theatre, and all sales of tangible personal property or services
4223	4223	purchased by a contractor for the purpose of constructing, equipping,
4224	4224	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4225	4225	the booth theatre for such organization, that would be exempt from
4226	4226	taxation under the provisions of this section if purchased directly by such
4227	4227	organization. Nothing in this subsection shall be deemed to exempt the
4228	4228	purchase of any construction machinery, equipment or tools used in the
4229	4229	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
4230	4230	furnishing or remodeling facilities for any such organization. When any
4231	4231	such organization shall contract for the purpose of constructing, equipping,
4232	4232	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4233	4233	facilities, it shall obtain from the state and furnish to the contractor an
4234	4234	exemption certificate for the project involved, and the contractor may
4235	4235	purchase materials for incorporation in such project. The contractor shall
4236	4236	furnish the number of such certificate to all suppliers from whom such
4237	4237	purchases are made, and such suppliers shall execute invoices covering the
4238	4238	same bearing the number of such certificate. Upon completion of the
4239	4239	project the contractor shall furnish to such organization concerned a sworn
4240	4240	statement, on a form to be provided by the director of taxation, that all
4241	4241	purchases so made were entitled to exemption under this subsection. All
4242	4242	invoices shall be held by the contractor for a period of five years and shall
4243	4243	be subject to audit by the director of taxation. If any materials purchased
4244	4244	under such a certificate are found not to have been incorporated in such
4245	4245	facilities or not to have been returned for credit or the sales or
4246	4246	compensating tax otherwise imposed upon such materials that will not be
4247	4247	so incorporated in such facilities reported and paid by such contractor to
4248	4248	the director of taxation not later than the 20
4249	4249	th
4250	4250	day of the month following
4251	4251	the close of the month in which it shall be determined that such materials
4252	4252	will not be used for the purpose for which such certificate was issued, such
4253	4253	organization concerned shall be liable for tax on all materials purchased
4254	4254	for the project, and upon payment thereof it may recover the same from
4255	4255	the contractor together with reasonable attorney fees. Any contractor or
4256	4256	any agent, employee or subcontractor thereof, who shall use or otherwise
4257	4257	dispose of any materials purchased under such a certificate for any purpose
4258	4258	other than that for which such a certificate is issued without the payment
4259	4259	of the sales or compensating tax otherwise imposed upon such materials,
4260	4260	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4261	4261	subject to the penalties provided for in K.S.A. 79-3615(h), and
4262	4262	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
4263	4263	to the effective date of this act upon the gross receipts received from any
4264	4264	sale which would have been exempted by the provisions of this subsection
4265	4265	had such sale occurred after the effective date of this act shall be refunded.
4266	4266	Each claim for a sales tax refund shall be verified and submitted to the
4267	4267	1
4268	4268	2
4269	4269	3
4270	4270	4
4271	4271	5
4272	4272	6
4273	4273	7
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4279	4279	13
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4291	4291	25
4292	4292	26
4293	4293	27
4294	4294	28
4295	4295	29
4296	4296	30
4297	4297	31
4298	4298	32
4299	4299	33
4300	4300	34
4301	4301	35
4302	4302	36
4303	4303	37
4304	4304	38
4305	4305	39
4306	4306	40
4307	4307	41
4308	4308	42
4309	4309	43 SB 286 51
4310	4310	director of taxation upon forms furnished by the director and shall be
4311	4311	accompanied by any additional documentation required by the director.
4312	4312	The director shall review each claim and shall refund that amount of sales
4313	4313	tax paid as determined under the provisions of this subsection. All refunds
4314	4314	shall be paid from the sales tax refund fund upon warrants of the director
4315	4315	of accounts and reports pursuant to vouchers approved by the director or
4316	4316	the director's designee;
4317	4317	(yyy) all sales of tangible personal property and services purchased
4318	4318	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
4319	4319	which is exempt from federal income taxation pursuant to section 501(c)
4320	4320	(3) of the federal internal revenue code of 1986, and which such property
4321	4321	and services are used for the purpose of encouraging private philanthropy
4322	4322	to further the vision, values, and goals of TLC for children and families,
4323	4323	inc.; and all sales of such property and services by or on behalf of TLC
4324	4324	charities for any such purpose and all sales of tangible personal property or
4325	4325	services purchased by a contractor for the purpose of constructing,
4326	4326	maintaining, repairing, enlarging, furnishing or remodeling facilities for
4327	4327	the operation of services for TLC charities for any such purpose that would
4328	4328	be exempt from taxation under the provisions of this section if purchased
4329	4329	directly by TLC charities. Nothing in this subsection shall be deemed to
4330	4330	exempt the purchase of any construction machinery, equipment or tools
4331	4331	used in the constructing, maintaining, repairing, enlarging, furnishing or
4332	4332	remodeling such facilities for TLC charities. When TLC charities contracts
4333	4333	for the purpose of constructing, maintaining, repairing, enlarging,
4334	4334	furnishing or remodeling such facilities, it shall obtain from the state and
4335	4335	furnish to the contractor an exemption certificate for the project involved,
4336	4336	and the contractor may purchase materials for incorporation in such
4337	4337	project. The contractor shall furnish the number of such certificate to all
4338	4338	suppliers from whom such purchases are made, and such suppliers shall
4339	4339	execute invoices covering the same bearing the number of such certificate.
4340	4340	Upon completion of the project the contractor shall furnish to TLC
4341	4341	charities a sworn statement, on a form to be provided by the director of
4342	4342	taxation, that all purchases so made were entitled to exemption under this
4343	4343	subsection. All invoices shall be held by the contractor for a period of five
4344	4344	years and shall be subject to audit by the director of taxation. If any
4345	4345	materials purchased under such a certificate are found not to have been
4346	4346	incorporated in the building or other project or not to have been returned
4347	4347	for credit or the sales or compensating tax otherwise imposed upon such
4348	4348	materials that will not be incorporated into the building or other project
4349	4349	reported and paid by such contractor to the director of taxation not later
4350	4350	than the 20
4351	4351	th
4352	4352	day of the month following the close of the month in which it
4353	4353	shall be determined that such materials will not be used for the purpose for
4354	4354	which such certificate was issued, TLC charities shall be liable for tax on
4355	4355	1
4356	4356	2
4357	4357	3
4358	4358	4
4359	4359	5
4360	4360	6
4361	4361	7
4362	4362	8
4363	4363	9
4364	4364	10
4365	4365	11
4366	4366	12
4367	4367	13
4368	4368	14
4369	4369	15
4370	4370	16
4371	4371	17
4372	4372	18
4373	4373	19
4374	4374	20
4375	4375	21
4376	4376	22
4377	4377	23
4378	4378	24
4379	4379	25
4380	4380	26
4381	4381	27
4382	4382	28
4383	4383	29
4384	4384	30
4385	4385	31
4386	4386	32
4387	4387	33
4388	4388	34
4389	4389	35
4390	4390	36
4391	4391	37
4392	4392	38
4393	4393	39
4394	4394	40
4395	4395	41
4396	4396	42
4397	4397	43 SB 286 52
4398	4398	all materials purchased for the project, and upon payment thereof it may
4399	4399	recover the same from the contractor together with reasonable attorney
4400	4400	fees. Any contractor or any agent, employee or subcontractor thereof, who
4401	4401	shall use or otherwise dispose of any materials purchased under such a
4402	4402	certificate for any purpose other than that for which such a certificate is
4403	4403	issued without the payment of the sales or compensating tax otherwise
4404	4404	imposed upon such materials, shall be guilty of a misdemeanor and, upon
4405	4405	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4406	4406	79-3615(h), and amendments thereto;
4407	4407	(zzz) all sales of tangible personal property purchased by the rotary
4408	4408	club of shawnee foundation, which is exempt from federal income taxation
4409	4409	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
4410	4410	as amended, used for the purpose of providing contributions to community
4411	4411	service organizations and scholarships;
4412	4412	(aaaa) all sales of personal property and services purchased by or on
4413	4413	behalf of victory in the valley, inc., which is exempt from federal income
4414	4414	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4415	4415	for the purpose of providing a cancer support group and services for
4416	4416	persons with cancer, and all sales of any such property by or on behalf of
4417	4417	any such organization for any such purpose;
4418	4418	(bbbb) all sales of entry or participation fees, charges or tickets by
4419	4419	Guadalupe health foundation, which is exempt from federal income
4420	4420	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4421	4421	for such organization's annual fundraising event which purpose is to
4422	4422	provide health care services for uninsured workers;
4423	4423	(cccc) all sales of tangible personal property or services purchased by
4424	4424	or on behalf of wayside waifs, inc., which is exempt from federal income
4425	4425	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4426	4426	for the purpose of providing such organization's annual fundraiser, an
4427	4427	event whose purpose is to support the care of homeless and abandoned
4428	4428	animals, animal adoption efforts, education programs for children and
4429	4429	efforts to reduce animal over-population and animal welfare services, and
4430	4430	all sales of any such property, including entry or participation fees or
4431	4431	charges, by or on behalf of such organization for such purpose;
4432	4432	(dddd) all sales of tangible personal property or services purchased
4433	4433	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
4434	4434	of which are exempt from federal income taxation pursuant to section
4435	4435	501(c)(3) of the federal internal revenue code, for the purpose of providing
4436	4436	education, training and employment opportunities for people with
4437	4437	disabilities and other barriers to employment;
4438	4438	(eeee) all sales of tangible personal property or services purchased by
4439	4439	or on behalf of all American beef battalion, inc., which is exempt from
4440	4440	federal income taxation pursuant to section 501(c)(3) of the federal
4441	4441	1
4442	4442	2
4443	4443	3
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4480	4480	40
4481	4481	41
4482	4482	42
4483	4483	43 SB 286 53
4484	4484	internal revenue code, for the purpose of educating, promoting and
4485	4485	participating as a contact group through the beef cattle industry in order to
4486	4486	carry out such projects that provide support and morale to members of the
4487	4487	United States armed forces and military services;
4488	4488	(ffff) all sales of tangible personal property and services purchased by
4489	4489	sheltered living, inc., which is exempt from federal income taxation
4490	4490	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
4491	4491	and which such property and services are used for the purpose of
4492	4492	providing residential and day services for people with developmental
4493	4493	disabilities or intellectual disability, or both, and all sales of any such
4494	4494	property by or on behalf of sheltered living, inc., for any such purpose; and
4495	4495	all sales of tangible personal property or services purchased by a
4496	4496	contractor for the purpose of rehabilitating, constructing, maintaining,
4497	4497	repairing, enlarging, furnishing or remodeling homes and facilities for
4498	4498	sheltered living, inc., for any such purpose that would be exempt from
4499	4499	taxation under the provisions of this section if purchased directly by
4500	4500	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
4501	4501	the purchase of any construction machinery, equipment or tools used in the
4502	4502	constructing, maintaining, repairing, enlarging, furnishing or remodeling
4503	4503	such homes and facilities for sheltered living, inc. When sheltered living,
4504	4504	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
4505	4505	repairing, enlarging, furnishing or remodeling such homes and facilities, it
4506	4506	shall obtain from the state and furnish to the contractor an exemption
4507	4507	certificate for the project involved, and the contractor may purchase
4508	4508	materials for incorporation in such project. The contractor shall furnish the
4509	4509	number of such certificate to all suppliers from whom such purchases are
4510	4510	made, and such suppliers shall execute invoices covering the same bearing
4511	4511	the number of such certificate. Upon completion of the project the
4512	4512	contractor shall furnish to sheltered living, inc., a sworn statement, on a
4513	4513	form to be provided by the director of taxation, that all purchases so made
4514	4514	were entitled to exemption under this subsection. All invoices shall be held
4515	4515	by the contractor for a period of five years and shall be subject to audit by
4516	4516	the director of taxation. If any materials purchased under such a certificate
4517	4517	are found not to have been incorporated in the building or other project or
4518	4518	not to have been returned for credit or the sales or compensating tax
4519	4519	otherwise imposed upon such materials that will not be so incorporated in
4520	4520	the building or other project reported and paid by such contractor to the
4521	4521	director of taxation not later than the 20
4522	4522	th
4523	4523	day of the month following the
4524	4524	close of the month in which it shall be determined that such materials will
4525	4525	not be used for the purpose for which such certificate was issued, sheltered
4526	4526	living, inc., shall be liable for tax on all materials purchased for the
4527	4527	project, and upon payment thereof it may recover the same from the
4528	4528	contractor together with reasonable attorney fees. Any contractor or any
4529	4529	1
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4570	4570	42
4571	4571	43 SB 286 54
4572	4572	agent, employee or subcontractor thereof, who shall use or otherwise
4573	4573	dispose of any materials purchased under such a certificate for any purpose
4574	4574	other than that for which such a certificate is issued without the payment
4575	4575	of the sales or compensating tax otherwise imposed upon such materials,
4576	4576	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4577	4577	subject to the penalties provided for in K.S.A. 79-3615(h), and
4578	4578	amendments thereto;
4579	4579	(gggg) all sales of game birds for which the primary purpose is use in
4580	4580	hunting;
4581	4581	(hhhh) all sales of tangible personal property or services purchased
4582	4582	on or after July 1, 2014, for the purpose of and in conjunction with
4583	4583	constructing, reconstructing, enlarging or remodeling a business identified
4584	4584	under the North American industry classification system (NAICS)
4585	4585	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
4586	4586	installation of machinery and equipment purchased for installation at any
4587	4587	such business. The exemption provided in this subsection shall not apply
4588	4588	to projects that have actual total costs less than $50,000. When a person
4589	4589	contracts for the construction, reconstruction, enlargement or remodeling
4590	4590	of any such business, such person shall obtain from the state and furnish to
4591	4591	the contractor an exemption certificate for the project involved, and the
4592	4592	contractor may purchase materials, machinery and equipment for
4593	4593	incorporation in such project. The contractor shall furnish the number of
4594	4594	such certificates to all suppliers from whom such purchases are made, and
4595	4595	such suppliers shall execute invoices covering the same bearing the
4596	4596	number of such certificate. Upon completion of the project, the contractor
4597	4597	shall furnish to the owner of the business a sworn statement, on a form to
4598	4598	be provided by the director of taxation, that all purchases so made were
4599	4599	entitled to exemption under this subsection. All invoices shall be held by
4600	4600	the contractor for a period of five years and shall be subject to audit by the
4601	4601	director of taxation. Any contractor or any agent, employee or
4602	4602	subcontractor of the contractor, who shall use or otherwise dispose of any
4603	4603	materials, machinery or equipment purchased under such a certificate for
4604	4604	any purpose other than that for which such a certificate is issued without
4605	4605	the payment of the sales or compensating tax otherwise imposed thereon,
4606	4606	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4607	4607	subject to the penalties provided for in K.S.A. 79-3615(h), and
4608	4608	amendments thereto;
4609	4609	(iiii) all sales of tangible personal property or services purchased by a
4610	4610	contractor for the purpose of constructing, maintaining, repairing,
4611	4611	enlarging, furnishing or remodeling facilities for the operation of services
4612	4612	for Wichita children's home for any such purpose that would be exempt
4613	4613	from taxation under the provisions of this section if purchased directly by
4614	4614	Wichita children's home. Nothing in this subsection shall be deemed to
4615	4615	1
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4649	4649	35
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4651	4651	37
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4653	4653	39
4654	4654	40
4655	4655	41
4656	4656	42
4657	4657	43 SB 286 55
4658	4658	exempt the purchase of any construction machinery, equipment or tools
4659	4659	used in the constructing, maintaining, repairing, enlarging, furnishing or
4660	4660	remodeling such facilities for Wichita children's home. When Wichita
4661	4661	children's home contracts for the purpose of constructing, maintaining,
4662	4662	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
4663	4663	from the state and furnish to the contractor an exemption certificate for the
4664	4664	project involved, and the contractor may purchase materials for
4665	4665	incorporation in such project. The contractor shall furnish the number of
4666	4666	such certificate to all suppliers from whom such purchases are made, and
4667	4667	such suppliers shall execute invoices covering the same bearing the
4668	4668	number of such certificate. Upon completion of the project, the contractor
4669	4669	shall furnish to Wichita children's home a sworn statement, on a form to be
4670	4670	provided by the director of taxation, that all purchases so made were
4671	4671	entitled to exemption under this subsection. All invoices shall be held by
4672	4672	the contractor for a period of five years and shall be subject to audit by the
4673	4673	director of taxation. If any materials purchased under such a certificate are
4674	4674	found not to have been incorporated in the building or other project or not
4675	4675	to have been returned for credit or the sales or compensating tax otherwise
4676	4676	imposed upon such materials that will not be so incorporated in the
4677	4677	building or other project reported and paid by such contractor to the
4678	4678	director of taxation not later than the 20
4679	4679	th
4680	4680	day of the month following the
4681	4681	close of the month in which it shall be determined that such materials will
4682	4682	not be used for the purpose for which such certificate was issued, Wichita
4683	4683	children's home shall be liable for the tax on all materials purchased for the
4684	4684	project, and upon payment, it may recover the same from the contractor
4685	4685	together with reasonable attorney fees. Any contractor or any agent,
4686	4686	employee or subcontractor, who shall use or otherwise dispose of any
4687	4687	materials purchased under such a certificate for any purpose other than that
4688	4688	for which such a certificate is issued without the payment of the sales or
4689	4689	compensating tax otherwise imposed upon such materials, shall be guilty
4690	4690	of a misdemeanor and, upon conviction, shall be subject to the penalties
4691	4691	provided for in K.S.A. 79-3615(h), and amendments thereto;
4692	4692	(jjjj) all sales of tangible personal property or services purchased by
4693	4693	or on behalf of the beacon, inc., that is exempt from federal income
4694	4694	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4695	4695	for the purpose of providing those desiring help with food, shelter, clothing
4696	4696	and other necessities of life during times of special need;
4697	4697	(kkkk) all sales of tangible personal property and services purchased
4698	4698	by or on behalf of reaching out from within, inc., which is exempt from
4699	4699	federal income taxation pursuant to section 501(c)(3) of the federal
4700	4700	internal revenue code, for the purpose of sponsoring self-help programs for
4701	4701	incarcerated persons that will enable such incarcerated persons to become
4702	4702	role models for non-violence while in correctional facilities and productive
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4704	4704	2
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4744	4744	42
4745	4745	43 SB 286 56
4746	4746	family members and citizens upon return to the community;
4747	4747	(llll) all sales of tangible personal property and services purchased by
4748	4748	Gove county healthcare endowment foundation, inc., which is exempt
4749	4749	from federal income taxation pursuant to section 501(c)(3) of the federal
4750	4750	internal revenue code of 1986, and which such property and services are
4751	4751	used for the purpose of constructing and equipping an airport in Quinter,
4752	4752	Kansas, and all sales of tangible personal property or services purchased
4753	4753	by a contractor for the purpose of constructing and equipping an airport in
4754	4754	Quinter, Kansas, for such organization, that would be exempt from
4755	4755	taxation under the provisions of this section if purchased directly by such
4756	4756	organization. Nothing in this subsection shall be deemed to exempt the
4757	4757	purchase of any construction machinery, equipment or tools used in the
4758	4758	constructing or equipping of facilities for such organization. When such
4759	4759	organization shall contract for the purpose of constructing or equipping an
4760	4760	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
4761	4761	contractor an exemption certificate for the project involved, and the
4762	4762	contractor may purchase materials for incorporation in such project. The
4763	4763	contractor shall furnish the number of such certificate to all suppliers from
4764	4764	whom such purchases are made, and such suppliers shall execute invoices
4765	4765	covering the same bearing the number of such certificate. Upon
4766	4766	completion of the project, the contractor shall furnish to such organization
4767	4767	concerned a sworn statement, on a form to be provided by the director of
4768	4768	taxation, that all purchases so made were entitled to exemption under this
4769	4769	subsection. All invoices shall be held by the contractor for a period of five
4770	4770	years and shall be subject to audit by the director of taxation. If any
4771	4771	materials purchased under such a certificate are found not to have been
4772	4772	incorporated in such facilities or not to have been returned for credit or the
4773	4773	sales or compensating tax otherwise imposed upon such materials that will
4774	4774	not be so incorporated in such facilities reported and paid by such
4775	4775	contractor to the director of taxation no later than the 20
4776	4776	th
4777	4777	day of the month
4778	4778	following the close of the month in which it shall be determined that such
4779	4779	materials will not be used for the purpose for which such certificate was
4780	4780	issued, such organization concerned shall be liable for tax on all materials
4781	4781	purchased for the project, and upon payment thereof it may recover the
4782	4782	same from the contractor together with reasonable attorney fees. Any
4783	4783	contractor or any agent, employee or subcontractor thereof, who purchased
4784	4784	under such a certificate for any purpose other than that for which such a
4785	4785	certificate is issued without the payment of the sales or compensating tax
4786	4786	otherwise imposed upon such materials, shall be guilty of a misdemeanor
4787	4787	and, upon conviction therefor, shall be subject to the penalties provided for
4788	4788	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
4789	4789	subsection shall expire and have no effect on and after July 1, 2019;
4790	4790	(mmmm) all sales of gold or silver coins; and palladium, platinum,
4791	4791	1
4792	4792	2
4793	4793	3
4794	4794	4
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4825	4825	35
4826	4826	36
4827	4827	37
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4829	4829	39
4830	4830	40
4831	4831	41
4832	4832	42
4833	4833	43 SB 286 57
4834	4834	gold or silver bullion. For the purposes of this subsection, "bullion" means
4835	4835	bars, ingots or commemorative medallions of gold, silver, platinum,
4836	4836	palladium, or a combination thereof, for which the value of the metal
4837	4837	depends on its content and not the form;
4838	4838	(nnnn) all sales of tangible personal property or services purchased
4839	4839	by friends of hospice of Jefferson county, an organization that is exempt
4840	4840	from federal income taxation pursuant to section 501(c)(3) of the federal
4841	4841	internal revenue code of 1986, for the purpose of providing support to the
4842	4842	Jefferson county hospice agency in end-of-life care of Jefferson county
4843	4843	families, friends and neighbors, and all sales of entry or participation fees,
4844	4844	charges or tickets by friends of hospice of Jefferson county for such
4845	4845	organization's fundraising event for such purpose; and
4846	4846	(oooo) all sales of tangible personal property or services purchased
4847	4847	for the purpose of and in conjunction with constructing, reconstructing,
4848	4848	enlarging or remodeling a qualified business facility by a qualified firm or
4849	4849	qualified supplier that meets the requirements established in K.S.A. 2022
4850	4850	Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
4851	4851	been approved for a project exemption certificate by the secretary of
4852	4852	commerce, and the sale and installation of machinery and equipment
4853	4853	purchased by such qualified firm or qualified supplier for installation at
4854	4854	any such qualified business facility. When a person shall contract for the
4855	4855	construction, reconstruction, enlargement or remodeling of any such
4856	4856	qualified business facility, such person shall obtain from the state and
4857	4857	furnish to the contractor an exemption certificate for the project involved,
4858	4858	and the contractor may purchase materials, machinery and equipment for
4859	4859	incorporation in such project. The contractor shall furnish the number of
4860	4860	such certificates to all suppliers from whom such purchases are made, and
4861	4861	such suppliers shall execute invoices covering the same bearing the
4862	4862	number of such certificate. Upon completion of the project, the contractor
4863	4863	shall furnish to the owner of the qualified firm or qualified supplier a
4864	4864	sworn statement, on a form to be provided by the director of taxation, that
4865	4865	all purchases so made were entitled to exemption under this subsection.
4866	4866	All invoices shall be held by the contractor for a period of five years and
4867	4867	shall be subject to audit by the director of taxation. Any contractor or any
4868	4868	agent, employee or subcontractor thereof who shall use or otherwise
4869	4869	dispose of any materials, machinery or equipment purchased under such a
4870	4870	certificate for any purpose other than that for which such a certificate is
4871	4871	issued without the payment of the sales or compensating tax otherwise
4872	4872	imposed thereon, shall be guilty of a misdemeanor and, upon conviction
4873	4873	therefor, shall be subject to the penalties provided for in K.S.A. 79-
4874	4874	3615(h), and amendments thereto. As used in this subsection, "qualified
4875	4875	business facility," "qualified firm" and "qualified supplier" mean the same
4876	4876	as defined in K.S.A. 2022 Supp. 74-50,311, and amendments thereto.
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4878	4878	2
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4919	4919	43 SB 286 58
4920	4920	Sec. 19. K.S.A. 65-4a01, 65-4a02, 65-4a03, 65-4a04, 65-4a05, 65-
4921	4921	4a06, 65-4a07, 65-4a08, 65-4a09, 65-4a10, 65-4a11, 65-4a12, 65-2401,
4922	4922	65-2837, 65-6701, 65-6702, 65-6703, 65-6704, 65-6705, 65-6707, 65-
4923	4923	6708, 65-6709, 65-6710, 65-6711, 65-6712, 65-6714, 65-6715, 65-6721,
4924	4924	65-6722, 65-6723, 65-6724, 65-6725, 65-6726, 65-6731, 65-6741, 65-
4925	4925	6742, 65-6743, 65-6744, 65-6745, 65-6746, 65-6747, 65-6748, 65-6749,
4926	4926	65-67a01, 76-3308 and 79-32,195 and K.S.A. 2022 Supp. 60-1906, 79-
4927	4927	32,182b, 79-32,261 and 79-3606 are hereby repealed.
4928	4928	Sec. 20. This act shall take effect and be in force from and after its
4929	4929	publication in the statute book.
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