Kansas 2025-2026 Regular Session

Kansas House Bill HB2009 Compare Versions

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

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1	1	Session of 2025
2	2	HOUSE BILL No. 2009
3	3	By Representatives Fairchild, Hill, Poetter Parshall, Rhiley, Schwertfeger and
4	4	Seiwert
5	5	1-15
6	6	AN ACT concerning abortion; prohibiting abortion procedures except
7	7	when necessary to save the life of the pregnant woman; providing a
8	8	private cause of action for civil enforcement of such prohibition;
9	9	amending K.S.A. 65-2837, 65-6731, 65-67a01, 76-3308 and 79-32,195
10	10	and K.S.A. 2024 Supp. 60-1906, 65-2401, 79-32,182b, 79-32,261 and
11	11	79-3606 and repealing the existing sections; also repealing K.S.A. 65-
12	12	4a02, 65-4a03, 65-4a04, 65-4a05, 65-4a06, 65-4a07, 65-4a08, 65-4a09,
13	13	65-4a10, 65-4a11, 65-4a12, 65-6702, 65-6703, 65-6704, 65-6705, 65-
14	14	6707, 65-6709, 65-6710, 65-6711, 65-6712, 65-6714, 65-6715, 65-
15	15	6721, 65-6722, 65-6724, 65-6725, 65-6726, 65-6741, 65-6743, 65-
16	16	6744, 65-6745, 65-6746, 65-6747, 65-6748 and 65-6749 and K.S.A.
17	17	2024 Supp. 65-4a01, 65-6701, 65-6708, 65-6716, 65-6723 and 65-
18	18	6742.
19	19	Be it enacted by the Legislature of the State of Kansas:
20	20	New Section 1. (a) It shall be unlawful for any person to knowingly
21	21	perform or induce or attempt to perform or induce an abortion except
22	22	when necessary to preserve the life of a pregnant woman in a medical
23	23	emergency.
24	24	(b) It shall not be a violation of this section if a physician provides
25	25	medical treatment to a pregnant woman that results in accidental or
26	26	unintentional injury to or the death of the unborn child.
27	27	(c) Nothing in this section shall be construed to authorize the
28	28	performance or induction of an abortion that is otherwise prohibited by
29	29	federal or state law.
30	30	New Sec. 2. It shall be unlawful for any person to manufacture,
31	31	distribute, prescribe, dispense, sell, give or otherwise provide mifepristone,
32	32	mifegyne, mifeperex or any other substantially similar generic or
33	33	nongeneric abortifacient drug in this state for the purpose of inducing an
34	34	abortion in violation of section 1, and amendments thereto.
35	35	New Sec. 3. Nothing in section 1 or 2, and amendments thereto, shall
36	36	be construed to:
37	37	(a) Impose any liability against the woman upon whom an abortion is
38	38	performed or induced or attempted to be performed or induced; or
39	39	(b) prohibit the administration of misoprostol for the purpose of
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75	75	treatment of a miscarriage.
76	76	New Sec. 4. (a) Violations of section 1 or 2, and amendments thereto,
77	77	shall be enforced exclusively through the private civil enforcement actions
78	78	provided under section 5, and amendments thereto. Notwithstanding any
79	79	other provision of law, no enforcement of sections 1 and 2, and
80	80	amendments thereto, may be taken or threatened by any state agency,
81	81	political subdivision, county attorney or district attorney or any officer or
82	82	employee thereof against any person.
83	83	(b) Nothing in this section shall be construed to:
84	84	(1) Render any of the conduct prohibited by sections 1 and 2, and
85	85	amendments thereto, or by any other provision of law to be lawful;
86	86	(2) limit or affect, in any way, the availability of any relief established
87	87	under section 5, and amendments thereto; or
88	88	(3) limit the enforceability of any other laws that regulate or prohibit
89	89	abortion.
90	90	New Sec. 5. (a) Except for the entities and individuals described in
91	91	section 4, and amendments thereto, any person may bring a civil action
92	92	against any person who:
93	93	(1) Violates section 1 or 2, and amendments thereto; or
94	94	(2) knowingly engages in conduct that aids or abets a violation of
95	95	section 1 or 2, and amendments thereto, including paying for or
96	96	reimbursing the costs of an abortion through insurance or otherwise,
97	97	regardless of whether the person knew or should have known that the
98	98	performance or induction of the abortion would violate section 1, and
99	99	amendments thereto.
100	100	(b) (1) Except as otherwise provided, if the party bringing a cause of
101	101	action pursuant to this section prevails, the court shall award:
102	102	(A) Injunctive relief sufficient to prevent the defendant from violating
103	103	section 1 or 2, and amendments thereto, or engaging in acts that aid or abet
104	104	violations of section 1 or 2, and amendments thereto;
105	105	(B) (i) statutory damages in an amount of not less than $10,000 for
106	106	each abortion that the defendant performed or induced or attempted to
107	107	perform or induce in violation of section 1, and amendments thereto, and
108	108	for each abortion performed or induced or attempted to perform or induce
109	109	in violation of section 1, and amendments thereto, that the defendant aided
110	110	or abetted; and
111	111	(ii) statutory damages in an amount of not less than $10,000 for each
112	112	violation of section 2, and amendments thereto; and
113	113	(C) attorney fees and court costs.
114	114	(2) A court shall not award attorney fees or court costs to any
115	115	defendant who is the prevailing party in such action.
116	116	(c) A court shall not make any award under this section if the
117	117	defendant demonstrates that the defendant previously paid statutory
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161	161	damages in a prior action that was brought for the same violation of
162	162	section 1 or 2, and amendments thereto, or for the same conduct that aided
163	163	or abetted a violation of section 1 or 2, and amendments thereto.
164	164	(d) No action shall be maintained under this section after six years
165	165	from the time the cause of action accrues.
166	166	(e) Notwithstanding any other law, the following may not be asserted
167	167	as an affirmative defense to any claims in an action brought under this
168	168	section:
169	169	(1) Ignorance or mistake of law;
170	170	(2) a defendant's belief that the provisions of sections 1 through 8,
171	171	and amendments thereto, are unconstitutional;
172	172	(3) a defendant's reliance on any court decision that has been
173	173	overruled on appeal or by a subsequent court, even if such court decision
174	174	had not been overruled when the defendant engaged in conduct that
175	175	violates section 1 or 2, and amendments thereto;
176	176	(4) a defendant's reliance on any state or federal court decision that is
177	177	not binding on the court in which the action has been brought;
178	178	(5) nonmutual issue preclusion or nonmutual claim preclusion; or
179	179	(6) the consent of the pregnant woman to the abortion.
180	180	(f) In any action brought pursuant to subsection (a)(2), it is an
181	181	affirmative defense that the defendant reasonably believed, after
182	182	conducting a reasonable investigation, that the physician performing or
183	183	inducing or attempting to perform or induce the abortion had complied or
184	184	would comply with section 1, and amendments thereto. The defendant
185	185	shall have the burden of proving the affirmative defense under this
186	186	subsection by a preponderance of the evidence.
187	187	(g) No entity or person described in section 4, and amendments
188	188	thereto, shall intervene in any action brought under this section. No entity
189	189	or person shall be prohibited from filing an amicus curiae brief in any such
190	190	action.
191	191	(h) Nothing in this section shall be construed to impose liability on
192	192	any speech or conduct protected by the amendment 1 to the constitution of
193	193	the United States or by section 11 of the bill of rights of the constitution of
194	194	the state of Kansas.
195	195	New Sec. 6. Any action brought under section 5, and amendments
196	196	thereto, shall be brought in:
197	197	(a) The county where all or a substantial part of the events or
198	198	omissions giving rise to the claim occurred;
199	199	(b) the county of residence for the defendant who is a natural person,
200	200	if any, at the time the cause of action accrued;
201	201	(c) the county where the principal office in this state of the defendant
202	202	that is not a natural person, if any, is located; or
203	203	(d) the county of residence for the plaintiff if the plaintiff is a natural
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247	247	person residing in this state.
248	248	New Sec. 7. As used in sections 1 through 7, and amendments
249	249	thereto:
250	250	(a) (1) "Abortion" means the use or prescription of any instrument,
251	251	medicine, drug or any other substance or device to terminate the
252	252	pregnancy of a woman with an intention to cause the premature
253	253	termination of the pregnancy knowing that such termination will with
254	254	reasonable likelihood cause the death of the unborn child. Such use or
255	255	prescription is not an "abortion" if done with the intent to:
256	256	(A) Preserve the life or health of the unborn child;
257	257	(B) increase the probability of a live birth;
258	258	(C) remove a dead unborn child who died as the result of natural
259	259	causes in utero, accidental trauma or a criminal assault on the pregnant
260	260	woman or the unborn child; or
261	261	(D) remove an ectopic pregnancy.
262	262	(2) "Abortion" does not include the prescription, dispensing,
263	263	administration, sale or use of any method of contraception, including, but
264	264	not limited to, any type of emergency contraception intended to be taken
265	265	or used immediately subsequent to sexual intercourse.
266	266	(b) "Imminent harm" exclusively includes a physical condition and
267	267	does not include any mental condition, including, but not limited to, any
268	268	claim or diagnosis that the pregnant woman will engage in conduct
269	269	intended to result in her own death or some other form of self-harm.
270	270	(c) "Medical emergency" means a condition that, in reasonable
271	271	medical judgment, necessitates the immediate abortion of a woman's
272	272	pregnancy to preserve the life of the pregnant woman because such
273	273	woman's life is endangered and subject to imminent harm arising from the
274	274	pregnancy by a physical disorder, illness or injury, including a life-
275	275	endangering physical condition caused by or arising from the pregnancy
276	276	itself.
277	277	(d) "Miscarriage" means the nondeliberate and spontaneous expulsion
278	278	of a nonviable fetus that has a gestational age of less than 20 weeks.
279	279	(e) "Unborn child" means a living individual of the species homo
280	280	sapiens at any stage of gestation from fertilization to birth.
281	281	New Sec. 8. The provisions of sections 1 through 7, and amendments
282	282	thereto, are hereby declared severable. If any part or provision of sections
283	283	1 through 7, and amendments thereto, is held to be void, invalid or
284	284	unconstitutional, such part or provision shall not affect or impair any of the
285	285	remaining parts or provisions of sections 1 through 7, and amendments
286	286	thereto, and any such remaining provisions shall continue in full force and
287	287	effect.
288	288	Sec. 9. K.S.A. 2024 Supp. 60-1906 is hereby amended to read as
289	289	follows: 60-1906. (a) No civil action may be commenced in any court for a
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333	333	claim of wrongful life or wrongful birth, and no damages may be
334	334	recovered in any civil action for any physical condition of a minor that
335	335	existed at the time of such minor's birth if the damages sought arise out of
336	336	a claim that a person's action or omission contributed to such minor's
337	337	mother not obtaining an abortion.
338	338	(b) Nothing in this section shall be deemed to create any new cause of
339	339	action, nor preclude any otherwise proper cause of action based on a claim
340	340	that, but for a person's wrongful action or omission, the death or physical
341	341	injury of the mother would not have occurred, or the handicap, disease or
342	342	disability of an individual prior to birth would have been prevented, cured
343	343	or ameliorated in a manner that preserved the health and life of such
344	344	individual.
345	345	(c) If any provision or clause of this act or application thereof to any
346	346	person or circumstance is held invalid, such invalidity shall not affect other
347	347	provisions or applications of the act which that can be given effect without
348	348	the invalid provision or application, and to this end the provisions of this
349	349	act are declared to be severable.
350	350	(d) As used in this section:
351	351	(1) "Abortion" has the same meaning as such term is means the same
352	352	as defined in K.S.A. 65-6701 section 7, and amendments thereto.
353	353	(2) "Claim of wrongful birth" means a cause of action brought by a
354	354	parent, legal guardian or other individual legally required to provide for
355	355	the support of a minor, which that seeks damages, whether economic or
356	356	noneconomic, as a result of a physical condition of such minor that existed
357	357	at the time of such minor's birth, and which is based on a claim that a
358	358	person's action or omission contributed to such minor's mother not
359	359	obtaining an abortion.
360	360	(3) "Claim of wrongful life" means a cause of action brought by, or
361	361	on behalf of, a minor, which that seeks damages, whether economic or
362	362	noneconomic, for such minor as a result of a physical condition of such
363	363	minor that existed at the time of such minor's birth, and which is based on
364	364	a claim that a person's action or omission contributed to such minor's
365	365	mother not obtaining an abortion.
366	366	Sec. 10. K.S.A. 2024 Supp. 65-2401 is hereby amended to read as
367	367	follows: 65-2401. As used in this act:
368	368	(a) "Vital statistics" includes the registration, preparation,
369	369	transcription, collection, compilation, and preservation of data pertaining
370	370	to birth, adoption, legitimation, death, stillbirth, marriage, divorce,
371	371	annulment of marriage, induced termination of pregnancy, and data
372	372	incidental thereto.
373	373	(b) "Live birth" means the complete expulsion or extraction from its
374	374	mother of a human child, irrespective of the duration of pregnancy, which
375	375	that, after such expulsion or extraction, breathes or shows any other
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419	419	evidence of life such as beating of the heart, pulsation of the umbilical
420	420	cord, or definite movement of voluntary muscles, whether or not the
421	421	umbilical cord has been cut or the placenta is attached.
422	422	(c) "Gestational age" means the age of the human child as measured
423	423	in weeks as determined by either the last date of the mother's menstrual
424	424	period, a sonogram conducted prior to the 20
425	425	th
426	426	week of pregnancy or the
427	427	confirmed known date of conception.
428	428	(d) "Stillbirth" means any complete expulsion or extraction from its
429	429	mother of a human child the gestational age of which is not less than 20
430	430	completed weeks, resulting in other than a live birth, as defined in this
431	431	section, and which that is not an induced termination of pregnancy.
432	432	(e) "Induced termination of pregnancy" means abortion, as defined in
433	433	K.S.A. 65-6701 section 7, and amendments thereto.
434	434	(f) "Dead body" means a lifeless human body or such parts of a
435	435	human body or the bones thereof from the state of which it reasonably may
436	436	be concluded that death recently occurred.
437	437	(g) "Person in charge of interment" means any person who places or
438	438	causes to be placed a stillborn child or dead body or the ashes, after
439	439	cremation, in a grave, vault, urn or other receptacle, or otherwise disposes
440	440	thereof.
441	441	(h) "Secretary" means the secretary of health and environment.
442	442	(i) "Cause of death certifier" means a person licensed to practice
443	443	medicine and surgery by the state board of healing arts, a physician
444	444	assistant licensed by the state board of healing arts, an advanced practice
445	445	registered nurse licensed by the state board of nursing or a district coroner,
446	446	deputy coroner or special deputy coroner.
447	447	(j) "Employee" means a person who has applied for employment or is
448	448	currently employed in the office of vital statistics.
449	449	Sec. 11. K.S.A. 65-2837 is hereby amended to read as follows: 65-
450	450	2837. As used in K.S.A. 65-2836, and amendments thereto, and in this
451	451	section:
452	452	(a) "Professional incompetency" means:
453	453	(1) One or more instances involving failure to adhere to the
454	454	applicable standard of care to a degree that constitutes gross negligence, as
455	455	determined by the board.
456	456	(2) Repeated instances involving failure to adhere to the applicable
457	457	standard of care to a degree that constitutes ordinary negligence, as
458	458	determined by the board.
459	459	(3) A pattern of practice or other behavior that demonstrates a
460	460	manifest incapacity or incompetence to practice the healing arts.
461	461	(b) "Unprofessional conduct" means:
462	462	(1) Solicitation of professional patronage through the use of
463	463	fraudulent or false advertisements, or profiting by the acts of those
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507	507	representing themselves to be agents of the licensee.
508	508	(2) Representing to a patient that a manifestly incurable disease,
509	509	condition or injury can be permanently cured.
510	510	(3) Assisting in the care or treatment of a patient without the consent
511	511	of the patient, the attending physician or the patient's legal representatives.
512	512	(4) The use of any letters, words or terms as an affix, on stationery, in
513	513	advertisements or otherwise indicating that such person is entitled to
514	514	practice a branch of the healing arts for which such person is not licensed.
515	515	(5) Performing, procuring or aiding and abetting in the performance
516	516	or procurement of a criminal an abortion.
517	517	(6) Willful betrayal of confidential information.
518	518	(7) Advertising professional superiority or the performance of
519	519	professional services in a superior manner.
520	520	(8) Advertising to guarantee any professional service or to perform
521	521	any operation painlessly.
522	522	(9) Participating in any action as a staff member of a medical care
523	523	facility that is designed to exclude or that results in the exclusion of any
524	524	person licensed to practice medicine and surgery from the medical staff of
525	525	a nonprofit medical care facility licensed in this state because of the
526	526	branch of the healing arts practiced by such person or without just cause.
527	527	(10) Failure to effectuate the declaration of a qualified patient as
528	528	provided in K.S.A. 65-28,107(a), and amendments thereto.
529	529	(11) Prescribing, ordering, dispensing, administering, selling,
530	530	supplying or giving any amphetamines or sympathomimetic amines,
531	531	except as authorized by K.S.A. 65-2837a, and amendments thereto.
532	532	(12) Conduct likely to deceive, defraud or harm the public.
533	533	(13) Making a false or misleading statement regarding the licensee's
534	534	skill or the efficacy or value of the drug, treatment or remedy prescribed
535	535	by the licensee or at the licensee's direction in the treatment of any disease
536	536	or other condition of the body or mind.
537	537	(14) Aiding or abetting the practice of the healing arts by an
538	538	unlicensed, incompetent or impaired person.
539	539	(15) Allowing another person or organization to use the licensee's
540	540	license to practice the healing arts.
541	541	(16) Commission of any act of sexual abuse, misconduct or other
542	542	improper sexual contact that exploits the licensee-patient relationship with
543	543	a patient or a person responsible for health care healthcare decisions
544	544	concerning such patient.
545	545	(17) The use of any false, fraudulent or deceptive statement in any
546	546	document connected with the practice of the healing arts including the
547	547	intentional falsifying or fraudulent altering of a patient or medical care
548	548	facility record.
549	549	(18) Obtaining any fee by fraud, deceit or misrepresentation.
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593	593	(19) Directly or indirectly giving or receiving any fee, commission,
594	594	rebate or other compensation for professional services not actually and
595	595	personally rendered, other than through the legal functioning of lawful
596	596	professional partnerships, corporations, limited liability companies or
597	597	associations.
598	598	(20) Failure to transfer patient records to another licensee when
599	599	requested to do so by the subject patient or by such patient's legally
600	600	designated representative.
601	601	(21) Performing unnecessary tests, examinations or services that have
602	602	no legitimate medical purpose.
603	603	(22) Charging an excessive fee for services rendered.
604	604	(23) Prescribing, dispensing, administering or distributing a
605	605	prescription drug or substance, including a controlled substance, in an
606	606	improper or inappropriate manner, or for other than a valid medical
607	607	purpose, or not in the course of the licensee's professional practice.
608	608	(24) Repeated failure to practice healing arts with that level of care,
609	609	skill and treatment that is recognized by a reasonably prudent similar
610	610	practitioner as being acceptable under similar conditions and
611	611	circumstances.
612	612	(25) Failure to keep written medical records that accurately describe
613	613	the services rendered to the patient, including patient histories, pertinent
614	614	findings, examination results and test results.
615	615	(26) Delegating professional responsibilities to a person when the
616	616	licensee knows or has reason to know that such person is not qualified by
617	617	training, experience or licensure to perform them.
618	618	(27) Using experimental forms of therapy without proper informed
619	619	patient consent, without conforming to generally accepted criteria or
620	620	standard protocols, without keeping detailed legible records or without
621	621	having periodic analysis of the study and results reviewed by a committee
622	622	or peers.
623	623	(28) Prescribing, dispensing, administering or distributing an anabolic
624	624	steroid or human growth hormone for other than a valid medical purpose.
625	625	Bodybuilding, muscle enhancement or increasing muscle bulk or strength
626	626	through the use of an anabolic steroid or human growth hormone by a
627	627	person who is in good health is not a valid medical purpose.
628	628	(29) Referring a patient to a health care healthcare entity for services
629	629	if the licensee has a significant investment interest in the health care
630	630	healthcare entity, unless the licensee informs the patient in writing of such
631	631	significant investment interest and that the patient may obtain such
632	632	services elsewhere.
633	633	(30) Failing to properly supervise, direct or delegate acts that
634	634	constitute the healing arts to persons who perform professional services
635	635	pursuant to such licensee's direction, supervision, order, referral,
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679	679	delegation or practice protocols.
680	680	(31) Violating K.S.A. 65-6703, and amendments thereto.
681	681	(32) Charging, billing or otherwise soliciting payment from any
682	682	patient, patient's representative or insurer for anatomic pathology services,
683	683	if such services are not personally rendered by the licensee or under such
684	684	licensee's direct supervision. As used in this subsection, "anatomic
685	685	pathology services" means the gross or microscopic examination of
686	686	histologic processing of human organ tissue or the examination of human
687	687	cells from fluids, aspirates, washings, brushings or smears, including blood
688	688	banking services, and subcellular or molecular pathology services,
689	689	performed by or under the supervision of a person licensed to practice
690	690	medicine and surgery or a clinical laboratory. Nothing in this subsection
691	691	shall be construed to prohibit billing for anatomic pathology services by:
692	692	(A) A hospital;
693	693	(B) a clinical laboratory when samples are transferred between
694	694	clinical laboratories for the provision of anatomic pathology services; or
695	695	(C) a physician providing services to a patient pursuant to a medical
696	696	retainer agreement in compliance with K.S.A. 65-4978, and amendments
697	697	thereto, when the bill to the patient for such services:
698	698	(i) Identifies the laboratory or physician that performed the services;
699	699	(ii) discloses in writing to the patient the actual amount charged by
700	700	the physician or laboratory that performed the service; and
701	701	(iii) is consistent with rules and regulations adopted by the board for
702	702	appropriate billing standards applicable to such services when furnished
703	703	under these agreements.
704	704	(33)(32) Engaging in conduct that violates patient trust and exploits
705	705	the licensee-patient relationship for personal gain.
706	706	(34)(33) Obstructing a board investigation including, but not limited
707	707	to, engaging in one or more of the following acts:
708	708	(A) Falsifying or concealing a material fact;
709	709	(B) knowingly making or causing to be made any false or misleading
710	710	statement or writing; or
711	711	(C) other acts or conduct likely to deceive or defraud the board.
712	712	(c) "False advertisement" means any advertisement that is false,
713	713	misleading or deceptive in a material respect. In determining whether any
714	714	advertisement is misleading, there shall be taken into account not only
715	715	representations made or suggested by statement, word, design, device,
716	716	sound or any combination thereof, but also the extent to which the
717	717	advertisement fails to reveal facts material in the light of such
718	718	representations made.
719	719	(d) "Advertisement" means all representations disseminated in any
720	720	manner or by any means for the purpose of inducing, or that are likely to
721	721	induce, directly or indirectly, the purchase of professional services.
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765	765	(e) "Licensee" for purposes of this section and K.S.A. 65-2836, and
766	766	amendments thereto, means all persons issued a license, permit or special
767	767	permit pursuant to article 28 of chapter 65 of the Kansas Statutes
768	768	Annotated, and amendments thereto.
769	769	(f) "License" for purposes of this section and K.S.A. 65-2836, and
770	770	amendments thereto, means any license, permit or special permit granted
771	771	under article 28 of chapter 65 of the Kansas Statutes Annotated, and
772	772	amendments thereto.
773	773	(g) "Health careHealthcare entity" means any corporation, firm,
774	774	partnership or other business entity that provides services for diagnosis or
775	775	treatment of human health conditions and that is owned separately from a
776	776	referring licensee's principle practice.
777	777	(h) "Significant investment interest" means ownership of at least 10%
778	778	of the value of the firm, partnership or other business entity that owns or
779	779	leases the health care healthcare entity, or ownership of at least 10% of the
780	780	shares of stock of the corporation that owns or leases the health care
781	781	healthcare entity.
782	782	Sec. 12. K.S.A. 65-6731 is hereby amended to read as follows: 65-
783	783	6731. As used in K.S.A. 65-6731 through 65-6738, and amendments
784	784	thereto:
785	785	(a) "Abortion" has the same meaning as such term is means the same
786	786	as defined in K.S.A. 65-6701 section 7, and amendments thereto.
787	787	(b) "Health benefit plan" means any hospital or medical expense
788	788	policy, health, hospital or medical services corporation contract, and a plan
789	789	provided by a municipal group-funded pool, or a health maintenance
790	790	organization contract offered by any employer or any certificate issued
791	791	under any such policy, contract or plan.
792	792	(c) "Health careHealthcare entity" means an individual physician or
793	793	other health care healthcare professional, a hospital, a provider-sponsored
794	794	organization, a health maintenance organization or any other health care
795	795	healthcare facility or organization.
796	796	(d) "School district" means any public school district organized under
797	797	the laws of this state.
798	798	(e) "State agency" has the same meaning as such term is means the
799	799	same as defined in K.S.A. 75-3701, and amendments thereto.
800	800	Sec. 13. K.S.A. 65-67a01 is hereby amended to read as follows: 65-
801	801	67a01. As used in this act:
802	802	(a) "Abortion" means an abortion as defined by K.S.A. 65-6701 in
803	803	section 7, and amendments thereto.
804	804	(b) (1) "Consideration" means:
805	805	(A) Any payment made or debt incurred;
806	806	(B) any gift, honorarium or recognition of value bestowed;
807	807	(C) any price, charge or fee which that is waived, forgiven, reduced
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851	851	or indefinitely delayed;
852	852	(D) any loan or debt which that is canceled or otherwise forgiven; or
853	853	(E) the transfer of any item from one person to another or provision
854	854	of any service or granting of any opportunity for which a charge is
855	855	customarily made, without charge or for a reduced charge.
856	856	(2) "Consideration" shall does not mean:
857	857	(A) A payment in an amount not to exceed $25 for the cost of
858	858	transporting, processing, preserving and storing fetal tissue; or
859	859	(B) a payment in an amount not to exceed the actual cost, as
860	860	documented by the delivery service, of transporting fetal tissue.
861	861	(c) "Delivery service" means a common carrier as defined by K.S.A.
862	862	66-105, and amendments thereto, or other person or entity used to
863	863	transport fetal tissue.
864	864	(d) "Fetal tissue" means any tissue, cells or organs obtained from a
865	865	dead human embryo or fetus after an abortion or after a stillbirth.
866	866	(e) "Person" means a person as defined by K.S.A. 65-425, and
867	867	amendments thereto.
868	868	(f) "Stillbirth" means a stillbirth as defined by K.S.A. 65-2401, and
869	869	amendments thereto.
870	870	Sec. 14. K.S.A. 76-3308 is hereby amended to read as follows: 76-
871	871	3308. (a) The authority shall have all the powers necessary to carry out the
872	872	purposes and provisions of this act, including, without limitation, the
873	873	following powers to:
874	874	(1) Have the duties, privileges, immunities, rights, liabilities and
875	875	disabilities of a body corporate and a political instrumentality of the state;
876	876	(2) have perpetual existence and succession;
877	877	(3) adopt, have and use a seal and to alter the same at its pleasure;
878	878	(4) sue and be sued in its own name;
879	879	(5) make and execute contracts, guarantees or any other instruments
880	880	and agreements necessary or convenient for the exercise of its powers and
881	881	functions including, without limitation, to make and execute contracts with
882	882	hospitals or other health care healthcare businesses to operate and manage
883	883	any or all of the hospital facilities or operations and to incur liabilities and
884	884	secure the obligations of any entity or individual;
885	885	(6) borrow money and to issue bonds evidencing the same and pledge
886	886	all or any part of the authority's assets therefor;
887	887	(7) purchase, lease, trade, exchange or otherwise acquire, maintain,
888	888	hold, improve, mortgage, sell, lease and dispose of personal property,
889	889	whether tangible or intangible, and any interest therein; and to purchase,
890	890	lease, trade, exchange or otherwise acquire real property or any interest
891	891	therein, and to maintain, hold, improve, mortgage, lease and otherwise
892	892	transfer such real property, so long as such transactions do not conflict
893	893	with the mission of the authority as specified in this act;
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937	937	(8) incur or assume indebtedness to, and enter into contracts with the
938	938	Kansas development finance authority, to which is authorized to borrow
939	939	money and provide financing for the authority;
940	940	(9) develop policies and procedures generally applicable to the
941	941	procurement of goods, services and construction, based upon sound
942	942	business practices;
943	943	(10) contract for and to accept any gifts, grants and loans of funds,
944	944	property, or any other aid in any form from the federal government, the
945	945	state, any state agency, or any other source, or any combination thereof,
946	946	and to comply with the provisions of the terms and conditions thereof;
947	947	(11) acquire space, equipment, services, supplies and insurance
948	948	necessary to carry out the purposes of this act;
949	949	(12) deposit any moneys of the authority in any banking institution
950	950	within or without the state or in any depository authorized to receive such
951	951	deposits, one or more persons to act as custodians of the moneys of the
952	952	authority, to give surety bonds in such amounts in form and for such
953	953	purposes as the board requires;
954	954	(13) procure such insurance, participate in such insurance plans or
955	955	provide such self insurance or both as it deems necessary or convenient to
956	956	carry out the purposes and provisions of this act; the purchase of
957	957	insurance, participation in an insurance plan or creation of a self-insurance
958	958	fund by the authority shall not be deemed as a waiver or relinquishment of
959	959	any sovereign immunity to which the authority or its officers, directors,
960	960	employees or agents are otherwise entitled;
961	961	(14) appoint, supervise and set the salary and compensation of a
962	962	president of the authority who shall be appointed by and serve at the
963	963	pleasure of the board;
964	964	(15) fix, revise, charge and collect rates, rentals, fees and other
965	965	charges for the services or facilities furnished by or on behalf of the
966	966	authority, and to establish policies and procedures regarding any such
967	967	service rendered for the use, occupancy or operation of any such facility;
968	968	such charges and policies and procedures not to be subject to supervision
969	969	or regulation by any commission, board, bureau or agency of the state; and
970	970	(16) do any and all things necessary or convenient to carry out the
971	971	authority's purposes and exercise the powers given in this act.
972	972	(b) The authority may create, own in whole or in part, or otherwise
973	973	acquire or dispose of any entity organized for a purpose related to or in
974	974	support of the mission of the authority.
975	975	(c) The authority may participate in joint ventures with individuals,
976	976	corporations, governmental bodies or agencies, partnerships, associations,
977	977	insurers or other entities to facilitate any activities or programs consistent
978	978	with the public purpose and intent of this act.
979	979	(d) The authority may create a nonprofit entity or entities for the
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1023	1023	purpose of soliciting, accepting and administering grants, outright gifts and
1024	1024	bequests, endowment gifts and bequests and gifts and bequests in trust
1025	1025	which entity or entities shall not engage in trust business.
1026	1026	(e) In carrying out any activities authorized by this act, the authority
1027	1027	may provide appropriate assistance, including the making of loans and
1028	1028	providing time of employees, to corporations, partnerships, associations,
1029	1029	joint ventures or other entities, whether or not such corporations,
1030	1030	partnerships, associations, joint ventures or other entities are owned or
1031	1031	controlled in whole or in part, directly or indirectly, by the authority.
1032	1032	(f) Effective with the transfer date, all moneys of the authority shall
1033	1033	be deposited in one or more banks or trust companies in one or more
1034	1034	special accounts. All banks and trust companies are authorized to give
1035	1035	security for such deposits if required by the authority. The moneys in such
1036	1036	accounts shall be paid out on a warrant or other orders of the treasurer of
1037	1037	the authority or any such other person or persons as the authority may
1038	1038	authorize to execute such warrants or orders.
1039	1039	(g) Notwithstanding any provision of law to the contrary, the
1040	1040	authority, effective with the transfer date, may invest the authority's
1041	1041	operating funds in any obligations or securities as authorized by the board.
1042	1042	The board shall adopt written investment guidelines.
1043	1043	(h) The authority is authorized to negotiate contracts with one or
1044	1044	more qualified parties to provide collection services. The selection of a
1045	1045	collection services provider shall be based on responses to a request for
1046	1046	proposals from qualified professional firms and shall be administered in
1047	1047	accordance with policies adopted by the board.
1048	1048	(i) Notwithstanding any provision of law to the contrary, no abortion,
1049	1049	as defined in section 7, and amendments thereto, shall be performed,
1050	1050	except in the event of a medical emergency, in any medical facility,
1051	1051	hospital or clinic owned, leased or operated by the authority, except as
1052	1052	provided in section 1, and amendments thereto. The provisions of this
1053	1053	subsection are not applicable to any member of the physician faculty of the
1054	1054	university of Kansas school of medicine when such abortion is performed
1055	1055	outside the scope of such member's employment on property not owned,
1056	1056	leased or operated by the authority. As used in this subsection, "medical
1057	1057	emergency" means a condition that, in reasonable medical judgment, so
1058	1058	complicates the medical condition of the pregnant woman as to necessitate
1059	1059	the immediate abortion of her pregnancy to avert the death of the woman
1060	1060	or for which a delay necessary to comply with the applicable statutory
1061	1061	requirements will create serious risk of substantial and irreversible
1062	1062	physical impairment of a major bodily function. No condition shall be
1063	1063	deemed a medical emergency if based on a claim or diagnosis that the
1064	1064	woman will engage in conduct which would result in her death or in
1065	1065	substantial and irreversible physical impairment of a major bodily
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1108	1108	43 HB 2009 14
1109	1109	function.
1110	1110	Sec. 15. K.S.A. 2024 Supp. 79-32,182b is hereby amended to read as
1111	1111	follows: 79-32,182b. (a) For all taxable years commencing after December
1112	1112	31, 2022, a credit shall be allowed against the tax imposed by the Kansas
1113	1113	income tax act on the Kansas taxable income of a taxpayer for
1114	1114	expenditures in research and development activities conducted within this
1115	1115	state in an amount equal to 10% of the amount by which the amount
1116	1116	expended for such activities in the taxable year of the taxpayer exceeds the
1117	1117	taxpayer's average of the actual expenditures for such purposes made in
1118	1118	such taxable year and the next preceding two taxable years.
1119	1119	(b) In any one taxable year, the amount of such credit allowable for
1120	1120	deduction from the taxpayer's tax liability shall not exceed 25% of the total
1121	1121	amount of such credit plus any applicable carry forward amount. The
1122	1122	amount by which that portion of the credit allowed by subsections (a) and
1123	1123	(b) to be claimed in any one taxable year exceeds the taxpayer's tax
1124	1124	liability in such year may be carried forward until the total amount of the
1125	1125	credit is used.
1126	1126	(c) As used in this section, the term "expenditures in research and
1127	1127	development activities" means expenditures made for such purposes, other
1128	1128	than expenditures of moneys made available to the taxpayer pursuant to
1129	1129	federal or state law, which that are treated as expenses allowable for
1130	1130	deduction under the provisions of the federal internal revenue code of
1131	1131	1986, as amended, except that for taxable years commencing after
1132	1132	December 31, 2013, expenditures in research and development activities
1133	1133	shall not include any expenditures for the performance of any abortion, as
1134	1134	defined in K.S.A. 65-6701 section 7, and amendments thereto.
1135	1135	(d) For tax year 2023 and all tax years thereafter, the income tax
1136	1136	credit allowed pursuant to this section shall be transferable by a taxpayer
1137	1137	without a current tax liability. The tax credit may be transferred to any
1138	1138	person and be claimed by the transferee as a credit against the transferee's
1139	1139	Kansas income tax liability in the tax year when it was transferred. The
1140	1140	credit shall be claimed and may be carried forward by the transferee as
1141	1141	provided and limited by subsection (b). No person shall be entitled to a
1142	1142	refund for the transferred tax credit. Only the full credit may be
1143	1143	transferred, and the credit may only be transferred one time.
1144	1144	Documentation of any credit acquired by transfer shall be provided by the
1145	1145	taxpayer or the transferee in the manner required by the secretary of
1146	1146	revenue.
1147	1147	Sec. 16. K.S.A. 79-32,195 is hereby amended to read as follows: 79-
1148	1148	32,195. As used in this act, the following words and phrases shall have the
1149	1149	meanings ascribed to them herein: (a) "Business firm" means any business
1150	1150	entity authorized to do business in the state of Kansas which that is subject
1151	1151	to the state income tax imposed by the provisions of the Kansas income
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1195	1195	tax act, any individual subject to the state income tax imposed by the
1196	1196	provisions of the Kansas income tax act, any national banking association,
1197	1197	state bank, trust company or savings and loan association paying an annual
1198	1198	tax on its net income pursuant to article 11 of chapter 79 of the Kansas
1199	1199	Statutes Annotated, and amendments thereto, or any insurance company
1200	1200	paying the premium tax and privilege fees imposed pursuant to K.S.A. 40-
1201	1201	252, and amendments thereto;
1202	1202	(b) "Community services" means:
1203	1203	(1) The conduct of activities which that meet a demonstrated
1204	1204	community need and which that are designed to achieve improved
1205	1205	educational and social services for Kansas children and their families, and
1206	1206	which that are coordinated with communities including, but not limited to,
1207	1207	social and human services organizations that address the causes of poverty
1208	1208	through programs and services that assist low income persons in the areas
1209	1209	of employment, food, housing, emergency assistance and health care
1210	1210	healthcare;
1211	1211	(2) crime prevention;
1212	1212	(3) health carehealthcare services; and
1213	1213	(4) youth apprenticeship and technical training.
1214	1214	(c) "Crime prevention" means any nongovernmental activity which
1215	1215	that aids in the prevention of crime.
1216	1216	(d) "Youth apprenticeship and technical training" means conduct of
1217	1217	activities which that are designed to improve the access to and quality of
1218	1218	apprenticeship and technical training which that support an emphasis on
1219	1219	rural construction projects as well as the necessary equipment, facilities
1220	1220	and supportive mentorship for youth apprenticeships and technical
1221	1221	training.
1222	1222	(e) "Community service organization" means any organization
1223	1223	performing community services in Kansas and which that:
1224	1224	(1) Has obtained a ruling from the internal revenue service of the
1225	1225	United States department of the treasury that such organization is exempt
1226	1226	from income taxation under the provisions of section 501(c)(3) of the
1227	1227	federal internal revenue code; or
1228	1228	(2) is incorporated in the state of Kansas or another state as a
1229	1229	nonstock, nonprofit corporation; or
1230	1230	(3) has been designated as a community development corporation by
1231	1231	the United States government under the provisions of title VII of the
1232	1232	economic opportunity act of 1964; or
1233	1233	(4) is chartered by the United States congress.
1234	1234	(f) "Contributions" shall mean and include means and includes the
1235	1235	donation of cash, services or property other than used clothing in an
1236	1236	amount or value of $250 or more. Stocks and bonds contributed shall be
1237	1237	valued at the stock market price on the date of transfer. Services
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1280	1280	43 HB 2009 16
1281	1281	contributed shall be valued at the standard billing rate for not-for-profit
1282	1282	clients. Personal property items contributed shall be valued at the lesser of
1283	1283	its fair market value or cost to the donor and may be inclusive of costs
1284	1284	incurred in making the contribution, but shall not include sales tax.
1285	1285	Contributions of real estate are allowable for credit only when title thereto
1286	1286	is in fee simple absolute and is clear of any encumbrances. The amount of
1287	1287	credit allowable shall be based upon the lesser of two current independent
1288	1288	appraisals conducted by state licensed appraisers.
1289	1289	(g) "Health careHealthcare services" shall include, but not be
1290	1290	includes, but is not limited to, the following: Services provided by local
1291	1291	health departments, city, county or district hospitals, city or county nursing
1292	1292	homes, or other residential institutions, preventive health care healthcare
1293	1293	services offered by a community service organization including
1294	1294	immunizations, prenatal care, the postponement of entry into nursing
1295	1295	homes by home health care healthcare services, and community based
1296	1296	services for persons with a disability, mental health services, indigent
1297	1297	health care healthcare, physician or health care healthcare worker
1298	1298	recruitment, health education, emergency medical services, services
1299	1299	provided by rural health clinics, integration of health care healthcare
1300	1300	services, home health services and services provided by rural health
1301	1301	networks, except that for taxable years commencing after December 31,
1302	1302	2013, health care "healthcare services shall" does not include any service
1303	1303	involving the performance of any abortion, as defined in K.S.A. 65-6701
1304	1304	section 7, and amendments thereto.
1305	1305	(h) "Rural community" means any city having a population of fewer
1306	1306	than 15,000 located in a county that is not part of a standard metropolitan
1307	1307	statistical area as defined by the United States department of commerce or
1308	1308	its successor agency. However, any such city located in a county defined
1309	1309	as a standard metropolitan statistical area shall be deemed a rural
1310	1310	community if a substantial number of persons in such county derive their
1311	1311	income from agriculture and, in any county where there is only one city
1312	1312	within the county which that has a population of more than 15,000 and
1313	1313	which that classifies as a standard metropolitan statistical area, all other
1314	1314	cities in that county having a population of less than 15,000 shall be
1315	1315	deemed a rural community.
1316	1316	Sec. 17. K.S.A. 2024 Supp. 79-32,261 is hereby amended to read as
1317	1317	follows: 79-32,261. (a) (1) On and after July 1, 2008, Any taxpayer who
1318	1318	contributes in the manner prescribed by this paragraph to a community
1319	1319	college located in Kansas for capital improvements, to a technical college
1320	1320	for deferred maintenance or the purchase of technology or equipment or to
1321	1321	a postsecondary educational institution located in Kansas for deferred
1322	1322	maintenance, shall be allowed a credit against the tax imposed by the
1323	1323	Kansas income tax act, the premium tax or privilege fees imposed
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1366	1366	43 HB 2009 17
1367	1367	pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as
1368	1368	measured by net income of financial institutions imposed pursuant to
1369	1369	article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments
1370	1370	thereto. The tax credit allowed by this paragraph is applicable for the tax
1371	1371	year 2008 for any contributions made on and after July 1, 2008, and for the
1372	1372	tax years 2009, 2010, 2011 and 2012 for any contributions made during
1373	1373	the entire tax year. The amount of the credit allowed by this paragraph
1374	1374	shall not exceed 60% of the total amount contributed during the taxable
1375	1375	year by the taxpayer to a community college or a technical college located
1376	1376	in Kansas for such purposes. The amount of the credit allowed by this
1377	1377	paragraph shall not exceed 50% of the total amount contributed during the
1378	1378	taxable year by the taxpayer to a postsecondary educational institution for
1379	1379	such purposes. If the amount of the credit allowed by this paragraph for a
1380	1380	taxpayer who contributes to a community college or a technical college
1381	1381	exceeds the taxpayer's income tax liability imposed by the Kansas income
1382	1382	tax act, such excess amount shall be refunded to the taxpayer. If the
1383	1383	amount of the tax credit for a taxpayer who contributes to a postsecondary
1384	1384	educational institution exceeds the taxpayer's income tax liability for the
1385	1385	taxable year, the amount which that exceeds the tax liability may be
1386	1386	carried over for deduction from the taxpayer's income tax liability in the
1387	1387	next succeeding taxable year or years until the total amount of the tax
1388	1388	credit has been deducted from tax liability, except that no such tax credit
1389	1389	shall be carried over for deduction after the third taxable year succeeding
1390	1390	the taxable year in which the contribution is made. Prior to the issuance of
1391	1391	any tax credits pursuant to this paragraph, the structure of the process in
1392	1392	which contributions received by a community college, a technical college
1393	1393	or a postsecondary educational institution qualify as tax credits allowed
1394	1394	and issued pursuant to this paragraph shall be developed by a community
1395	1395	college, a technical college and a postsecondary educational institution in
1396	1396	consultation with the secretary of revenue and the foundation or
1397	1397	endowment association of any such community college, technical college
1398	1398	or postsecondary educational institution in a manner that complies with
1399	1399	requirements specified in the federal internal revenue code of 1986, as
1400	1400	amended, so that contributions qualify as charitable contributions
1401	1401	allowable as deductions from federal adjusted gross income.
1402	1402	(2) On and after July 1, 2022, any taxpayer who contributes in the
1403	1403	manner prescribed by this paragraph to a community college or technical
1404	1404	college located in Kansas for capital improvements, deferred maintenance
1405	1405	or the purchase of technology or equipment shall be allowed a credit
1406	1406	against the tax imposed by the Kansas income tax act, the premium tax or
1407	1407	privilege fees imposed pursuant to K.S.A. 40-252, and amendments
1408	1408	thereto, or the privilege tax as measured by net income of financial
1409	1409	institutions imposed pursuant to article 11 of chapter 79 of the Kansas
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1452	1452	43 HB 2009 18
1453	1453	Statutes Annotated, and amendments thereto. The tax credit allowed by
1454	1454	this paragraph is applicable for the tax year 2022 for any contributions
1455	1455	made on and after July 1, 2022, and for the tax years 2023, 2024, 2025 and
1456	1456	2026 for any contributions made during the entire tax year. The amount of
1457	1457	the credit allowed by this paragraph shall equal 60% of the total amount
1458	1458	contributed during the taxable year by the taxpayer to a community college
1459	1459	or a technical college located in Kansas for such purposes. Prior to the
1460	1460	issuance of any tax credits pursuant to this paragraph, the structure of the
1461	1461	process in which contributions received by a community college or
1462	1462	technical college qualify as tax credits allowed and issued pursuant to this
1463	1463	paragraph shall be developed by a community college and technical
1464	1464	college in consultation with the secretary of revenue and the foundation or
1465	1465	endowment association of any such community college or technical
1466	1466	college in a manner that complies with requirements specified in the
1467	1467	federal internal revenue code of 1986, as amended, so that contributions
1468	1468	qualify as charitable contributions allowable as deductions from federal
1469	1469	adjusted gross income.
1470	1470	(b) (1) Upon receipt of any contributions to a community college
1471	1471	made pursuant to the provisions of subsection (a)(1), the treasurer of the
1472	1472	community college shall deposit such contributions to the credit of the
1473	1473	capital outlay fund of such community college established as provided by
1474	1474	K.S.A. 71-501a, and amendments thereto. Expenditures from such fund
1475	1475	shall be made for the purposes described in K.S.A. 71-501(a), and
1476	1476	amendments thereto, except that expenditures shall not be made from such
1477	1477	fund for new construction or the acquisition of real property for use as
1478	1478	building sites or for educational programs.
1479	1479	(2) Upon receipt of any contributions to a technical college made
1480	1480	pursuant to the provisions of subsection (a)(1), such contributions shall be
1481	1481	deposited to the credit of a deferred maintenance fund or a technology and
1482	1482	equipment fund established by the technical college which that received
1483	1483	the contribution. Expenditures from such fund shall be made only for the
1484	1484	purpose as provided in subsection (b)(1).
1485	1485	(3) Upon receipt of any such contributions to a postsecondary
1486	1486	educational institution made pursuant to the provisions of subsection (a)
1487	1487	(1), such contributions shall be deposited to the credit of the appropriate
1488	1488	deferred maintenance support fund of the postsecondary educational
1489	1489	institution that received the contribution. Expenditures from such fund
1490	1490	shall be made only for the purposes designated for such fund pursuant to
1491	1491	law.
1492	1492	(4) Upon receipt of any such contributions to a community college or
1493	1493	technical college made pursuant to the provisions of subsection (a)(2), the
1494	1494	treasurer of the community college or technical college shall deposit such
1495	1495	contributions to the credit of the capital outlay fund of such community
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1538	1538	43 HB 2009 19
1539	1539	college or technical college established as provided by K.S.A. 71-501a,
1540	1540	and amendments thereto. Expenditures from such fund shall be made for
1541	1541	the purposes designated for such fund pursuant to law.
1542	1542	(c) (1) In no event shall the total amount of credits allowed under
1543	1543	subsection (a)(1) for taxpayers who contribute to any one such community
1544	1544	college or technical college exceed the following amounts: For the tax year
1545	1545	2008, an amount not to exceed $78,125; for the tax year 2009, an amount
1546	1546	not to exceed $156,250; and for the tax years 2010, 2011 and 2012, an
1547	1547	amount not to exceed $208,233.33.
1548	1548	(2) In no event shall the total of credits allowed under subsection (a)
1549	1549	(1) for taxpayers who contribute to postsecondary educational institutions
1550	1550	exceed the following amounts: For the tax year 2008, an amount not to
1551	1551	exceed $5,625,000; for the tax year 2009, an amount not to exceed
1552	1552	$11,250,000; and for the tax years 2010, 2011 and 2012, an amount not to
1553	1553	exceed $15,000,000. Except as otherwise provided, the allocation of such
1554	1554	tax credits for each individual state educational institution shall be
1555	1555	determined by the state board of regents in consultation with the secretary
1556	1556	of revenue and the university foundation or endowment association of
1557	1557	each postsecondary educational institution, and such determination shall
1558	1558	be completed prior to the issuance of any tax credits pursuant to subsection
1559	1559	(a)(1). Not more than 40% of the total of credits allowed under subsection
1560	1560	(a)(1) shall be allocated to any one postsecondary educational institution
1561	1561	unless all such postsecondary educational institutions approve an
1562	1562	allocation to any one such postsecondary educational institution which
1563	1563	that exceeds 40% of the total of such credits allowed under subsection (a)
1564	1564	(1).
1565	1565	(3) For the tax years 2022 through 2026, the amount of such credit
1566	1566	awarded under subsection (a)(2) for each taxpayer shall not exceed
1567	1567	$250,000 per tax year.
1568	1568	(4) In no event shall the total of credits allowed under subsection (a)
1569	1569	(2) for contributions to any one community college or technical college
1570	1570	exceed $500,000 per tax year.
1571	1571	(5) In no event shall the total of credits allowed under subsection (a)
1572	1572	(2) exceed $5,000,000 for each tax year that the credit remains in effect.
1573	1573	(d) As used in this section:
1574	1574	(1) "Community college" means a community college established
1575	1575	under the provisions of the community college act;
1576	1576	(2) "deferred maintenance" means the maintenance, repair,
1577	1577	reconstruction or rehabilitation of a building located at a technical college
1578	1578	or a postsecondary educational institution which that has been deferred,
1579	1579	any utility systems relating to such building, any life-safety upgrades to
1580	1580	such building and any improvements necessary to be made to such
1581	1581	building in order to comply with the requirements of the Americans with
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1624	1624	43 HB 2009 20
1625	1625	disabilities act or other federal or state law, except that for taxable years
1626	1626	commencing after December 31, 2013, deferred maintenance shall not
1627	1627	include any maintenance, repair, reconstruction or rehabilitation of any
1628	1628	building in which any abortion, as defined in K.S.A. 65-6701 section 7,
1629	1629	and amendments thereto, is performed;
1630	1630	(3) "postsecondary educational institution" means the university of
1631	1631	Kansas, Kansas state university of agriculture and applied science, Wichita
1632	1632	state university, Emporia state university, Pittsburg state university, Fort
1633	1633	Hays state university and Washburn university of Topeka; and
1634	1634	(4) "technical college" means a technical college as designated
1635	1635	pursuant to K.S.A. 74-32,458, 74-32,460, 74-32,461, 74-32,462, 74-
1636	1636	32,464 and 74-32,465, and amendments thereto, and the institute of
1637	1637	technology at Washburn university.
1638	1638	(e) (1) Any taxpayer not subject to Kansas income, privilege or
1639	1639	premiums tax who contributes to a community college, technical college
1640	1640	or postsecondary educational institution, hereinafter designated the
1641	1641	transferor, may sell, assign, convey or otherwise transfer tax credits
1642	1642	allowed and earned pursuant to this section. The sale price of a tax credit
1643	1643	shall be at least 50% of the full value of the credit. Such credit shall be
1644	1644	deemed to be allowed and earned by any such taxpayer which that is only
1645	1645	disqualified therefrom by reason of not being subject to such Kansas taxes.
1646	1646	The taxpayer acquiring earned credits, hereinafter designated the
1647	1647	transferee, may use the amount of the acquired credits to offset up to 100%
1648	1648	of the taxpayer's income, privilege or premiums tax liability for the taxable
1649	1649	year in which such acquisition was made. Such credits may be sold or
1650	1650	transferred only one time and, if sold or transferred, shall be transferred in
1651	1651	the tax year such credit is earned or the two successive tax years. A
1652	1652	transferred credit shall be claimed in the year purchased. The transferor
1653	1653	shall enter into a written agreement with the transferee establishing the
1654	1654	terms and conditions of the sale or transfer and shall perfect such transfer
1655	1655	by notifying the secretary of revenue in writing within 30 calendar days
1656	1656	following the effective date of the transfer, subject to the review and
1657	1657	approval or denial of such transfer by the secretary of revenue. The
1658	1658	transferor and transferee shall provide any information pertaining to the
1659	1659	sale or transfer as may be required by the secretary of revenue to
1660	1660	administer and carry out the provisions of this section. The amount
1661	1661	received by the transferor of such tax credit shall be taxable as income of
1662	1662	the transferor, and the excess of the value of such credit over the amount
1663	1663	paid by the transferee for such credit shall be taxable as income of the
1664	1664	transferee.
1665	1665	(2) The provisions of this subsection shall not apply to tax credits
1666	1666	earned pursuant to subsection (a)(2).
1667	1667	(f) The secretary of revenue shall submit an annual report to the
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1710	1710	43 HB 2009 21
1711	1711	legislature to assist the legislature in the evaluation of the utilization of any
1712	1712	credits claimed pursuant to this act, including information specific as to
1713	1713	each community college, technical college or postsecondary educational
1714	1714	institution. Such report shall be due on or before the first day of the
1715	1715	legislative session following the tax year in which the credits were
1716	1716	claimed.
1717	1717	(g) The secretary of revenue shall adopt rules and regulations
1718	1718	necessary to administer the provisions of this section.
1719	1719	Sec. 18. K.S.A. 2024 Supp. 79-3606 is hereby amended to read as
1720	1720	follows: 79-3606. The following shall be exempt from the tax imposed by
1721	1721	this act:
1722	1722	(a) All sales of motor-vehicle fuel or other articles upon which a sales
1723	1723	or excise tax has been paid, not subject to refund, under the laws of this
1724	1724	state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
1725	1725	3301, and amendments thereto, including consumable material for such
1726	1726	electronic cigarettes, cereal malt beverages and malt products as defined
1727	1727	by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
1728	1728	malt syrup and malt extract, that is not subject to taxation under the
1729	1729	provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
1730	1730	taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
1731	1731	pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
1732	1732	laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
1733	1733	thereto, and gross receipts from regulated sports contests taxed pursuant to
1734	1734	the Kansas professional regulated sports act, and amendments thereto;
1735	1735	(b) all sales of tangible personal property or service, including the
1736	1736	renting and leasing of tangible personal property, purchased directly by the
1737	1737	state of Kansas, a political subdivision thereof, other than a school or
1738	1738	educational institution, or purchased by a public or private nonprofit
1739	1739	hospital, public hospital authority, nonprofit blood, tissue or organ bank or
1740	1740	nonprofit integrated community care organization and used exclusively for
1741	1741	state, political subdivision, hospital, public hospital authority, nonprofit
1742	1742	blood, tissue or organ bank or nonprofit integrated community care
1743	1743	organization purposes, except when: (1) Such state, hospital or public
1744	1744	hospital authority is engaged or proposes to engage in any business
1745	1745	specifically taxable under the provisions of this act and such items of
1746	1746	tangible personal property or service are used or proposed to be used in
1747	1747	such business; or (2) such political subdivision is engaged or proposes to
1748	1748	engage in the business of furnishing gas, electricity or heat to others and
1749	1749	such items of personal property or service are used or proposed to be used
1750	1750	in such business;
1751	1751	(c) all sales of tangible personal property or services, including the
1752	1752	renting and leasing of tangible personal property, purchased directly by a
1753	1753	public or private elementary or secondary school or public or private
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1796	1796	43 HB 2009 22
1797	1797	nonprofit educational institution and used primarily by such school or
1798	1798	institution for nonsectarian programs and activities provided or sponsored
1799	1799	by such school or institution or in the erection, repair or enlargement of
1800	1800	buildings to be used for such purposes. The exemption herein provided
1801	1801	shall not apply to erection, construction, repair, enlargement or equipment
1802	1802	of buildings used primarily for human habitation, except that such
1803	1803	exemption shall apply to the erection, construction, repair, enlargement or
1804	1804	equipment of buildings used for human habitation by the cerebral palsy
1805	1805	research foundation of Kansas located in Wichita, Kansas, multi
1806	1806	community diversified services, incorporated, located in McPherson,
1807	1807	Kansas, the Kansas state school for the blind and the Kansas state school
1808	1808	for the deaf;
1809	1809	(d) all sales of tangible personal property or services purchased by a
1810	1810	contractor for the purpose of constructing, equipping, reconstructing,
1811	1811	maintaining, repairing, enlarging, furnishing or remodeling facilities for
1812	1812	any public or private nonprofit hospital or public hospital authority, public
1813	1813	or private elementary or secondary school, a public or private nonprofit
1814	1814	educational institution, state correctional institution including a privately
1815	1815	constructed correctional institution contracted for state use and ownership,
1816	1816	that would be exempt from taxation under the provisions of this act if
1817	1817	purchased directly by such hospital or public hospital authority, school,
1818	1818	educational institution or a state correctional institution; and all sales of
1819	1819	tangible personal property or services purchased by a contractor for the
1820	1820	purpose of constructing, equipping, reconstructing, maintaining, repairing,
1821	1821	enlarging, furnishing or remodeling facilities for any political subdivision
1822	1822	of the state or district described in subsection (s), the total cost of which is
1823	1823	paid from funds of such political subdivision or district and that would be
1824	1824	exempt from taxation under the provisions of this act if purchased directly
1825	1825	by such political subdivision or district. Nothing in this subsection or in
1826	1826	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
1827	1827	deemed to exempt the purchase of any construction machinery, equipment
1828	1828	or tools used in the constructing, equipping, reconstructing, maintaining,
1829	1829	repairing, enlarging, furnishing or remodeling facilities for any political
1830	1830	subdivision of the state or any such district. As used in this subsection,
1831	1831	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
1832	1832	political subdivision" shall mean general tax revenues, the proceeds of any
1833	1833	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
1834	1834	purpose of constructing, equipping, reconstructing, repairing, enlarging,
1835	1835	furnishing or remodeling facilities that are to be leased to the donor. When
1836	1836	any political subdivision of the state, district described in subsection (s),
1837	1837	public or private nonprofit hospital or public hospital authority, public or
1838	1838	private elementary or secondary school, public or private nonprofit
1839	1839	educational institution, state correctional institution including a privately
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1882	1882	43 HB 2009 23
1883	1883	constructed correctional institution contracted for state use and ownership
1884	1884	shall contract for the purpose of constructing, equipping, reconstructing,
1885	1885	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
1886	1886	shall obtain from the state and furnish to the contractor an exemption
1887	1887	certificate for the project involved, and the contractor may purchase
1888	1888	materials for incorporation in such project. The contractor shall furnish the
1889	1889	number of such certificate to all suppliers from whom such purchases are
1890	1890	made, and such suppliers shall execute invoices covering the same bearing
1891	1891	the number of such certificate. Upon completion of the project the
1892	1892	contractor shall furnish to the political subdivision, district described in
1893	1893	subsection (s), hospital or public hospital authority, school, educational
1894	1894	institution or department of corrections concerned a sworn statement, on a
1895	1895	form to be provided by the director of taxation, that all purchases so made
1896	1896	were entitled to exemption under this subsection. As an alternative to the
1897	1897	foregoing procedure, any such contracting entity may apply to the
1898	1898	secretary of revenue for agent status for the sole purpose of issuing and
1899	1899	furnishing project exemption certificates to contractors pursuant to rules
1900	1900	and regulations adopted by the secretary establishing conditions and
1901	1901	standards for the granting and maintaining of such status. All invoices
1902	1902	shall be held by the contractor for a period of five years and shall be
1903	1903	subject to audit by the director of taxation. If any materials purchased
1904	1904	under such a certificate are found not to have been incorporated in the
1905	1905	building or other project or not to have been returned for credit or the sales
1906	1906	or compensating tax otherwise imposed upon such materials that will not
1907	1907	be so incorporated in the building or other project reported and paid by
1908	1908	such contractor to the director of taxation not later than the 20
1909	1909	th
1910	1910	day of the
1911	1911	month following the close of the month in which it shall be determined
1912	1912	that such materials will not be used for the purpose for which such
1913	1913	certificate was issued, the political subdivision, district described in
1914	1914	subsection (s), hospital or public hospital authority, school, educational
1915	1915	institution or the contractor contracting with the department of corrections
1916	1916	for a correctional institution concerned shall be liable for tax on all
1917	1917	materials purchased for the project, and upon payment thereof it may
1918	1918	recover the same from the contractor together with reasonable attorney
1919	1919	fees. Any contractor or any agent, employee or subcontractor thereof, who
1920	1920	shall use or otherwise dispose of any materials purchased under such a
1921	1921	certificate for any purpose other than that for which such a certificate is
1922	1922	issued without the payment of the sales or compensating tax otherwise
1923	1923	imposed upon such materials, shall be guilty of a misdemeanor and, upon
1924	1924	conviction therefor, shall be subject to the penalties provided for in K.S.A.
1925	1925	79-3615(h), and amendments thereto;
1926	1926	(e) all sales of tangible personal property or services purchased by a
1927	1927	contractor for the erection, repair or enlargement of buildings or other
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1970	1970	43 HB 2009 24
1971	1971	projects for the government of the United States, its agencies or
1972	1972	instrumentalities, that would be exempt from taxation if purchased directly
1973	1973	by the government of the United States, its agencies or instrumentalities.
1974	1974	When the government of the United States, its agencies or
1975	1975	instrumentalities shall contract for the erection, repair, or enlargement of
1976	1976	any building or other project, it shall obtain from the state and furnish to
1977	1977	the contractor an exemption certificate for the project involved, and the
1978	1978	contractor may purchase materials for incorporation in such project. The
1979	1979	contractor shall furnish the number of such certificates to all suppliers
1980	1980	from whom such purchases are made, and such suppliers shall execute
1981	1981	invoices covering the same bearing the number of such certificate. Upon
1982	1982	completion of the project the contractor shall furnish to the government of
1983	1983	the United States, its agencies or instrumentalities concerned a sworn
1984	1984	statement, on a form to be provided by the director of taxation, that all
1985	1985	purchases so made were entitled to exemption under this subsection. As an
1986	1986	alternative to the foregoing procedure, any such contracting entity may
1987	1987	apply to the secretary of revenue for agent status for the sole purpose of
1988	1988	issuing and furnishing project exemption certificates to contractors
1989	1989	pursuant to rules and regulations adopted by the secretary establishing
1990	1990	conditions and standards for the granting and maintaining of such status.
1991	1991	All invoices shall be held by the contractor for a period of five years and
1992	1992	shall be subject to audit by the director of taxation. Any contractor or any
1993	1993	agent, employee or subcontractor thereof, who shall use or otherwise
1994	1994	dispose of any materials purchased under such a certificate for any purpose
1995	1995	other than that for which such a certificate is issued without the payment
1996	1996	of the sales or compensating tax otherwise imposed upon such materials,
1997	1997	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
1998	1998	subject to the penalties provided for in K.S.A. 79-3615(h), and
1999	1999	amendments thereto;
2000	2000	(f) tangible personal property purchased by a railroad or public utility
2001	2001	for consumption or movement directly and immediately in interstate
2002	2002	commerce;
2003	2003	(g) sales of aircraft including remanufactured and modified aircraft
2004	2004	sold to persons using directly or through an authorized agent such aircraft
2005	2005	as certified or licensed carriers of persons or property in interstate or
2006	2006	foreign commerce under authority of the laws of the United States or any
2007	2007	foreign government or sold to any foreign government or agency or
2008	2008	instrumentality of such foreign government and all sales of aircraft for use
2009	2009	outside of the United States and sales of aircraft repair, modification and
2010	2010	replacement parts and sales of services employed in the remanufacture,
2011	2011	modification and repair of aircraft;
2012	2012	(h) all rentals of nonsectarian textbooks by public or private
2013	2013	elementary or secondary schools;
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2056	2056	43 HB 2009 25
2057	2057	(i) the lease or rental of all films, records, tapes, or any type of sound
2058	2058	or picture transcriptions used by motion picture exhibitors;
2059	2059	(j) meals served without charge or food used in the preparation of
2060	2060	such meals to employees of any restaurant, eating house, dining car, hotel,
2061	2061	drugstore or other place where meals or drinks are regularly sold to the
2062	2062	public if such employees' duties are related to the furnishing or sale of
2063	2063	such meals or drinks;
2064	2064	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
2065	2065	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
2066	2066	delivered in this state to a bona fide resident of another state, which motor
2067	2067	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
2068	2068	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
2069	2069	remain in this state more than 10 days;
2070	2070	(l) all isolated or occasional sales of tangible personal property,
2071	2071	services, substances or things, except isolated or occasional sale of motor
2072	2072	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
2073	2073	amendments thereto;
2074	2074	(m) all sales of tangible personal property that become an ingredient
2075	2075	or component part of tangible personal property or services produced,
2076	2076	manufactured or compounded for ultimate sale at retail within or without
2077	2077	the state of Kansas; and any such producer, manufacturer or compounder
2078	2078	may obtain from the director of taxation and furnish to the supplier an
2079	2079	exemption certificate number for tangible personal property for use as an
2080	2080	ingredient or component part of the property or services produced,
2081	2081	manufactured or compounded;
2082	2082	(n) all sales of tangible personal property that is consumed in the
2083	2083	production, manufacture, processing, mining, drilling, refining or
2084	2084	compounding of tangible personal property, the treating of by-products or
2085	2085	wastes derived from any such production process, the providing of
2086	2086	services or the irrigation of crops for ultimate sale at retail within or
2087	2087	without the state of Kansas; and any purchaser of such property may
2088	2088	obtain from the director of taxation and furnish to the supplier an
2089	2089	exemption certificate number for tangible personal property for
2090	2090	consumption in such production, manufacture, processing, mining,
2091	2091	drilling, refining, compounding, treating, irrigation and in providing such
2092	2092	services;
2093	2093	(o) all sales of animals, fowl and aquatic plants and animals, the
2094	2094	primary purpose of which is use in agriculture or aquaculture, as defined in
2095	2095	K.S.A. 47-1901, and amendments thereto, the production of food for
2096	2096	human consumption, the production of animal, dairy, poultry or aquatic
2097	2097	plant and animal products, fiber or fur, or the production of offspring for
2098	2098	use for any such purpose or purposes;
2099	2099	(p) all sales of drugs dispensed pursuant to a prescription order by a
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2142	2142	43 HB 2009 26
2143	2143	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
2144	2144	1626, and amendments thereto. As used in this subsection, "drug" means a
2145	2145	compound, substance or preparation and any component of a compound,
2146	2146	substance or preparation, other than food and food ingredients, dietary
2147	2147	supplements or alcoholic beverages, recognized in the official United
2148	2148	States pharmacopeia, official homeopathic pharmacopoeia of the United
2149	2149	States or official national formulary, and supplement to any of them,
2150	2150	intended for use in the diagnosis, cure, mitigation, treatment or prevention
2151	2151	of disease or intended to affect the structure or any function of the body,
2152	2152	except that for taxable years commencing after December 31, 2013, this
2153	2153	subsection shall not apply to any sales of drugs used in the performance or
2154	2154	induction of an abortion, as defined in K.S.A. 65-6701 section 7, and
2155	2155	amendments thereto;
2156	2156	(q) all sales of insulin dispensed by a person licensed by the state
2157	2157	board of pharmacy to a person for treatment of diabetes at the direction of
2158	2158	a person licensed to practice medicine by the state board of healing arts;
2159	2159	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
2160	2160	enteral feeding systems, prosthetic devices and mobility enhancing
2161	2161	equipment prescribed in writing by a person licensed to practice the
2162	2162	healing arts, dentistry or optometry, and in addition to such sales, all sales
2163	2163	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
2164	2164	and repair and replacement parts therefor, including batteries, by a person
2165	2165	licensed in the practice of dispensing and fitting hearing aids pursuant to
2166	2166	the provisions of K.S.A. 74-5808, and amendments thereto. For the
2167	2167	purposes of this subsection: (1) "Mobility enhancing equipment" means
2168	2168	equipment including repair and replacement parts to same, but does not
2169	2169	include durable medical equipment, which that is primarily and
2170	2170	customarily used to provide or increase the ability to move from one place
2171	2171	to another and which that is appropriate for use either in a home or a motor
2172	2172	vehicle; is not generally used by persons with normal mobility; and does
2173	2173	not include any motor vehicle or equipment on a motor vehicle normally
2174	2174	provided by a motor vehicle manufacturer; and (2) "prosthetic device"
2175	2175	means a replacement, corrective or supportive device including repair and
2176	2176	replacement parts for same worn on or in the body to artificially replace a
2177	2177	missing portion of the body, prevent or correct physical deformity or
2178	2178	malfunction or support a weak or deformed portion of the body;
2179	2179	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
2180	2180	all sales of tangible personal property or services purchased directly or
2181	2181	indirectly by a groundwater management district organized or operating
2182	2182	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
2183	2183	by a rural water district organized or operating under the authority of
2184	2184	K.S.A. 82a-612, and amendments thereto, or by a water supply district
2185	2185	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
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2228	2228	43 HB 2009 27
2229	2229	3522 et seq. or 19-3545, and amendments thereto, which property or
2230	2230	services are used in the construction activities, operation or maintenance of
2231	2231	the district;
2232	2232	(t) all sales of farm machinery and equipment or aquaculture
2233	2233	machinery and equipment, repair and replacement parts therefor and
2234	2234	services performed in the repair and maintenance of such machinery and
2235	2235	equipment. For the purposes of this subsection the term "farm machinery
2236	2236	and equipment or aquaculture machinery and equipment" shall include a
2237	2237	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
2238	2238	thereto, and is equipped with a bed or cargo box for hauling materials, and
2239	2239	shall also include machinery and equipment used in the operation of
2240	2240	Christmas tree farming but shall not include any passenger vehicle, truck,
2241	2241	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
2242	2242	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
2243	2243	machinery and equipment" includes precision farming equipment that is
2244	2244	portable or is installed or purchased to be installed on farm machinery and
2245	2245	equipment. "Precision farming equipment" includes the following items
2246	2246	used only in computer-assisted farming, ranching or aquaculture
2247	2247	production operations: Soil testing sensors, yield monitors, computers,
2248	2248	monitors, software, global positioning and mapping systems, guiding
2249	2249	systems, modems, data communications equipment and any necessary
2250	2250	mounting hardware, wiring and antennas. Each purchaser of farm
2251	2251	machinery and equipment or aquaculture machinery and equipment
2252	2252	exempted herein must certify in writing on the copy of the invoice or sales
2253	2253	ticket to be retained by the seller that the farm machinery and equipment
2254	2254	or aquaculture machinery and equipment purchased will be used only in
2255	2255	farming, ranching or aquaculture production. Farming or ranching shall
2256	2256	include the operation of a feedlot and farm and ranch work for hire and the
2257	2257	operation of a nursery;
2258	2258	(u) all leases or rentals of tangible personal property used as a
2259	2259	dwelling if such tangible personal property is leased or rented for a period
2260	2260	of more than 28 consecutive days;
2261	2261	(v) all sales of tangible personal property to any contractor for use in
2262	2262	preparing meals for delivery to homebound elderly persons over 60 years
2263	2263	of age and to homebound disabled persons or to be served at a group-
2264	2264	sitting at a location outside of the home to otherwise homebound elderly
2265	2265	persons over 60 years of age and to otherwise homebound disabled
2266	2266	persons, as all or part of any food service project funded in whole or in
2267	2267	part by government or as part of a private nonprofit food service project
2268	2268	available to all such elderly or disabled persons residing within an area of
2269	2269	service designated by the private nonprofit organization, and all sales of
2270	2270	tangible personal property for use in preparing meals for consumption by
2271	2271	indigent or homeless individuals whether or not such meals are consumed
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2314	2314	43 HB 2009 28
2315	2315	at a place designated for such purpose, and all sales of food products by or
2316	2316	on behalf of any such contractor or organization for any such purpose;
2317	2317	(w) all sales of natural gas, electricity, heat and water delivered
2318	2318	through mains, lines or pipes: (1) To residential premises for
2319	2319	noncommercial use by the occupant of such premises; (2) for agricultural
2320	2320	use and also, for such use, all sales of propane gas; (3) for use in the
2321	2321	severing of oil; and (4) to any property which that is exempt from property
2322	2322	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
2323	2323	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
2324	2324	and amendments thereto. For all sales of natural gas, electricity and heat
2325	2325	delivered through mains, lines or pipes pursuant to the provisions of
2326	2326	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
2327	2327	on December 31, 2005;
2328	2328	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
2329	2329	for the production of heat or lighting for noncommercial use of an
2330	2330	occupant of residential premises occurring prior to January 1, 2006;
2331	2331	(y) all sales of materials and services used in the repairing, servicing,
2332	2332	altering, maintaining, manufacturing, remanufacturing, or modification of
2333	2333	railroad rolling stock for use in interstate or foreign commerce under
2334	2334	authority of the laws of the United States;
2335	2335	(z) all sales of tangible personal property and services purchased
2336	2336	directly by a port authority or by a contractor therefor as provided by the
2337	2337	provisions of K.S.A. 12-3418, and amendments thereto;
2338	2338	(aa) all sales of materials and services applied to equipment that is
2339	2339	transported into the state from without the state for repair, service,
2340	2340	alteration, maintenance, remanufacture or modification and that is
2341	2341	subsequently transported outside the state for use in the transmission of
2342	2342	liquids or natural gas by means of pipeline in interstate or foreign
2343	2343	commerce under authority of the laws of the United States;
2344	2344	(bb) all sales of used mobile homes or manufactured homes. As used
2345	2345	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
2346	2346	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
2347	2347	"sales of used mobile homes or manufactured homes" means sales other
2348	2348	than the original retail sale thereof;
2349	2349	(cc) all sales of tangible personal property or services purchased prior
2350	2350	to January 1, 2012, except as otherwise provided, for the purpose of and in
2351	2351	conjunction with constructing, reconstructing, enlarging or remodeling a
2352	2352	business or retail business that meets the requirements established in
2353	2353	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
2354	2354	machinery and equipment purchased for installation at any such business
2355	2355	or retail business, and all sales of tangible personal property or services
2356	2356	purchased on or after January 1, 2012, for the purpose of and in
2357	2357	conjunction with constructing, reconstructing, enlarging or remodeling a
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2400	2400	43 HB 2009 29
2401	2401	business that meets the requirements established in K.S.A. 74-50,115(e),
2402	2402	and amendments thereto, and the sale and installation of machinery and
2403	2403	equipment purchased for installation at any such business. When a person
2404	2404	shall contract for the construction, reconstruction, enlargement or
2405	2405	remodeling of any such business or retail business, such person shall
2406	2406	obtain from the state and furnish to the contractor an exemption certificate
2407	2407	for the project involved, and the contractor may purchase materials,
2408	2408	machinery and equipment for incorporation in such project. The contractor
2409	2409	shall furnish the number of such certificates to all suppliers from whom
2410	2410	such purchases are made, and such suppliers shall execute invoices
2411	2411	covering the same bearing the number of such certificate. Upon
2412	2412	completion of the project the contractor shall furnish to the owner of the
2413	2413	business or retail business a sworn statement, on a form to be provided by
2414	2414	the director of taxation, that all purchases so made were entitled to
2415	2415	exemption under this subsection. All invoices shall be held by the
2416	2416	contractor for a period of five years and shall be subject to audit by the
2417	2417	director of taxation. Any contractor or any agent, employee or
2418	2418	subcontractor thereof, who shall use or otherwise dispose of any materials,
2419	2419	machinery or equipment purchased under such a certificate for any
2420	2420	purpose other than that for which such a certificate is issued without the
2421	2421	payment of the sales or compensating tax otherwise imposed thereon, shall
2422	2422	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
2423	2423	to the penalties provided for in K.S.A. 79-3615(h), and amendments
2424	2424	thereto. As used in this subsection, "business" and "retail business" mean
2425	2425	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
2426	2426	exemption certificates that have been previously issued under this
2427	2427	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
2428	2428	and amendments thereto, but not including K.S.A. 74-50,115(e), and
2429	2429	amendments thereto, prior to January 1, 2012, and have not expired will be
2430	2430	effective for the term of the project or two years from the effective date of
2431	2431	the certificate, whichever occurs earlier. Project exemption certificates that
2432	2432	are submitted to the department of revenue prior to January 1, 2012, and
2433	2433	are found to qualify will be issued a project exemption certificate that will
2434	2434	be effective for a two-year period or for the term of the project, whichever
2435	2435	occurs earlier;
2436	2436	(dd) all sales of tangible personal property purchased with food
2437	2437	stamps issued by the United States department of agriculture;
2438	2438	(ee) all sales of lottery tickets and shares made as part of a lottery
2439	2439	operated by the state of Kansas;
2440	2440	(ff) on and after July 1, 1988, all sales of new mobile homes or
2441	2441	manufactured homes to the extent of 40% of the gross receipts, determined
2442	2442	without regard to any trade-in allowance, received from such sale. As used
2443	2443	in this subsection, "mobile homes" and "manufactured homes" mean the
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2486	2486	43 HB 2009 30
2487	2487	same as defined in K.S.A. 58-4202, and amendments thereto;
2488	2488	(gg) all sales of tangible personal property purchased in accordance
2489	2489	with vouchers issued pursuant to the federal special supplemental food
2490	2490	program for women, infants and children;
2491	2491	(hh) all sales of medical supplies and equipment, including durable
2492	2492	medical equipment, purchased directly by a nonprofit skilled nursing home
2493	2493	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
2494	2494	and amendments thereto, for the purpose of providing medical services to
2495	2495	residents thereof. This exemption shall not apply to tangible personal
2496	2496	property customarily used for human habitation purposes. As used in this
2497	2497	subsection, "durable medical equipment" means equipment including
2498	2498	repair and replacement parts for such equipment, that can withstand
2499	2499	repeated use, is primarily and customarily used to serve a medical purpose,
2500	2500	generally is not useful to a person in the absence of illness or injury and is
2501	2501	not worn in or on the body, but does not include mobility enhancing
2502	2502	equipment as defined in subsection (r), oxygen delivery equipment, kidney
2503	2503	dialysis equipment or enteral feeding systems;
2504	2504	(ii) all sales of tangible personal property purchased directly by a
2505	2505	nonprofit organization for nonsectarian comprehensive multidiscipline
2506	2506	youth development programs and activities provided or sponsored by such
2507	2507	organization, and all sales of tangible personal property by or on behalf of
2508	2508	any such organization. This exemption shall not apply to tangible personal
2509	2509	property customarily used for human habitation purposes;
2510	2510	(jj) all sales of tangible personal property or services, including the
2511	2511	renting and leasing of tangible personal property, purchased directly on
2512	2512	behalf of a community-based facility for people with intellectual disability
2513	2513	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
2514	2514	amendments thereto, and licensed in accordance with the provisions of
2515	2515	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
2516	2516	personal property or services purchased by contractors during the time
2517	2517	period from July, 2003, through June, 2006, for the purpose of
2518	2518	constructing, equipping, maintaining or furnishing a new facility for a
2519	2519	community-based facility for people with intellectual disability or mental
2520	2520	health center located in Riverton, Cherokee County, Kansas, that would
2521	2521	have been eligible for sales tax exemption pursuant to this subsection if
2522	2522	purchased directly by such facility or center. This exemption shall not
2523	2523	apply to tangible personal property customarily used for human habitation
2524	2524	purposes;
2525	2525	(kk) (1) (A) all sales of machinery and equipment that are used in this
2526	2526	state as an integral or essential part of an integrated production operation
2527	2527	by a manufacturing or processing plant or facility;
2528	2528	(B) all sales of installation, repair and maintenance services
2529	2529	performed on such machinery and equipment; and
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2572	2572	43 HB 2009 31
2573	2573	(C) all sales of repair and replacement parts and accessories
2574	2574	purchased for such machinery and equipment.
2575	2575	(2) For purposes of this subsection:
2576	2576	(A) "Integrated production operation" means an integrated series of
2577	2577	operations engaged in at a manufacturing or processing plant or facility to
2578	2578	process, transform or convert tangible personal property by physical,
2579	2579	chemical or other means into a different form, composition or character
2580	2580	from that in which it originally existed. Integrated production operations
2581	2581	shall include: (i) Production line operations, including packaging
2582	2582	operations; (ii) preproduction operations to handle, store and treat raw
2583	2583	materials; (iii) post production handling, storage, warehousing and
2584	2584	distribution operations; and (iv) waste, pollution and environmental
2585	2585	control operations, if any;
2586	2586	(B) "production line" means the assemblage of machinery and
2587	2587	equipment at a manufacturing or processing plant or facility where the
2588	2588	actual transformation or processing of tangible personal property occurs;
2589	2589	(C) "manufacturing or processing plant or facility" means a single,
2590	2590	fixed location owned or controlled by a manufacturing or processing
2591	2591	business that consists of one or more structures or buildings in a
2592	2592	contiguous area where integrated production operations are conducted to
2593	2593	manufacture or process tangible personal property to be ultimately sold at
2594	2594	retail. Such term shall not include any facility primarily operated for the
2595	2595	purpose of conveying or assisting in the conveyance of natural gas,
2596	2596	electricity, oil or water. A business may operate one or more manufacturing
2597	2597	or processing plants or facilities at different locations to manufacture or
2598	2598	process a single product of tangible personal property to be ultimately sold
2599	2599	at retail;
2600	2600	(D) "manufacturing or processing business" means a business that
2601	2601	utilizes an integrated production operation to manufacture, process,
2602	2602	fabricate, finish or assemble items for wholesale and retail distribution as
2603	2603	part of what is commonly regarded by the general public as an industrial
2604	2604	manufacturing or processing operation or an agricultural commodity
2605	2605	processing operation. (i) Industrial manufacturing or processing operations
2606	2606	include, by way of illustration but not of limitation, the fabrication of
2607	2607	automobiles, airplanes, machinery or transportation equipment, the
2608	2608	fabrication of metal, plastic, wood or paper products, electricity power
2609	2609	generation, water treatment, petroleum refining, chemical production,
2610	2610	wholesale bottling, newspaper printing, ready mixed concrete production,
2611	2611	and the remanufacturing of used parts for wholesale or retail sale. Such
2612	2612	processing operations shall include operations at an oil well, gas well,
2613	2613	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
2614	2614	sand or gravel that has been extracted from the earth is cleaned, separated,
2615	2615	crushed, ground, milled, screened, washed or otherwise treated or prepared
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2658	2658	43 HB 2009 32
2659	2659	before its transmission to a refinery or before any other wholesale or retail
2660	2660	distribution. (ii) Agricultural commodity processing operations include, by
2661	2661	way of illustration but not of limitation, meat packing, poultry slaughtering
2662	2662	and dressing, processing and packaging farm and dairy products in sealed
2663	2663	containers for wholesale and retail distribution, feed grinding, grain
2664	2664	milling, frozen food processing, and grain handling, cleaning, blending,
2665	2665	fumigation, drying and aeration operations engaged in by grain elevators
2666	2666	or other grain storage facilities. (iii) Manufacturing or processing
2667	2667	businesses do not include, by way of illustration but not of limitation,
2668	2668	nonindustrial businesses whose operations are primarily retail and that
2669	2669	produce or process tangible personal property as an incidental part of
2670	2670	conducting the retail business, such as retailers who bake, cook or prepare
2671	2671	food products in the regular course of their retail trade, grocery stores,
2672	2672	meat lockers and meat markets that butcher or dress livestock or poultry in
2673	2673	the regular course of their retail trade, contractors who alter, service, repair
2674	2674	or improve real property, and retail businesses that clean, service or
2675	2675	refurbish and repair tangible personal property for its owner;
2676	2676	(E) "repair and replacement parts and accessories" means all parts
2677	2677	and accessories for exempt machinery and equipment, including, but not
2678	2678	limited to, dies, jigs, molds, patterns and safety devices that are attached to
2679	2679	exempt machinery or that are otherwise used in production, and parts and
2680	2680	accessories that require periodic replacement such as belts, drill bits,
2681	2681	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
2682	2682	other refractory items for exempt kiln equipment used in production
2683	2683	operations;
2684	2684	(F) "primary" or "primarily" mean more than 50% of the time.
2685	2685	(3) For purposes of this subsection, machinery and equipment shall
2686	2686	be deemed to be used as an integral or essential part of an integrated
2687	2687	production operation when used to:
2688	2688	(A) Receive, transport, convey, handle, treat or store raw materials in
2689	2689	preparation of its placement on the production line;
2690	2690	(B) transport, convey, handle or store the property undergoing
2691	2691	manufacturing or processing at any point from the beginning of the
2692	2692	production line through any warehousing or distribution operation of the
2693	2693	final product that occurs at the plant or facility;
2694	2694	(C) act upon, effect, promote or otherwise facilitate a physical change
2695	2695	to the property undergoing manufacturing or processing;
2696	2696	(D) guide, control or direct the movement of property undergoing
2697	2697	manufacturing or processing;
2698	2698	(E) test or measure raw materials, the property undergoing
2699	2699	manufacturing or processing or the finished product, as a necessary part of
2700	2700	the manufacturer's integrated production operations;
2701	2701	(F) plan, manage, control or record the receipt and flow of inventories
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2744	2744	43 HB 2009 33
2745	2745	of raw materials, consumables and component parts, the flow of the
2746	2746	property undergoing manufacturing or processing and the management of
2747	2747	inventories of the finished product;
2748	2748	(G) produce energy for, lubricate, control the operating of or
2749	2749	otherwise enable the functioning of other production machinery and
2750	2750	equipment and the continuation of production operations;
2751	2751	(H) package the property being manufactured or processed in a
2752	2752	container or wrapping in which such property is normally sold or
2753	2753	transported;
2754	2754	(I) transmit or transport electricity, coke, gas, water, steam or similar
2755	2755	substances used in production operations from the point of generation, if
2756	2756	produced by the manufacturer or processor at the plant site, to that
2757	2757	manufacturer's production operation; or, if purchased or delivered from
2758	2758	off-site, from the point where the substance enters the site of the plant or
2759	2759	facility to that manufacturer's production operations;
2760	2760	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
2761	2761	solvents or other substances that are used in production operations;
2762	2762	(K) provide and control an environment required to maintain certain
2763	2763	levels of air quality, humidity or temperature in special and limited areas
2764	2764	of the plant or facility, where such regulation of temperature or humidity is
2765	2765	part of and essential to the production process;
2766	2766	(L) treat, transport or store waste or other byproducts of production
2767	2767	operations at the plant or facility; or
2768	2768	(M) control pollution at the plant or facility where the pollution is
2769	2769	produced by the manufacturing or processing operation.
2770	2770	(4) The following machinery, equipment and materials shall be
2771	2771	deemed to be exempt even though it may not otherwise qualify as
2772	2772	machinery and equipment used as an integral or essential part of an
2773	2773	integrated production operation: (A) Computers and related peripheral
2774	2774	equipment that are utilized by a manufacturing or processing business for
2775	2775	engineering of the finished product or for research and development or
2776	2776	product design; (B) machinery and equipment that is utilized by a
2777	2777	manufacturing or processing business to manufacture or rebuild tangible
2778	2778	personal property that is used in manufacturing or processing operations,
2779	2779	including tools, dies, molds, forms and other parts of qualifying machinery
2780	2780	and equipment; (C) portable plants for aggregate concrete, bulk cement
2781	2781	and asphalt including cement mixing drums to be attached to a motor
2782	2782	vehicle; (D) industrial fixtures, devices, support facilities and special
2783	2783	foundations necessary for manufacturing and production operations, and
2784	2784	materials and other tangible personal property sold for the purpose of
2785	2785	fabricating such fixtures, devices, facilities and foundations. An exemption
2786	2786	certificate for such purchases shall be signed by the manufacturer or
2787	2787	processor. If the fabricator purchases such material, the fabricator shall
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2829	2829	42
2830	2830	43 HB 2009 34
2831	2831	also sign the exemption certificate; (E) a manufacturing or processing
2832	2832	business' laboratory equipment that is not located at the plant or facility,
2833	2833	but that would otherwise qualify for exemption under subsection (3)(E);
2834	2834	(F) all machinery and equipment used in surface mining activities as
2835	2835	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
2836	2836	from the time a reclamation plan is filed to the acceptance of the
2837	2837	completed final site reclamation.
2838	2838	(5) "Machinery and equipment used as an integral or essential part of
2839	2839	an integrated production operation" shall not include:
2840	2840	(A) Machinery and equipment used for nonproduction purposes,
2841	2841	including, but not limited to, machinery and equipment used for plant
2842	2842	security, fire prevention, first aid, accounting, administration, record
2843	2843	keeping, advertising, marketing, sales or other related activities, plant
2844	2844	cleaning, plant communications and employee work scheduling;
2845	2845	(B) machinery, equipment and tools used primarily in maintaining
2846	2846	and repairing any type of machinery and equipment or the building and
2847	2847	plant;
2848	2848	(C) transportation, transmission and distribution equipment not
2849	2849	primarily used in a production, warehousing or material handling
2850	2850	operation at the plant or facility, including the means of conveyance of
2851	2851	natural gas, electricity, oil or water, and equipment related thereto, located
2852	2852	outside the plant or facility;
2853	2853	(D) office machines and equipment including computers and related
2854	2854	peripheral equipment not used directly and primarily to control or measure
2855	2855	the manufacturing process;
2856	2856	(E) furniture and other furnishings;
2857	2857	(F) buildings, other than exempt machinery and equipment that is
2858	2858	permanently affixed to or becomes a physical part of the building, and any
2859	2859	other part of real estate that is not otherwise exempt;
2860	2860	(G) building fixtures that are not integral to the manufacturing
2861	2861	operation, such as utility systems for heating, ventilation, air conditioning,
2862	2862	communications, plumbing or electrical;
2863	2863	(H) machinery and equipment used for general plant heating, cooling
2864	2864	and lighting;
2865	2865	(I) motor vehicles that are registered for operation on public
2866	2866	highways; or
2867	2867	(J) employee apparel, except safety and protective apparel that is
2868	2868	purchased by an employer and furnished gratuitously to employees who
2869	2869	are involved in production or research activities.
2870	2870	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
2871	2871	of the machinery and equipment that qualify or do not qualify as an
2872	2872	integral or essential part of an integrated production operation. When
2873	2873	machinery or equipment is used as an integral or essential part of
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2916	2916	43 HB 2009 35
2917	2917	production operations part of the time and for nonproduction purposes at
2918	2918	other times, the primary use of the machinery or equipment shall
2919	2919	determine whether or not such machinery or equipment qualifies for
2920	2920	exemption.
2921	2921	(7) The secretary of revenue shall adopt rules and regulations
2922	2922	necessary to administer the provisions of this subsection;
2923	2923	(ll) all sales of educational materials purchased for distribution to the
2924	2924	public at no charge by a nonprofit corporation organized for the purpose of
2925	2925	encouraging, fostering and conducting programs for the improvement of
2926	2926	public health, except that for taxable years commencing after December
2927	2927	31, 2013, this subsection shall not apply to any sales of such materials
2928	2928	purchased by a nonprofit corporation which performs any abortion, as
2929	2929	defined in K.S.A. 65-6701 section 7, and amendments thereto;
2930	2930	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
2931	2931	herbicides, germicides, pesticides and fungicides; and services, purchased
2932	2932	and used for the purpose of producing plants in order to prevent soil
2933	2933	erosion on land devoted to agricultural use;
2934	2934	(nn) except as otherwise provided in this act, all sales of services
2935	2935	rendered by an advertising agency or licensed broadcast station or any
2936	2936	member, agent or employee thereof;
2937	2937	(oo) all sales of tangible personal property purchased by a community
2938	2938	action group or agency for the exclusive purpose of repairing or
2939	2939	weatherizing housing occupied by low-income individuals;
2940	2940	(pp) all sales of drill bits and explosives actually utilized in the
2941	2941	exploration and production of oil or gas;
2942	2942	(qq) all sales of tangible personal property and services purchased by
2943	2943	a nonprofit museum or historical society or any combination thereof,
2944	2944	including a nonprofit organization that is organized for the purpose of
2945	2945	stimulating public interest in the exploration of space by providing
2946	2946	educational information, exhibits and experiences, that is exempt from
2947	2947	federal income taxation pursuant to section 501(c)(3) of the federal
2948	2948	internal revenue code of 1986;
2949	2949	(rr) all sales of tangible personal property that will admit the
2950	2950	purchaser thereof to any annual event sponsored by a nonprofit
2951	2951	organization that is exempt from federal income taxation pursuant to
2952	2952	section 501(c)(3) of the federal internal revenue code of 1986, except that
2953	2953	for taxable years commencing after December 31, 2013, this subsection
2954	2954	shall not apply to any sales of such tangible personal property purchased
2955	2955	by a nonprofit organization which performs any abortion, as defined in
2956	2956	K.S.A. 65-6701 section 7, and amendments thereto;
2957	2957	(ss) all sales of tangible personal property and services purchased by
2958	2958	a public broadcasting station licensed by the federal communications
2959	2959	commission as a noncommercial educational television or radio station;
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2998	2998	39
2999	2999	40
3000	3000	41
3001	3001	42
3002	3002	43 HB 2009 36
3003	3003	(tt) all sales of tangible personal property and services purchased by
3004	3004	or on behalf of a not-for-profit corporation that is exempt from federal
3005	3005	income taxation pursuant to section 501(c)(3) of the federal internal
3006	3006	revenue code of 1986, for the sole purpose of constructing a Kansas
3007	3007	Korean War memorial;
3008	3008	(uu) all sales of tangible personal property and services purchased by
3009	3009	or on behalf of any rural volunteer fire-fighting organization for use
3010	3010	exclusively in the performance of its duties and functions;
3011	3011	(vv) all sales of tangible personal property purchased by any of the
3012	3012	following organizations that are exempt from federal income taxation
3013	3013	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
3014	3014	for the following purposes, and all sales of any such property by or on
3015	3015	behalf of any such organization for any such purpose:
3016	3016	(1) The American heart association, Kansas affiliate, inc. for the
3017	3017	purposes of providing education, training, certification in emergency
3018	3018	cardiac care, research and other related services to reduce disability and
3019	3019	death from cardiovascular diseases and stroke;
3020	3020	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
3021	3021	advocacy for persons with mental illness and to education, research and
3022	3022	support for their families;
3023	3023	(3) the Kansas mental illness awareness council for the purposes of
3024	3024	advocacy for persons who are mentally ill and for education, research and
3025	3025	support for them and their families;
3026	3026	(4) the American diabetes association Kansas affiliate, inc. for the
3027	3027	purpose of eliminating diabetes through medical research, public education
3028	3028	focusing on disease prevention and education, patient education including
3029	3029	information on coping with diabetes, and professional education and
3030	3030	training;
3031	3031	(5) the American lung association of Kansas, inc. for the purpose of
3032	3032	eliminating all lung diseases through medical research, public education
3033	3033	including information on coping with lung diseases, professional education
3034	3034	and training related to lung disease and other related services to reduce the
3035	3035	incidence of disability and death due to lung disease;
3036	3036	(6) the Kansas chapters of the Alzheimer's disease and related
3037	3037	disorders association, inc. for the purpose of providing assistance and
3038	3038	support to persons in Kansas with Alzheimer's disease, and their families
3039	3039	and caregivers;
3040	3040	(7) the Kansas chapters of the Parkinson's disease association for the
3041	3041	purpose of eliminating Parkinson's disease through medical research and
3042	3042	public and professional education related to such disease;
3043	3043	(8) the national kidney foundation of Kansas and western Missouri
3044	3044	for the purpose of eliminating kidney disease through medical research
3045	3045	and public and private education related to such disease;
3046	3046	1
3047	3047	2
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3088	3088	43 HB 2009 37
3089	3089	(9) the heartstrings community foundation for the purpose of
3090	3090	providing training, employment and activities for adults with
3091	3091	developmental disabilities;
3092	3092	(10) the cystic fibrosis foundation, heart of America chapter, for the
3093	3093	purposes of assuring the development of the means to cure and control
3094	3094	cystic fibrosis and improving the quality of life for those with the disease;
3095	3095	(11) the spina bifida association of Kansas for the purpose of
3096	3096	providing financial, educational and practical aid to families and
3097	3097	individuals with spina bifida. Such aid includes, but is not limited to,
3098	3098	funding for medical devices, counseling and medical educational
3099	3099	opportunities;
3100	3100	(12) the CHWC, Inc., for the purpose of rebuilding urban core
3101	3101	neighborhoods through the construction of new homes, acquiring and
3102	3102	renovating existing homes and other related activities, and promoting
3103	3103	economic development in such neighborhoods;
3104	3104	(13) the cross-lines cooperative council for the purpose of providing
3105	3105	social services to low income individuals and families;
3106	3106	(14) the dreams work, inc., for the purpose of providing young adult
3107	3107	day services to individuals with developmental disabilities and assisting
3108	3108	families in avoiding institutional or nursing home care for a
3109	3109	developmentally disabled member of their family;
3110	3110	(15) the KSDS, Inc., for the purpose of promoting the independence
3111	3111	and inclusion of people with disabilities as fully participating and
3112	3112	contributing members of their communities and society through the
3113	3113	training and providing of guide and service dogs to people with
3114	3114	disabilities, and providing disability education and awareness to the
3115	3115	general public;
3116	3116	(16) the lyme association of greater Kansas City, Inc., for the purpose
3117	3117	of providing support to persons with lyme disease and public education
3118	3118	relating to the prevention, treatment and cure of lyme disease;
3119	3119	(17) the dream factory, inc., for the purpose of granting the dreams of
3120	3120	children with critical and chronic illnesses;
3121	3121	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
3122	3122	students and families with education and resources necessary to enable
3123	3123	each child to develop fine character and musical ability to the fullest
3124	3124	potential;
3125	3125	(19) the international association of lions clubs for the purpose of
3126	3126	creating and fostering a spirit of understanding among all people for
3127	3127	humanitarian needs by providing voluntary services through community
3128	3128	involvement and international cooperation;
3129	3129	(20) the Johnson county young matrons, inc., for the purpose of
3130	3130	promoting a positive future for members of the community through
3131	3131	volunteerism, financial support and education through the efforts of an all
3132	3132	1
3133	3133	2
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3173	3173	42
3174	3174	43 HB 2009 38
3175	3175	volunteer organization;
3176	3176	(21) the American cancer society, inc., for the purpose of eliminating
3177	3177	cancer as a major health problem by preventing cancer, saving lives and
3178	3178	diminishing suffering from cancer, through research, education, advocacy
3179	3179	and service;
3180	3180	(22) the community services of Shawnee, inc., for the purpose of
3181	3181	providing food and clothing to those in need;
3182	3182	(23) the angel babies association, for the purpose of providing
3183	3183	assistance, support and items of necessity to teenage mothers and their
3184	3184	babies; and
3185	3185	(24) the Kansas fairgrounds foundation for the purpose of the
3186	3186	preservation, renovation and beautification of the Kansas state fairgrounds;
3187	3187	(ww) all sales of tangible personal property purchased by the habitat
3188	3188	for humanity for the exclusive use of being incorporated within a housing
3189	3189	project constructed by such organization;
3190	3190	(xx) all sales of tangible personal property and services purchased by
3191	3191	a nonprofit zoo that is exempt from federal income taxation pursuant to
3192	3192	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
3193	3193	of such zoo by an entity itself exempt from federal income taxation
3194	3194	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
3195	3195	contracted with to operate such zoo and all sales of tangible personal
3196	3196	property or services purchased by a contractor for the purpose of
3197	3197	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3198	3198	furnishing or remodeling facilities for any nonprofit zoo that would be
3199	3199	exempt from taxation under the provisions of this section if purchased
3200	3200	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
3201	3201	this subsection shall be deemed to exempt the purchase of any construction
3202	3202	machinery, equipment or tools used in the constructing, equipping,
3203	3203	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3204	3204	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
3205	3205	the purpose of constructing, equipping, reconstructing, maintaining,
3206	3206	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
3207	3207	from the state and furnish to the contractor an exemption certificate for the
3208	3208	project involved, and the contractor may purchase materials for
3209	3209	incorporation in such project. The contractor shall furnish the number of
3210	3210	such certificate to all suppliers from whom such purchases are made, and
3211	3211	such suppliers shall execute invoices covering the same bearing the
3212	3212	number of such certificate. Upon completion of the project the contractor
3213	3213	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
3214	3214	to be provided by the director of taxation, that all purchases so made were
3215	3215	entitled to exemption under this subsection. All invoices shall be held by
3216	3216	the contractor for a period of five years and shall be subject to audit by the
3217	3217	director of taxation. If any materials purchased under such a certificate are
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3259	3259	42
3260	3260	43 HB 2009 39
3261	3261	found not to have been incorporated in the building or other project or not
3262	3262	to have been returned for credit or the sales or compensating tax otherwise
3263	3263	imposed upon such materials that will not be so incorporated in the
3264	3264	building or other project reported and paid by such contractor to the
3265	3265	director of taxation not later than the 20
3266	3266	th
3267	3267	day of the month following the
3268	3268	close of the month in which it shall be determined that such materials will
3269	3269	not be used for the purpose for which such certificate was issued, the
3270	3270	nonprofit zoo concerned shall be liable for tax on all materials purchased
3271	3271	for the project, and upon payment thereof it may recover the same from
3272	3272	the contractor together with reasonable attorney fees. Any contractor or
3273	3273	any agent, employee or subcontractor thereof, who shall use or otherwise
3274	3274	dispose of any materials purchased under such a certificate for any purpose
3275	3275	other than that for which such a certificate is issued without the payment
3276	3276	of the sales or compensating tax otherwise imposed upon such materials,
3277	3277	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3278	3278	subject to the penalties provided for in K.S.A. 79-3615(h), and
3279	3279	amendments thereto;
3280	3280	(yy) all sales of tangible personal property and services purchased by
3281	3281	a parent-teacher association or organization, and all sales of tangible
3282	3282	personal property by or on behalf of such association or organization;
3283	3283	(zz) all sales of machinery and equipment purchased by over-the-air,
3284	3284	free access radio or television station that is used directly and primarily for
3285	3285	the purpose of producing a broadcast signal or is such that the failure of
3286	3286	the machinery or equipment to operate would cause broadcasting to cease.
3287	3287	For purposes of this subsection, machinery and equipment shall include,
3288	3288	but not be limited to, that required by rules and regulations of the federal
3289	3289	communications commission, and all sales of electricity which that are
3290	3290	essential or necessary for the purpose of producing a broadcast signal or is
3291	3291	such that the failure of the electricity would cause broadcasting to cease;
3292	3292	(aaa) all sales of tangible personal property and services purchased by
3293	3293	a religious organization that is exempt from federal income taxation
3294	3294	pursuant to section 501(c)(3) of the federal internal revenue code, and used
3295	3295	exclusively for religious purposes, and all sales of tangible personal
3296	3296	property or services purchased by a contractor for the purpose of
3297	3297	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3298	3298	furnishing or remodeling facilities for any such organization that would be
3299	3299	exempt from taxation under the provisions of this section if purchased
3300	3300	directly by such organization. Nothing in this subsection shall be deemed
3301	3301	to exempt the purchase of any construction machinery, equipment or tools
3302	3302	used in the constructing, equipping, reconstructing, maintaining, repairing,
3303	3303	enlarging, furnishing or remodeling facilities for any such organization.
3304	3304	When any such organization shall contract for the purpose of constructing,
3305	3305	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3306	3306	1
3307	3307	2
3308	3308	3
3309	3309	4
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3345	3345	40
3346	3346	41
3347	3347	42
3348	3348	43 HB 2009 40
3349	3349	remodeling facilities, it shall obtain from the state and furnish to the
3350	3350	contractor an exemption certificate for the project involved, and the
3351	3351	contractor may purchase materials for incorporation in such project. The
3352	3352	contractor shall furnish the number of such certificate to all suppliers from
3353	3353	whom such purchases are made, and such suppliers shall execute invoices
3354	3354	covering the same bearing the number of such certificate. Upon
3355	3355	completion of the project the contractor shall furnish to such organization
3356	3356	concerned a sworn statement, on a form to be provided by the director of
3357	3357	taxation, that all purchases so made were entitled to exemption under this
3358	3358	subsection. All invoices shall be held by the contractor for a period of five
3359	3359	years and shall be subject to audit by the director of taxation. If any
3360	3360	materials purchased under such a certificate are found not to have been
3361	3361	incorporated in the building or other project or not to have been returned
3362	3362	for credit or the sales or compensating tax otherwise imposed upon such
3363	3363	materials that will not be so incorporated in the building or other project
3364	3364	reported and paid by such contractor to the director of taxation not later
3365	3365	than the 20
3366	3366	th
3367	3367	day of the month following the close of the month in which it
3368	3368	shall be determined that such materials will not be used for the purpose for
3369	3369	which such certificate was issued, such organization concerned shall be
3370	3370	liable for tax on all materials purchased for the project, and upon payment
3371	3371	thereof it may recover the same from the contractor together with
3372	3372	reasonable attorney fees. Any contractor or any agent, employee or
3373	3373	subcontractor thereof, who shall use or otherwise dispose of any materials
3374	3374	purchased under such a certificate for any purpose other than that for
3375	3375	which such a certificate is issued without the payment of the sales or
3376	3376	compensating tax otherwise imposed upon such materials, shall be guilty
3377	3377	of a misdemeanor and, upon conviction therefor, shall be subject to the
3378	3378	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
3379	3379	Sales tax paid on and after July 1, 1998, but prior to the effective date of
3380	3380	this act upon the gross receipts received from any sale exempted by the
3381	3381	amendatory provisions of this subsection shall be refunded. Each claim for
3382	3382	a sales tax refund shall be verified and submitted to the director of taxation
3383	3383	upon forms furnished by the director and shall be accompanied by any
3384	3384	additional documentation required by the director. The director shall
3385	3385	review each claim and shall refund that amount of sales tax paid as
3386	3386	determined under the provisions of this subsection. All refunds shall be
3387	3387	paid from the sales tax refund fund upon warrants of the director of
3388	3388	accounts and reports pursuant to vouchers approved by the director or the
3389	3389	director's designee;
3390	3390	(bbb) all sales of food for human consumption by an organization that
3391	3391	is exempt from federal income taxation pursuant to section 501(c)(3) of
3392	3392	the federal internal revenue code of 1986, pursuant to a food distribution
3393	3393	program that offers such food at a price below cost in exchange for the
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3435	3435	42
3436	3436	43 HB 2009 41
3437	3437	performance of community service by the purchaser thereof;
3438	3438	(ccc) on and after July 1, 1999, all sales of tangible personal property
3439	3439	and services purchased by a primary care clinic or health center the
3440	3440	primary purpose of which is to provide services to medically underserved
3441	3441	individuals and families, and that is exempt from federal income taxation
3442	3442	pursuant to section 501(c)(3) of the federal internal revenue code, and all
3443	3443	sales of tangible personal property or services purchased by a contractor
3444	3444	for the purpose of constructing, equipping, reconstructing, maintaining,
3445	3445	repairing, enlarging, furnishing or remodeling facilities for any such clinic
3446	3446	or center that would be exempt from taxation under the provisions of this
3447	3447	section if purchased directly by such clinic or center, except that for
3448	3448	taxable years commencing after December 31, 2013, this subsection shall
3449	3449	not apply to any sales of such tangible personal property and services
3450	3450	purchased by a primary care clinic or health center which performs any
3451	3451	abortion, as defined in K.S.A. 65-6701 section 7, and amendments thereto.
3452	3452	Nothing in this subsection shall be deemed to exempt the purchase of any
3453	3453	construction machinery, equipment or tools used in the constructing,
3454	3454	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3455	3455	remodeling facilities for any such clinic or center. When any such clinic or
3456	3456	center shall contract for the purpose of constructing, equipping,
3457	3457	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3458	3458	facilities, it shall obtain from the state and furnish to the contractor an
3459	3459	exemption certificate for the project involved, and the contractor may
3460	3460	purchase materials for incorporation in such project. The contractor shall
3461	3461	furnish the number of such certificate to all suppliers from whom such
3462	3462	purchases are made, and such suppliers shall execute invoices covering the
3463	3463	same bearing the number of such certificate. Upon completion of the
3464	3464	project the contractor shall furnish to such clinic or center concerned a
3465	3465	sworn statement, on a form to be provided by the director of taxation, that
3466	3466	all purchases so made were entitled to exemption under this subsection.
3467	3467	All invoices shall be held by the contractor for a period of five years and
3468	3468	shall be subject to audit by the director of taxation. If any materials
3469	3469	purchased under such a certificate are found not to have been incorporated
3470	3470	in the building or other project or not to have been returned for credit or
3471	3471	the sales or compensating tax otherwise imposed upon such materials that
3472	3472	will not be so incorporated in the building or other project reported and
3473	3473	paid by such contractor to the director of taxation not later than the 20
3474	3474	th
3475	3475	day of the month following the close of the month in which it shall be
3476	3476	determined that such materials will not be used for the purpose for which
3477	3477	such certificate was issued, such clinic or center concerned shall be liable
3478	3478	for tax on all materials purchased for the project, and upon payment
3479	3479	thereof it may recover the same from the contractor together with
3480	3480	reasonable attorney fees. Any contractor or any agent, employee or
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3522	3522	42
3523	3523	43 HB 2009 42
3524	3524	subcontractor thereof, who shall use or otherwise dispose of any materials
3525	3525	purchased under such a certificate for any purpose other than that for
3526	3526	which such a certificate is issued without the payment of the sales or
3527	3527	compensating tax otherwise imposed upon such materials, shall be guilty
3528	3528	of a misdemeanor and, upon conviction therefor, shall be subject to the
3529	3529	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3530	3530	(ddd) on and after January 1, 1999, and before January 1, 2000, all
3531	3531	sales of materials and services purchased by any class II or III railroad as
3532	3532	classified by the federal surface transportation board for the construction,
3533	3533	renovation, repair or replacement of class II or III railroad track and
3534	3534	facilities used directly in interstate commerce. In the event any such track
3535	3535	or facility for which materials and services were purchased sales tax
3536	3536	exempt is not operational for five years succeeding the allowance of such
3537	3537	exemption, the total amount of sales tax that would have been payable
3538	3538	except for the operation of this subsection shall be recouped in accordance
3539	3539	with rules and regulations adopted for such purpose by the secretary of
3540	3540	revenue;
3541	3541	(eee) on and after January 1, 1999, and before January 1, 2001, all
3542	3542	sales of materials and services purchased for the original construction,
3543	3543	reconstruction, repair or replacement of grain storage facilities, including
3544	3544	railroad sidings providing access thereto;
3545	3545	(fff) all sales of material handling equipment, racking systems and
3546	3546	other related machinery and equipment that is used for the handling,
3547	3547	movement or storage of tangible personal property in a warehouse or
3548	3548	distribution facility in this state; all sales of installation, repair and
3549	3549	maintenance services performed on such machinery and equipment; and
3550	3550	all sales of repair and replacement parts for such machinery and
3551	3551	equipment. For purposes of this subsection, a warehouse or distribution
3552	3552	facility means a single, fixed location that consists of buildings or
3553	3553	structures in a contiguous area where storage or distribution operations are
3554	3554	conducted that are separate and apart from the business' retail operations,
3555	3555	if any, and that do not otherwise qualify for exemption as occurring at a
3556	3556	manufacturing or processing plant or facility. Material handling and
3557	3557	storage equipment shall include aeration, dust control, cleaning, handling
3558	3558	and other such equipment that is used in a public grain warehouse or other
3559	3559	commercial grain storage facility, whether used for grain handling, grain
3560	3560	storage, grain refining or processing, or other grain treatment operation;
3561	3561	(ggg) all sales of tangible personal property and services purchased
3562	3562	by or on behalf of the Kansas academy of science, which is exempt from
3563	3563	federal income taxation pursuant to section 501(c)(3) of the federal
3564	3564	internal revenue code of 1986, and used solely by such academy for the
3565	3565	preparation, publication and dissemination of education materials;
3566	3566	(hhh) all sales of tangible personal property and services purchased
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3609	3609	43 HB 2009 43
3610	3610	by or on behalf of all domestic violence shelters that are member agencies
3611	3611	of the Kansas coalition against sexual and domestic violence;
3612	3612	(iii) all sales of personal property and services purchased by an
3613	3613	organization that is exempt from federal income taxation pursuant to
3614	3614	section 501(c)(3) of the federal internal revenue code of 1986, and such
3615	3615	personal property and services are used by any such organization in the
3616	3616	collection, storage and distribution of food products to nonprofit
3617	3617	organizations that distribute such food products to persons pursuant to a
3618	3618	food distribution program on a charitable basis without fee or charge, and
3619	3619	all sales of tangible personal property or services purchased by a
3620	3620	contractor for the purpose of constructing, equipping, reconstructing,
3621	3621	maintaining, repairing, enlarging, furnishing or remodeling facilities used
3622	3622	for the collection and storage of such food products for any such
3623	3623	organization which that is exempt from federal income taxation pursuant
3624	3624	to section 501(c)(3) of the federal internal revenue code of 1986, that
3625	3625	would be exempt from taxation under the provisions of this section if
3626	3626	purchased directly by such organization. Nothing in this subsection shall
3627	3627	be deemed to exempt the purchase of any construction machinery,
3628	3628	equipment or tools used in the constructing, equipping, reconstructing,
3629	3629	maintaining, repairing, enlarging, furnishing or remodeling facilities for
3630	3630	any such organization. When any such organization shall contract for the
3631	3631	purpose of constructing, equipping, reconstructing, maintaining, repairing,
3632	3632	enlarging, furnishing or remodeling facilities, it shall obtain from the state
3633	3633	and furnish to the contractor an exemption certificate for the project
3634	3634	involved, and the contractor may purchase materials for incorporation in
3635	3635	such project. The contractor shall furnish the number of such certificate to
3636	3636	all suppliers from whom such purchases are made, and such suppliers shall
3637	3637	execute invoices covering the same bearing the number of such certificate.
3638	3638	Upon completion of the project the contractor shall furnish to such
3639	3639	organization concerned a sworn statement, on a form to be provided by the
3640	3640	director of taxation, that all purchases so made were entitled to exemption
3641	3641	under this subsection. All invoices shall be held by the contractor for a
3642	3642	period of five years and shall be subject to audit by the director of taxation.
3643	3643	If any materials purchased under such a certificate are found not to have
3644	3644	been incorporated in such facilities or not to have been returned for credit
3645	3645	or the sales or compensating tax otherwise imposed upon such materials
3646	3646	that will not be so incorporated in such facilities reported and paid by such
3647	3647	contractor to the director of taxation not later than the 20
3648	3648	th
3649	3649	day of the
3650	3650	month following the close of the month in which it shall be determined
3651	3651	that such materials will not be used for the purpose for which such
3652	3652	certificate was issued, such organization concerned shall be liable for tax
3653	3653	on all materials purchased for the project, and upon payment thereof it
3654	3654	may recover the same from the contractor together with reasonable
3655	3655	1
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3697	3697	43 HB 2009 44
3698	3698	attorney fees. Any contractor or any agent, employee or subcontractor
3699	3699	thereof, who shall use or otherwise dispose of any materials purchased
3700	3700	under such a certificate for any purpose other than that for which such a
3701	3701	certificate is issued without the payment of the sales or compensating tax
3702	3702	otherwise imposed upon such materials, shall be guilty of a misdemeanor
3703	3703	and, upon conviction therefor, shall be subject to the penalties provided for
3704	3704	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
3705	3705	July 1, 2005, but prior to the effective date of this act upon the gross
3706	3706	receipts received from any sale exempted by the amendatory provisions of
3707	3707	this subsection shall be refunded. Each claim for a sales tax refund shall be
3708	3708	verified and submitted to the director of taxation upon forms furnished by
3709	3709	the director and shall be accompanied by any additional documentation
3710	3710	required by the director. The director shall review each claim and shall
3711	3711	refund that amount of sales tax paid as determined under the provisions of
3712	3712	this subsection. All refunds shall be paid from the sales tax refund fund
3713	3713	upon warrants of the director of accounts and reports pursuant to vouchers
3714	3714	approved by the director or the director's designee;
3715	3715	(jjj) all sales of dietary supplements dispensed pursuant to a
3716	3716	prescription order by a licensed practitioner or a mid-level practitioner as
3717	3717	defined by K.S.A. 65-1626, and amendments thereto. As used in this
3718	3718	subsection, "dietary supplement" means any product, other than tobacco,
3719	3719	intended to supplement the diet that: (1) Contains one or more of the
3720	3720	following dietary ingredients: A vitamin, a mineral, an herb or other
3721	3721	botanical, an amino acid, a dietary substance for use by humans to
3722	3722	supplement the diet by increasing the total dietary intake or a concentrate,
3723	3723	metabolite, constituent, extract or combination of any such ingredient; (2)
3724	3724	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
3725	3725	liquid form, or if not intended for ingestion, in such a form, is not
3726	3726	represented as conventional food and is not represented for use as a sole
3727	3727	item of a meal or of the diet; and (3) is required to be labeled as a dietary
3728	3728	supplement, identifiable by the supplemental facts box found on the label
3729	3729	and as required pursuant to 21 C.F.R. § 101.36;
3730	3730	(lll) all sales of tangible personal property and services purchased by
3731	3731	special olympics Kansas, inc. for the purpose of providing year-round
3732	3732	sports training and athletic competition in a variety of olympic-type sports
3733	3733	for individuals with intellectual disabilities by giving them continuing
3734	3734	opportunities to develop physical fitness, demonstrate courage, experience
3735	3735	joy and participate in a sharing of gifts, skills and friendship with their
3736	3736	families, other special olympics athletes and the community, and activities
3737	3737	provided or sponsored by such organization, and all sales of tangible
3738	3738	personal property by or on behalf of any such organization;
3739	3739	(mmm) all sales of tangible personal property purchased by or on
3740	3740	behalf of the Marillac center, inc., which is exempt from federal income
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3783	3783	43 HB 2009 45
3784	3784	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3785	3785	for the purpose of providing psycho-social-biological and special
3786	3786	education services to children, and all sales of any such property by or on
3787	3787	behalf of such organization for such purpose;
3788	3788	(nnn) all sales of tangible personal property and services purchased
3789	3789	by the west Sedgwick county-sunrise rotary club and sunrise charitable
3790	3790	fund for the purpose of constructing a boundless playground which that is
3791	3791	an integrated, barrier free and developmentally advantageous play
3792	3792	environment for children of all abilities and disabilities;
3793	3793	(ooo) all sales of tangible personal property by or on behalf of a
3794	3794	public library serving the general public and supported in whole or in part
3795	3795	with tax money or a not-for-profit organization whose purpose is to raise
3796	3796	funds for or provide services or other benefits to any such public library;
3797	3797	(ppp) all sales of tangible personal property and services purchased
3798	3798	by or on behalf of a homeless shelter that is exempt from federal income
3799	3799	taxation pursuant to section 501(c)(3) of the federal income tax code of
3800	3800	1986, and used by any such homeless shelter to provide emergency and
3801	3801	transitional housing for individuals and families experiencing
3802	3802	homelessness, and all sales of any such property by or on behalf of any
3803	3803	such homeless shelter for any such purpose;
3804	3804	(qqq) all sales of tangible personal property and services purchased
3805	3805	by TLC for children and families, inc., hereinafter referred to as TLC,
3806	3806	which is exempt from federal income taxation pursuant to section 501(c)
3807	3807	(3) of the federal internal revenue code of 1986, and such property and
3808	3808	services are used for the purpose of providing emergency shelter and
3809	3809	treatment for abused and neglected children as well as meeting additional
3810	3810	critical needs for children, juveniles and family, and all sales of any such
3811	3811	property by or on behalf of TLC for any such purpose; and all sales of
3812	3812	tangible personal property or services purchased by a contractor for the
3813	3813	purpose of constructing, maintaining, repairing, enlarging, furnishing or
3814	3814	remodeling facilities for the operation of services for TLC for any such
3815	3815	purpose that would be exempt from taxation under the provisions of this
3816	3816	section if purchased directly by TLC. Nothing in this subsection shall be
3817	3817	deemed to exempt the purchase of any construction machinery, equipment
3818	3818	or tools used in the constructing, maintaining, repairing, enlarging,
3819	3819	furnishing or remodeling such facilities for TLC. When TLC contracts for
3820	3820	the purpose of constructing, maintaining, repairing, enlarging, furnishing
3821	3821	or remodeling such facilities, it shall obtain from the state and furnish to
3822	3822	the contractor an exemption certificate for the project involved, and the
3823	3823	contractor may purchase materials for incorporation in such project. The
3824	3824	contractor shall furnish the number of such certificate to all suppliers from
3825	3825	whom such purchases are made, and such suppliers shall execute invoices
3826	3826	covering the same bearing the number of such certificate. Upon
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3869	3869	43 HB 2009 46
3870	3870	completion of the project the contractor shall furnish to TLC a sworn
3871	3871	statement, on a form to be provided by the director of taxation, that all
3872	3872	purchases so made were entitled to exemption under this subsection. All
3873	3873	invoices shall be held by the contractor for a period of five years and shall
3874	3874	be subject to audit by the director of taxation. If any materials purchased
3875	3875	under such a certificate are found not to have been incorporated in the
3876	3876	building or other project or not to have been returned for credit or the sales
3877	3877	or compensating tax otherwise imposed upon such materials that will not
3878	3878	be so incorporated in the building or other project reported and paid by
3879	3879	such contractor to the director of taxation not later than the 20
3880	3880	th
3881	3881	day of the
3882	3882	month following the close of the month in which it shall be determined
3883	3883	that such materials will not be used for the purpose for which such
3884	3884	certificate was issued, TLC shall be liable for tax on all materials
3885	3885	purchased for the project, and upon payment thereof it may recover the
3886	3886	same from the contractor together with reasonable attorney fees. Any
3887	3887	contractor or any agent, employee or subcontractor thereof, who shall use
3888	3888	or otherwise dispose of any materials purchased under such a certificate
3889	3889	for any purpose other than that for which such a certificate is issued
3890	3890	without the payment of the sales or compensating tax otherwise imposed
3891	3891	upon such materials, shall be guilty of a misdemeanor and, upon
3892	3892	conviction therefor, shall be subject to the penalties provided for in K.S.A.
3893	3893	79-3615(h), and amendments thereto;
3894	3894	(rrr) all sales of tangible personal property and services purchased by
3895	3895	any county law library maintained pursuant to law and sales of tangible
3896	3896	personal property and services purchased by an organization that would
3897	3897	have been exempt from taxation under the provisions of this subsection if
3898	3898	purchased directly by the county law library for the purpose of providing
3899	3899	legal resources to attorneys, judges, students and the general public, and
3900	3900	all sales of any such property by or on behalf of any such county law
3901	3901	library;
3902	3902	(sss) all sales of tangible personal property and services purchased by
3903	3903	catholic charities or youthville, hereinafter referred to as charitable family
3904	3904	providers, which is exempt from federal income taxation pursuant to
3905	3905	section 501(c)(3) of the federal internal revenue code of 1986, and which
3906	3906	such property and services are used for the purpose of providing
3907	3907	emergency shelter and treatment for abused and neglected children as well
3908	3908	as meeting additional critical needs for children, juveniles and family, and
3909	3909	all sales of any such property by or on behalf of charitable family
3910	3910	providers for any such purpose; and all sales of tangible personal property
3911	3911	or services purchased by a contractor for the purpose of constructing,
3912	3912	maintaining, repairing, enlarging, furnishing or remodeling facilities for
3913	3913	the operation of services for charitable family providers for any such
3914	3914	purpose which would be exempt from taxation under the provisions of this
3915	3915	1
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3951	3951	37
3952	3952	38
3953	3953	39
3954	3954	40
3955	3955	41
3956	3956	42
3957	3957	43 HB 2009 47
3958	3958	section if purchased directly by charitable family providers. Nothing in
3959	3959	this subsection shall be deemed to exempt the purchase of any construction
3960	3960	machinery, equipment or tools used in the constructing, maintaining,
3961	3961	repairing, enlarging, furnishing or remodeling such facilities for charitable
3962	3962	family providers. When charitable family providers contracts for the
3963	3963	purpose of constructing, maintaining, repairing, enlarging, furnishing or
3964	3964	remodeling such facilities, it shall obtain from the state and furnish to the
3965	3965	contractor an exemption certificate for the project involved, and the
3966	3966	contractor may purchase materials for incorporation in such project. The
3967	3967	contractor shall furnish the number of such certificate to all suppliers from
3968	3968	whom such purchases are made, and such suppliers shall execute invoices
3969	3969	covering the same bearing the number of such certificate. Upon
3970	3970	completion of the project the contractor shall furnish to charitable family
3971	3971	providers a sworn statement, on a form to be provided by the director of
3972	3972	taxation, that all purchases so made were entitled to exemption under this
3973	3973	subsection. All invoices shall be held by the contractor for a period of five
3974	3974	years and shall be subject to audit by the director of taxation. If any
3975	3975	materials purchased under such a certificate are found not to have been
3976	3976	incorporated in the building or other project or not to have been returned
3977	3977	for credit or the sales or compensating tax otherwise imposed upon such
3978	3978	materials that will not be so incorporated in the building or other project
3979	3979	reported and paid by such contractor to the director of taxation not later
3980	3980	than the 20
3981	3981	th
3982	3982	day of the month following the close of the month in which it
3983	3983	shall be determined that such materials will not be used for the purpose for
3984	3984	which such certificate was issued, charitable family providers shall be
3985	3985	liable for tax on all materials purchased for the project, and upon payment
3986	3986	thereof it may recover the same from the contractor together with
3987	3987	reasonable attorney fees. Any contractor or any agent, employee or
3988	3988	subcontractor thereof, who shall use or otherwise dispose of any materials
3989	3989	purchased under such a certificate for any purpose other than that for
3990	3990	which such a certificate is issued without the payment of the sales or
3991	3991	compensating tax otherwise imposed upon such materials, shall be guilty
3992	3992	of a misdemeanor and, upon conviction therefor, shall be subject to the
3993	3993	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3994	3994	(ttt) all sales of tangible personal property or services purchased by a
3995	3995	contractor for a project for the purpose of restoring, constructing,
3996	3996	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3997	3997	remodeling a home or facility owned by a nonprofit museum that has been
3998	3998	granted an exemption pursuant to subsection (qq), which such home or
3999	3999	facility is located in a city that has been designated as a qualified
4000	4000	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
4001	4001	amendments thereto, and which such project is related to the purposes of
4002	4002	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
4003	4003	1
4004	4004	2
4005	4005	3
4006	4006	4
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4033	4033	31
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4035	4035	33
4036	4036	34
4037	4037	35
4038	4038	36
4039	4039	37
4040	4040	38
4041	4041	39
4042	4042	40
4043	4043	41
4044	4044	42
4045	4045	43 HB 2009 48
4046	4046	exempt from taxation under the provisions of this section if purchased
4047	4047	directly by such nonprofit museum. Nothing in this subsection shall be
4048	4048	deemed to exempt the purchase of any construction machinery, equipment
4049	4049	or tools used in the restoring, constructing, equipping, reconstructing,
4050	4050	maintaining, repairing, enlarging, furnishing or remodeling a home or
4051	4051	facility for any such nonprofit museum. When any such nonprofit museum
4052	4052	shall contract for the purpose of restoring, constructing, equipping,
4053	4053	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4054	4054	a home or facility, it shall obtain from the state and furnish to the
4055	4055	contractor an exemption certificate for the project involved, and the
4056	4056	contractor may purchase materials for incorporation in such project. The
4057	4057	contractor shall furnish the number of such certificates to all suppliers
4058	4058	from whom such purchases are made, and such suppliers shall execute
4059	4059	invoices covering the same bearing the number of such certificate. Upon
4060	4060	completion of the project, the contractor shall furnish to such nonprofit
4061	4061	museum a sworn statement on a form to be provided by the director of
4062	4062	taxation that all purchases so made were entitled to exemption under this
4063	4063	subsection. All invoices shall be held by the contractor for a period of five
4064	4064	years and shall be subject to audit by the director of taxation. If any
4065	4065	materials purchased under such a certificate are found not to have been
4066	4066	incorporated in the building or other project or not to have been returned
4067	4067	for credit or the sales or compensating tax otherwise imposed upon such
4068	4068	materials that will not be so incorporated in a home or facility or other
4069	4069	project reported and paid by such contractor to the director of taxation not
4070	4070	later than the 20
4071	4071	th
4072	4072	day of the month following the close of the month in
4073	4073	which it shall be determined that such materials will not be used for the
4074	4074	purpose for which such certificate was issued, such nonprofit museum
4075	4075	shall be liable for tax on all materials purchased for the project, and upon
4076	4076	payment thereof it may recover the same from the contractor together with
4077	4077	reasonable attorney fees. Any contractor or any agent, employee or
4078	4078	subcontractor thereof, who shall use or otherwise dispose of any materials
4079	4079	purchased under such a certificate for any purpose other than that for
4080	4080	which such a certificate is issued without the payment of the sales or
4081	4081	compensating tax otherwise imposed upon such materials, shall be guilty
4082	4082	of a misdemeanor and, upon conviction therefor, shall be subject to the
4083	4083	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
4084	4084	(uuu) all sales of tangible personal property and services purchased
4085	4085	by Kansas children's service league, hereinafter referred to as KCSL,
4086	4086	which is exempt from federal income taxation pursuant to section 501(c)
4087	4087	(3) of the federal internal revenue code of 1986, and which such property
4088	4088	and services are used for the purpose of providing for the prevention and
4089	4089	treatment of child abuse and maltreatment as well as meeting additional
4090	4090	critical needs for children, juveniles and family, and all sales of any such
4091	4091	1
4092	4092	2
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4130	4130	40
4131	4131	41
4132	4132	42
4133	4133	43 HB 2009 49
4134	4134	property by or on behalf of KCSL for any such purpose; and all sales of
4135	4135	tangible personal property or services purchased by a contractor for the
4136	4136	purpose of constructing, maintaining, repairing, enlarging, furnishing or
4137	4137	remodeling facilities for the operation of services for KCSL for any such
4138	4138	purpose that would be exempt from taxation under the provisions of this
4139	4139	section if purchased directly by KCSL. Nothing in this subsection shall be
4140	4140	deemed to exempt the purchase of any construction machinery, equipment
4141	4141	or tools used in the constructing, maintaining, repairing, enlarging,
4142	4142	furnishing or remodeling such facilities for KCSL. When KCSL contracts
4143	4143	for the purpose of constructing, maintaining, repairing, enlarging,
4144	4144	furnishing or remodeling such facilities, it shall obtain from the state and
4145	4145	furnish to the contractor an exemption certificate for the project involved,
4146	4146	and the contractor may purchase materials for incorporation in such
4147	4147	project. The contractor shall furnish the number of such certificate to all
4148	4148	suppliers from whom such purchases are made, and such suppliers shall
4149	4149	execute invoices covering the same bearing the number of such certificate.
4150	4150	Upon completion of the project the contractor shall furnish to KCSL a
4151	4151	sworn statement, on a form to be provided by the director of taxation, that
4152	4152	all purchases so made were entitled to exemption under this subsection.
4153	4153	All invoices shall be held by the contractor for a period of five years and
4154	4154	shall be subject to audit by the director of taxation. If any materials
4155	4155	purchased under such a certificate are found not to have been incorporated
4156	4156	in the building or other project or not to have been returned for credit or
4157	4157	the sales or compensating tax otherwise imposed upon such materials that
4158	4158	will not be so incorporated in the building or other project reported and
4159	4159	paid by such contractor to the director of taxation not later than the 20
4160	4160	th
4161	4161	day of the month following the close of the month in which it shall be
4162	4162	determined that such materials will not be used for the purpose for which
4163	4163	such certificate was issued, KCSL shall be liable for tax on all materials
4164	4164	purchased for the project, and upon payment thereof it may recover the
4165	4165	same from the contractor together with reasonable attorney fees. Any
4166	4166	contractor or any agent, employee or subcontractor thereof, who shall use
4167	4167	or otherwise dispose of any materials purchased under such a certificate
4168	4168	for any purpose other than that for which such a certificate is issued
4169	4169	without the payment of the sales or compensating tax otherwise imposed
4170	4170	upon such materials, shall be guilty of a misdemeanor and, upon
4171	4171	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4172	4172	79-3615(h), and amendments thereto;
4173	4173	(vvv) all sales of tangible personal property or services, including the
4174	4174	renting and leasing of tangible personal property or services, purchased by
4175	4175	jazz in the woods, inc., a Kansas corporation that is exempt from federal
4176	4176	income taxation pursuant to section 501(c)(3) of the federal internal
4177	4177	revenue code, for the purpose of providing jazz in the woods, an event
4178	4178	1
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4218	4218	41
4219	4219	42
4220	4220	43 HB 2009 50
4221	4221	benefiting children-in-need and other nonprofit charities assisting such
4222	4222	children, and all sales of any such property by or on behalf of such
4223	4223	organization for such purpose;
4224	4224	(www) all sales of tangible personal property purchased by or on
4225	4225	behalf of the Frontenac education foundation, which is exempt from
4226	4226	federal income taxation pursuant to section 501(c)(3) of the federal
4227	4227	internal revenue code, for the purpose of providing education support for
4228	4228	students, and all sales of any such property by or on behalf of such
4229	4229	organization for such purpose;
4230	4230	(xxx) all sales of personal property and services purchased by the
4231	4231	booth theatre foundation, inc., an organization, which is exempt from
4232	4232	federal income taxation pursuant to section 501(c)(3) of the federal
4233	4233	internal revenue code of 1986, and which such personal property and
4234	4234	services are used by any such organization in the constructing, equipping,
4235	4235	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4236	4236	of the booth theatre, and all sales of tangible personal property or services
4237	4237	purchased by a contractor for the purpose of constructing, equipping,
4238	4238	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4239	4239	the booth theatre for such organization, that would be exempt from
4240	4240	taxation under the provisions of this section if purchased directly by such
4241	4241	organization. Nothing in this subsection shall be deemed to exempt the
4242	4242	purchase of any construction machinery, equipment or tools used in the
4243	4243	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
4244	4244	furnishing or remodeling facilities for any such organization. When any
4245	4245	such organization shall contract for the purpose of constructing, equipping,
4246	4246	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4247	4247	facilities, it shall obtain from the state and furnish to the contractor an
4248	4248	exemption certificate for the project involved, and the contractor may
4249	4249	purchase materials for incorporation in such project. The contractor shall
4250	4250	furnish the number of such certificate to all suppliers from whom such
4251	4251	purchases are made, and such suppliers shall execute invoices covering the
4252	4252	same bearing the number of such certificate. Upon completion of the
4253	4253	project the contractor shall furnish to such organization concerned a sworn
4254	4254	statement, on a form to be provided by the director of taxation, that all
4255	4255	purchases so made were entitled to exemption under this subsection. All
4256	4256	invoices shall be held by the contractor for a period of five years and shall
4257	4257	be subject to audit by the director of taxation. If any materials purchased
4258	4258	under such a certificate are found not to have been incorporated in such
4259	4259	facilities or not to have been returned for credit or the sales or
4260	4260	compensating tax otherwise imposed upon such materials that will not be
4261	4261	so incorporated in such facilities reported and paid by such contractor to
4262	4262	the director of taxation not later than the 20
4263	4263	th
4264	4264	day of the month following
4265	4265	the close of the month in which it shall be determined that such materials
4266	4266	1
4267	4267	2
4268	4268	3
4269	4269	4
4270	4270	5
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4305	4305	40
4306	4306	41
4307	4307	42
4308	4308	43 HB 2009 51
4309	4309	will not be used for the purpose for which such certificate was issued, such
4310	4310	organization concerned shall be liable for tax on all materials purchased
4311	4311	for the project, and upon payment thereof it may recover the same from
4312	4312	the contractor together with reasonable attorney fees. Any contractor or
4313	4313	any agent, employee or subcontractor thereof, who shall use or otherwise
4314	4314	dispose of any materials purchased under such a certificate for any purpose
4315	4315	other than that for which such a certificate is issued without the payment
4316	4316	of the sales or compensating tax otherwise imposed upon such materials,
4317	4317	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4318	4318	subject to the penalties provided for in K.S.A. 79-3615(h), and
4319	4319	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
4320	4320	to the effective date of this act upon the gross receipts received from any
4321	4321	sale which that would have been exempted by the provisions of this
4322	4322	subsection had such sale occurred after the effective date of this act shall
4323	4323	be refunded. Each claim for a sales tax refund shall be verified and
4324	4324	submitted to the director of taxation upon forms furnished by the director
4325	4325	and shall be accompanied by any additional documentation required by the
4326	4326	director. The director shall review each claim and shall refund that amount
4327	4327	of sales tax paid as determined under the provisions of this subsection. All
4328	4328	refunds shall be paid from the sales tax refund fund upon warrants of the
4329	4329	director of accounts and reports pursuant to vouchers approved by the
4330	4330	director or the director's designee;
4331	4331	(yyy) all sales of tangible personal property and services purchased
4332	4332	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
4333	4333	which is exempt from federal income taxation pursuant to section 501(c)
4334	4334	(3) of the federal internal revenue code of 1986, and which such property
4335	4335	and services are used for the purpose of encouraging private philanthropy
4336	4336	to further the vision, values, and goals of TLC for children and families,
4337	4337	inc.; and all sales of such property and services by or on behalf of TLC
4338	4338	charities for any such purpose and all sales of tangible personal property or
4339	4339	services purchased by a contractor for the purpose of constructing,
4340	4340	maintaining, repairing, enlarging, furnishing or remodeling facilities for
4341	4341	the operation of services for TLC charities for any such purpose that would
4342	4342	be exempt from taxation under the provisions of this section if purchased
4343	4343	directly by TLC charities. Nothing in this subsection shall be deemed to
4344	4344	exempt the purchase of any construction machinery, equipment or tools
4345	4345	used in the constructing, maintaining, repairing, enlarging, furnishing or
4346	4346	remodeling such facilities for TLC charities. When TLC charities contracts
4347	4347	for the purpose of constructing, maintaining, repairing, enlarging,
4348	4348	furnishing or remodeling such facilities, it shall obtain from the state and
4349	4349	furnish to the contractor an exemption certificate for the project involved,
4350	4350	and the contractor may purchase materials for incorporation in such
4351	4351	project. The contractor shall furnish the number of such certificate to all
4352	4352	1
4353	4353	2
4354	4354	3
4355	4355	4
4356	4356	5
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4386	4386	35
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4388	4388	37
4389	4389	38
4390	4390	39
4391	4391	40
4392	4392	41
4393	4393	42
4394	4394	43 HB 2009 52
4395	4395	suppliers from whom such purchases are made, and such suppliers shall
4396	4396	execute invoices covering the same bearing the number of such certificate.
4397	4397	Upon completion of the project the contractor shall furnish to TLC
4398	4398	charities a sworn statement, on a form to be provided by the director of
4399	4399	taxation, that all purchases so made were entitled to exemption under this
4400	4400	subsection. All invoices shall be held by the contractor for a period of five
4401	4401	years and shall be subject to audit by the director of taxation. If any
4402	4402	materials purchased under such a certificate are found not to have been
4403	4403	incorporated in the building or other project or not to have been returned
4404	4404	for credit or the sales or compensating tax otherwise imposed upon such
4405	4405	materials that will not be incorporated into the building or other project
4406	4406	reported and paid by such contractor to the director of taxation not later
4407	4407	than the 20
4408	4408	th
4409	4409	day of the month following the close of the month in which it
4410	4410	shall be determined that such materials will not be used for the purpose for
4411	4411	which such certificate was issued, TLC charities shall be liable for tax on
4412	4412	all materials purchased for the project, and upon payment thereof it may
4413	4413	recover the same from the contractor together with reasonable attorney
4414	4414	fees. Any contractor or any agent, employee or subcontractor thereof, who
4415	4415	shall use or otherwise dispose of any materials purchased under such a
4416	4416	certificate for any purpose other than that for which such a certificate is
4417	4417	issued without the payment of the sales or compensating tax otherwise
4418	4418	imposed upon such materials, shall be guilty of a misdemeanor and, upon
4419	4419	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4420	4420	79-3615(h), and amendments thereto;
4421	4421	(zzz) all sales of tangible personal property purchased by the rotary
4422	4422	club of shawnee foundation, which is exempt from federal income taxation
4423	4423	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
4424	4424	as amended, used for the purpose of providing contributions to community
4425	4425	service organizations and scholarships;
4426	4426	(aaaa) all sales of personal property and services purchased by or on
4427	4427	behalf of victory in the valley, inc., which is exempt from federal income
4428	4428	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4429	4429	for the purpose of providing a cancer support group and services for
4430	4430	persons with cancer, and all sales of any such property by or on behalf of
4431	4431	any such organization for any such purpose;
4432	4432	(bbbb) all sales of entry or participation fees, charges or tickets by
4433	4433	Guadalupe health foundation, which is exempt from federal income
4434	4434	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4435	4435	for such organization's annual fundraising event which purpose is to
4436	4436	provide health care healthcare services for uninsured workers;
4437	4437	(cccc) all sales of tangible personal property or services purchased by
4438	4438	or on behalf of wayside waifs, inc., which is exempt from federal income
4439	4439	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4440	4440	1
4441	4441	2
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4443	4443	4
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4476	4476	37
4477	4477	38
4478	4478	39
4479	4479	40
4480	4480	41
4481	4481	42
4482	4482	43 HB 2009 53
4483	4483	for the purpose of providing such organization's annual fundraiser, an
4484	4484	event whose purpose is to support the care of homeless and abandoned
4485	4485	animals, animal adoption efforts, education programs for children and
4486	4486	efforts to reduce animal over-population and animal welfare services, and
4487	4487	all sales of any such property, including entry or participation fees or
4488	4488	charges, by or on behalf of such organization for such purpose;
4489	4489	(dddd) all sales of tangible personal property or services purchased
4490	4490	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
4491	4491	of which are exempt from federal income taxation pursuant to section
4492	4492	501(c)(3) of the federal internal revenue code, for the purpose of providing
4493	4493	education, training and employment opportunities for people with
4494	4494	disabilities and other barriers to employment;
4495	4495	(eeee) all sales of tangible personal property or services purchased by
4496	4496	or on behalf of all American beef battalion, inc., which is exempt from
4497	4497	federal income taxation pursuant to section 501(c)(3) of the federal
4498	4498	internal revenue code, for the purpose of educating, promoting and
4499	4499	participating as a contact group through the beef cattle industry in order to
4500	4500	carry out such projects that provide support and morale to members of the
4501	4501	United States armed forces and military services;
4502	4502	(ffff) all sales of tangible personal property and services purchased by
4503	4503	sheltered living, inc., which is exempt from federal income taxation
4504	4504	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
4505	4505	and which such property and services are used for the purpose of
4506	4506	providing residential and day services for people with developmental
4507	4507	disabilities or intellectual disability, or both, and all sales of any such
4508	4508	property by or on behalf of sheltered living, inc., for any such purpose; and
4509	4509	all sales of tangible personal property or services purchased by a
4510	4510	contractor for the purpose of rehabilitating, constructing, maintaining,
4511	4511	repairing, enlarging, furnishing or remodeling homes and facilities for
4512	4512	sheltered living, inc., for any such purpose that would be exempt from
4513	4513	taxation under the provisions of this section if purchased directly by
4514	4514	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
4515	4515	the purchase of any construction machinery, equipment or tools used in the
4516	4516	constructing, maintaining, repairing, enlarging, furnishing or remodeling
4517	4517	such homes and facilities for sheltered living, inc. When sheltered living,
4518	4518	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
4519	4519	repairing, enlarging, furnishing or remodeling such homes and facilities, it
4520	4520	shall obtain from the state and furnish to the contractor an exemption
4521	4521	certificate for the project involved, and the contractor may purchase
4522	4522	materials for incorporation in such project. The contractor shall furnish the
4523	4523	number of such certificate to all suppliers from whom such purchases are
4524	4524	made, and such suppliers shall execute invoices covering the same bearing
4525	4525	the number of such certificate. Upon completion of the project the
4526	4526	1
4527	4527	2
4528	4528	3
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4530	4530	5
4531	4531	6
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4553	4553	28
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4555	4555	30
4556	4556	31
4557	4557	32
4558	4558	33
4559	4559	34
4560	4560	35
4561	4561	36
4562	4562	37
4563	4563	38
4564	4564	39
4565	4565	40
4566	4566	41
4567	4567	42
4568	4568	43 HB 2009 54
4569	4569	contractor shall furnish to sheltered living, inc., a sworn statement, on a
4570	4570	form to be provided by the director of taxation, that all purchases so made
4571	4571	were entitled to exemption under this subsection. All invoices shall be held
4572	4572	by the contractor for a period of five years and shall be subject to audit by
4573	4573	the director of taxation. If any materials purchased under such a certificate
4574	4574	are found not to have been incorporated in the building or other project or
4575	4575	not to have been returned for credit or the sales or compensating tax
4576	4576	otherwise imposed upon such materials that will not be so incorporated in
4577	4577	the building or other project reported and paid by such contractor to the
4578	4578	director of taxation not later than the 20
4579	4579	th
4580	4580	day of the month following the
4581	4581	close of the month in which it shall be determined that such materials will
4582	4582	not be used for the purpose for which such certificate was issued, sheltered
4583	4583	living, inc., shall be liable for tax on all materials purchased for the
4584	4584	project, and upon payment thereof it may recover the same from the
4585	4585	contractor together with reasonable attorney fees. Any contractor or any
4586	4586	agent, employee or subcontractor thereof, who shall use or otherwise
4587	4587	dispose of any materials purchased under such a certificate for any purpose
4588	4588	other than that for which such a certificate is issued without the payment
4589	4589	of the sales or compensating tax otherwise imposed upon such materials,
4590	4590	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4591	4591	subject to the penalties provided for in K.S.A. 79-3615(h), and
4592	4592	amendments thereto;
4593	4593	(gggg) all sales of game birds for which the primary purpose is use in
4594	4594	hunting;
4595	4595	(hhhh) all sales of tangible personal property or services purchased
4596	4596	on or after July 1, 2014, for the purpose of and in conjunction with
4597	4597	constructing, reconstructing, enlarging or remodeling a business identified
4598	4598	under the North American industry classification system (NAICS)
4599	4599	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
4600	4600	installation of machinery and equipment purchased for installation at any
4601	4601	such business. The exemption provided in this subsection shall not apply
4602	4602	to projects that have actual total costs less than $50,000. When a person
4603	4603	contracts for the construction, reconstruction, enlargement or remodeling
4604	4604	of any such business, such person shall obtain from the state and furnish to
4605	4605	the contractor an exemption certificate for the project involved, and the
4606	4606	contractor may purchase materials, machinery and equipment for
4607	4607	incorporation in such project. The contractor shall furnish the number of
4608	4608	such certificates to all suppliers from whom such purchases are made, and
4609	4609	such suppliers shall execute invoices covering the same bearing the
4610	4610	number of such certificate. Upon completion of the project, the contractor
4611	4611	shall furnish to the owner of the business a sworn statement, on a form to
4612	4612	be provided by the director of taxation, that all purchases so made were
4613	4613	entitled to exemption under this subsection. All invoices shall be held by
4614	4614	1
4615	4615	2
4616	4616	3
4617	4617	4
4618	4618	5
4619	4619	6
4620	4620	7
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4644	4644	31
4645	4645	32
4646	4646	33
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4648	4648	35
4649	4649	36
4650	4650	37
4651	4651	38
4652	4652	39
4653	4653	40
4654	4654	41
4655	4655	42
4656	4656	43 HB 2009 55
4657	4657	the contractor for a period of five years and shall be subject to audit by the
4658	4658	director of taxation. Any contractor or any agent, employee or
4659	4659	subcontractor of the contractor, who shall use or otherwise dispose of any
4660	4660	materials, machinery or equipment purchased under such a certificate for
4661	4661	any purpose other than that for which such a certificate is issued without
4662	4662	the payment of the sales or compensating tax otherwise imposed thereon,
4663	4663	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4664	4664	subject to the penalties provided for in K.S.A. 79-3615(h), and
4665	4665	amendments thereto;
4666	4666	(iiii) all sales of tangible personal property or services purchased by a
4667	4667	contractor for the purpose of constructing, maintaining, repairing,
4668	4668	enlarging, furnishing or remodeling facilities for the operation of services
4669	4669	for Wichita children's home for any such purpose that would be exempt
4670	4670	from taxation under the provisions of this section if purchased directly by
4671	4671	Wichita children's home. Nothing in this subsection shall be deemed to
4672	4672	exempt the purchase of any construction machinery, equipment or tools
4673	4673	used in the constructing, maintaining, repairing, enlarging, furnishing or
4674	4674	remodeling such facilities for Wichita children's home. When Wichita
4675	4675	children's home contracts for the purpose of constructing, maintaining,
4676	4676	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
4677	4677	from the state and furnish to the contractor an exemption certificate for the
4678	4678	project involved, and the contractor may purchase materials for
4679	4679	incorporation in such project. The contractor shall furnish the number of
4680	4680	such certificate to all suppliers from whom such purchases are made, and
4681	4681	such suppliers shall execute invoices covering the same bearing the
4682	4682	number of such certificate. Upon completion of the project, the contractor
4683	4683	shall furnish to Wichita children's home a sworn statement, on a form to be
4684	4684	provided by the director of taxation, that all purchases so made were
4685	4685	entitled to exemption under this subsection. All invoices shall be held by
4686	4686	the contractor for a period of five years and shall be subject to audit by the
4687	4687	director of taxation. If any materials purchased under such a certificate are
4688	4688	found not to have been incorporated in the building or other project or not
4689	4689	to have been returned for credit or the sales or compensating tax otherwise
4690	4690	imposed upon such materials that will not be so incorporated in the
4691	4691	building or other project reported and paid by such contractor to the
4692	4692	director of taxation not later than the 20
4693	4693	th
4694	4694	day of the month following the
4695	4695	close of the month in which it shall be determined that such materials will
4696	4696	not be used for the purpose for which such certificate was issued, Wichita
4697	4697	children's home shall be liable for the tax on all materials purchased for the
4698	4698	project, and upon payment, it may recover the same from the contractor
4699	4699	together with reasonable attorney fees. Any contractor or any agent,
4700	4700	employee or subcontractor, who shall use or otherwise dispose of any
4701	4701	materials purchased under such a certificate for any purpose other than that
4702	4702	1
4703	4703	2
4704	4704	3
4705	4705	4
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4733	4733	32
4734	4734	33
4735	4735	34
4736	4736	35
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4738	4738	37
4739	4739	38
4740	4740	39
4741	4741	40
4742	4742	41
4743	4743	42
4744	4744	43 HB 2009 56
4745	4745	for which such a certificate is issued without the payment of the sales or
4746	4746	compensating tax otherwise imposed upon such materials, shall be guilty
4747	4747	of a misdemeanor and, upon conviction, shall be subject to the penalties
4748	4748	provided for in K.S.A. 79-3615(h), and amendments thereto;
4749	4749	(jjjj) all sales of tangible personal property or services purchased by
4750	4750	or on behalf of the beacon, inc., that is exempt from federal income
4751	4751	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4752	4752	for the purpose of providing those desiring help with food, shelter, clothing
4753	4753	and other necessities of life during times of special need;
4754	4754	(kkkk) all sales of tangible personal property and services purchased
4755	4755	by or on behalf of reaching out from within, inc., which is exempt from
4756	4756	federal income taxation pursuant to section 501(c)(3) of the federal
4757	4757	internal revenue code, for the purpose of sponsoring self-help programs for
4758	4758	incarcerated persons that will enable such incarcerated persons to become
4759	4759	role models for non-violence while in correctional facilities and productive
4760	4760	family members and citizens upon return to the community;
4761	4761	(llll) all sales of tangible personal property and services purchased by
4762	4762	Gove county healthcare endowment foundation, inc., which is exempt
4763	4763	from federal income taxation pursuant to section 501(c)(3) of the federal
4764	4764	internal revenue code of 1986, and which such property and services are
4765	4765	used for the purpose of constructing and equipping an airport in Quinter,
4766	4766	Kansas, and all sales of tangible personal property or services purchased
4767	4767	by a contractor for the purpose of constructing and equipping an airport in
4768	4768	Quinter, Kansas, for such organization, that would be exempt from
4769	4769	taxation under the provisions of this section if purchased directly by such
4770	4770	organization. Nothing in this subsection shall be deemed to exempt the
4771	4771	purchase of any construction machinery, equipment or tools used in the
4772	4772	constructing or equipping of facilities for such organization. When such
4773	4773	organization shall contract for the purpose of constructing or equipping an
4774	4774	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
4775	4775	contractor an exemption certificate for the project involved, and the
4776	4776	contractor may purchase materials for incorporation in such project. The
4777	4777	contractor shall furnish the number of such certificate to all suppliers from
4778	4778	whom such purchases are made, and such suppliers shall execute invoices
4779	4779	covering the same bearing the number of such certificate. Upon
4780	4780	completion of the project, the contractor shall furnish to such organization
4781	4781	concerned a sworn statement, on a form to be provided by the director of
4782	4782	taxation, that all purchases so made were entitled to exemption under this
4783	4783	subsection. All invoices shall be held by the contractor for a period of five
4784	4784	years and shall be subject to audit by the director of taxation. If any
4785	4785	materials purchased under such a certificate are found not to have been
4786	4786	incorporated in such facilities or not to have been returned for credit or the
4787	4787	sales or compensating tax otherwise imposed upon such materials that will
4788	4788	1
4789	4789	2
4790	4790	3
4791	4791	4
4792	4792	5
4793	4793	6
4794	4794	7
4795	4795	8
4796	4796	9
4797	4797	10
4798	4798	11
4799	4799	12
4800	4800	13
4801	4801	14
4802	4802	15
4803	4803	16
4804	4804	17
4805	4805	18
4806	4806	19
4807	4807	20
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4809	4809	22
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4812	4812	25
4813	4813	26
4814	4814	27
4815	4815	28
4816	4816	29
4817	4817	30
4818	4818	31
4819	4819	32
4820	4820	33
4821	4821	34
4822	4822	35
4823	4823	36
4824	4824	37
4825	4825	38
4826	4826	39
4827	4827	40
4828	4828	41
4829	4829	42
4830	4830	43 HB 2009 57
4831	4831	not be so incorporated in such facilities reported and paid by such
4832	4832	contractor to the director of taxation no later than the 20
4833	4833	th
4834	4834	day of the month
4835	4835	following the close of the month in which it shall be determined that such
4836	4836	materials will not be used for the purpose for which such certificate was
4837	4837	issued, such organization concerned shall be liable for tax on all materials
4838	4838	purchased for the project, and upon payment thereof it may recover the
4839	4839	same from the contractor together with reasonable attorney fees. Any
4840	4840	contractor or any agent, employee or subcontractor thereof, who purchased
4841	4841	under such a certificate for any purpose other than that for which such a
4842	4842	certificate is issued without the payment of the sales or compensating tax
4843	4843	otherwise imposed upon such materials, shall be guilty of a misdemeanor
4844	4844	and, upon conviction therefor, shall be subject to the penalties provided for
4845	4845	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
4846	4846	subsection shall expire and have no effect on and after July 1, 2019;
4847	4847	(mmmm) all sales of gold or silver coins; and palladium, platinum,
4848	4848	gold or silver bullion. For the purposes of this subsection, "bullion" means
4849	4849	bars, ingots or commemorative medallions of gold, silver, platinum,
4850	4850	palladium, or a combination thereof, for which the value of the metal
4851	4851	depends on its content and not the form;
4852	4852	(nnnn) all sales of tangible personal property or services purchased
4853	4853	by friends of hospice of Jefferson county, an organization that is exempt
4854	4854	from federal income taxation pursuant to section 501(c)(3) of the federal
4855	4855	internal revenue code of 1986, for the purpose of providing support to the
4856	4856	Jefferson county hospice agency in end-of-life care of Jefferson county
4857	4857	families, friends and neighbors, and all sales of entry or participation fees,
4858	4858	charges or tickets by friends of hospice of Jefferson county for such
4859	4859	organization's fundraising event for such purpose;
4860	4860	(oooo) all sales of tangible personal property or services purchased
4861	4861	for the purpose of and in conjunction with constructing, reconstructing,
4862	4862	enlarging or remodeling a qualified business facility by a qualified firm or
4863	4863	qualified supplier that meets the requirements established in K.S.A. 2024
4864	4864	Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
4865	4865	been approved for a project exemption certificate by the secretary of
4866	4866	commerce, and the sale and installation of machinery and equipment
4867	4867	purchased by such qualified firm or qualified supplier for installation at
4868	4868	any such qualified business facility. When a person shall contract for the
4869	4869	construction, reconstruction, enlargement or remodeling of any such
4870	4870	qualified business facility, such person shall obtain from the state and
4871	4871	furnish to the contractor an exemption certificate for the project involved,
4872	4872	and the contractor may purchase materials, machinery and equipment for
4873	4873	incorporation in such project. The contractor shall furnish the number of
4874	4874	such certificates to all suppliers from whom such purchases are made, and
4875	4875	such suppliers shall execute invoices covering the same bearing the
4876	4876	1
4877	4877	2
4878	4878	3
4879	4879	4
4880	4880	5
4881	4881	6
4882	4882	7
4883	4883	8
4884	4884	9
4885	4885	10
4886	4886	11
4887	4887	12
4888	4888	13
4889	4889	14
4890	4890	15
4891	4891	16
4892	4892	17
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4894	4894	19
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4897	4897	22
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4901	4901	26
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4907	4907	32
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4914	4914	39
4915	4915	40
4916	4916	41
4917	4917	42
4918	4918	43 HB 2009 58
4919	4919	number of such certificate. Upon completion of the project, the contractor
4920	4920	shall furnish to the owner of the qualified firm or qualified supplier a
4921	4921	sworn statement, on a form to be provided by the director of taxation, that
4922	4922	all purchases so made were entitled to exemption under this subsection.
4923	4923	All invoices shall be held by the contractor for a period of five years and
4924	4924	shall be subject to audit by the director of taxation. Any contractor or any
4925	4925	agent, employee or subcontractor thereof who shall use or otherwise
4926	4926	dispose of any materials, machinery or equipment purchased under such a
4927	4927	certificate for any purpose other than that for which such a certificate is
4928	4928	issued without the payment of the sales or compensating tax otherwise
4929	4929	imposed thereon, shall be guilty of a misdemeanor and, upon conviction
4930	4930	therefor, shall be subject to the penalties provided for in K.S.A. 79-
4931	4931	3615(h), and amendments thereto. As used in this subsection, "qualified
4932	4932	business facility," "qualified firm" and "qualified supplier" mean the same
4933	4933	as defined in K.S.A. 2024 Supp. 74-50,311, and amendments thereto;
4934	4934	(pppp) (1) all sales of tangible personal property or services
4935	4935	purchased by a not-for-profit corporation that is designated as an area
4936	4936	agency on aging by the secretary for aging and disabilities services and is
4937	4937	exempt from federal income taxation pursuant to section 501(c)(3) of the
4938	4938	federal internal revenue code for the purpose of coordinating and
4939	4939	providing seniors and those living with disabilities with services that
4940	4940	promote person-centered care, including home-delivered meals,
4941	4941	congregate meal settings, long-term case management, transportation,
4942	4942	information, assistance and other preventative and intervention services to
4943	4943	help service recipients remain in their homes and communities or for the
4944	4944	purpose of constructing, equipping, reconstructing, maintaining, repairing,
4945	4945	enlarging, furnishing or remodeling facilities for such area agency on
4946	4946	aging; and
4947	4947	(2) all sales of tangible personal property or services purchased by a
4948	4948	contractor for the purpose of constructing, equipping, reconstructing,
4949	4949	maintaining, repairing, enlarging, furnishing or remodeling facilities for an
4950	4950	area agency on aging that would be exempt from taxation under the
4951	4951	provisions of this section if purchased directly by such area agency on
4952	4952	aging. Nothing in this paragraph shall be deemed to exempt the purchase
4953	4953	of any construction machinery, equipment or tools used in the
4954	4954	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
4955	4955	furnishing or remodeling facilities for an area agency on aging. When an
4956	4956	area agency on aging contracts for the purpose of constructing, equipping,
4957	4957	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4958	4958	facilities, it shall obtain from the state and furnish to the contractor an
4959	4959	exemption certificate for the project involved, and such contractor may
4960	4960	purchase materials for incorporation in such project. The contractor shall
4961	4961	furnish the number of such certificate to all suppliers from whom such
4962	4962	1
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5000	5000	39
5001	5001	40
5002	5002	41
5003	5003	42
5004	5004	43 HB 2009 59
5005	5005	purchases are made, and such suppliers shall execute invoices covering the
5006	5006	same bearing the number of such certificate. Upon completion of the
5007	5007	project, the contractor shall furnish to such area agency on aging a sworn
5008	5008	statement, on a form to be provided by the director of taxation, that all
5009	5009	purchases so made were entitled to exemption under this subsection. All
5010	5010	invoices shall be held by the contractor for a period of five years and shall
5011	5011	be subject to audit by the director of taxation. If any materials purchased
5012	5012	under such a certificate are found not to have been incorporated in the
5013	5013	building or other project or not to have been returned for credit or the sales
5014	5014	or compensating tax otherwise imposed upon such materials that will not
5015	5015	be so incorporated in the building or other project reported and paid by
5016	5016	such contractor to the director of taxation not later than the 20
5017	5017	th
5018	5018	day of the
5019	5019	month following the close of the month in which it shall be determined
5020	5020	that such materials will not be used for the purpose for which such
5021	5021	certificate was issued, the area agency on aging concerned shall be liable
5022	5022	for tax on all materials purchased for the project, and upon payment
5023	5023	thereof, the area agency on aging may recover the same from the
5024	5024	contractor together with reasonable attorney fees. Any contractor or any
5025	5025	agent, employee or subcontractor thereof who shall use or otherwise
5026	5026	dispose of any materials purchased under such a certificate for any purpose
5027	5027	other than that for which such a certificate is issued without the payment
5028	5028	of the sales or compensating tax otherwise imposed upon such materials
5029	5029	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
5030	5030	subject to the penalties provided for in K.S.A. 79-3615(h), and
5031	5031	amendments thereto;
5032	5032	(qqqq) all sales of tangible personal property or services purchased
5033	5033	by Kansas suicide prevention HQ, inc., an organization that is exempt
5034	5034	from federal income taxation pursuant to section 501(c)(3) of the federal
5035	5035	internal revenue code of 1986, for the purpose of bringing suicide
5036	5036	prevention training and awareness to communities across the state;
5037	5037	(rrrr) all sales of the services of slaughtering, butchering, custom
5038	5038	cutting, dressing, processing and packaging of an animal for human
5039	5039	consumption when the animal is delivered or furnished by a customer that
5040	5040	owns the animal and such meat or poultry is for use or consumption by
5041	5041	such customer;
5042	5042	(ssss) all sales of tangible personal property or services purchased by
5043	5043	or on behalf of doorstep inc., an organization that is exempt from federal
5044	5044	income taxation pursuant to section 501(c)(3) of the federal internal
5045	5045	revenue code of 1986, for the purpose of providing short-term emergency
5046	5046	aid to families and individuals in need, including assistance with food,
5047	5047	clothing, rent, prescription medications, transportation and utilities, and
5048	5048	providing information on services to promote long-term self-sufficiency;
5049	5049	(tttt) on and after January 1, 2024, all sales of tangible personal
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5089	5089	40
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5091	5091	42
5092	5092	43 HB 2009 60
5093	5093	property or services purchased by exploration place, inc., an organization
5094	5094	that is exempt from federal income taxation pursuant to section 501(c)(3)
5095	5095	of the federal internal revenue code, and which such property and services
5096	5096	are used for the purpose of constructing, remodeling, furnishing or
5097	5097	equipping a riverfront amphitheater, a destination playscape, an education
5098	5098	center and indoor renovations at exploration place in Wichita, Kansas, all
5099	5099	sales of tangible personal property or services purchased by Kansas
5100	5100	children's discovery center inc. in Topeka, Kansas, and which such
5101	5101	property and services are used for the purpose of constructing, remodeling,
5102	5102	furnishing or equipping projects that include indoor-outdoor classrooms,
5103	5103	an expanded multi-media gallery, a workshop and loading dock and safety
5104	5104	upgrades such as a tornado shelter, lactation room, first aid room and
5105	5105	sensory room and all sales of tangible personal property or services
5106	5106	purchased by a contractor for the purpose of constructing, remodeling,
5107	5107	furnishing or equipping such projects, for such organizations, that would
5108	5108	be exempt from taxation under the provisions of this section if purchased
5109	5109	directly by such organizations. Nothing in this subsection shall be deemed
5110	5110	to exempt the purchase of any construction machinery, equipment or tools
5111	5111	used in the constructing, remodeling, furnishing or equipping of facilities
5112	5112	for such organization. When such organization shall contract for the
5113	5113	purpose of constructing, remodeling, furnishing or equipping such
5114	5114	projects, it shall obtain from the state and furnish to the contractor an
5115	5115	exemption certificate for the project involved, and the contractor may
5116	5116	purchase materials for incorporation in such project. The contractor shall
5117	5117	furnish the number of such certificate to all suppliers from whom such
5118	5118	purchases are made, and such suppliers shall execute invoices covering the
5119	5119	same bearing the number of such certificate. Upon completion of the
5120	5120	project, the contractor shall furnish to such organization a sworn statement,
5121	5121	on a form to be provided by the director of taxation, that all purchases so
5122	5122	made were entitled to exemption under this subsection. All invoices shall
5123	5123	be held by the contractor for a period of five years and shall be subject to
5124	5124	audit by the director of taxation. If any materials purchased under such a
5125	5125	certificate are found not to have been incorporated in such facilities or not
5126	5126	to have been returned for credit or the sales or compensating tax otherwise
5127	5127	imposed upon such materials that will not be so incorporated in such
5128	5128	facilities reported and paid by such contractor to the director of taxation no
5129	5129	later than the 20
5130	5130	th
5131	5131	day of the month following the close of the month in
5132	5132	which it shall be determined that such materials will not be used for the
5133	5133	purpose for which such certificate was issued, such organization shall be
5134	5134	liable for tax on all materials purchased for the project, and upon payment
5135	5135	thereof may recover the same from the contractor together with reasonable
5136	5136	attorney fees. Any contractor or agent, employee or subcontractor thereof,
5137	5137	who purchased under such a certificate for any purpose other than that for
5138	5138	1
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5179	5179	42
5180	5180	43 HB 2009 61
5181	5181	which such a certificate is issued without the payment of the sales or
5182	5182	compensating tax otherwise imposed upon such materials, shall be guilty
5183	5183	of a misdemeanor and, upon conviction therefor, shall be subject to the
5184	5184	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
5185	5185	Sales tax paid on and after January 1, 2024, but prior to the effective date
5186	5186	of this act, upon the gross receipts received from any sale exempted by the
5187	5187	amendatory provisions of this subsection shall be refunded. Each claim for
5188	5188	a sales tax refund shall be verified and submitted to the director of taxation
5189	5189	upon forms furnished by the director and shall be accompanied by any
5190	5190	additional documentation required by the director. The director shall
5191	5191	review each claim and shall refund that amount of sales tax paid as
5192	5192	determined under the provisions of this subsection. All refunds shall be
5193	5193	paid from the sales tax refund fund upon warrants of the director of
5194	5194	accounts and reports pursuant to vouchers approved by the director or the
5195	5195	director's designee. The provisions of this subsection shall expire and have
5196	5196	no effect on and after December 31, 2030;
5197	5197	(uuuu) (1) (A) all sales of equipment, machinery, software, ancillary
5198	5198	components, appurtenances, accessories or other infrastructure purchased
5199	5199	for use in the provision of communications services; and
5200	5200	(B) all services purchased by a provider in the provision of the
5201	5201	communications service used in the repair, maintenance or installation in
5202	5202	such communications service.
5203	5203	(2) As used in this subsection:
5204	5204	(A) "Communications service" means internet access service,
5205	5205	telecommunications service, video service or any combination thereof.
5206	5206	(B) "Equipment, machinery, software, ancillary components,
5207	5207	appurtenances, accessories or other infrastructure" includes, but is not
5208	5208	limited to:
5209	5209	(i) Wires, cables, fiber, conduits, antennas, poles, switches, routers,
5210	5210	amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,
5211	5211	transmitters, circuit cards, insulating and protective materials and cases,
5212	5212	power equipment, backup power equipment, diagnostic equipment, storage
5213	5213	devices, modems, cable modem termination systems and servers;
5214	5214	(ii) other general central office or headend equipment, such as
5215	5215	channel cards, frames and cabinets;
5216	5216	(iii) equipment used in successor technologies, including items used
5217	5217	to monitor, test, maintain, enable or facilitate qualifying equipment,
5218	5218	machinery, software, ancillary components, appurtenances and
5219	5219	accessories; and
5220	5220	(iv) other infrastructure that is used in whole or in part to provide
5221	5221	communications services, including broadcasting, distributing, sending,
5222	5222	receiving, storing, transmitting, retransmitting, amplifying, switching,
5223	5223	providing connectivity for or routing communications services.
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5265	5265	42
5266	5266	43 HB 2009 62
5267	5267	(C) "Internet access service" means the same as internet access as
5268	5268	defined in section 1105 of the internet tax freedom act amendments of
5269	5269	2007, public law 110-108.
5270	5270	(D) "Provider" means a person or entity that sells communications
5271	5271	service, including an affiliate or subsidiary.
5272	5272	(E) "Telecommunications service" means the same as defined in
5273	5273	K.S.A. 79-3602, and amendments thereto.
5274	5274	(F) "Video service" means the same as defined in K.S.A. 12-2022,
5275	5275	and amendments thereto.
5276	5276	(3) The provisions of this subsection shall expire and have no effect
5277	5277	on and after July 1, 2029;
5278	5278	(vvvv) (1) all sales of tangible personal property or services
5279	5279	purchased by a contractor for the purpose of constructing, equipping,
5280	5280	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
5281	5281	a building that is operated by, or is intended to be operated by, the Kansas
5282	5282	fairgrounds foundation, a not-for-profit corporation exempt from federal
5283	5283	income taxation pursuant to section 501(c)(3) of the federal internal
5284	5284	revenue code of 1986, and located on the grounds of the Kansas state fair,
5285	5285	and such tangible personal property would be exempt from taxation under
5286	5286	the provisions of this paragraph if purchased directly by such eligible not-
5287	5287	for-profit corporation. Nothing in this subsection shall be deemed to
5288	5288	exempt the purchase of any construction machinery, equipment or tools
5289	5289	used in the constructing, equipping, reconstructing, maintaining, repairing,
5290	5290	enlarging, furnishing or remodeling a building for such eligible not-for-
5291	5291	profit corporation. When such eligible not-for-profit corporation contracts
5292	5292	for the purpose of constructing, equipping, reconstructing, maintaining,
5293	5293	repairing, enlarging, furnishing or remodeling a building, such corporation
5294	5294	shall obtain from the state and furnish to the contractor an exemption
5295	5295	certificate for the project involved, and such contractor may purchase
5296	5296	materials for incorporation in such project. The contractor shall furnish the
5297	5297	number of such certificate to all suppliers from whom such purchases are
5298	5298	made, and such suppliers shall execute invoices covering such purchases
5299	5299	bearing the number of such certificate. Upon completion of the project, the
5300	5300	contractor shall furnish to such eligible not-for-profit corporation a sworn
5301	5301	statement, on a form to be provided by the director of taxation, that all
5302	5302	purchases so made were entitled to exemption under this subsection. All
5303	5303	invoices shall be held by the contractor for a period of five years and shall
5304	5304	be subject to audit by the director of taxation. If any materials purchased
5305	5305	under such a certificate are found not to have been incorporated in the
5306	5306	building or returned for credit, the contractor shall report and pay the sales
5307	5307	or compensating tax to the director of taxation not later than the 20
5308	5308	th
5309	5309	day of
5310	5310	the month following the close of the month in which it is determined that
5311	5311	such materials will not be used for the purpose for which such certificate
5312	5312	1
5313	5313	2
5314	5314	3
5315	5315	4
5316	5316	5
5317	5317	6
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5353	5353	42
5354	5354	43 HB 2009 63
5355	5355	was issued. The eligible not-for-profit corporation concerned shall be
5356	5356	liable for tax on all materials purchased for the project, and upon payment
5357	5357	thereof, the eligible not-for-profit corporation may recover the same from
5358	5358	the contractor together with reasonable attorney fees. Any contractor or
5359	5359	any agent, employee or subcontractor thereof who shall use or otherwise
5360	5360	dispose of any materials purchased under such a certificate for any purpose
5361	5361	other than that for which such a certificate is issued without the payment
5362	5362	of the sales or compensating tax otherwise imposed upon such materials
5363	5363	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
5364	5364	subject to the penalties provided for in K.S.A. 79-3615(h), and
5365	5365	amendments thereto.
5366	5366	(2) Sales tax paid on and after May 19, 2023, but prior to the effective
5367	5367	date of this act upon the gross receipts received from any sale which that
5368	5368	would have been exempted by the provisions of this subsection had such
5369	5369	sale occurred after the effective date of this act shall be refunded. Each
5370	5370	claim for a sales tax refund shall be verified and submitted to the director
5371	5371	of taxation upon forms furnished by the director and shall be accompanied
5372	5372	by any additional documentation required by the director. The director
5373	5373	shall review each claim and shall refund that amount of sales tax paid as
5374	5374	determined under the provisions of this subsection. All refunds shall be
5375	5375	paid from the sales tax refund fund upon warrants of the director of
5376	5376	accounts and reports pursuant to vouchers approved by the director or the
5377	5377	director's designee; and
5378	5378	(wwww) (1) all sales of tangible personal property or services
5379	5379	purchased by a pregnancy resource center or residential maternity facility.
5380	5380	(2) As used in this subsection, "pregnancy resource center" or
5381	5381	"residential maternity facility" means an organization that is:
5382	5382	(A) Exempt from federal income taxation pursuant to section 501(c)
5383	5383	(3) of the federal internal revenue code of 1986;
5384	5384	(B) a nonprofit organization organized under the laws of this state;
5385	5385	and
5386	5386	(C) a pregnancy resource center or residential maternity facility that:
5387	5387	(i) Maintains a dedicated phone number for clients;
5388	5388	(ii) maintains in this state its primary physical office, clinic or
5389	5389	residential home that is open for clients for a minimum of 20 hours per
5390	5390	week, excluding state holidays;
5391	5391	(iii) offers services, at no cost to the client, for the express purpose of
5392	5392	providing assistance to women in order to carry their pregnancy to term,
5393	5393	encourage parenting or adoption, prevent abortion and promote healthy
5394	5394	childbirth; and
5395	5395	(iv) utilizes trained healthcare providers, as defined by K.S.A. 2024
5396	5396	Supp. 79-32,316, and amendments thereto, to perform any available
5397	5397	medical procedures.
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5440	5440	43 HB 2009 64
5441	5441	Sec. 19. K.S.A. 65-4a02, 65-4a03, 65-4a04, 65-4a05, 65-4a06, 65-
5442	5442	4a07, 65-4a08, 65-4a09, 65-4a10, 65-4a11, 65-4a12, 65-2837, 65-6702,
5443	5443	65-6703, 65-6704, 65-6705, 65-6707, 65-6709, 65-6710, 65-6711, 65-
5444	5444	6712, 65-6714, 65-6715, 65-6721, 65-6722, 65-6724, 65-6725, 65-6726,
5445	5445	65-6731, 65-6741, 65-6743, 65-6744, 65-6745, 65-6746, 65-6747, 65-
5446	5446	6748, 65-6749, 65-67a01, 76-3308 and 79-32,195 and K.S.A. 2024 Supp.
5447	5447	60-1906, 65-4a01, 65-2401, 65-6701, 65-6708, 65-6716, 65-6723, 65-
5448	5448	6742, 79-32,182b, 79-32,261 and 79-3606 are hereby repealed.
5449	5449	Sec. 20. This act shall take effect and be in force from and after its
5450	5450	publication in the statute book.
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