Kansas 2025-2026 Regular Session

Kansas House Bill HB2010 Compare Versions

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

Old	New	Differences
1	1	Session of 2025
2	2	HOUSE BILL No. 2010
3	3	By Representatives Fairchild, Poetter Parshall, Rhiley, Schwertfeger and Seiwert
4	4	1-15
5	5	AN ACT concerning abortion; prohibiting abortion; creating the crimes of
6	6	unlawful performance of an abortion and unlawful destruction of a
7	7	fertilized embryo and establishing penalties therefor; restricting the use
8	8	of fetal tissue; relating to exclusions from sales and use tax exemptions
9	9	for certain abortion providers; amending K.S.A. 21-5301, 21-5302, 21-
10	10	5303, 65-2837, 65-6731, 65-6732, 65-67a01, 65-67a02, 65-67a04, 65-
11	11	67a07, 76-3308 and 79-32,195 and K.S.A. 2024 Supp. 60-1901, 60-
12	12	1906, 65-2401, 79-32,182b, 79-32,261 and 79-3606 and repealing the
13	13	existing sections; also repealing K.S.A. 38-2003, 65-4a02, 65-4a03, 65-
14	14	4a04, 65-4a05, 65-4a06, 65-4a07, 65-4a08, 65-4a09, 65-4a10, 65-4a11,
15	15	65-4a12, 65-6702, 65-6703, 65-6704, 65-6705, 65-6707, 65-6709, 65-
16	16	6710, 65-6711, 65-6712, 65-6714, 65-6715, 65-6721, 65-6722, 65-
17	17	6724, 65-6725, 65-6726, 65-6741, 65-6743, 65-6744, 65-6745, 65-
18	18	6746, 65-6747, 65-6748, 65-6749 and 65-67a09 and K.S.A. 2024 Supp.
19	19	65-445, 65-4a01, 65-6701, 65-6708, 65-6723 and 65-6742.
20	20	Be it enacted by the Legislature of the State of Kansas:
21	21	New Section 1. (a) The purposes of sections 1 through 4, and
22	22	amendments thereto, are:
23	23	(1) To follow the constitution of the United States, which requires
24	24	that "no state...shall deny to any person within its jurisdiction the equal
25	25	protection of the laws";
26	26	(2) to fulfill such constitutional and statutory requirements by
27	27	protecting the lives of unborn persons with the same criminal and civil
28	28	laws protecting the lives of born persons by repealing provisions that
29	29	permit willful prenatal murder or assault;
30	30	(3) to ensure that all persons potentially subject to such laws are
31	31	entitled to due process protections; and
32	32	(4) to abolish abortion in this state.
33	33	(b) Unless otherwise provided by law, the enforcement of the
34	34	provisions of sections 1 through 4, and amendments thereto, is subject to
35	35	the same presumptions, defenses, justifications, rules of criminal
36	36	procedure, immunities and clemencies as would apply where the victim is
37	37	a person who had been born alive.
38	38	New Sec. 2. Any federal statute, regulation, treaty, order or court
39	39	decision that purports to supersede, stay or overrule this act is in violation
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76	76	of the constitution of the state of Kansas and the constitution of the United
77	77	States and is therefore void. The state of Kansas, any state agency or any
78	78	political subdivision of this state may, but shall not be required to, enter an
79	79	appearance, special or otherwise, in any federal suit challenging the
80	80	constitutionality of this act.
81	81	New Sec. 3. Pursuant to the powers granted to the legislature by
82	82	article 2, § 27 of the constitution of the state of Kansas, any judge of this
83	83	state who purports to enjoin, stay, overrule or void any provision of this act
84	84	shall be subject to impeachment and removal.
85	85	New Sec. 4. (a) Unlawful performance of an abortion is knowingly
86	86	performing an abortion, regardless of the gestational age of the unborn
87	87	child.
88	88	(b) Unlawful destruction of a fertilized embryo is the act of
89	89	performing an unlawful abortion as part of the process of artificial
90	90	insemination.
91	91	(c) (1) Unlawful performance of an abortion or attempt, conspiracy or
92	92	criminal solicitation to commit unlawful performance of an abortion is a
93	93	severity level 1, person felony.
94	94	(2) Unlawful destruction of a fertilized embryo or attempt, conspiracy
95	95	or criminal solicitation to commit unlawful destruction of a fertilized
96	96	embryo is a severity level 1, person felony.
97	97	(d) The provisions of K.S.A. 21-5301(c), and amendments thereto,
98	98	shall not apply to a violation of attempting to commit the crime of
99	99	unlawful performance of an abortion or unlawful destruction of a fertilized
100	100	embryo pursuant to this section. The provisions of K.S.A. 21-5302(d), and
101	101	amendments thereto, shall not apply to a violation of conspiracy to commit
102	102	the crime of unlawful performance of an abortion or unlawful destruction
103	103	of a fertilized embryo pursuant to this section. The provisions of K.S.A.
104	104	21-5303(d), and amendments thereto, shall not apply to a violation of
105	105	criminal solicitation to commit the crime of unlawful performance of an
106	106	abortion or unlawful destruction of a fertilized embryo pursuant to this
107	107	section.
108	108	(e) This section shall not apply to any surgical procedure performed
109	109	with the intent to:
110	110	(1) Save the life or preserve the health of an unborn child; or
111	111	(2) remove a dead, unborn child whose death was caused by
112	112	spontaneous miscarriage, stillbirth or ectopic pregnancy.
113	113	(f) As used in this section:
114	114	(1) "Abortion" means the act of using or prescribing an instrument,
115	115	drug, medicine or any other substance, device or means with the intent to
116	116	cause the death of an unborn child;
117	117	(2) "fertilization" means the fusion of a human spermatozoon with a
118	118	human ovum; and
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162	162	(3) "unborn child" means a living human child from the moment of
163	163	fertilization in utero through pregnancy until birth, including the
164	164	developmental stages of human conceptus, zygote, morula, blastocyst,
165	165	embryo and fetus.
166	166	Sec. 5. K.S.A. 21-5301 is hereby amended to read as follows: 21-
167	167	5301. (a) An attempt is any overt act toward the perpetration of a crime
168	168	done by a person who intends to commit such crime but fails in the
169	169	perpetration thereof or is prevented or intercepted in executing such crime.
170	170	(b) It shall not be a defense to a charge of attempt that the
171	171	circumstances under which the act was performed or the means employed
172	172	or the act itself were such that the commission of the crime was not
173	173	possible.
174	174	(c) (1) An attempt to commit an off-grid felony shall be ranked at
175	175	nondrug severity level 1. An attempt to commit any other nondrug felony
176	176	shall be ranked on the nondrug scale at two severity levels below the
177	177	appropriate level for the underlying or completed crime. The lowest
178	178	severity level for an attempt to commit a nondrug felony shall be a severity
179	179	level 10.
180	180	(2) The provisions of this subsection shall not apply to a violation of
181	181	attempting to commit the crime of:
182	182	(A) Aggravated human trafficking, as defined in K.S.A. 21-5426(b),
183	183	and amendments thereto, if the offender is 18 years of age or older and the
184	184	victim is less than 14 years of age;
185	185	(B) terrorism, as defined in K.S.A. 21-5421, and amendments thereto;
186	186	(C) illegal use of weapons of mass destruction, as defined in K.S.A.
187	187	21-5422, and amendments thereto;
188	188	(D) rape, as defined in K.S.A. 21-5503(a)(3), and amendments
189	189	thereto, if the offender is 18 years of age or older;
190	190	(E) aggravated indecent liberties with a child, as defined in K.S.A.
191	191	21-5506(b)(3), and amendments thereto, if the offender is 18 years of age
192	192	or older;
193	193	(F) aggravated criminal sodomy, as defined in K.S.A. 21-5504(b)(1)
194	194	or (2), and amendments thereto, if the offender is 18 years of age or older;
195	195	(G) commercial sexual exploitation of a child, as defined in K.S.A.
196	196	21-6422, and amendments thereto, if the offender is 18 years of age or
197	197	older and the victim is less than 14 years of age;
198	198	(H) sexual exploitation of a child, as defined in K.S.A. 21-5510(a)(1)
199	199	or (4), and amendments thereto, if the offender is 18 years of age or older
200	200	and the child is less than 14 years of age;
201	201	(I) aggravated internet trading in child pornography, as defined in
202	202	K.S.A. 21-5514(b), and amendments thereto, if the offender is 18 years of
203	203	age or older and the child is less than 14 years of age; or
204	204	(J) capital murder, as defined in K.S.A. 21-5401, and amendments
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248	248	thereto; or
249	249	(K) unlawful performance of an abortion, as defined in section 4(a),
250	250	and amendments thereto, or unlawful destruction of a fertilized embryo, as
251	251	defined in section 4(b), and amendments thereto.
252	252	(d) (1) An attempt to commit a felony which that prescribes a
253	253	sentence on the drug grid shall reduce the prison term prescribed in the
254	254	drug grid block for an underlying or completed crime by six months.
255	255	(2) The provisions of this subsection shall not apply to a violation of
256	256	attempting to commit a violation of K.S.A. 21-5703, and amendments
257	257	thereto.
258	258	(e) An attempt to commit a class A person misdemeanor is a class B
259	259	person misdemeanor. An attempt to commit a class A nonperson
260	260	misdemeanor is a class B nonperson misdemeanor.
261	261	(f) An attempt to commit a class B or C misdemeanor is a class C
262	262	misdemeanor.
263	263	Sec. 6. K.S.A. 21-5302 is hereby amended to read as follows: 21-
264	264	5302. (a) A conspiracy is an agreement with another person to commit a
265	265	crime or to assist in committing a crime. No person may be convicted of a
266	266	conspiracy unless an overt act in furtherance of such conspiracy is alleged
267	267	and proved to have been committed by such person or by a co-conspirator.
268	268	(b) It is immaterial to the criminal liability of a person charged with
269	269	conspiracy that any other person with whom the defendant conspired
270	270	lacked the actual intent to commit the underlying crime provided that the
271	271	defendant believed the other person did have the actual intent to commit
272	272	the underlying crime.
273	273	(c) It shall be a defense to a charge of conspiracy that the accused
274	274	voluntarily and in good faith withdrew from the conspiracy, and
275	275	communicated the fact of such withdrawal to one or more of the accused
276	276	person's co-conspirators, before any overt act in furtherance of the
277	277	conspiracy was committed by the accused or by a co-conspirator.
278	278	(d) (1) Conspiracy to commit an off-grid felony shall be ranked at
279	279	nondrug severity level 2. Conspiracy to commit any other nondrug felony
280	280	shall be ranked on the nondrug scale at two severity levels below the
281	281	appropriate level for the underlying or completed crime. The lowest
282	282	severity level for conspiracy to commit a nondrug felony shall be a
283	283	severity level 10.
284	284	(2) The provisions of this subsection shall not apply to a violation of
285	285	conspiracy to commit the crime of:
286	286	(A) Aggravated human trafficking, as defined in K.S.A. 21-5426(b),
287	287	and amendments thereto, if the offender is 18 years of age or older and the
288	288	victim is less than 14 years of age;
289	289	(B) terrorism, as defined in K.S.A. 21-5421, and amendments thereto;
290	290	(C) illegal use of weapons of mass destruction, as defined in K.S.A.
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334	334	21-5422, and amendments thereto;
335	335	(D) rape, as defined in K.S.A. 21-5503(a)(3), and amendments
336	336	thereto, if the offender is 18 years of age or older;
337	337	(E) aggravated indecent liberties with a child, as defined in K.S.A.
338	338	21-5506(b)(3), and amendments thereto, if the offender is 18 years of age
339	339	or older;
340	340	(F) aggravated criminal sodomy, as defined in K.S.A. 21-5504(b)(1)
341	341	or (2), and amendments thereto, if the offender is 18 years of age or older;
342	342	(G) commercial sexual exploitation of a child, as defined in K.S.A.
343	343	21-6422, and amendments thereto, if the offender is 18 years of age or
344	344	older and the victim is less than 14 years of age;
345	345	(H) sexual exploitation of a child, as defined in K.S.A. 21-5510(a)(1)
346	346	or (4), and amendments thereto, if the offender is 18 years of age or older
347	347	and the child is less than 14 years of age;
348	348	(I) aggravated internet trading in child pornography, as defined in
349	349	K.S.A. 21-5514(b), and amendments thereto, if the offender is 18 years of
350	350	age or older and the child is less than 14 years of age; or
351	351	(J) violations of the Kansas racketeer influenced and corrupt
352	352	organization act, as described in K.S.A. 21-6329, and amendments
353	353	thereto; or
354	354	(K) unlawful performance of an abortion, as defined in section 4(a),
355	355	and amendments thereto, or unlawful destruction of a fertilized embryo, as
356	356	defined in section 4(b), and amendments thereto.
357	357	(e) Conspiracy to commit a felony which that prescribes a sentence
358	358	on the drug grid shall reduce the prison term prescribed in the drug grid
359	359	block for an underlying or completed crime by six months.
360	360	(f) A conspiracy to commit a misdemeanor is a class C misdemeanor.
361	361	Sec. 7. K.S.A. 21-5303 is hereby amended to read as follows: 21-
362	362	5303. (a) Criminal solicitation is commanding, encouraging or requesting
363	363	another person to commit a felony, attempt to commit a felony or aid and
364	364	abet in the commission or attempted commission of a felony for the
365	365	purpose of promoting or facilitating the felony.
366	366	(b) It is immaterial under subsection (a) that the actor fails to
367	367	communicate with the person solicited to commit a felony if the person's
368	368	conduct was designed to effect a communication.
369	369	(c) It is an affirmative defense that the actor, after soliciting another
370	370	person to commit a felony, persuaded that person not to do so or otherwise
371	371	prevented the commission of the felony, under circumstances manifesting
372	372	a complete and voluntary renunciation of the actor's criminal purposes.
373	373	(d) (1) Criminal solicitation to commit an off-grid felony shall be
374	374	ranked at nondrug severity level 3. Criminal solicitation to commit any
375	375	other nondrug felony shall be ranked on the nondrug scale at three severity
376	376	levels below the appropriate level for the underlying or completed crime.
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420	420	The lowest severity level for criminal solicitation to commit a nondrug
421	421	felony shall be a severity level 10.
422	422	(2) The provisions of this subsection shall not apply to a violation of
423	423	criminal solicitation to commit the crime of:
424	424	(A) Aggravated human trafficking, as defined in K.S.A. 21-5426(b),
425	425	and amendments thereto, if the offender is 18 years of age or older and the
426	426	victim is less than 14 years of age;
427	427	(B) terrorism, as defined in K.S.A. 21-5421, and amendments thereto;
428	428	(C) illegal use of weapons of mass destruction, as defined in K.S.A.
429	429	21-5422, and amendments thereto;
430	430	(D) rape, as defined in K.S.A. 21-5503(a)(3), and amendments
431	431	thereto, if the offender is 18 years of age or older;
432	432	(E) aggravated indecent liberties with a child, as defined in K.S.A.
433	433	21-5506(b)(3), and amendments thereto, if the offender is 18 years of age
434	434	or older;
435	435	(F) aggravated criminal sodomy, as defined in K.S.A. 21-5504(b)(1)
436	436	or (2), and amendments thereto, if the offender is 18 years of age or older;
437	437	(G) commercial sexual exploitation of a child, as defined in K.S.A.
438	438	21-6422, and amendments thereto, if the offender is 18 years of age or
439	439	older and the victim is less than 14 years of age;
440	440	(H) sexual exploitation of a child, as defined in K.S.A. 21-5510(a)(1)
441	441	or (4), and amendments thereto, if the offender is 18 years of age or older
442	442	and the child is less than 14 years of age; or
443	443	(I) aggravated internet trading in child pornography, as defined in
444	444	K.S.A. 21-5514(b), and amendments thereto, if the offender is 18 years of
445	445	age or older and the child is less than 14 years of age; or
446	446	(J) unlawful performance of an abortion, as defined in section 4(a),
447	447	and amendments thereto, or unlawful destruction of a fertilized embryo, as
448	448	defined in section 4(b), and amendments thereto.
449	449	(e) Criminal solicitation to commit a felony which that prescribes a
450	450	sentence on the drug grid shall reduce the prison term prescribed in the
451	451	drug grid block for an underlying or completed crime by six months.
452	452	Sec. 8. K.S.A. 2024 Supp. 60-1901 is hereby amended to read as
453	453	follows: 60-1901. (a) If the death of a person is caused by the wrongful act
454	454	or omission of another, an action may be maintained for the damages
455	455	resulting therefrom and for punitive or exemplary damages if the former
456	456	might have maintained the action had such person lived, in accordance
457	457	with the provisions of this article, against the wrongdoer, or such
458	458	wrongdoer's personal representative if such wrongdoer is deceased.
459	459	(b) As used in article 19 of chapter 60 of the Kansas Statutes
460	460	Annotated, and amendments thereto, the term "person" includes an unborn
461	461	child.
462	462	(c) As used in this section, the term "unborn child" means a living
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506	506	individual organism of the species homo sapiens, in utero, at any stage of
507	507	gestation from fertilization to birth means the same as defined in section 4,
508	508	and amendments thereto.
509	509	(d) The provisions of this section shall not apply to a wrongful death
510	510	action if the death is of an unborn child by means of:
511	511	(1) Any act committed by the mother of the unborn child;
512	512	(2) any lawful medical procedure performed by a physician or other
513	513	licensed medical professional at the request of the pregnant woman or her
514	514	legal guardian;
515	515	(3) the lawful dispensation or administration of lawfully prescribed
516	516	medication; or
517	517	(4) a legal abortion an act performed as described in section 4(e),
518	518	and amendments thereto.
519	519	(e) If any provision or clause of this act or application thereof to any
520	520	person or circumstance is held invalid, such invalidity shall not affect other
521	521	provisions or applications of the act which that can be given effect without
522	522	the invalid provision or application, and to this end the provisions of this
523	523	act are declared to be severable.
524	524	Sec. 9. K.S.A. 2024 Supp. 60-1906 is hereby amended to read as
525	525	follows: 60-1906. (a) No civil action may be commenced in any court for a
526	526	claim of wrongful life or wrongful birth, and no damages may be
527	527	recovered in any civil action for any physical condition of a minor that
528	528	existed at the time of such minor's birth if the damages sought arise out of
529	529	a claim that a person's action or omission contributed to such minor's
530	530	mother not obtaining an abortion.
531	531	(b) Nothing in this section shall be deemed to create any new cause of
532	532	action, nor preclude any otherwise proper cause of action based on a claim
533	533	that, but for a person's wrongful action or omission, the death or physical
534	534	injury of the mother would not have occurred, or the handicap, disease or
535	535	disability of an individual prior to birth would have been prevented, cured
536	536	or ameliorated in a manner that preserved the health and life of such
537	537	individual.
538	538	(c) If any provision or clause of this act or application thereof to any
539	539	person or circumstance is held invalid, such invalidity shall not affect other
540	540	provisions or applications of the act which that can be given effect without
541	541	the invalid provision or application, and to this end the provisions of this
542	542	act are declared to be severable.
543	543	(d) As used in this section:
544	544	(1) "Abortion" has the same meaning as such term is means the same
545	545	as defined in K.S.A. 65-6701 section 4, and amendments thereto.
546	546	(2) "Claim of wrongful birth" means a cause of action brought by a
547	547	parent, legal guardian or other individual legally required to provide for
548	548	the support of a minor, which that seeks damages, whether economic or
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592	592	noneconomic, as a result of a physical condition of such minor that existed
593	593	at the time of such minor's birth, and which is based on a claim that a
594	594	person's action or omission contributed to such minor's mother not
595	595	obtaining an abortion.
596	596	(3) "Claim of wrongful life" means a cause of action brought by, or
597	597	on behalf of, a minor, which that seeks damages, whether economic or
598	598	noneconomic, for such minor as a result of a physical condition of such
599	599	minor that existed at the time of such minor's birth, and which is based on
600	600	a claim that a person's action or omission contributed to such minor's
601	601	mother not obtaining an abortion.
602	602	Sec. 10. K.S.A. 2024 Supp. 65-2401 is hereby amended to read as
603	603	follows: 65-2401. As used in this act:
604	604	(a) "Vital statistics" includes the registration, preparation,
605	605	transcription, collection, compilation, and preservation of data pertaining
606	606	to birth, adoption, legitimation, death, stillbirth, marriage, divorce,
607	607	annulment of marriage, induced termination of pregnancy, and data
608	608	incidental thereto.
609	609	(b) "Live birth" means the complete expulsion or extraction from its
610	610	mother of a human child, irrespective of the duration of pregnancy, which
611	611	that, after such expulsion or extraction, breathes or shows any other
612	612	evidence of life such as beating of the heart, pulsation of the umbilical
613	613	cord, or definite movement of voluntary muscles, whether or not the
614	614	umbilical cord has been cut or the placenta is attached.
615	615	(c) "Gestational age" means the age of the human child as measured
616	616	in weeks as determined by either the last date of the mother's menstrual
617	617	period, a sonogram conducted prior to the 20
618	618	th
619	619	week of pregnancy or the
620	620	confirmed known date of conception.
621	621	(d) "Stillbirth" means any complete expulsion or extraction from its
622	622	mother of a human child the gestational age of which is not less than 20
623	623	completed weeks, resulting in other than a live birth, as defined in this
624	624	section, and which that is not an induced termination of pregnancy.
625	625	(e) "Induced termination of pregnancy" means abortion, as defined in
626	626	K.S.A. 65-6701 section 4, and amendments thereto.
627	627	(f) "Dead body" means a lifeless human body or such parts of a
628	628	human body or the bones thereof from the state of which it reasonably may
629	629	be concluded that death recently occurred.
630	630	(g) "Person in charge of interment" means any person who places or
631	631	causes to be placed a stillborn child or dead body or the ashes, after
632	632	cremation, in a grave, vault, urn or other receptacle, or otherwise disposes
633	633	thereof.
634	634	(h) "Secretary" means the secretary of health and environment.
635	635	(i) "Cause of death certifier" means a person licensed to practice
636	636	medicine and surgery by the state board of healing arts, a physician
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680	680	assistant licensed by the state board of healing arts, an advanced practice
681	681	registered nurse licensed by the state board of nursing or a district coroner,
682	682	deputy coroner or special deputy coroner.
683	683	(j) "Employee" means a person who has applied for employment or is
684	684	currently employed in the office of vital statistics.
685	685	Sec. 11. K.S.A. 65-2837 is hereby amended to read as follows: 65-
686	686	2837. As used in K.S.A. 65-2836, and amendments thereto, and in this
687	687	section:
688	688	(a) "Professional incompetency" means:
689	689	(1) One or more instances involving failure to adhere to the
690	690	applicable standard of care to a degree that constitutes gross negligence, as
691	691	determined by the board.
692	692	(2) Repeated instances involving failure to adhere to the applicable
693	693	standard of care to a degree that constitutes ordinary negligence, as
694	694	determined by the board.
695	695	(3) A pattern of practice or other behavior that demonstrates a
696	696	manifest incapacity or incompetence to practice the healing arts.
697	697	(b) "Unprofessional conduct" means:
698	698	(1) Solicitation of professional patronage through the use of
699	699	fraudulent or false advertisements, or profiting by the acts of those
700	700	representing themselves to be agents of the licensee.
701	701	(2) Representing to a patient that a manifestly incurable disease,
702	702	condition or injury can be permanently cured.
703	703	(3) Assisting in the care or treatment of a patient without the consent
704	704	of the patient, the attending physician or the patient's legal representatives.
705	705	(4) The use of any letters, words or terms as an affix, on stationery, in
706	706	advertisements or otherwise indicating that such person is entitled to
707	707	practice a branch of the healing arts for which such person is not licensed.
708	708	(5) Performing, procuring or aiding and abetting in the performance
709	709	or procurement of a criminal an abortion.
710	710	(6) Willful betrayal of confidential information.
711	711	(7) Advertising professional superiority or the performance of
712	712	professional services in a superior manner.
713	713	(8) Advertising to guarantee any professional service or to perform
714	714	any operation painlessly.
715	715	(9) Participating in any action as a staff member of a medical care
716	716	facility that is designed to exclude or that results in the exclusion of any
717	717	person licensed to practice medicine and surgery from the medical staff of
718	718	a nonprofit medical care facility licensed in this state because of the
719	719	branch of the healing arts practiced by such person or without just cause.
720	720	(10) Failure to effectuate the declaration of a qualified patient as
721	721	provided in K.S.A. 65-28,107(a), and amendments thereto.
722	722	(11) Prescribing, ordering, dispensing, administering, selling,
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766	766	supplying or giving any amphetamines or sympathomimetic amines,
767	767	except as authorized by K.S.A. 65-2837a, and amendments thereto.
768	768	(12) Conduct likely to deceive, defraud or harm the public.
769	769	(13) Making a false or misleading statement regarding the licensee's
770	770	skill or the efficacy or value of the drug, treatment or remedy prescribed
771	771	by the licensee or at the licensee's direction in the treatment of any disease
772	772	or other condition of the body or mind.
773	773	(14) Aiding or abetting the practice of the healing arts by an
774	774	unlicensed, incompetent or impaired person.
775	775	(15) Allowing another person or organization to use the licensee's
776	776	license to practice the healing arts.
777	777	(16) Commission of any act of sexual abuse, misconduct or other
778	778	improper sexual contact that exploits the licensee-patient relationship with
779	779	a patient or a person responsible for health care healthcare decisions
780	780	concerning such patient.
781	781	(17) The use of any false, fraudulent or deceptive statement in any
782	782	document connected with the practice of the healing arts including the
783	783	intentional falsifying or fraudulent altering of a patient or medical care
784	784	facility record.
785	785	(18) Obtaining any fee by fraud, deceit or misrepresentation.
786	786	(19) Directly or indirectly giving or receiving any fee, commission,
787	787	rebate or other compensation for professional services not actually and
788	788	personally rendered, other than through the legal functioning of lawful
789	789	professional partnerships, corporations, limited liability companies or
790	790	associations.
791	791	(20) Failure to transfer patient records to another licensee when
792	792	requested to do so by the subject patient or by such patient's legally
793	793	designated representative.
794	794	(21) Performing unnecessary tests, examinations or services that have
795	795	no legitimate medical purpose.
796	796	(22) Charging an excessive fee for services rendered.
797	797	(23) Prescribing, dispensing, administering or distributing a
798	798	prescription drug or substance, including a controlled substance, in an
799	799	improper or inappropriate manner, or for other than a valid medical
800	800	purpose, or not in the course of the licensee's professional practice.
801	801	(24) Repeated failure to practice healing arts with that level of care,
802	802	skill and treatment that is recognized by a reasonably prudent similar
803	803	practitioner as being acceptable under similar conditions and
804	804	circumstances.
805	805	(25) Failure to keep written medical records that accurately describe
806	806	the services rendered to the patient, including patient histories, pertinent
807	807	findings, examination results and test results.
808	808	(26) Delegating professional responsibilities to a person when the
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852	852	licensee knows or has reason to know that such person is not qualified by
853	853	training, experience or licensure to perform them.
854	854	(27) Using experimental forms of therapy without proper informed
855	855	patient consent, without conforming to generally accepted criteria or
856	856	standard protocols, without keeping detailed legible records or without
857	857	having periodic analysis of the study and results reviewed by a committee
858	858	or peers.
859	859	(28) Prescribing, dispensing, administering or distributing an anabolic
860	860	steroid or human growth hormone for other than a valid medical purpose.
861	861	Bodybuilding, muscle enhancement or increasing muscle bulk or strength
862	862	through the use of an anabolic steroid or human growth hormone by a
863	863	person who is in good health is not a valid medical purpose.
864	864	(29) Referring a patient to a health care healthcare entity for services
865	865	if the licensee has a significant investment interest in the health care
866	866	healthcare entity, unless the licensee informs the patient in writing of such
867	867	significant investment interest and that the patient may obtain such
868	868	services elsewhere.
869	869	(30) Failing to properly supervise, direct or delegate acts that
870	870	constitute the healing arts to persons who perform professional services
871	871	pursuant to such licensee's direction, supervision, order, referral,
872	872	delegation or practice protocols.
873	873	(31) Violating K.S.A. 65-6703, and amendments thereto.
874	874	(32) Charging, billing or otherwise soliciting payment from any
875	875	patient, patient's representative or insurer for anatomic pathology services,
876	876	if such services are not personally rendered by the licensee or under such
877	877	licensee's direct supervision. As used in this subsection, "anatomic
878	878	pathology services" means the gross or microscopic examination of
879	879	histologic processing of human organ tissue or the examination of human
880	880	cells from fluids, aspirates, washings, brushings or smears, including blood
881	881	banking services, and subcellular or molecular pathology services,
882	882	performed by or under the supervision of a person licensed to practice
883	883	medicine and surgery or a clinical laboratory. Nothing in this subsection
884	884	shall be construed to prohibit billing for anatomic pathology services by:
885	885	(A) A hospital;
886	886	(B) a clinical laboratory when samples are transferred between
887	887	clinical laboratories for the provision of anatomic pathology services; or
888	888	(C) a physician providing services to a patient pursuant to a medical
889	889	retainer agreement in compliance with K.S.A. 65-4978, and amendments
890	890	thereto, when the bill to the patient for such services:
891	891	(i) Identifies the laboratory or physician that performed the services;
892	892	(ii) discloses in writing to the patient the actual amount charged by
893	893	the physician or laboratory that performed the service; and
894	894	(iii) is consistent with rules and regulations adopted by the board for
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937	937	43 HB 2010 12
938	938	appropriate billing standards applicable to such services when furnished
939	939	under these agreements.
940	940	(33) Engaging in conduct that violates patient trust and exploits the
941	941	licensee-patient relationship for personal gain.
942	942	(34) Obstructing a board investigation including, but not limited to,
943	943	engaging in one or more of the following acts:
944	944	(A) Falsifying or concealing a material fact;
945	945	(B) knowingly making or causing to be made any false or misleading
946	946	statement or writing; or
947	947	(C) other acts or conduct likely to deceive or defraud the board.
948	948	(c) "False advertisement" means any advertisement that is false,
949	949	misleading or deceptive in a material respect. In determining whether any
950	950	advertisement is misleading, there shall be taken into account not only
951	951	representations made or suggested by statement, word, design, device,
952	952	sound or any combination thereof, but also the extent to which the
953	953	advertisement fails to reveal facts material in the light of such
954	954	representations made.
955	955	(d) "Advertisement" means all representations disseminated in any
956	956	manner or by any means for the purpose of inducing, or that are likely to
957	957	induce, directly or indirectly, the purchase of professional services.
958	958	(e) "Licensee" for purposes of this section and K.S.A. 65-2836, and
959	959	amendments thereto, means all persons issued a license, permit or special
960	960	permit pursuant to article 28 of chapter 65 of the Kansas Statutes
961	961	Annotated, and amendments thereto.
962	962	(f) "License" for purposes of this section and K.S.A. 65-2836, and
963	963	amendments thereto, means any license, permit or special permit granted
964	964	under article 28 of chapter 65 of the Kansas Statutes Annotated, and
965	965	amendments thereto.
966	966	(g) "Health careHealthcare entity" means any corporation, firm,
967	967	partnership or other business entity that provides services for diagnosis or
968	968	treatment of human health conditions and that is owned separately from a
969	969	referring licensee's principle practice.
970	970	(h) "Significant investment interest" means ownership of at least 10%
971	971	of the value of the firm, partnership or other business entity that owns or
972	972	leases the health care healthcare entity, or ownership of at least 10% of the
973	973	shares of stock of the corporation that owns or leases the health care
974	974	healthcare entity.
975	975	Sec. 12. K.S.A. 65-6731 is hereby amended to read as follows: 65-
976	976	6731. As used in K.S.A. 65-6731 through 65-6738, and amendments
977	977	thereto:
978	978	(a) "Abortion" has the same meaning as such term is means the same
979	979	as defined in K.S.A. 65-6701 section 4, and amendments thereto.
980	980	(b) "Health benefit plan" means any hospital or medical expense
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1023	1023	43 HB 2010 13
1024	1024	policy, health, hospital or medical services corporation contract, and a plan
1025	1025	provided by a municipal group-funded pool, or a health maintenance
1026	1026	organization contract offered by any employer or any certificate issued
1027	1027	under any such policy, contract or plan.
1028	1028	(c) "Health careHealthcare entity" means an individual physician or
1029	1029	other health care healthcare professional, a hospital, a provider-sponsored
1030	1030	organization, a health maintenance organization or any other health care
1031	1031	healthcare facility or organization.
1032	1032	(d) "School district" means any public school district organized under
1033	1033	the laws of this state.
1034	1034	(e) "State agency" has the same meaning as such term is means the
1035	1035	same as defined in K.S.A. 75-3701, and amendments thereto.
1036	1036	Sec. 13. K.S.A. 65-6732 is hereby amended to read as follows: 65-
1037	1037	6732. (a) The legislature hereby finds and declares the following:
1038	1038	(1) The life of each human being begins at fertilization;
1039	1039	(2) unborn children have interests in life, health and well-being that
1040	1040	should be protected; and
1041	1041	(3) the parents of unborn children have protectable interests in the
1042	1042	life, health and well-being of the unborn children of such parents.
1043	1043	(b) On and after July 1, 2013, The laws of this state shall be
1044	1044	interpreted and construed to acknowledge on behalf of the unborn child at
1045	1045	every stage of development, all the rights, privileges and immunities
1046	1046	available to other persons, citizens and residents of this state, subject only
1047	1047	to as outlined in the constitution of the United States, and decisional
1048	1048	interpretations thereof by the United States supreme court and specific
1049	1049	provisions to the contrary in the Kansas the constitution of the state of
1050	1050	Kansas and the Kansas Statutes Annotated, and to treat as void and of no
1051	1051	effect all rulings of any district or appellate court of this state, rules and
1052	1052	regulations and executive orders that would deprive an unborn child of the
1053	1053	right to life.
1054	1054	(c) As used in this section:
1055	1055	(1) "Fertilization" means the fusion of a human spermatozoon with a
1056	1056	human ovum.
1057	1057	(2) "Unborn children" or "unborn child" shall include all unborn
1058	1058	children or the offspring of human beings from the moment of fertilization
1059	1059	until birth at every stage of biological development.
1060	1060	(d) Nothing in this section shall be construed as creating a cause of
1061	1061	action against a woman for indirectly harming her unborn child by failing
1062	1062	to properly care for herself or by failing to follow any particular program
1063	1063	of prenatal care.
1064	1064	Sec. 14. K.S.A. 65-67a01 is hereby amended to read as follows: 65-
1065	1065	67a01. As used in this act:
1066	1066	(a) "Abortion" means an abortion as defined by K.S.A. 65-6701 in
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1109	1109	43 HB 2010 14
1110	1110	section 4, and amendments thereto.
1111	1111	(b) (1) "Consideration" means:
1112	1112	(A) Any payment made or debt incurred;
1113	1113	(B) any gift, honorarium or recognition of value bestowed;
1114	1114	(C) any price, charge or fee which that is waived, forgiven, reduced
1115	1115	or indefinitely delayed;
1116	1116	(D) any loan or debt which that is canceled or otherwise forgiven; or
1117	1117	(E) the transfer of any item from one person to another or provision
1118	1118	of any service or granting of any opportunity for which a charge is
1119	1119	customarily made, without charge or for a reduced charge.
1120	1120	(2) "Consideration" shall not mean:
1121	1121	(A) A payment in an amount not to exceed $25 for the cost of
1122	1122	transporting, processing, preserving and storing fetal tissue; or
1123	1123	(B) a payment in an amount not to exceed the actual cost, as
1124	1124	documented by the delivery service, of transporting fetal tissue.
1125	1125	(c) "Delivery service" means a common carrier as defined by K.S.A.
1126	1126	66-105, and amendments thereto, or other person or entity used to
1127	1127	transport fetal tissue.
1128	1128	(d) "Fetal tissue" means any tissue, cells or organs obtained from a
1129	1129	dead human embryo or fetus after an abortion or after a miscarriage or a
1130	1130	stillbirth.
1131	1131	(e) "Person" means a person as defined by K.S.A. 65-425, and
1132	1132	amendments thereto.
1133	1133	(f) "Stillbirth" means a stillbirth as defined by K.S.A. 65-2401, and
1134	1134	amendments thereto.
1135	1135	Sec. 15. K.S.A. 65-67a02 is hereby amended to read as follows: 65-
1136	1136	67a02. Except as specifically provided by this act in K.S.A. 65-67a07, and
1137	1137	amendments thereto, nothing in this act shall be construed as either
1138	1138	permitting or prohibiting the use of fetal tissue for any type of scientific,
1139	1139	research, laboratory or other kind of experimentation either prior to or
1140	1140	subsequent to any abortion or miscarriage or stillbirth.
1141	1141	Sec. 16. K.S.A. 65-67a04 is hereby amended to read as follows: 65-
1142	1142	67a04. (a) No person shall solicit, offer, knowingly acquire or accept or
1143	1143	transfer any fetal tissue for consideration.
1144	1144	(b) No person shall solicit, offer or knowingly acquire or accept or
1145	1145	transfer any fetal tissue for the purpose of transplantation of such tissue
1146	1146	into another person if:
1147	1147	(1) The fetal tissue will be or is obtained pursuant to an abortion; and
1148	1148	(2) (A) the donation of such fetal tissue will be or is made pursuant to
1149	1149	a promise to the donating individual that the donated tissue will be
1150	1150	transplanted into a recipient specified by such donating individual;
1151	1151	(B) such fetal tissue will be transplanted into a relative of the
1152	1152	donating individual; or
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1196	1196	(C) the person who solicits or knowingly acquires or accepts the
1197	1197	donation of such fetal tissue has provided consideration for the costs
1198	1198	associated with such abortion.
1199	1199	(c) Any person who intentionally, knowingly or recklessly violates
1200	1200	this section shall be guilty of a severity level 2, nonperson felony.
1201	1201	Sec. 17. K.S.A. 65-67a07 is hereby amended to read as follows: 65-
1202	1202	67a07. (a) No person shall use fetal organs or tissue for medical, scientific,
1203	1203	experimental or therapeutic use without the voluntary and informed
1204	1204	consent of the woman donating such tissue. Such consent shall not be
1205	1205	discussed or obtained prior to obtaining the consent required under K.S.A.
1206	1206	65-6709, and amendments thereto mother or father of the unborn child
1207	1207	whose tissue is being donated.
1208	1208	(b) A person who intentionally, knowingly or recklessly violates this
1209	1209	section shall be guilty of a severity level 2, nonperson felony.
1210	1210	Sec. 18. K.S.A. 76-3308 is hereby amended to read as follows: 76-
1211	1211	3308.(a) The authority shall have all the powers necessary to carry out the
1212	1212	purposes and provisions of this act, including, without limitation, the
1213	1213	following powers to:
1214	1214	(1) Have the duties, privileges, immunities, rights, liabilities and
1215	1215	disabilities of a body corporate and a political instrumentality of the state;
1216	1216	(2) have perpetual existence and succession;
1217	1217	(3) adopt, have and use a seal and to alter the same at its pleasure;
1218	1218	(4) sue and be sued in its own name;
1219	1219	(5) make and execute contracts, guarantees or any other instruments
1220	1220	and agreements necessary or convenient for the exercise of its powers and
1221	1221	functions including, without limitation, to make and execute contracts with
1222	1222	hospitals or other health care healthcare businesses to operate and manage
1223	1223	any or all of the hospital facilities or operations and to incur liabilities and
1224	1224	secure the obligations of any entity or individual;
1225	1225	(6) borrow money and to issue bonds evidencing the same and pledge
1226	1226	all or any part of the authority's assets therefor;
1227	1227	(7) purchase, lease, trade, exchange or otherwise acquire, maintain,
1228	1228	hold, improve, mortgage, sell, lease and dispose of personal property,
1229	1229	whether tangible or intangible, and any interest therein; and to purchase,
1230	1230	lease, trade, exchange or otherwise acquire real property or any interest
1231	1231	therein, and to maintain, hold, improve, mortgage, lease and otherwise
1232	1232	transfer such real property, so long as such transactions do not conflict
1233	1233	with the mission of the authority as specified in this act;
1234	1234	(8) incur or assume indebtedness to, and enter into contracts with the
1235	1235	Kansas development finance authority, which is authorized to borrow
1236	1236	money and provide financing for the authority;
1237	1237	(9) develop policies and procedures generally applicable to the
1238	1238	procurement of goods, services and construction, based upon sound
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1282	1282	business practices;
1283	1283	(10) contract for and to accept any gifts, grants and loans of funds,
1284	1284	property, or any other aid in any form from the federal government, the
1285	1285	state, any state agency, or any other source, or any combination thereof,
1286	1286	and to comply with the provisions of the terms and conditions thereof;
1287	1287	(11) acquire space, equipment, services, supplies and insurance
1288	1288	necessary to carry out the purposes of this act;
1289	1289	(12) deposit any moneys of the authority in any banking institution
1290	1290	within or without the state or in any depository authorized to receive such
1291	1291	deposits, one or more persons to act as custodians of the moneys of the
1292	1292	authority, to give surety bonds in such amounts in form and for such
1293	1293	purposes as the board requires;
1294	1294	(13) procure such insurance, participate in such insurance plans or
1295	1295	provide such self insurance or both as it deems necessary or convenient to
1296	1296	carry out the purposes and provisions of this act; the purchase of
1297	1297	insurance, participation in an insurance plan or creation of a self-insurance
1298	1298	fund by the authority shall not be deemed as a waiver or relinquishment of
1299	1299	any sovereign immunity to which the authority or its officers, directors,
1300	1300	employees or agents are otherwise entitled;
1301	1301	(14) appoint, supervise and set the salary and compensation of a
1302	1302	president of the authority who shall be appointed by and serve at the
1303	1303	pleasure of the board;
1304	1304	(15) fix, revise, charge and collect rates, rentals, fees and other
1305	1305	charges for the services or facilities furnished by or on behalf of the
1306	1306	authority, and to establish policies and procedures regarding any such
1307	1307	service rendered for the use, occupancy or operation of any such facility;
1308	1308	such charges and policies and procedures not to be subject to supervision
1309	1309	or regulation by any commission, board, bureau or agency of the state; and
1310	1310	(16) do any and all things necessary or convenient to carry out the
1311	1311	authority's purposes and exercise the powers given in this act.
1312	1312	(b) The authority may create, own in whole or in part, or otherwise
1313	1313	acquire or dispose of any entity organized for a purpose related to or in
1314	1314	support of the mission of the authority.
1315	1315	(c) The authority may participate in joint ventures with individuals,
1316	1316	corporations, governmental bodies or agencies, partnerships, associations,
1317	1317	insurers or other entities to facilitate any activities or programs consistent
1318	1318	with the public purpose and intent of this act.
1319	1319	(d) The authority may create a nonprofit entity or entities for the
1320	1320	purpose of soliciting, accepting and administering grants, outright gifts and
1321	1321	bequests, endowment gifts and bequests and gifts and bequests in trust
1322	1322	which entity or entities shall not engage in trust business.
1323	1323	(e) In carrying out any activities authorized by this act, the authority
1324	1324	may provide appropriate assistance, including the making of loans and
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1367	1367	43 HB 2010 17
1368	1368	providing time of employees, to corporations, partnerships, associations,
1369	1369	joint ventures or other entities, whether or not such corporations,
1370	1370	partnerships, associations, joint ventures or other entities are owned or
1371	1371	controlled in whole or in part, directly or indirectly, by the authority.
1372	1372	(f) Effective with the transfer date, all moneys of the authority shall
1373	1373	be deposited in one or more banks or trust companies in one or more
1374	1374	special accounts. All banks and trust companies are authorized to give
1375	1375	security for such deposits if required by the authority. The moneys in such
1376	1376	accounts shall be paid out on a warrant or other orders of the treasurer of
1377	1377	the authority or any such other person or persons as the authority may
1378	1378	authorize to execute such warrants or orders.
1379	1379	(g) Notwithstanding any provision of law to the contrary, the
1380	1380	authority, effective with the transfer date, may invest the authority's
1381	1381	operating funds in any obligations or securities as authorized by the board.
1382	1382	The board shall adopt written investment guidelines.
1383	1383	(h) The authority is authorized to negotiate contracts with one or
1384	1384	more qualified parties to provide collection services. The selection of a
1385	1385	collection services provider shall be based on responses to a request for
1386	1386	proposals from qualified professional firms and shall be administered in
1387	1387	accordance with policies adopted by the board.
1388	1388	(i) Notwithstanding any provision of law to the contrary, no abortion,
1389	1389	as defined in section 4, and amendments thereto, shall be performed,
1390	1390	except in the event of a medical emergency, in any medical facility,
1391	1391	hospital or clinic owned, leased or operated by the authority. The
1392	1392	provisions of this subsection are not applicable to any member of the
1393	1393	physician faculty of the university of Kansas school of medicine when
1394	1394	such abortion is performed outside the scope of such member's
1395	1395	employment on property not owned, leased or operated by the authority.
1396	1396	As used in this subsection, "medical emergency" means a condition that, in
1397	1397	reasonable medical judgment, so complicates the medical condition of the
1398	1398	pregnant woman as to necessitate the immediate abortion of her pregnancy
1399	1399	to avert the death of the woman or for which a delay necessary to comply
1400	1400	with the applicable statutory requirements will create serious risk of
1401	1401	substantial and irreversible physical impairment of a major bodily
1402	1402	function. No condition shall be deemed a medical emergency if based on a
1403	1403	claim or diagnosis that the woman will engage in conduct which would
1404	1404	result in her death or in substantial and irreversible physical impairment of
1405	1405	a major bodily function.
1406	1406	Sec. 19. K.S.A. 2024 Supp. 79-32,182b is hereby amended to read as
1407	1407	follows: 79-32,182b. (a) For all taxable years commencing after December
1408	1408	31, 2022, a credit shall be allowed against the tax imposed by the Kansas
1409	1409	income tax act on the Kansas taxable income of a taxpayer for
1410	1410	expenditures in research and development activities conducted within this
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1453	1453	43 HB 2010 18
1454	1454	state in an amount equal to 10% of the amount by which the amount
1455	1455	expended for such activities in the taxable year of the taxpayer exceeds the
1456	1456	taxpayer's average of the actual expenditures for such purposes made in
1457	1457	such taxable year and the next preceding two taxable years.
1458	1458	(b) In any one taxable year, the amount of such credit allowable for
1459	1459	deduction from the taxpayer's tax liability shall not exceed 25% of the total
1460	1460	amount of such credit plus any applicable carry forward amount. The
1461	1461	amount by which that portion of the credit allowed by subsections (a) and
1462	1462	(b) to be claimed in any one taxable year exceeds the taxpayer's tax
1463	1463	liability in such year may be carried forward until the total amount of the
1464	1464	credit is used.
1465	1465	(c) As used in this section, the term "expenditures in research and
1466	1466	development activities" means expenditures made for such purposes, other
1467	1467	than expenditures of moneys made available to the taxpayer pursuant to
1468	1468	federal or state law, which that are treated as expenses allowable for
1469	1469	deduction under the provisions of the federal internal revenue code of
1470	1470	1986, as amended, except that for taxable years commencing after
1471	1471	December 31, 2013, expenditures in research and development activities
1472	1472	shall not include any expenditures for the performance of any abortion, as
1473	1473	defined in K.S.A. 65-6701 section 4, and amendments thereto.
1474	1474	(d) For tax year 2023 and all tax years thereafter, the income tax
1475	1475	credit allowed pursuant to this section shall be transferable by a taxpayer
1476	1476	without a current tax liability. The tax credit may be transferred to any
1477	1477	person and be claimed by the transferee as a credit against the transferee's
1478	1478	Kansas income tax liability in the tax year when it was transferred. The
1479	1479	credit shall be claimed and may be carried forward by the transferee as
1480	1480	provided and limited by subsection (b). No person shall be entitled to a
1481	1481	refund for the transferred tax credit. Only the full credit may be
1482	1482	transferred, and the credit may only be transferred one time.
1483	1483	Documentation of any credit acquired by transfer shall be provided by the
1484	1484	taxpayer or the transferee in the manner required by the secretary of
1485	1485	revenue.
1486	1486	Sec. 20. K.S.A. 79-32,195 is hereby amended to read as follows: 79-
1487	1487	32,195. As used in this act, the following words and phrases shall have the
1488	1488	meanings ascribed to them herein: (a) "Business firm" means any business
1489	1489	entity authorized to do business in the state of Kansas which that is subject
1490	1490	to the state income tax imposed by the provisions of the Kansas income
1491	1491	tax act, any individual subject to the state income tax imposed by the
1492	1492	provisions of the Kansas income tax act, any national banking association,
1493	1493	state bank, trust company or savings and loan association paying an annual
1494	1494	tax on its net income pursuant to article 11 of chapter 79 of the Kansas
1495	1495	Statutes Annotated, and amendments thereto, or any insurance company
1496	1496	paying the premium tax and privilege fees imposed pursuant to K.S.A. 40-
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1539	1539	43 HB 2010 19
1540	1540	252, and amendments thereto;
1541	1541	(b) "Community services" means:
1542	1542	(1) The conduct of activities which that meet a demonstrated
1543	1543	community need and which that are designed to achieve improved
1544	1544	educational and social services for Kansas children and their families, and
1545	1545	which that are coordinated with communities including, but not limited to,
1546	1546	social and human services organizations that address the causes of poverty
1547	1547	through programs and services that assist low income persons in the areas
1548	1548	of employment, food, housing, emergency assistance and health care
1549	1549	healthcare;
1550	1550	(2) crime prevention;
1551	1551	(3) health carehealthcare services; and
1552	1552	(4) youth apprenticeship and technical training.
1553	1553	(c) "Crime prevention" means any nongovernmental activity which
1554	1554	that aids in the prevention of crime.
1555	1555	(d) "Youth apprenticeship and technical training" means conduct of
1556	1556	activities which that are designed to improve the access to and quality of
1557	1557	apprenticeship and technical training which that support an emphasis on
1558	1558	rural construction projects as well as the necessary equipment, facilities
1559	1559	and supportive mentorship for youth apprenticeships and technical
1560	1560	training.
1561	1561	(e) "Community service organization" means any organization
1562	1562	performing community services in Kansas and which that:
1563	1563	(1) Has obtained a ruling from the internal revenue service of the
1564	1564	United States department of the treasury that such organization is exempt
1565	1565	from income taxation under the provisions of section 501(c)(3) of the
1566	1566	federal internal revenue code; or
1567	1567	(2) is incorporated in the state of Kansas or another state as a
1568	1568	nonstock, nonprofit corporation; or
1569	1569	(3) has been designated as a community development corporation by
1570	1570	the United States government under the provisions of title VII of the
1571	1571	economic opportunity act of 1964; or
1572	1572	(4) is chartered by the United States congress.
1573	1573	(f) "Contributions" shall mean and include means and includes the
1574	1574	donation of cash, services or property other than used clothing in an
1575	1575	amount or value of $250 or more. Stocks and bonds contributed shall be
1576	1576	valued at the stock market price on the date of transfer. Services
1577	1577	contributed shall be valued at the standard billing rate for not-for-profit
1578	1578	clients. Personal property items contributed shall be valued at the lesser of
1579	1579	its fair market value or cost to the donor and may be inclusive of costs
1580	1580	incurred in making the contribution, but shall not include sales tax.
1581	1581	Contributions of real estate are allowable for credit only when title thereto
1582	1582	is in fee simple absolute and is clear of any encumbrances. The amount of
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1626	1626	credit allowable shall be based upon the lesser of two current independent
1627	1627	appraisals conducted by state licensed appraisers.
1628	1628	(g) "Health careHealthcare services" shall include, but not be
1629	1629	includes, but is not limited to, the following: Services provided by local
1630	1630	health departments, city, county or district hospitals, city or county nursing
1631	1631	homes, or other residential institutions, preventive health care healthcare
1632	1632	services offered by a community service organization including
1633	1633	immunizations, prenatal care, the postponement of entry into nursing
1634	1634	homes by home health care healthcare services, and community based
1635	1635	services for persons with a disability, mental health services, indigent
1636	1636	health care healtcare, physician or health care healthcare worker
1637	1637	recruitment, health education, emergency medical services, services
1638	1638	provided by rural health clinics, integration of health care healthcare
1639	1639	services, home health services and services provided by rural health
1640	1640	networks, except that for taxable years commencing after December 31,
1641	1641	2013, health care "healthcare services shall" does not include any service
1642	1642	involving the performance of any abortion, as defined in K.S.A. 65-6701
1643	1643	section 4, and amendments thereto.
1644	1644	(h) "Rural community" means any city having a population of fewer
1645	1645	than 15,000 located in a county that is not part of a standard metropolitan
1646	1646	statistical area as defined by the United States department of commerce or
1647	1647	its successor agency. However, any such city located in a county defined
1648	1648	as a standard metropolitan statistical area shall be deemed a rural
1649	1649	community if a substantial number of persons in such county derive their
1650	1650	income from agriculture and, in any county where there is only one city
1651	1651	within the county which that has a population of more than 15,000 and
1652	1652	which that classifies as a standard metropolitan statistical area, all other
1653	1653	cities in that county having a population of less than 15,000 shall be
1654	1654	deemed a rural community.
1655	1655	Sec. 21. K.S.A. 2024 Supp. 79-32,261 is hereby amended to read as
1656	1656	follows: 79-32,261. (a) (1) On and after July 1, 2008, any taxpayer who
1657	1657	contributes in the manner prescribed by this paragraph to a community
1658	1658	college located in Kansas for capital improvements, to a technical college
1659	1659	for deferred maintenance or the purchase of technology or equipment or to
1660	1660	a postsecondary educational institution located in Kansas for deferred
1661	1661	maintenance, shall be allowed a credit against the tax imposed by the
1662	1662	Kansas income tax act, the premium tax or privilege fees imposed
1663	1663	pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as
1664	1664	measured by net income of financial institutions imposed pursuant to
1665	1665	article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments
1666	1666	thereto. The tax credit allowed by this paragraph is applicable for the tax
1667	1667	year 2008 for any contributions made on and after July 1, 2008, and for the
1668	1668	tax years 2009, 2010, 2011 and 2012 for any contributions made during
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1691	1691	23
1692	1692	24
1693	1693	25
1694	1694	26
1695	1695	27
1696	1696	28
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1699	1699	31
1700	1700	32
1701	1701	33
1702	1702	34
1703	1703	35
1704	1704	36
1705	1705	37
1706	1706	38
1707	1707	39
1708	1708	40
1709	1709	41
1710	1710	42
1711	1711	43 HB 2010 21
1712	1712	the entire tax year. The amount of the credit allowed by this paragraph
1713	1713	shall not exceed 60% of the total amount contributed during the taxable
1714	1714	year by the taxpayer to a community college or a technical college located
1715	1715	in Kansas for such purposes. The amount of the credit allowed by this
1716	1716	paragraph shall not exceed 50% of the total amount contributed during the
1717	1717	taxable year by the taxpayer to a postsecondary educational institution for
1718	1718	such purposes. If the amount of the credit allowed by this paragraph for a
1719	1719	taxpayer who contributes to a community college or a technical college
1720	1720	exceeds the taxpayer's income tax liability imposed by the Kansas income
1721	1721	tax act, such excess amount shall be refunded to the taxpayer. If the
1722	1722	amount of the tax credit for a taxpayer who contributes to a postsecondary
1723	1723	educational institution exceeds the taxpayer's income tax liability for the
1724	1724	taxable year, the amount which that exceeds the tax liability may be
1725	1725	carried over for deduction from the taxpayer's income tax liability in the
1726	1726	next succeeding taxable year or years until the total amount of the tax
1727	1727	credit has been deducted from tax liability, except that no such tax credit
1728	1728	shall be carried over for deduction after the third taxable year succeeding
1729	1729	the taxable year in which the contribution is made. Prior to the issuance of
1730	1730	any tax credits pursuant to this paragraph, the structure of the process in
1731	1731	which contributions received by a community college, a technical college
1732	1732	or a postsecondary educational institution qualify as tax credits allowed
1733	1733	and issued pursuant to this paragraph shall be developed by a community
1734	1734	college, a technical college and a postsecondary educational institution in
1735	1735	consultation with the secretary of revenue and the foundation or
1736	1736	endowment association of any such community college, technical college
1737	1737	or postsecondary educational institution in a manner that complies with
1738	1738	requirements specified in the federal internal revenue code of 1986, as
1739	1739	amended, so that contributions qualify as charitable contributions
1740	1740	allowable as deductions from federal adjusted gross income.
1741	1741	(2) On and after July 1, 2022, any taxpayer who contributes in the
1742	1742	manner prescribed by this paragraph to a community college or technical
1743	1743	college located in Kansas for capital improvements, deferred maintenance
1744	1744	or the purchase of technology or equipment shall be allowed a credit
1745	1745	against the tax imposed by the Kansas income tax act, the premium tax or
1746	1746	privilege fees imposed pursuant to K.S.A. 40-252, and amendments
1747	1747	thereto, or the privilege tax as measured by net income of financial
1748	1748	institutions imposed pursuant to article 11 of chapter 79 of the Kansas
1749	1749	Statutes Annotated, and amendments thereto. The tax credit allowed by
1750	1750	this paragraph is applicable for the tax year 2022 for any contributions
1751	1751	made on and after July 1, 2022, and for the tax years 2023, 2024, 2025 and
1752	1752	2026 for any contributions made during the entire tax year. The amount of
1753	1753	the credit allowed by this paragraph shall equal 60% of the total amount
1754	1754	contributed during the taxable year by the taxpayer to a community college
1755	1755	1
1756	1756	2
1757	1757	3
1758	1758	4
1759	1759	5
1760	1760	6
1761	1761	7
1762	1762	8
1763	1763	9
1764	1764	10
1765	1765	11
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1767	1767	13
1768	1768	14
1769	1769	15
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1774	1774	20
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1787	1787	33
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1789	1789	35
1790	1790	36
1791	1791	37
1792	1792	38
1793	1793	39
1794	1794	40
1795	1795	41
1796	1796	42
1797	1797	43 HB 2010 22
1798	1798	or a technical college located in Kansas for such purposes. Prior to the
1799	1799	issuance of any tax credits pursuant to this paragraph, the structure of the
1800	1800	process in which contributions received by a community college or
1801	1801	technical college qualify as tax credits allowed and issued pursuant to this
1802	1802	paragraph shall be developed by a community college and technical
1803	1803	college in consultation with the secretary of revenue and the foundation or
1804	1804	endowment association of any such community college or technical
1805	1805	college in a manner that complies with requirements specified in the
1806	1806	federal internal revenue code of 1986, as amended, so that contributions
1807	1807	qualify as charitable contributions allowable as deductions from federal
1808	1808	adjusted gross income.
1809	1809	(b) (1) Upon receipt of any contributions to a community college
1810	1810	made pursuant to the provisions of subsection (a)(1), the treasurer of the
1811	1811	community college shall deposit such contributions to the credit of the
1812	1812	capital outlay fund of such community college established as provided by
1813	1813	K.S.A. 71-501a, and amendments thereto. Expenditures from such fund
1814	1814	shall be made for the purposes described in K.S.A. 71-501(a), and
1815	1815	amendments thereto, except that expenditures shall not be made from such
1816	1816	fund for new construction or the acquisition of real property for use as
1817	1817	building sites or for educational programs.
1818	1818	(2) Upon receipt of any contributions to a technical college made
1819	1819	pursuant to the provisions of subsection (a)(1), such contributions shall be
1820	1820	deposited to the credit of a deferred maintenance fund or a technology and
1821	1821	equipment fund established by the technical college which received the
1822	1822	contribution. Expenditures from such fund shall be made only for the
1823	1823	purpose as provided in subsection (b)(1).
1824	1824	(3) Upon receipt of any such contributions to a postsecondary
1825	1825	educational institution made pursuant to the provisions of subsection (a)
1826	1826	(1), such contributions shall be deposited to the credit of the appropriate
1827	1827	deferred maintenance support fund of the postsecondary educational
1828	1828	institution that received the contribution. Expenditures from such fund
1829	1829	shall be made only for the purposes designated for such fund pursuant to
1830	1830	law.
1831	1831	(4) Upon receipt of any such contributions to a community college or
1832	1832	technical college made pursuant to the provisions of subsection (a)(2), the
1833	1833	treasurer of the community college or technical college shall deposit such
1834	1834	contributions to the credit of the capital outlay fund of such community
1835	1835	college or technical college established as provided by K.S.A. 71-501a,
1836	1836	and amendments thereto. Expenditures from such fund shall be made for
1837	1837	the purposes designated for such fund pursuant to law.
1838	1838	(c) (1) In no event shall the total amount of credits allowed under
1839	1839	subsection (a)(1) for taxpayers who contribute to any one such community
1840	1840	college or technical college exceed the following amounts: For the tax year
1841	1841	1
1842	1842	2
1843	1843	3
1844	1844	4
1845	1845	5
1846	1846	6
1847	1847	7
1848	1848	8
1849	1849	9
1850	1850	10
1851	1851	11
1852	1852	12
1853	1853	13
1854	1854	14
1855	1855	15
1856	1856	16
1857	1857	17
1858	1858	18
1859	1859	19
1860	1860	20
1861	1861	21
1862	1862	22
1863	1863	23
1864	1864	24
1865	1865	25
1866	1866	26
1867	1867	27
1868	1868	28
1869	1869	29
1870	1870	30
1871	1871	31
1872	1872	32
1873	1873	33
1874	1874	34
1875	1875	35
1876	1876	36
1877	1877	37
1878	1878	38
1879	1879	39
1880	1880	40
1881	1881	41
1882	1882	42
1883	1883	43 HB 2010 23
1884	1884	2008, an amount not to exceed $78,125; for the tax year 2009, an amount
1885	1885	not to exceed $156,250; and for the tax years 2010, 2011 and 2012, an
1886	1886	amount not to exceed $208,233.33.
1887	1887	(2) In no event shall the total of credits allowed under subsection (a)
1888	1888	(1) for taxpayers who contribute to postsecondary educational institutions
1889	1889	exceed the following amounts: For the tax year 2008, an amount not to
1890	1890	exceed $5,625,000; for the tax year 2009, an amount not to exceed
1891	1891	$11,250,000; and for the tax years 2010, 2011 and 2012, an amount not to
1892	1892	exceed $15,000,000. Except as otherwise provided, the allocation of such
1893	1893	tax credits for each individual state educational institution shall be
1894	1894	determined by the state board of regents in consultation with the secretary
1895	1895	of revenue and the university foundation or endowment association of
1896	1896	each postsecondary educational institution, and such determination shall
1897	1897	be completed prior to the issuance of any tax credits pursuant to subsection
1898	1898	(a)(1). Not more than 40% of the total of credits allowed under subsection
1899	1899	(a)(1) shall be allocated to any one postsecondary educational institution
1900	1900	unless all such postsecondary educational institutions approve an
1901	1901	allocation to any one such postsecondary educational institution which
1902	1902	that exceeds 40% of the total of such credits allowed under subsection (a)
1903	1903	(1).
1904	1904	(3) For the tax years 2022 through 2026, the amount of such credit
1905	1905	awarded under subsection (a)(2) for each taxpayer shall not exceed
1906	1906	$250,000 per tax year.
1907	1907	(4) In no event shall the total of credits allowed under subsection (a)
1908	1908	(2) for contributions to any one community college or technical college
1909	1909	exceed $500,000 per tax year.
1910	1910	(5) In no event shall the total of credits allowed under subsection (a)
1911	1911	(2) exceed $5,000,000 for each tax year that the credit remains in effect.
1912	1912	(d) As used in this section: (1) "Community college" means a
1913	1913	community college established under the provisions of the community
1914	1914	college act;
1915	1915	(2) "deferred maintenance" means the maintenance, repair,
1916	1916	reconstruction or rehabilitation of a building located at a technical college
1917	1917	or a postsecondary educational institution which that has been deferred,
1918	1918	any utility systems relating to such building, any life-safety upgrades to
1919	1919	such building and any improvements necessary to be made to such
1920	1920	building in order to comply with the requirements of the Americans with
1921	1921	disabilities act or other federal or state law, except that for taxable years
1922	1922	commencing after December 31, 2013, deferred maintenance shall not
1923	1923	include any maintenance, repair, reconstruction or rehabilitation of any
1924	1924	building in which any abortion, as defined in K.S.A. 65-6701 section 4,
1925	1925	and amendments thereto, is performed;
1926	1926	(3) "postsecondary educational institution" means the university of
1927	1927	1
1928	1928	2
1929	1929	3
1930	1930	4
1931	1931	5
1932	1932	6
1933	1933	7
1934	1934	8
1935	1935	9
1936	1936	10
1937	1937	11
1938	1938	12
1939	1939	13
1940	1940	14
1941	1941	15
1942	1942	16
1943	1943	17
1944	1944	18
1945	1945	19
1946	1946	20
1947	1947	21
1948	1948	22
1949	1949	23
1950	1950	24
1951	1951	25
1952	1952	26
1953	1953	27
1954	1954	28
1955	1955	29
1956	1956	30
1957	1957	31
1958	1958	32
1959	1959	33
1960	1960	34
1961	1961	35
1962	1962	36
1963	1963	37
1964	1964	38
1965	1965	39
1966	1966	40
1967	1967	41
1968	1968	42
1969	1969	43 HB 2010 24
1970	1970	Kansas, Kansas state university of agriculture and applied science, Wichita
1971	1971	state university, Emporia state university, Pittsburg state university, Fort
1972	1972	Hays state university and Washburn university of Topeka; and
1973	1973	(4) "technical college" means a technical college as designated
1974	1974	pursuant to K.S.A. 74-32,458, 74-32,460, 74-32,461, 74-32,462, 74-
1975	1975	32,464 and 74-32,465, and amendments thereto, and the institute of
1976	1976	technology at Washburn university.
1977	1977	(e) (1) Any taxpayer not subject to Kansas income, privilege or
1978	1978	premiums tax who contributes to a community college, technical college
1979	1979	or postsecondary educational institution, hereinafter designated the
1980	1980	transferor, may sell, assign, convey or otherwise transfer tax credits
1981	1981	allowed and earned pursuant to this section. The sale price of a tax credit
1982	1982	shall be at least 50% of the full value of the credit. Such credit shall be
1983	1983	deemed to be allowed and earned by any such taxpayer which that is only
1984	1984	disqualified therefrom by reason of not being subject to such Kansas taxes.
1985	1985	The taxpayer acquiring earned credits, hereinafter designated the
1986	1986	transferee, may use the amount of the acquired credits to offset up to 100%
1987	1987	of the taxpayer's income, privilege or premiums tax liability for the taxable
1988	1988	year in which such acquisition was made. Such credits may be sold or
1989	1989	transferred only one time and, if sold or transferred, shall be transferred in
1990	1990	the tax year such credit is earned or the two successive tax years. A
1991	1991	transferred credit shall be claimed in the year purchased. The transferor
1992	1992	shall enter into a written agreement with the transferee establishing the
1993	1993	terms and conditions of the sale or transfer and shall perfect such transfer
1994	1994	by notifying the secretary of revenue in writing within 30 calendar days
1995	1995	following the effective date of the transfer, subject to the review and
1996	1996	approval or denial of such transfer by the secretary of revenue. The
1997	1997	transferor and transferee shall provide any information pertaining to the
1998	1998	sale or transfer as may be required by the secretary of revenue to
1999	1999	administer and carry out the provisions of this section. The amount
2000	2000	received by the transferor of such tax credit shall be taxable as income of
2001	2001	the transferor, and the excess of the value of such credit over the amount
2002	2002	paid by the transferee for such credit shall be taxable as income of the
2003	2003	transferee.
2004	2004	(2) The provisions of this subsection shall not apply to tax credits
2005	2005	earned pursuant to subsection (a)(2).
2006	2006	(f) The secretary of revenue shall submit an annual report to the
2007	2007	legislature to assist the legislature in the evaluation of the utilization of any
2008	2008	credits claimed pursuant to this act, including information specific as to
2009	2009	each community college, technical college or postsecondary educational
2010	2010	institution. Such report shall be due on or before the first day of the
2011	2011	legislative session following the tax year in which the credits were
2012	2012	claimed.
2013	2013	1
2014	2014	2
2015	2015	3
2016	2016	4
2017	2017	5
2018	2018	6
2019	2019	7
2020	2020	8
2021	2021	9
2022	2022	10
2023	2023	11
2024	2024	12
2025	2025	13
2026	2026	14
2027	2027	15
2028	2028	16
2029	2029	17
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2032	2032	20
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2049	2049	37
2050	2050	38
2051	2051	39
2052	2052	40
2053	2053	41
2054	2054	42
2055	2055	43 HB 2010 25
2056	2056	(g) The secretary of revenue shall adopt rules and regulations
2057	2057	necessary to administer the provisions of this section.
2058	2058	Sec. 22. K.S.A. 2024 Supp. 79-3606 is hereby amended to read as
2059	2059	follows: 79-3606. The following shall be exempt from the tax imposed by
2060	2060	this act:
2061	2061	(a) All sales of motor-vehicle fuel or other articles upon which a sales
2062	2062	or excise tax has been paid, not subject to refund, under the laws of this
2063	2063	state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
2064	2064	3301, and amendments thereto, including consumable material for such
2065	2065	electronic cigarettes, cereal malt beverages and malt products as defined
2066	2066	by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
2067	2067	malt syrup and malt extract, that is not subject to taxation under the
2068	2068	provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
2069	2069	taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
2070	2070	pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
2071	2071	laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
2072	2072	thereto, and gross receipts from regulated sports contests taxed pursuant to
2073	2073	the Kansas professional regulated sports act, and amendments thereto;
2074	2074	(b) all sales of tangible personal property or service, including the
2075	2075	renting and leasing of tangible personal property, purchased directly by the
2076	2076	state of Kansas, a political subdivision thereof, other than a school or
2077	2077	educational institution, or purchased by a public or private nonprofit
2078	2078	hospital, public hospital authority, nonprofit blood, tissue or organ bank or
2079	2079	nonprofit integrated community care organization and used exclusively for
2080	2080	state, political subdivision, hospital, public hospital authority, nonprofit
2081	2081	blood, tissue or organ bank or nonprofit integrated community care
2082	2082	organization purposes, except when: (1) Such state, hospital or public
2083	2083	hospital authority is engaged or proposes to engage in any business
2084	2084	specifically taxable under the provisions of this act and such items of
2085	2085	tangible personal property or service are used or proposed to be used in
2086	2086	such business; or (2) such political subdivision is engaged or proposes to
2087	2087	engage in the business of furnishing gas, electricity or heat to others and
2088	2088	such items of personal property or service are used or proposed to be used
2089	2089	in such business;
2090	2090	(c) all sales of tangible personal property or services, including the
2091	2091	renting and leasing of tangible personal property, purchased directly by a
2092	2092	public or private elementary or secondary school or public or private
2093	2093	nonprofit educational institution and used primarily by such school or
2094	2094	institution for nonsectarian programs and activities provided or sponsored
2095	2095	by such school or institution or in the erection, repair or enlargement of
2096	2096	buildings to be used for such purposes. The exemption herein provided
2097	2097	shall not apply to erection, construction, repair, enlargement or equipment
2098	2098	of buildings used primarily for human habitation, except that such
2099	2099	1
2100	2100	2
2101	2101	3
2102	2102	4
2103	2103	5
2104	2104	6
2105	2105	7
2106	2106	8
2107	2107	9
2108	2108	10
2109	2109	11
2110	2110	12
2111	2111	13
2112	2112	14
2113	2113	15
2114	2114	16
2115	2115	17
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2117	2117	19
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2119	2119	21
2120	2120	22
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2123	2123	25
2124	2124	26
2125	2125	27
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2127	2127	29
2128	2128	30
2129	2129	31
2130	2130	32
2131	2131	33
2132	2132	34
2133	2133	35
2134	2134	36
2135	2135	37
2136	2136	38
2137	2137	39
2138	2138	40
2139	2139	41
2140	2140	42
2141	2141	43 HB 2010 26
2142	2142	exemption shall apply to the erection, construction, repair, enlargement or
2143	2143	equipment of buildings used for human habitation by the cerebral palsy
2144	2144	research foundation of Kansas located in Wichita, Kansas, multi
2145	2145	community diversified services, incorporated, located in McPherson,
2146	2146	Kansas, the Kansas state school for the blind and the Kansas state school
2147	2147	for the deaf;
2148	2148	(d) all sales of tangible personal property or services purchased by a
2149	2149	contractor for the purpose of constructing, equipping, reconstructing,
2150	2150	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2151	2151	any public or private nonprofit hospital or public hospital authority, public
2152	2152	or private elementary or secondary school, a public or private nonprofit
2153	2153	educational institution, state correctional institution including a privately
2154	2154	constructed correctional institution contracted for state use and ownership,
2155	2155	that would be exempt from taxation under the provisions of this act if
2156	2156	purchased directly by such hospital or public hospital authority, school,
2157	2157	educational institution or a state correctional institution; and all sales of
2158	2158	tangible personal property or services purchased by a contractor for the
2159	2159	purpose of constructing, equipping, reconstructing, maintaining, repairing,
2160	2160	enlarging, furnishing or remodeling facilities for any political subdivision
2161	2161	of the state or district described in subsection (s), the total cost of which is
2162	2162	paid from funds of such political subdivision or district and that would be
2163	2163	exempt from taxation under the provisions of this act if purchased directly
2164	2164	by such political subdivision or district. Nothing in this subsection or in
2165	2165	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
2166	2166	deemed to exempt the purchase of any construction machinery, equipment
2167	2167	or tools used in the constructing, equipping, reconstructing, maintaining,
2168	2168	repairing, enlarging, furnishing or remodeling facilities for any political
2169	2169	subdivision of the state or any such district. As used in this subsection,
2170	2170	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
2171	2171	political subdivision" shall mean general tax revenues, the proceeds of any
2172	2172	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
2173	2173	purpose of constructing, equipping, reconstructing, repairing, enlarging,
2174	2174	furnishing or remodeling facilities that are to be leased to the donor. When
2175	2175	any political subdivision of the state, district described in subsection (s),
2176	2176	public or private nonprofit hospital or public hospital authority, public or
2177	2177	private elementary or secondary school, public or private nonprofit
2178	2178	educational institution, state correctional institution including a privately
2179	2179	constructed correctional institution contracted for state use and ownership
2180	2180	shall contract for the purpose of constructing, equipping, reconstructing,
2181	2181	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
2182	2182	shall obtain from the state and furnish to the contractor an exemption
2183	2183	certificate for the project involved, and the contractor may purchase
2184	2184	materials for incorporation in such project. The contractor shall furnish the
2185	2185	1
2186	2186	2
2187	2187	3
2188	2188	4
2189	2189	5
2190	2190	6
2191	2191	7
2192	2192	8
2193	2193	9
2194	2194	10
2195	2195	11
2196	2196	12
2197	2197	13
2198	2198	14
2199	2199	15
2200	2200	16
2201	2201	17
2202	2202	18
2203	2203	19
2204	2204	20
2205	2205	21
2206	2206	22
2207	2207	23
2208	2208	24
2209	2209	25
2210	2210	26
2211	2211	27
2212	2212	28
2213	2213	29
2214	2214	30
2215	2215	31
2216	2216	32
2217	2217	33
2218	2218	34
2219	2219	35
2220	2220	36
2221	2221	37
2222	2222	38
2223	2223	39
2224	2224	40
2225	2225	41
2226	2226	42
2227	2227	43 HB 2010 27
2228	2228	number of such certificate to all suppliers from whom such purchases are
2229	2229	made, and such suppliers shall execute invoices covering the same bearing
2230	2230	the number of such certificate. Upon completion of the project the
2231	2231	contractor shall furnish to the political subdivision, district described in
2232	2232	subsection (s), hospital or public hospital authority, school, educational
2233	2233	institution or department of corrections concerned a sworn statement, on a
2234	2234	form to be provided by the director of taxation, that all purchases so made
2235	2235	were entitled to exemption under this subsection. As an alternative to the
2236	2236	foregoing procedure, any such contracting entity may apply to the
2237	2237	secretary of revenue for agent status for the sole purpose of issuing and
2238	2238	furnishing project exemption certificates to contractors pursuant to rules
2239	2239	and regulations adopted by the secretary establishing conditions and
2240	2240	standards for the granting and maintaining of such status. All invoices
2241	2241	shall be held by the contractor for a period of five years and shall be
2242	2242	subject to audit by the director of taxation. If any materials purchased
2243	2243	under such a certificate are found not to have been incorporated in the
2244	2244	building or other project or not to have been returned for credit or the sales
2245	2245	or compensating tax otherwise imposed upon such materials that will not
2246	2246	be so incorporated in the building or other project reported and paid by
2247	2247	such contractor to the director of taxation not later than the 20
2248	2248	th
2249	2249	day of the
2250	2250	month following the close of the month in which it shall be determined
2251	2251	that such materials will not be used for the purpose for which such
2252	2252	certificate was issued, the political subdivision, district described in
2253	2253	subsection (s), hospital or public hospital authority, school, educational
2254	2254	institution or the contractor contracting with the department of corrections
2255	2255	for a correctional institution concerned shall be liable for tax on all
2256	2256	materials purchased for the project, and upon payment thereof it may
2257	2257	recover the same from the contractor together with reasonable attorney
2258	2258	fees. Any contractor or any agent, employee or subcontractor thereof, who
2259	2259	shall use or otherwise dispose of any materials purchased under such a
2260	2260	certificate for any purpose other than that for which such a certificate is
2261	2261	issued without the payment of the sales or compensating tax otherwise
2262	2262	imposed upon such materials, shall be guilty of a misdemeanor and, upon
2263	2263	conviction therefor, shall be subject to the penalties provided for in K.S.A.
2264	2264	79-3615(h), and amendments thereto;
2265	2265	(e) all sales of tangible personal property or services purchased by a
2266	2266	contractor for the erection, repair or enlargement of buildings or other
2267	2267	projects for the government of the United States, its agencies or
2268	2268	instrumentalities, that would be exempt from taxation if purchased directly
2269	2269	by the government of the United States, its agencies or instrumentalities.
2270	2270	When the government of the United States, its agencies or
2271	2271	instrumentalities shall contract for the erection, repair, or enlargement of
2272	2272	any building or other project, it shall obtain from the state and furnish to
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2315	2315	43 HB 2010 28
2316	2316	the contractor an exemption certificate for the project involved, and the
2317	2317	contractor may purchase materials for incorporation in such project. The
2318	2318	contractor shall furnish the number of such certificates to all suppliers
2319	2319	from whom such purchases are made, and such suppliers shall execute
2320	2320	invoices covering the same bearing the number of such certificate. Upon
2321	2321	completion of the project the contractor shall furnish to the government of
2322	2322	the United States, its agencies or instrumentalities concerned a sworn
2323	2323	statement, on a form to be provided by the director of taxation, that all
2324	2324	purchases so made were entitled to exemption under this subsection. As an
2325	2325	alternative to the foregoing procedure, any such contracting entity may
2326	2326	apply to the secretary of revenue for agent status for the sole purpose of
2327	2327	issuing and furnishing project exemption certificates to contractors
2328	2328	pursuant to rules and regulations adopted by the secretary establishing
2329	2329	conditions and standards for the granting and maintaining of such status.
2330	2330	All invoices shall be held by the contractor for a period of five years and
2331	2331	shall be subject to audit by the director of taxation. Any contractor or any
2332	2332	agent, employee or subcontractor thereof, who shall use or otherwise
2333	2333	dispose of any materials purchased under such a certificate for any purpose
2334	2334	other than that for which such a certificate is issued without the payment
2335	2335	of the sales or compensating tax otherwise imposed upon such materials,
2336	2336	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
2337	2337	subject to the penalties provided for in K.S.A. 79-3615(h), and
2338	2338	amendments thereto;
2339	2339	(f) tangible personal property purchased by a railroad or public utility
2340	2340	for consumption or movement directly and immediately in interstate
2341	2341	commerce;
2342	2342	(g) sales of aircraft including remanufactured and modified aircraft
2343	2343	sold to persons using directly or through an authorized agent such aircraft
2344	2344	as certified or licensed carriers of persons or property in interstate or
2345	2345	foreign commerce under authority of the laws of the United States or any
2346	2346	foreign government or sold to any foreign government or agency or
2347	2347	instrumentality of such foreign government and all sales of aircraft for use
2348	2348	outside of the United States and sales of aircraft repair, modification and
2349	2349	replacement parts and sales of services employed in the remanufacture,
2350	2350	modification and repair of aircraft;
2351	2351	(h) all rentals of nonsectarian textbooks by public or private
2352	2352	elementary or secondary schools;
2353	2353	(i) the lease or rental of all films, records, tapes, or any type of sound
2354	2354	or picture transcriptions used by motion picture exhibitors;
2355	2355	(j) meals served without charge or food used in the preparation of
2356	2356	such meals to employees of any restaurant, eating house, dining car, hotel,
2357	2357	drugstore or other place where meals or drinks are regularly sold to the
2358	2358	public if such employees' duties are related to the furnishing or sale of
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2401	2401	43 HB 2010 29
2402	2402	such meals or drinks;
2403	2403	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
2404	2404	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
2405	2405	delivered in this state to a bona fide resident of another state, which motor
2406	2406	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
2407	2407	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
2408	2408	remain in this state more than 10 days;
2409	2409	(l) all isolated or occasional sales of tangible personal property,
2410	2410	services, substances or things, except isolated or occasional sale of motor
2411	2411	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
2412	2412	amendments thereto;
2413	2413	(m) all sales of tangible personal property that become an ingredient
2414	2414	or component part of tangible personal property or services produced,
2415	2415	manufactured or compounded for ultimate sale at retail within or without
2416	2416	the state of Kansas; and any such producer, manufacturer or compounder
2417	2417	may obtain from the director of taxation and furnish to the supplier an
2418	2418	exemption certificate number for tangible personal property for use as an
2419	2419	ingredient or component part of the property or services produced,
2420	2420	manufactured or compounded;
2421	2421	(n) all sales of tangible personal property that is consumed in the
2422	2422	production, manufacture, processing, mining, drilling, refining or
2423	2423	compounding of tangible personal property, the treating of by-products or
2424	2424	wastes derived from any such production process, the providing of
2425	2425	services or the irrigation of crops for ultimate sale at retail within or
2426	2426	without the state of Kansas; and any purchaser of such property may
2427	2427	obtain from the director of taxation and furnish to the supplier an
2428	2428	exemption certificate number for tangible personal property for
2429	2429	consumption in such production, manufacture, processing, mining,
2430	2430	drilling, refining, compounding, treating, irrigation and in providing such
2431	2431	services;
2432	2432	(o) all sales of animals, fowl and aquatic plants and animals, the
2433	2433	primary purpose of which is use in agriculture or aquaculture, as defined in
2434	2434	K.S.A. 47-1901, and amendments thereto, the production of food for
2435	2435	human consumption, the production of animal, dairy, poultry or aquatic
2436	2436	plant and animal products, fiber or fur, or the production of offspring for
2437	2437	use for any such purpose or purposes;
2438	2438	(p) all sales of drugs dispensed pursuant to a prescription order by a
2439	2439	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
2440	2440	1626, and amendments thereto. As used in this subsection, "drug" means a
2441	2441	compound, substance or preparation and any component of a compound,
2442	2442	substance or preparation, other than food and food ingredients, dietary
2443	2443	supplements or alcoholic beverages, recognized in the official United
2444	2444	States pharmacopeia, official homeopathic pharmacopoeia of the United
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2487	2487	43 HB 2010 30
2488	2488	States or official national formulary, and supplement to any of them,
2489	2489	intended for use in the diagnosis, cure, mitigation, treatment or prevention
2490	2490	of disease or intended to affect the structure or any function of the body,
2491	2491	except that for taxable years commencing after December 31, 2013, this
2492	2492	subsection shall not apply to any sales of drugs used in the performance or
2493	2493	induction of an abortion, as defined in K.S.A. 65-6701 section 4, and
2494	2494	amendments thereto;
2495	2495	(q) all sales of insulin dispensed by a person licensed by the state
2496	2496	board of pharmacy to a person for treatment of diabetes at the direction of
2497	2497	a person licensed to practice medicine by the state board of healing arts;
2498	2498	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
2499	2499	enteral feeding systems, prosthetic devices and mobility enhancing
2500	2500	equipment prescribed in writing by a person licensed to practice the
2501	2501	healing arts, dentistry or optometry, and in addition to such sales, all sales
2502	2502	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
2503	2503	and repair and replacement parts therefor, including batteries, by a person
2504	2504	licensed in the practice of dispensing and fitting hearing aids pursuant to
2505	2505	the provisions of K.S.A. 74-5808, and amendments thereto. For the
2506	2506	purposes of this subsection: (1) "Mobility enhancing equipment" means
2507	2507	equipment including repair and replacement parts to same, but does not
2508	2508	include durable medical equipment, which that is primarily and
2509	2509	customarily used to provide or increase the ability to move from one place
2510	2510	to another and which is appropriate for use either in a home or a motor
2511	2511	vehicle; is not generally used by persons with normal mobility; and does
2512	2512	not include any motor vehicle or equipment on a motor vehicle normally
2513	2513	provided by a motor vehicle manufacturer; and (2) "prosthetic device"
2514	2514	means a replacement, corrective or supportive device including repair and
2515	2515	replacement parts for same worn on or in the body to artificially replace a
2516	2516	missing portion of the body, prevent or correct physical deformity or
2517	2517	malfunction or support a weak or deformed portion of the body;
2518	2518	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
2519	2519	all sales of tangible personal property or services purchased directly or
2520	2520	indirectly by a groundwater management district organized or operating
2521	2521	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
2522	2522	by a rural water district organized or operating under the authority of
2523	2523	K.S.A. 82a-612, and amendments thereto, or by a water supply district
2524	2524	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
2525	2525	3522 et seq. or 19-3545, and amendments thereto, which property or
2526	2526	services are used in the construction activities, operation or maintenance of
2527	2527	the district;
2528	2528	(t) all sales of farm machinery and equipment or aquaculture
2529	2529	machinery and equipment, repair and replacement parts therefor and
2530	2530	services performed in the repair and maintenance of such machinery and
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2573	2573	43 HB 2010 31
2574	2574	equipment. For the purposes of this subsection the term "farm machinery
2575	2575	and equipment or aquaculture machinery and equipment" shall include a
2576	2576	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
2577	2577	thereto, and is equipped with a bed or cargo box for hauling materials, and
2578	2578	shall also include machinery and equipment used in the operation of
2579	2579	Christmas tree farming but shall not include any passenger vehicle, truck,
2580	2580	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
2581	2581	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
2582	2582	machinery and equipment" includes precision farming equipment that is
2583	2583	portable or is installed or purchased to be installed on farm machinery and
2584	2584	equipment. "Precision farming equipment" includes the following items
2585	2585	used only in computer-assisted farming, ranching or aquaculture
2586	2586	production operations: Soil testing sensors, yield monitors, computers,
2587	2587	monitors, software, global positioning and mapping systems, guiding
2588	2588	systems, modems, data communications equipment and any necessary
2589	2589	mounting hardware, wiring and antennas. Each purchaser of farm
2590	2590	machinery and equipment or aquaculture machinery and equipment
2591	2591	exempted herein must certify in writing on the copy of the invoice or sales
2592	2592	ticket to be retained by the seller that the farm machinery and equipment
2593	2593	or aquaculture machinery and equipment purchased will be used only in
2594	2594	farming, ranching or aquaculture production. Farming or ranching shall
2595	2595	include the operation of a feedlot and farm and ranch work for hire and the
2596	2596	operation of a nursery;
2597	2597	(u) all leases or rentals of tangible personal property used as a
2598	2598	dwelling if such tangible personal property is leased or rented for a period
2599	2599	of more than 28 consecutive days;
2600	2600	(v) all sales of tangible personal property to any contractor for use in
2601	2601	preparing meals for delivery to homebound elderly persons over 60 years
2602	2602	of age and to homebound disabled persons or to be served at a group-
2603	2603	sitting at a location outside of the home to otherwise homebound elderly
2604	2604	persons over 60 years of age and to otherwise homebound disabled
2605	2605	persons, as all or part of any food service project funded in whole or in
2606	2606	part by government or as part of a private nonprofit food service project
2607	2607	available to all such elderly or disabled persons residing within an area of
2608	2608	service designated by the private nonprofit organization, and all sales of
2609	2609	tangible personal property for use in preparing meals for consumption by
2610	2610	indigent or homeless individuals whether or not such meals are consumed
2611	2611	at a place designated for such purpose, and all sales of food products by or
2612	2612	on behalf of any such contractor or organization for any such purpose;
2613	2613	(w) all sales of natural gas, electricity, heat and water delivered
2614	2614	through mains, lines or pipes: (1) To residential premises for
2615	2615	noncommercial use by the occupant of such premises; (2) for agricultural
2616	2616	use and also, for such use, all sales of propane gas; (3) for use in the
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2659	2659	43 HB 2010 32
2660	2660	severing of oil; and (4) to any property which that is exempt from property
2661	2661	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
2662	2662	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
2663	2663	and amendments thereto. For all sales of natural gas, electricity and heat
2664	2664	delivered through mains, lines or pipes pursuant to the provisions of
2665	2665	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
2666	2666	on December 31, 2005;
2667	2667	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
2668	2668	for the production of heat or lighting for noncommercial use of an
2669	2669	occupant of residential premises occurring prior to January 1, 2006;
2670	2670	(y) all sales of materials and services used in the repairing, servicing,
2671	2671	altering, maintaining, manufacturing, remanufacturing, or modification of
2672	2672	railroad rolling stock for use in interstate or foreign commerce under
2673	2673	authority of the laws of the United States;
2674	2674	(z) all sales of tangible personal property and services purchased
2675	2675	directly by a port authority or by a contractor therefor as provided by the
2676	2676	provisions of K.S.A. 12-3418, and amendments thereto;
2677	2677	(aa) all sales of materials and services applied to equipment that is
2678	2678	transported into the state from without the state for repair, service,
2679	2679	alteration, maintenance, remanufacture or modification and that is
2680	2680	subsequently transported outside the state for use in the transmission of
2681	2681	liquids or natural gas by means of pipeline in interstate or foreign
2682	2682	commerce under authority of the laws of the United States;
2683	2683	(bb) all sales of used mobile homes or manufactured homes. As used
2684	2684	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
2685	2685	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
2686	2686	"sales of used mobile homes or manufactured homes" means sales other
2687	2687	than the original retail sale thereof;
2688	2688	(cc) all sales of tangible personal property or services purchased prior
2689	2689	to January 1, 2012, except as otherwise provided, for the purpose of and in
2690	2690	conjunction with constructing, reconstructing, enlarging or remodeling a
2691	2691	business or retail business that meets the requirements established in
2692	2692	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
2693	2693	machinery and equipment purchased for installation at any such business
2694	2694	or retail business, and all sales of tangible personal property or services
2695	2695	purchased on or after January 1, 2012, for the purpose of and in
2696	2696	conjunction with constructing, reconstructing, enlarging or remodeling a
2697	2697	business that meets the requirements established in K.S.A. 74-50,115(e),
2698	2698	and amendments thereto, and the sale and installation of machinery and
2699	2699	equipment purchased for installation at any such business. When a person
2700	2700	shall contract for the construction, reconstruction, enlargement or
2701	2701	remodeling of any such business or retail business, such person shall
2702	2702	obtain from the state and furnish to the contractor an exemption certificate
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2745	2745	43 HB 2010 33
2746	2746	for the project involved, and the contractor may purchase materials,
2747	2747	machinery and equipment for incorporation in such project. The contractor
2748	2748	shall furnish the number of such certificates to all suppliers from whom
2749	2749	such purchases are made, and such suppliers shall execute invoices
2750	2750	covering the same bearing the number of such certificate. Upon
2751	2751	completion of the project the contractor shall furnish to the owner of the
2752	2752	business or retail business a sworn statement, on a form to be provided by
2753	2753	the director of taxation, that all purchases so made were entitled to
2754	2754	exemption under this subsection. All invoices shall be held by the
2755	2755	contractor for a period of five years and shall be subject to audit by the
2756	2756	director of taxation. Any contractor or any agent, employee or
2757	2757	subcontractor thereof, who shall use or otherwise dispose of any materials,
2758	2758	machinery or equipment purchased under such a certificate for any
2759	2759	purpose other than that for which such a certificate is issued without the
2760	2760	payment of the sales or compensating tax otherwise imposed thereon, shall
2761	2761	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
2762	2762	to the penalties provided for in K.S.A. 79-3615(h), and amendments
2763	2763	thereto. As used in this subsection, "business" and "retail business" mean
2764	2764	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
2765	2765	exemption certificates that have been previously issued under this
2766	2766	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
2767	2767	and amendments thereto, but not including K.S.A. 74-50,115(e), and
2768	2768	amendments thereto, prior to January 1, 2012, and have not expired will be
2769	2769	effective for the term of the project or two years from the effective date of
2770	2770	the certificate, whichever occurs earlier. Project exemption certificates that
2771	2771	are submitted to the department of revenue prior to January 1, 2012, and
2772	2772	are found to qualify will be issued a project exemption certificate that will
2773	2773	be effective for a two-year period or for the term of the project, whichever
2774	2774	occurs earlier;
2775	2775	(dd) all sales of tangible personal property purchased with food
2776	2776	stamps issued by the United States department of agriculture;
2777	2777	(ee) all sales of lottery tickets and shares made as part of a lottery
2778	2778	operated by the state of Kansas;
2779	2779	(ff) on and after July 1, 1988, all sales of new mobile homes or
2780	2780	manufactured homes to the extent of 40% of the gross receipts, determined
2781	2781	without regard to any trade-in allowance, received from such sale. As used
2782	2782	in this subsection, "mobile homes" and "manufactured homes" mean the
2783	2783	same as defined in K.S.A. 58-4202, and amendments thereto;
2784	2784	(gg) all sales of tangible personal property purchased in accordance
2785	2785	with vouchers issued pursuant to the federal special supplemental food
2786	2786	program for women, infants and children;
2787	2787	(hh) all sales of medical supplies and equipment, including durable
2788	2788	medical equipment, purchased directly by a nonprofit skilled nursing home
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2831	2831	43 HB 2010 34
2832	2832	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
2833	2833	and amendments thereto, for the purpose of providing medical services to
2834	2834	residents thereof. This exemption shall not apply to tangible personal
2835	2835	property customarily used for human habitation purposes. As used in this
2836	2836	subsection, "durable medical equipment" means equipment including
2837	2837	repair and replacement parts for such equipment, that can withstand
2838	2838	repeated use, is primarily and customarily used to serve a medical purpose,
2839	2839	generally is not useful to a person in the absence of illness or injury and is
2840	2840	not worn in or on the body, but does not include mobility enhancing
2841	2841	equipment as defined in subsection (r), oxygen delivery equipment, kidney
2842	2842	dialysis equipment or enteral feeding systems;
2843	2843	(ii) all sales of tangible personal property purchased directly by a
2844	2844	nonprofit organization for nonsectarian comprehensive multidiscipline
2845	2845	youth development programs and activities provided or sponsored by such
2846	2846	organization, and all sales of tangible personal property by or on behalf of
2847	2847	any such organization. This exemption shall not apply to tangible personal
2848	2848	property customarily used for human habitation purposes;
2849	2849	(jj) all sales of tangible personal property or services, including the
2850	2850	renting and leasing of tangible personal property, purchased directly on
2851	2851	behalf of a community-based facility for people with intellectual disability
2852	2852	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
2853	2853	amendments thereto, and licensed in accordance with the provisions of
2854	2854	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
2855	2855	personal property or services purchased by contractors during the time
2856	2856	period from July, 2003, through June, 2006, for the purpose of
2857	2857	constructing, equipping, maintaining or furnishing a new facility for a
2858	2858	community-based facility for people with intellectual disability or mental
2859	2859	health center located in Riverton, Cherokee County, Kansas, that would
2860	2860	have been eligible for sales tax exemption pursuant to this subsection if
2861	2861	purchased directly by such facility or center. This exemption shall not
2862	2862	apply to tangible personal property customarily used for human habitation
2863	2863	purposes;
2864	2864	(kk) (1) (A) all sales of machinery and equipment that are used in this
2865	2865	state as an integral or essential part of an integrated production operation
2866	2866	by a manufacturing or processing plant or facility;
2867	2867	(B) all sales of installation, repair and maintenance services
2868	2868	performed on such machinery and equipment; and
2869	2869	(C) all sales of repair and replacement parts and accessories
2870	2870	purchased for such machinery and equipment.
2871	2871	(2) For purposes of this subsection:
2872	2872	(A) "Integrated production operation" means an integrated series of
2873	2873	operations engaged in at a manufacturing or processing plant or facility to
2874	2874	process, transform or convert tangible personal property by physical,
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2917	2917	43 HB 2010 35
2918	2918	chemical or other means into a different form, composition or character
2919	2919	from that in which it originally existed. Integrated production operations
2920	2920	shall include: (i) Production line operations, including packaging
2921	2921	operations; (ii) preproduction operations to handle, store and treat raw
2922	2922	materials; (iii) post production handling, storage, warehousing and
2923	2923	distribution operations; and (iv) waste, pollution and environmental
2924	2924	control operations, if any;
2925	2925	(B) "production line" means the assemblage of machinery and
2926	2926	equipment at a manufacturing or processing plant or facility where the
2927	2927	actual transformation or processing of tangible personal property occurs;
2928	2928	(C) "manufacturing or processing plant or facility" means a single,
2929	2929	fixed location owned or controlled by a manufacturing or processing
2930	2930	business that consists of one or more structures or buildings in a
2931	2931	contiguous area where integrated production operations are conducted to
2932	2932	manufacture or process tangible personal property to be ultimately sold at
2933	2933	retail. Such term shall not include any facility primarily operated for the
2934	2934	purpose of conveying or assisting in the conveyance of natural gas,
2935	2935	electricity, oil or water. A business may operate one or more manufacturing
2936	2936	or processing plants or facilities at different locations to manufacture or
2937	2937	process a single product of tangible personal property to be ultimately sold
2938	2938	at retail;
2939	2939	(D) "manufacturing or processing business" means a business that
2940	2940	utilizes an integrated production operation to manufacture, process,
2941	2941	fabricate, finish or assemble items for wholesale and retail distribution as
2942	2942	part of what is commonly regarded by the general public as an industrial
2943	2943	manufacturing or processing operation or an agricultural commodity
2944	2944	processing operation. (i) Industrial manufacturing or processing operations
2945	2945	include, by way of illustration but not of limitation, the fabrication of
2946	2946	automobiles, airplanes, machinery or transportation equipment, the
2947	2947	fabrication of metal, plastic, wood or paper products, electricity power
2948	2948	generation, water treatment, petroleum refining, chemical production,
2949	2949	wholesale bottling, newspaper printing, ready mixed concrete production,
2950	2950	and the remanufacturing of used parts for wholesale or retail sale. Such
2951	2951	processing operations shall include operations at an oil well, gas well,
2952	2952	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
2953	2953	sand or gravel that has been extracted from the earth is cleaned, separated,
2954	2954	crushed, ground, milled, screened, washed or otherwise treated or prepared
2955	2955	before its transmission to a refinery or before any other wholesale or retail
2956	2956	distribution. (ii) Agricultural commodity processing operations include, by
2957	2957	way of illustration but not of limitation, meat packing, poultry slaughtering
2958	2958	and dressing, processing and packaging farm and dairy products in sealed
2959	2959	containers for wholesale and retail distribution, feed grinding, grain
2960	2960	milling, frozen food processing, and grain handling, cleaning, blending,
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3003	3003	43 HB 2010 36
3004	3004	fumigation, drying and aeration operations engaged in by grain elevators
3005	3005	or other grain storage facilities. (iii) Manufacturing or processing
3006	3006	businesses do not include, by way of illustration but not of limitation,
3007	3007	nonindustrial businesses whose operations are primarily retail and that
3008	3008	produce or process tangible personal property as an incidental part of
3009	3009	conducting the retail business, such as retailers who bake, cook or prepare
3010	3010	food products in the regular course of their retail trade, grocery stores,
3011	3011	meat lockers and meat markets that butcher or dress livestock or poultry in
3012	3012	the regular course of their retail trade, contractors who alter, service, repair
3013	3013	or improve real property, and retail businesses that clean, service or
3014	3014	refurbish and repair tangible personal property for its owner;
3015	3015	(E) "repair and replacement parts and accessories" means all parts
3016	3016	and accessories for exempt machinery and equipment, including, but not
3017	3017	limited to, dies, jigs, molds, patterns and safety devices that are attached to
3018	3018	exempt machinery or that are otherwise used in production, and parts and
3019	3019	accessories that require periodic replacement such as belts, drill bits,
3020	3020	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
3021	3021	other refractory items for exempt kiln equipment used in production
3022	3022	operations;
3023	3023	(F) "primary" or "primarily" mean more than 50% of the time.
3024	3024	(3) For purposes of this subsection, machinery and equipment shall
3025	3025	be deemed to be used as an integral or essential part of an integrated
3026	3026	production operation when used to:
3027	3027	(A) Receive, transport, convey, handle, treat or store raw materials in
3028	3028	preparation of its placement on the production line;
3029	3029	(B) transport, convey, handle or store the property undergoing
3030	3030	manufacturing or processing at any point from the beginning of the
3031	3031	production line through any warehousing or distribution operation of the
3032	3032	final product that occurs at the plant or facility;
3033	3033	(C) act upon, effect, promote or otherwise facilitate a physical change
3034	3034	to the property undergoing manufacturing or processing;
3035	3035	(D) guide, control or direct the movement of property undergoing
3036	3036	manufacturing or processing;
3037	3037	(E) test or measure raw materials, the property undergoing
3038	3038	manufacturing or processing or the finished product, as a necessary part of
3039	3039	the manufacturer's integrated production operations;
3040	3040	(F) plan, manage, control or record the receipt and flow of inventories
3041	3041	of raw materials, consumables and component parts, the flow of the
3042	3042	property undergoing manufacturing or processing and the management of
3043	3043	inventories of the finished product;
3044	3044	(G) produce energy for, lubricate, control the operating of or
3045	3045	otherwise enable the functioning of other production machinery and
3046	3046	equipment and the continuation of production operations;
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3089	3089	43 HB 2010 37
3090	3090	(H) package the property being manufactured or processed in a
3091	3091	container or wrapping in which such property is normally sold or
3092	3092	transported;
3093	3093	(I) transmit or transport electricity, coke, gas, water, steam or similar
3094	3094	substances used in production operations from the point of generation, if
3095	3095	produced by the manufacturer or processor at the plant site, to that
3096	3096	manufacturer's production operation; or, if purchased or delivered from
3097	3097	off-site, from the point where the substance enters the site of the plant or
3098	3098	facility to that manufacturer's production operations;
3099	3099	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
3100	3100	solvents or other substances that are used in production operations;
3101	3101	(K) provide and control an environment required to maintain certain
3102	3102	levels of air quality, humidity or temperature in special and limited areas
3103	3103	of the plant or facility, where such regulation of temperature or humidity is
3104	3104	part of and essential to the production process;
3105	3105	(L) treat, transport or store waste or other byproducts of production
3106	3106	operations at the plant or facility; or
3107	3107	(M) control pollution at the plant or facility where the pollution is
3108	3108	produced by the manufacturing or processing operation.
3109	3109	(4) The following machinery, equipment and materials shall be
3110	3110	deemed to be exempt even though it may not otherwise qualify as
3111	3111	machinery and equipment used as an integral or essential part of an
3112	3112	integrated production operation: (A) Computers and related peripheral
3113	3113	equipment that are utilized by a manufacturing or processing business for
3114	3114	engineering of the finished product or for research and development or
3115	3115	product design; (B) machinery and equipment that is utilized by a
3116	3116	manufacturing or processing business to manufacture or rebuild tangible
3117	3117	personal property that is used in manufacturing or processing operations,
3118	3118	including tools, dies, molds, forms and other parts of qualifying machinery
3119	3119	and equipment; (C) portable plants for aggregate concrete, bulk cement
3120	3120	and asphalt including cement mixing drums to be attached to a motor
3121	3121	vehicle; (D) industrial fixtures, devices, support facilities and special
3122	3122	foundations necessary for manufacturing and production operations, and
3123	3123	materials and other tangible personal property sold for the purpose of
3124	3124	fabricating such fixtures, devices, facilities and foundations. An exemption
3125	3125	certificate for such purchases shall be signed by the manufacturer or
3126	3126	processor. If the fabricator purchases such material, the fabricator shall
3127	3127	also sign the exemption certificate; (E) a manufacturing or processing
3128	3128	business' laboratory equipment that is not located at the plant or facility,
3129	3129	but that would otherwise qualify for exemption under subsection (3)(E);
3130	3130	(F) all machinery and equipment used in surface mining activities as
3131	3131	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
3132	3132	from the time a reclamation plan is filed to the acceptance of the
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3175	3175	43 HB 2010 38
3176	3176	completed final site reclamation.
3177	3177	(5) "Machinery and equipment used as an integral or essential part of
3178	3178	an integrated production operation" shall not include:
3179	3179	(A) Machinery and equipment used for nonproduction purposes,
3180	3180	including, but not limited to, machinery and equipment used for plant
3181	3181	security, fire prevention, first aid, accounting, administration, record
3182	3182	keeping, advertising, marketing, sales or other related activities, plant
3183	3183	cleaning, plant communications and employee work scheduling;
3184	3184	(B) machinery, equipment and tools used primarily in maintaining
3185	3185	and repairing any type of machinery and equipment or the building and
3186	3186	plant;
3187	3187	(C) transportation, transmission and distribution equipment not
3188	3188	primarily used in a production, warehousing or material handling
3189	3189	operation at the plant or facility, including the means of conveyance of
3190	3190	natural gas, electricity, oil or water, and equipment related thereto, located
3191	3191	outside the plant or facility;
3192	3192	(D) office machines and equipment including computers and related
3193	3193	peripheral equipment not used directly and primarily to control or measure
3194	3194	the manufacturing process;
3195	3195	(E) furniture and other furnishings;
3196	3196	(F) buildings, other than exempt machinery and equipment that is
3197	3197	permanently affixed to or becomes a physical part of the building, and any
3198	3198	other part of real estate that is not otherwise exempt;
3199	3199	(G) building fixtures that are not integral to the manufacturing
3200	3200	operation, such as utility systems for heating, ventilation, air conditioning,
3201	3201	communications, plumbing or electrical;
3202	3202	(H) machinery and equipment used for general plant heating, cooling
3203	3203	and lighting;
3204	3204	(I) motor vehicles that are registered for operation on public
3205	3205	highways; or
3206	3206	(J) employee apparel, except safety and protective apparel that is
3207	3207	purchased by an employer and furnished gratuitously to employees who
3208	3208	are involved in production or research activities.
3209	3209	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
3210	3210	of the machinery and equipment that qualify or do not qualify as an
3211	3211	integral or essential part of an integrated production operation. When
3212	3212	machinery or equipment is used as an integral or essential part of
3213	3213	production operations part of the time and for nonproduction purposes at
3214	3214	other times, the primary use of the machinery or equipment shall
3215	3215	determine whether or not such machinery or equipment qualifies for
3216	3216	exemption.
3217	3217	(7) The secretary of revenue shall adopt rules and regulations
3218	3218	necessary to administer the provisions of this subsection;
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3261	3261	43 HB 2010 39
3262	3262	(ll) all sales of educational materials purchased for distribution to the
3263	3263	public at no charge by a nonprofit corporation organized for the purpose of
3264	3264	encouraging, fostering and conducting programs for the improvement of
3265	3265	public health, except that for taxable years commencing after December
3266	3266	31, 2013, this subsection shall not apply to any sales of such materials
3267	3267	purchased by a nonprofit corporation which performs any abortion, as
3268	3268	defined in K.S.A. 65-6701, and amendments thereto;
3269	3269	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
3270	3270	herbicides, germicides, pesticides and fungicides; and services, purchased
3271	3271	and used for the purpose of producing plants in order to prevent soil
3272	3272	erosion on land devoted to agricultural use;
3273	3273	(nn) except as otherwise provided in this act, all sales of services
3274	3274	rendered by an advertising agency or licensed broadcast station or any
3275	3275	member, agent or employee thereof;
3276	3276	(oo) all sales of tangible personal property purchased by a community
3277	3277	action group or agency for the exclusive purpose of repairing or
3278	3278	weatherizing housing occupied by low-income individuals;
3279	3279	(pp) all sales of drill bits and explosives actually utilized in the
3280	3280	exploration and production of oil or gas;
3281	3281	(qq) all sales of tangible personal property and services purchased by
3282	3282	a nonprofit museum or historical society or any combination thereof,
3283	3283	including a nonprofit organization that is organized for the purpose of
3284	3284	stimulating public interest in the exploration of space by providing
3285	3285	educational information, exhibits and experiences, that is exempt from
3286	3286	federal income taxation pursuant to section 501(c)(3) of the federal
3287	3287	internal revenue code of 1986;
3288	3288	(rr) all sales of tangible personal property that will admit the
3289	3289	purchaser thereof to any annual event sponsored by a nonprofit
3290	3290	organization that is exempt from federal income taxation pursuant to
3291	3291	section 501(c)(3) of the federal internal revenue code of 1986, except that
3292	3292	for taxable years commencing after December 31, 2013, this subsection
3293	3293	shall not apply to any sales of such tangible personal property purchased
3294	3294	by a nonprofit organization which performs any abortion, as defined in
3295	3295	K.S.A. 65-6701, and amendments thereto;
3296	3296	(ss) all sales of tangible personal property and services purchased by
3297	3297	a public broadcasting station licensed by the federal communications
3298	3298	commission as a noncommercial educational television or radio station;
3299	3299	(tt) all sales of tangible personal property and services purchased by
3300	3300	or on behalf of a not-for-profit corporation that is exempt from federal
3301	3301	income taxation pursuant to section 501(c)(3) of the federal internal
3302	3302	revenue code of 1986, for the sole purpose of constructing a Kansas
3303	3303	Korean War memorial;
3304	3304	(uu) all sales of tangible personal property and services purchased by
3305	3305	1
3306	3306	2
3307	3307	3
3308	3308	4
3309	3309	5
3310	3310	6
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3321	3321	17
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3326	3326	22
3327	3327	23
3328	3328	24
3329	3329	25
3330	3330	26
3331	3331	27
3332	3332	28
3333	3333	29
3334	3334	30
3335	3335	31
3336	3336	32
3337	3337	33
3338	3338	34
3339	3339	35
3340	3340	36
3341	3341	37
3342	3342	38
3343	3343	39
3344	3344	40
3345	3345	41
3346	3346	42
3347	3347	43 HB 2010 40
3348	3348	or on behalf of any rural volunteer fire-fighting organization for use
3349	3349	exclusively in the performance of its duties and functions;
3350	3350	(vv) all sales of tangible personal property purchased by any of the
3351	3351	following organizations that are exempt from federal income taxation
3352	3352	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
3353	3353	for the following purposes, and all sales of any such property by or on
3354	3354	behalf of any such organization for any such purpose:
3355	3355	(1) The American heart association, Kansas affiliate, inc. for the
3356	3356	purposes of providing education, training, certification in emergency
3357	3357	cardiac care, research and other related services to reduce disability and
3358	3358	death from cardiovascular diseases and stroke;
3359	3359	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
3360	3360	advocacy for persons with mental illness and to education, research and
3361	3361	support for their families;
3362	3362	(3) the Kansas mental illness awareness council for the purposes of
3363	3363	advocacy for persons who are mentally ill and for education, research and
3364	3364	support for them and their families;
3365	3365	(4) the American diabetes association Kansas affiliate, inc. for the
3366	3366	purpose of eliminating diabetes through medical research, public education
3367	3367	focusing on disease prevention and education, patient education including
3368	3368	information on coping with diabetes, and professional education and
3369	3369	training;
3370	3370	(5) the American lung association of Kansas, inc. for the purpose of
3371	3371	eliminating all lung diseases through medical research, public education
3372	3372	including information on coping with lung diseases, professional education
3373	3373	and training related to lung disease and other related services to reduce the
3374	3374	incidence of disability and death due to lung disease;
3375	3375	(6) the Kansas chapters of the Alzheimer's disease and related
3376	3376	disorders association, inc. for the purpose of providing assistance and
3377	3377	support to persons in Kansas with Alzheimer's disease, and their families
3378	3378	and caregivers;
3379	3379	(7) the Kansas chapters of the Parkinson's disease association for the
3380	3380	purpose of eliminating Parkinson's disease through medical research and
3381	3381	public and professional education related to such disease;
3382	3382	(8) the national kidney foundation of Kansas and western Missouri
3383	3383	for the purpose of eliminating kidney disease through medical research
3384	3384	and public and private education related to such disease;
3385	3385	(9) the heartstrings community foundation for the purpose of
3386	3386	providing training, employment and activities for adults with
3387	3387	developmental disabilities;
3388	3388	(10) the cystic fibrosis foundation, heart of America chapter, for the
3389	3389	purposes of assuring the development of the means to cure and control
3390	3390	cystic fibrosis and improving the quality of life for those with the disease;
3391	3391	1
3392	3392	2
3393	3393	3
3394	3394	4
3395	3395	5
3396	3396	6
3397	3397	7
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3429	3429	39
3430	3430	40
3431	3431	41
3432	3432	42
3433	3433	43 HB 2010 41
3434	3434	(11) the spina bifida association of Kansas for the purpose of
3435	3435	providing financial, educational and practical aid to families and
3436	3436	individuals with spina bifida. Such aid includes, but is not limited to,
3437	3437	funding for medical devices, counseling and medical educational
3438	3438	opportunities;
3439	3439	(12) the CHWC, Inc., for the purpose of rebuilding urban core
3440	3440	neighborhoods through the construction of new homes, acquiring and
3441	3441	renovating existing homes and other related activities, and promoting
3442	3442	economic development in such neighborhoods;
3443	3443	(13) the cross-lines cooperative council for the purpose of providing
3444	3444	social services to low income individuals and families;
3445	3445	(14) the dreams work, inc., for the purpose of providing young adult
3446	3446	day services to individuals with developmental disabilities and assisting
3447	3447	families in avoiding institutional or nursing home care for a
3448	3448	developmentally disabled member of their family;
3449	3449	(15) the KSDS, Inc., for the purpose of promoting the independence
3450	3450	and inclusion of people with disabilities as fully participating and
3451	3451	contributing members of their communities and society through the
3452	3452	training and providing of guide and service dogs to people with
3453	3453	disabilities, and providing disability education and awareness to the
3454	3454	general public;
3455	3455	(16) the lyme association of greater Kansas City, Inc., for the purpose
3456	3456	of providing support to persons with lyme disease and public education
3457	3457	relating to the prevention, treatment and cure of lyme disease;
3458	3458	(17) the dream factory, inc., for the purpose of granting the dreams of
3459	3459	children with critical and chronic illnesses;
3460	3460	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
3461	3461	students and families with education and resources necessary to enable
3462	3462	each child to develop fine character and musical ability to the fullest
3463	3463	potential;
3464	3464	(19) the international association of lions clubs for the purpose of
3465	3465	creating and fostering a spirit of understanding among all people for
3466	3466	humanitarian needs by providing voluntary services through community
3467	3467	involvement and international cooperation;
3468	3468	(20) the Johnson county young matrons, inc., for the purpose of
3469	3469	promoting a positive future for members of the community through
3470	3470	volunteerism, financial support and education through the efforts of an all
3471	3471	volunteer organization;
3472	3472	(21) the American cancer society, inc., for the purpose of eliminating
3473	3473	cancer as a major health problem by preventing cancer, saving lives and
3474	3474	diminishing suffering from cancer, through research, education, advocacy
3475	3475	and service;
3476	3476	(22) the community services of Shawnee, inc., for the purpose of
3477	3477	1
3478	3478	2
3479	3479	3
3480	3480	4
3481	3481	5
3482	3482	6
3483	3483	7
3484	3484	8
3485	3485	9
3486	3486	10
3487	3487	11
3488	3488	12
3489	3489	13
3490	3490	14
3491	3491	15
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3515	3515	39
3516	3516	40
3517	3517	41
3518	3518	42
3519	3519	43 HB 2010 42
3520	3520	providing food and clothing to those in need;
3521	3521	(23) the angel babies association, for the purpose of providing
3522	3522	assistance, support and items of necessity to teenage mothers and their
3523	3523	babies; and
3524	3524	(24) the Kansas fairgrounds foundation for the purpose of the
3525	3525	preservation, renovation and beautification of the Kansas state fairgrounds;
3526	3526	(ww) all sales of tangible personal property purchased by the habitat
3527	3527	for humanity for the exclusive use of being incorporated within a housing
3528	3528	project constructed by such organization;
3529	3529	(xx) all sales of tangible personal property and services purchased by
3530	3530	a nonprofit zoo that is exempt from federal income taxation pursuant to
3531	3531	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
3532	3532	of such zoo by an entity itself exempt from federal income taxation
3533	3533	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
3534	3534	contracted with to operate such zoo and all sales of tangible personal
3535	3535	property or services purchased by a contractor for the purpose of
3536	3536	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3537	3537	furnishing or remodeling facilities for any nonprofit zoo that would be
3538	3538	exempt from taxation under the provisions of this section if purchased
3539	3539	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
3540	3540	this subsection shall be deemed to exempt the purchase of any construction
3541	3541	machinery, equipment or tools used in the constructing, equipping,
3542	3542	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3543	3543	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
3544	3544	the purpose of constructing, equipping, reconstructing, maintaining,
3545	3545	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
3546	3546	from the state and furnish to the contractor an exemption certificate for the
3547	3547	project involved, and the contractor may purchase materials for
3548	3548	incorporation in such project. The contractor shall furnish the number of
3549	3549	such certificate to all suppliers from whom such purchases are made, and
3550	3550	such suppliers shall execute invoices covering the same bearing the
3551	3551	number of such certificate. Upon completion of the project the contractor
3552	3552	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
3553	3553	to be provided by the director of taxation, that all purchases so made were
3554	3554	entitled to exemption under this subsection. All invoices shall be held by
3555	3555	the contractor for a period of five years and shall be subject to audit by the
3556	3556	director of taxation. If any materials purchased under such a certificate are
3557	3557	found not to have been incorporated in the building or other project or not
3558	3558	to have been returned for credit or the sales or compensating tax otherwise
3559	3559	imposed upon such materials that will not be so incorporated in the
3560	3560	building or other project reported and paid by such contractor to the
3561	3561	director of taxation not later than the 20
3562	3562	th
3563	3563	day of the month following the
3564	3564	close of the month in which it shall be determined that such materials will
3565	3565	1
3566	3566	2
3567	3567	3
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3601	3601	37
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3605	3605	41
3606	3606	42
3607	3607	43 HB 2010 43
3608	3608	not be used for the purpose for which such certificate was issued, the
3609	3609	nonprofit zoo concerned shall be liable for tax on all materials purchased
3610	3610	for the project, and upon payment thereof it may recover the same from
3611	3611	the contractor together with reasonable attorney fees. Any contractor or
3612	3612	any agent, employee or subcontractor thereof, who shall use or otherwise
3613	3613	dispose of any materials purchased under such a certificate for any purpose
3614	3614	other than that for which such a certificate is issued without the payment
3615	3615	of the sales or compensating tax otherwise imposed upon such materials,
3616	3616	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3617	3617	subject to the penalties provided for in K.S.A. 79-3615(h), and
3618	3618	amendments thereto;
3619	3619	(yy) all sales of tangible personal property and services purchased by
3620	3620	a parent-teacher association or organization, and all sales of tangible
3621	3621	personal property by or on behalf of such association or organization;
3622	3622	(zz) all sales of machinery and equipment purchased by over-the-air,
3623	3623	free access radio or television station that is used directly and primarily for
3624	3624	the purpose of producing a broadcast signal or is such that the failure of
3625	3625	the machinery or equipment to operate would cause broadcasting to cease.
3626	3626	For purposes of this subsection, machinery and equipment shall include,
3627	3627	but not be limited to, that required by rules and regulations of the federal
3628	3628	communications commission, and all sales of electricity which that are
3629	3629	essential or necessary for the purpose of producing a broadcast signal or is
3630	3630	such that the failure of the electricity would cause broadcasting to cease;
3631	3631	(aaa) all sales of tangible personal property and services purchased by
3632	3632	a religious organization that is exempt from federal income taxation
3633	3633	pursuant to section 501(c)(3) of the federal internal revenue code, and used
3634	3634	exclusively for religious purposes, and all sales of tangible personal
3635	3635	property or services purchased by a contractor for the purpose of
3636	3636	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3637	3637	furnishing or remodeling facilities for any such organization that would be
3638	3638	exempt from taxation under the provisions of this section if purchased
3639	3639	directly by such organization. Nothing in this subsection shall be deemed
3640	3640	to exempt the purchase of any construction machinery, equipment or tools
3641	3641	used in the constructing, equipping, reconstructing, maintaining, repairing,
3642	3642	enlarging, furnishing or remodeling facilities for any such organization.
3643	3643	When any such organization shall contract for the purpose of constructing,
3644	3644	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3645	3645	remodeling facilities, it shall obtain from the state and furnish to the
3646	3646	contractor an exemption certificate for the project involved, and the
3647	3647	contractor may purchase materials for incorporation in such project. The
3648	3648	contractor shall furnish the number of such certificate to all suppliers from
3649	3649	whom such purchases are made, and such suppliers shall execute invoices
3650	3650	covering the same bearing the number of such certificate. Upon
3651	3651	1
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3683	3683	33
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3690	3690	40
3691	3691	41
3692	3692	42
3693	3693	43 HB 2010 44
3694	3694	completion of the project the contractor shall furnish to such organization
3695	3695	concerned a sworn statement, on a form to be provided by the director of
3696	3696	taxation, that all purchases so made were entitled to exemption under this
3697	3697	subsection. All invoices shall be held by the contractor for a period of five
3698	3698	years and shall be subject to audit by the director of taxation. If any
3699	3699	materials purchased under such a certificate are found not to have been
3700	3700	incorporated in the building or other project or not to have been returned
3701	3701	for credit or the sales or compensating tax otherwise imposed upon such
3702	3702	materials that will not be so incorporated in the building or other project
3703	3703	reported and paid by such contractor to the director of taxation not later
3704	3704	than the 20
3705	3705	th
3706	3706	day of the month following the close of the month in which it
3707	3707	shall be determined that such materials will not be used for the purpose for
3708	3708	which such certificate was issued, such organization concerned shall be
3709	3709	liable for tax on all materials purchased for the project, and upon payment
3710	3710	thereof it may recover the same from the contractor together with
3711	3711	reasonable attorney fees. Any contractor or any agent, employee or
3712	3712	subcontractor thereof, who shall use or otherwise dispose of any materials
3713	3713	purchased under such a certificate for any purpose other than that for
3714	3714	which such a certificate is issued without the payment of the sales or
3715	3715	compensating tax otherwise imposed upon such materials, shall be guilty
3716	3716	of a misdemeanor and, upon conviction therefor, shall be subject to the
3717	3717	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
3718	3718	Sales tax paid on and after July 1, 1998, but prior to the effective date of
3719	3719	this act upon the gross receipts received from any sale exempted by the
3720	3720	amendatory provisions of this subsection shall be refunded. Each claim for
3721	3721	a sales tax refund shall be verified and submitted to the director of taxation
3722	3722	upon forms furnished by the director and shall be accompanied by any
3723	3723	additional documentation required by the director. The director shall
3724	3724	review each claim and shall refund that amount of sales tax paid as
3725	3725	determined under the provisions of this subsection. All refunds shall be
3726	3726	paid from the sales tax refund fund upon warrants of the director of
3727	3727	accounts and reports pursuant to vouchers approved by the director or the
3728	3728	director's designee;
3729	3729	(bbb) all sales of food for human consumption by an organization that
3730	3730	is exempt from federal income taxation pursuant to section 501(c)(3) of
3731	3731	the federal internal revenue code of 1986, pursuant to a food distribution
3732	3732	program that offers such food at a price below cost in exchange for the
3733	3733	performance of community service by the purchaser thereof;
3734	3734	(ccc) on and after July 1, 1999, all sales of tangible personal property
3735	3735	and services purchased by a primary care clinic or health center the
3736	3736	primary purpose of which is to provide services to medically underserved
3737	3737	individuals and families, and that is exempt from federal income taxation
3738	3738	pursuant to section 501(c)(3) of the federal internal revenue code, and all
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3778	3778	40
3779	3779	41
3780	3780	42
3781	3781	43 HB 2010 45
3782	3782	sales of tangible personal property or services purchased by a contractor
3783	3783	for the purpose of constructing, equipping, reconstructing, maintaining,
3784	3784	repairing, enlarging, furnishing or remodeling facilities for any such clinic
3785	3785	or center that would be exempt from taxation under the provisions of this
3786	3786	section if purchased directly by such clinic or center, except that for
3787	3787	taxable years commencing after December 31, 2013, this subsection shall
3788	3788	not apply to any sales of such tangible personal property and services
3789	3789	purchased by a primary care clinic or health center which performs any
3790	3790	abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing
3791	3791	in this subsection shall be deemed to exempt the purchase of any
3792	3792	construction machinery, equipment or tools used in the constructing,
3793	3793	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3794	3794	remodeling facilities for any such clinic or center. When any such clinic or
3795	3795	center shall contract for the purpose of constructing, equipping,
3796	3796	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3797	3797	facilities, it shall obtain from the state and furnish to the contractor an
3798	3798	exemption certificate for the project involved, and the contractor may
3799	3799	purchase materials for incorporation in such project. The contractor shall
3800	3800	furnish the number of such certificate to all suppliers from whom such
3801	3801	purchases are made, and such suppliers shall execute invoices covering the
3802	3802	same bearing the number of such certificate. Upon completion of the
3803	3803	project the contractor shall furnish to such clinic or center concerned a
3804	3804	sworn statement, on a form to be provided by the director of taxation, that
3805	3805	all purchases so made were entitled to exemption under this subsection.
3806	3806	All invoices shall be held by the contractor for a period of five years and
3807	3807	shall be subject to audit by the director of taxation. If any materials
3808	3808	purchased under such a certificate are found not to have been incorporated
3809	3809	in the building or other project or not to have been returned for credit or
3810	3810	the sales or compensating tax otherwise imposed upon such materials that
3811	3811	will not be so incorporated in the building or other project reported and
3812	3812	paid by such contractor to the director of taxation not later than the 20
3813	3813	th
3814	3814	day of the month following the close of the month in which it shall be
3815	3815	determined that such materials will not be used for the purpose for which
3816	3816	such certificate was issued, such clinic or center concerned shall be liable
3817	3817	for tax on all materials purchased for the project, and upon payment
3818	3818	thereof it may recover the same from the contractor together with
3819	3819	reasonable attorney fees. Any contractor or any agent, employee or
3820	3820	subcontractor thereof, who shall use or otherwise dispose of any materials
3821	3821	purchased under such a certificate for any purpose other than that for
3822	3822	which such a certificate is issued without the payment of the sales or
3823	3823	compensating tax otherwise imposed upon such materials, shall be guilty
3824	3824	of a misdemeanor and, upon conviction therefor, shall be subject to the
3825	3825	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3826	3826	1
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3863	3863	38
3864	3864	39
3865	3865	40
3866	3866	41
3867	3867	42
3868	3868	43 HB 2010 46
3869	3869	(ddd) on and after January 1, 1999, and before January 1, 2000, all
3870	3870	sales of materials and services purchased by any class II or III railroad as
3871	3871	classified by the federal surface transportation board for the construction,
3872	3872	renovation, repair or replacement of class II or III railroad track and
3873	3873	facilities used directly in interstate commerce. In the event any such track
3874	3874	or facility for which materials and services were purchased sales tax
3875	3875	exempt is not operational for five years succeeding the allowance of such
3876	3876	exemption, the total amount of sales tax that would have been payable
3877	3877	except for the operation of this subsection shall be recouped in accordance
3878	3878	with rules and regulations adopted for such purpose by the secretary of
3879	3879	revenue;
3880	3880	(eee) on and after January 1, 1999, and before January 1, 2001, all
3881	3881	sales of materials and services purchased for the original construction,
3882	3882	reconstruction, repair or replacement of grain storage facilities, including
3883	3883	railroad sidings providing access thereto;
3884	3884	(fff) all sales of material handling equipment, racking systems and
3885	3885	other related machinery and equipment that is used for the handling,
3886	3886	movement or storage of tangible personal property in a warehouse or
3887	3887	distribution facility in this state; all sales of installation, repair and
3888	3888	maintenance services performed on such machinery and equipment; and
3889	3889	all sales of repair and replacement parts for such machinery and
3890	3890	equipment. For purposes of this subsection, a warehouse or distribution
3891	3891	facility means a single, fixed location that consists of buildings or
3892	3892	structures in a contiguous area where storage or distribution operations are
3893	3893	conducted that are separate and apart from the business' retail operations,
3894	3894	if any, and that do not otherwise qualify for exemption as occurring at a
3895	3895	manufacturing or processing plant or facility. Material handling and
3896	3896	storage equipment shall include aeration, dust control, cleaning, handling
3897	3897	and other such equipment that is used in a public grain warehouse or other
3898	3898	commercial grain storage facility, whether used for grain handling, grain
3899	3899	storage, grain refining or processing, or other grain treatment operation;
3900	3900	(ggg) all sales of tangible personal property and services purchased
3901	3901	by or on behalf of the Kansas academy of science, which is exempt from
3902	3902	federal income taxation pursuant to section 501(c)(3) of the federal
3903	3903	internal revenue code of 1986, and used solely by such academy for the
3904	3904	preparation, publication and dissemination of education materials;
3905	3905	(hhh) all sales of tangible personal property and services purchased
3906	3906	by or on behalf of all domestic violence shelters that are member agencies
3907	3907	of the Kansas coalition against sexual and domestic violence;
3908	3908	(iii) all sales of personal property and services purchased by an
3909	3909	organization that is exempt from federal income taxation pursuant to
3910	3910	section 501(c)(3) of the federal internal revenue code of 1986, and such
3911	3911	personal property and services are used by any such organization in the
3912	3912	1
3913	3913	2
3914	3914	3
3915	3915	4
3916	3916	5
3917	3917	6
3918	3918	7
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3936	3936	25
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3938	3938	27
3939	3939	28
3940	3940	29
3941	3941	30
3942	3942	31
3943	3943	32
3944	3944	33
3945	3945	34
3946	3946	35
3947	3947	36
3948	3948	37
3949	3949	38
3950	3950	39
3951	3951	40
3952	3952	41
3953	3953	42
3954	3954	43 HB 2010 47
3955	3955	collection, storage and distribution of food products to nonprofit
3956	3956	organizations that distribute such food products to persons pursuant to a
3957	3957	food distribution program on a charitable basis without fee or charge, and
3958	3958	all sales of tangible personal property or services purchased by a
3959	3959	contractor for the purpose of constructing, equipping, reconstructing,
3960	3960	maintaining, repairing, enlarging, furnishing or remodeling facilities used
3961	3961	for the collection and storage of such food products for any such
3962	3962	organization, which is exempt from federal income taxation pursuant to
3963	3963	section 501(c)(3) of the federal internal revenue code of 1986, that would
3964	3964	be exempt from taxation under the provisions of this section if purchased
3965	3965	directly by such organization. Nothing in this subsection shall be deemed
3966	3966	to exempt the purchase of any construction machinery, equipment or tools
3967	3967	used in the constructing, equipping, reconstructing, maintaining, repairing,
3968	3968	enlarging, furnishing or remodeling facilities for any such organization.
3969	3969	When any such organization shall contract for the purpose of constructing,
3970	3970	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3971	3971	remodeling facilities, it shall obtain from the state and furnish to the
3972	3972	contractor an exemption certificate for the project involved, and the
3973	3973	contractor may purchase materials for incorporation in such project. The
3974	3974	contractor shall furnish the number of such certificate to all suppliers from
3975	3975	whom such purchases are made, and such suppliers shall execute invoices
3976	3976	covering the same bearing the number of such certificate. Upon
3977	3977	completion of the project the contractor shall furnish to such organization
3978	3978	concerned a sworn statement, on a form to be provided by the director of
3979	3979	taxation, that all purchases so made were entitled to exemption under this
3980	3980	subsection. All invoices shall be held by the contractor for a period of five
3981	3981	years and shall be subject to audit by the director of taxation. If any
3982	3982	materials purchased under such a certificate are found not to have been
3983	3983	incorporated in such facilities or not to have been returned for credit or the
3984	3984	sales or compensating tax otherwise imposed upon such materials that will
3985	3985	not be so incorporated in such facilities reported and paid by such
3986	3986	contractor to the director of taxation not later than the 20
3987	3987	th
3988	3988	day of the
3989	3989	month following the close of the month in which it shall be determined
3990	3990	that such materials will not be used for the purpose for which such
3991	3991	certificate was issued, such organization concerned shall be liable for tax
3992	3992	on all materials purchased for the project, and upon payment thereof it
3993	3993	may recover the same from the contractor together with reasonable
3994	3994	attorney fees. Any contractor or any agent, employee or subcontractor
3995	3995	thereof, who shall use or otherwise dispose of any materials purchased
3996	3996	under such a certificate for any purpose other than that for which such a
3997	3997	certificate is issued without the payment of the sales or compensating tax
3998	3998	otherwise imposed upon such materials, shall be guilty of a misdemeanor
3999	3999	and, upon conviction therefor, shall be subject to the penalties provided for
4000	4000	1
4001	4001	2
4002	4002	3
4003	4003	4
4004	4004	5
4005	4005	6
4006	4006	7
4007	4007	8
4008	4008	9
4009	4009	10
4010	4010	11
4011	4011	12
4012	4012	13
4013	4013	14
4014	4014	15
4015	4015	16
4016	4016	17
4017	4017	18
4018	4018	19
4019	4019	20
4020	4020	21
4021	4021	22
4022	4022	23
4023	4023	24
4024	4024	25
4025	4025	26
4026	4026	27
4027	4027	28
4028	4028	29
4029	4029	30
4030	4030	31
4031	4031	32
4032	4032	33
4033	4033	34
4034	4034	35
4035	4035	36
4036	4036	37
4037	4037	38
4038	4038	39
4039	4039	40
4040	4040	41
4041	4041	42
4042	4042	43 HB 2010 48
4043	4043	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
4044	4044	July 1, 2005, but prior to the effective date of this act upon the gross
4045	4045	receipts received from any sale exempted by the amendatory provisions of
4046	4046	this subsection shall be refunded. Each claim for a sales tax refund shall be
4047	4047	verified and submitted to the director of taxation upon forms furnished by
4048	4048	the director and shall be accompanied by any additional documentation
4049	4049	required by the director. The director shall review each claim and shall
4050	4050	refund that amount of sales tax paid as determined under the provisions of
4051	4051	this subsection. All refunds shall be paid from the sales tax refund fund
4052	4052	upon warrants of the director of accounts and reports pursuant to vouchers
4053	4053	approved by the director or the director's designee;
4054	4054	(jjj) all sales of dietary supplements dispensed pursuant to a
4055	4055	prescription order by a licensed practitioner or a mid-level practitioner as
4056	4056	defined by K.S.A. 65-1626, and amendments thereto. As used in this
4057	4057	subsection, "dietary supplement" means any product, other than tobacco,
4058	4058	intended to supplement the diet that: (1) Contains one or more of the
4059	4059	following dietary ingredients: A vitamin, a mineral, an herb or other
4060	4060	botanical, an amino acid, a dietary substance for use by humans to
4061	4061	supplement the diet by increasing the total dietary intake or a concentrate,
4062	4062	metabolite, constituent, extract or combination of any such ingredient; (2)
4063	4063	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
4064	4064	liquid form, or if not intended for ingestion, in such a form, is not
4065	4065	represented as conventional food and is not represented for use as a sole
4066	4066	item of a meal or of the diet; and (3) is required to be labeled as a dietary
4067	4067	supplement, identifiable by the supplemental facts box found on the label
4068	4068	and as required pursuant to 21 C.F.R. § 101.36;
4069	4069	(lll) all sales of tangible personal property and services purchased by
4070	4070	special olympics Kansas, inc. for the purpose of providing year-round
4071	4071	sports training and athletic competition in a variety of olympic-type sports
4072	4072	for individuals with intellectual disabilities by giving them continuing
4073	4073	opportunities to develop physical fitness, demonstrate courage, experience
4074	4074	joy and participate in a sharing of gifts, skills and friendship with their
4075	4075	families, other special olympics athletes and the community, and activities
4076	4076	provided or sponsored by such organization, and all sales of tangible
4077	4077	personal property by or on behalf of any such organization;
4078	4078	(mmm) all sales of tangible personal property purchased by or on
4079	4079	behalf of the Marillac center, inc., which is exempt from federal income
4080	4080	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4081	4081	for the purpose of providing psycho-social-biological and special
4082	4082	education services to children, and all sales of any such property by or on
4083	4083	behalf of such organization for such purpose;
4084	4084	(nnn) all sales of tangible personal property and services purchased
4085	4085	by the west Sedgwick county-sunrise rotary club and sunrise charitable
4086	4086	1
4087	4087	2
4088	4088	3
4089	4089	4
4090	4090	5
4091	4091	6
4092	4092	7
4093	4093	8
4094	4094	9
4095	4095	10
4096	4096	11
4097	4097	12
4098	4098	13
4099	4099	14
4100	4100	15
4101	4101	16
4102	4102	17
4103	4103	18
4104	4104	19
4105	4105	20
4106	4106	21
4107	4107	22
4108	4108	23
4109	4109	24
4110	4110	25
4111	4111	26
4112	4112	27
4113	4113	28
4114	4114	29
4115	4115	30
4116	4116	31
4117	4117	32
4118	4118	33
4119	4119	34
4120	4120	35
4121	4121	36
4122	4122	37
4123	4123	38
4124	4124	39
4125	4125	40
4126	4126	41
4127	4127	42
4128	4128	43 HB 2010 49
4129	4129	fund for the purpose of constructing a boundless playground which that is
4130	4130	an integrated, barrier free and developmentally advantageous play
4131	4131	environment for children of all abilities and disabilities;
4132	4132	(ooo) all sales of tangible personal property by or on behalf of a
4133	4133	public library serving the general public and supported in whole or in part
4134	4134	with tax money or a not-for-profit organization whose purpose is to raise
4135	4135	funds for or provide services or other benefits to any such public library;
4136	4136	(ppp) all sales of tangible personal property and services purchased
4137	4137	by or on behalf of a homeless shelter that is exempt from federal income
4138	4138	taxation pursuant to section 501(c)(3) of the federal income tax code of
4139	4139	1986, and used by any such homeless shelter to provide emergency and
4140	4140	transitional housing for individuals and families experiencing
4141	4141	homelessness, and all sales of any such property by or on behalf of any
4142	4142	such homeless shelter for any such purpose;
4143	4143	(qqq) all sales of tangible personal property and services purchased
4144	4144	by TLC for children and families, inc., hereinafter referred to as TLC,
4145	4145	which is exempt from federal income taxation pursuant to section 501(c)
4146	4146	(3) of the federal internal revenue code of 1986, and such property and
4147	4147	services are used for the purpose of providing emergency shelter and
4148	4148	treatment for abused and neglected children as well as meeting additional
4149	4149	critical needs for children, juveniles and family, and all sales of any such
4150	4150	property by or on behalf of TLC for any such purpose; and all sales of
4151	4151	tangible personal property or services purchased by a contractor for the
4152	4152	purpose of constructing, maintaining, repairing, enlarging, furnishing or
4153	4153	remodeling facilities for the operation of services for TLC for any such
4154	4154	purpose that would be exempt from taxation under the provisions of this
4155	4155	section if purchased directly by TLC. Nothing in this subsection shall be
4156	4156	deemed to exempt the purchase of any construction machinery, equipment
4157	4157	or tools used in the constructing, maintaining, repairing, enlarging,
4158	4158	furnishing or remodeling such facilities for TLC. When TLC contracts for
4159	4159	the purpose of constructing, maintaining, repairing, enlarging, furnishing
4160	4160	or remodeling such facilities, it shall obtain from the state and furnish to
4161	4161	the contractor an exemption certificate for the project involved, and the
4162	4162	contractor may purchase materials for incorporation in such project. The
4163	4163	contractor shall furnish the number of such certificate to all suppliers from
4164	4164	whom such purchases are made, and such suppliers shall execute invoices
4165	4165	covering the same bearing the number of such certificate. Upon
4166	4166	completion of the project the contractor shall furnish to TLC a sworn
4167	4167	statement, on a form to be provided by the director of taxation, that all
4168	4168	purchases so made were entitled to exemption under this subsection. All
4169	4169	invoices shall be held by the contractor for a period of five years and shall
4170	4170	be subject to audit by the director of taxation. If any materials purchased
4171	4171	under such a certificate are found not to have been incorporated in the
4172	4172	1
4173	4173	2
4174	4174	3
4175	4175	4
4176	4176	5
4177	4177	6
4178	4178	7
4179	4179	8
4180	4180	9
4181	4181	10
4182	4182	11
4183	4183	12
4184	4184	13
4185	4185	14
4186	4186	15
4187	4187	16
4188	4188	17
4189	4189	18
4190	4190	19
4191	4191	20
4192	4192	21
4193	4193	22
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4196	4196	25
4197	4197	26
4198	4198	27
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4201	4201	30
4202	4202	31
4203	4203	32
4204	4204	33
4205	4205	34
4206	4206	35
4207	4207	36
4208	4208	37
4209	4209	38
4210	4210	39
4211	4211	40
4212	4212	41
4213	4213	42
4214	4214	43 HB 2010 50
4215	4215	building or other project or not to have been returned for credit or the sales
4216	4216	or compensating tax otherwise imposed upon such materials that will not
4217	4217	be so incorporated in the building or other project reported and paid by
4218	4218	such contractor to the director of taxation not later than the 20
4219	4219	th
4220	4220	day of the
4221	4221	month following the close of the month in which it shall be determined
4222	4222	that such materials will not be used for the purpose for which such
4223	4223	certificate was issued, TLC shall be liable for tax on all materials
4224	4224	purchased for the project, and upon payment thereof it may recover the
4225	4225	same from the contractor together with reasonable attorney fees. Any
4226	4226	contractor or any agent, employee or subcontractor thereof, who shall use
4227	4227	or otherwise dispose of any materials purchased under such a certificate
4228	4228	for any purpose other than that for which such a certificate is issued
4229	4229	without the payment of the sales or compensating tax otherwise imposed
4230	4230	upon such materials, shall be guilty of a misdemeanor and, upon
4231	4231	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4232	4232	79-3615(h), and amendments thereto;
4233	4233	(rrr) all sales of tangible personal property and services purchased by
4234	4234	any county law library maintained pursuant to law and sales of tangible
4235	4235	personal property and services purchased by an organization that would
4236	4236	have been exempt from taxation under the provisions of this subsection if
4237	4237	purchased directly by the county law library for the purpose of providing
4238	4238	legal resources to attorneys, judges, students and the general public, and
4239	4239	all sales of any such property by or on behalf of any such county law
4240	4240	library;
4241	4241	(sss) all sales of tangible personal property and services purchased by
4242	4242	catholic charities or youthville, hereinafter referred to as charitable family
4243	4243	providers, which is exempt from federal income taxation pursuant to
4244	4244	section 501(c)(3) of the federal internal revenue code of 1986, and which
4245	4245	such property and services are used for the purpose of providing
4246	4246	emergency shelter and treatment for abused and neglected children as well
4247	4247	as meeting additional critical needs for children, juveniles and family, and
4248	4248	all sales of any such property by or on behalf of charitable family
4249	4249	providers for any such purpose; and all sales of tangible personal property
4250	4250	or services purchased by a contractor for the purpose of constructing,
4251	4251	maintaining, repairing, enlarging, furnishing or remodeling facilities for
4252	4252	the operation of services for charitable family providers for any such
4253	4253	purpose which would be exempt from taxation under the provisions of this
4254	4254	section if purchased directly by charitable family providers. Nothing in
4255	4255	this subsection shall be deemed to exempt the purchase of any construction
4256	4256	machinery, equipment or tools used in the constructing, maintaining,
4257	4257	repairing, enlarging, furnishing or remodeling such facilities for charitable
4258	4258	family providers. When charitable family providers contracts for the
4259	4259	purpose of constructing, maintaining, repairing, enlarging, furnishing or
4260	4260	1
4261	4261	2
4262	4262	3
4263	4263	4
4264	4264	5
4265	4265	6
4266	4266	7
4267	4267	8
4268	4268	9
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4272	4272	13
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4284	4284	25
4285	4285	26
4286	4286	27
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4288	4288	29
4289	4289	30
4290	4290	31
4291	4291	32
4292	4292	33
4293	4293	34
4294	4294	35
4295	4295	36
4296	4296	37
4297	4297	38
4298	4298	39
4299	4299	40
4300	4300	41
4301	4301	42
4302	4302	43 HB 2010 51
4303	4303	remodeling such facilities, it shall obtain from the state and furnish to the
4304	4304	contractor an exemption certificate for the project involved, and the
4305	4305	contractor may purchase materials for incorporation in such project. The
4306	4306	contractor shall furnish the number of such certificate to all suppliers from
4307	4307	whom such purchases are made, and such suppliers shall execute invoices
4308	4308	covering the same bearing the number of such certificate. Upon
4309	4309	completion of the project the contractor shall furnish to charitable family
4310	4310	providers a sworn statement, on a form to be provided by the director of
4311	4311	taxation, that all purchases so made were entitled to exemption under this
4312	4312	subsection. All invoices shall be held by the contractor for a period of five
4313	4313	years and shall be subject to audit by the director of taxation. If any
4314	4314	materials purchased under such a certificate are found not to have been
4315	4315	incorporated in the building or other project or not to have been returned
4316	4316	for credit or the sales or compensating tax otherwise imposed upon such
4317	4317	materials that will not be so incorporated in the building or other project
4318	4318	reported and paid by such contractor to the director of taxation not later
4319	4319	than the 20
4320	4320	th
4321	4321	day of the month following the close of the month in which it
4322	4322	shall be determined that such materials will not be used for the purpose for
4323	4323	which such certificate was issued, charitable family providers shall be
4324	4324	liable for tax on all materials purchased for the project, and upon payment
4325	4325	thereof it may recover the same from the contractor together with
4326	4326	reasonable attorney fees. Any contractor or any agent, employee or
4327	4327	subcontractor thereof, who shall use or otherwise dispose of any materials
4328	4328	purchased under such a certificate for any purpose other than that for
4329	4329	which such a certificate is issued without the payment of the sales or
4330	4330	compensating tax otherwise imposed upon such materials, shall be guilty
4331	4331	of a misdemeanor and, upon conviction therefor, shall be subject to the
4332	4332	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
4333	4333	(ttt) all sales of tangible personal property or services purchased by a
4334	4334	contractor for a project for the purpose of restoring, constructing,
4335	4335	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
4336	4336	remodeling a home or facility owned by a nonprofit museum that has been
4337	4337	granted an exemption pursuant to subsection (qq), which such home or
4338	4338	facility is located in a city that has been designated as a qualified
4339	4339	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
4340	4340	amendments thereto, and which such project is related to the purposes of
4341	4341	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
4342	4342	exempt from taxation under the provisions of this section if purchased
4343	4343	directly by such nonprofit museum. Nothing in this subsection shall be
4344	4344	deemed to exempt the purchase of any construction machinery, equipment
4345	4345	or tools used in the restoring, constructing, equipping, reconstructing,
4346	4346	maintaining, repairing, enlarging, furnishing or remodeling a home or
4347	4347	facility for any such nonprofit museum. When any such nonprofit museum
4348	4348	1
4349	4349	2
4350	4350	3
4351	4351	4
4352	4352	5
4353	4353	6
4354	4354	7
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4356	4356	9
4357	4357	10
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4359	4359	12
4360	4360	13
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4362	4362	15
4363	4363	16
4364	4364	17
4365	4365	18
4366	4366	19
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4368	4368	21
4369	4369	22
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4371	4371	24
4372	4372	25
4373	4373	26
4374	4374	27
4375	4375	28
4376	4376	29
4377	4377	30
4378	4378	31
4379	4379	32
4380	4380	33
4381	4381	34
4382	4382	35
4383	4383	36
4384	4384	37
4385	4385	38
4386	4386	39
4387	4387	40
4388	4388	41
4389	4389	42
4390	4390	43 HB 2010 52
4391	4391	shall contract for the purpose of restoring, constructing, equipping,
4392	4392	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4393	4393	a home or facility, it shall obtain from the state and furnish to the
4394	4394	contractor an exemption certificate for the project involved, and the
4395	4395	contractor may purchase materials for incorporation in such project. The
4396	4396	contractor shall furnish the number of such certificates to all suppliers
4397	4397	from whom such purchases are made, and such suppliers shall execute
4398	4398	invoices covering the same bearing the number of such certificate. Upon
4399	4399	completion of the project, the contractor shall furnish to such nonprofit
4400	4400	museum a sworn statement on a form to be provided by the director of
4401	4401	taxation that all purchases so made were entitled to exemption under this
4402	4402	subsection. All invoices shall be held by the contractor for a period of five
4403	4403	years and shall be subject to audit by the director of taxation. If any
4404	4404	materials purchased under such a certificate are found not to have been
4405	4405	incorporated in the building or other project or not to have been returned
4406	4406	for credit or the sales or compensating tax otherwise imposed upon such
4407	4407	materials that will not be so incorporated in a home or facility or other
4408	4408	project reported and paid by such contractor to the director of taxation not
4409	4409	later than the 20
4410	4410	th
4411	4411	day of the month following the close of the month in
4412	4412	which it shall be determined that such materials will not be used for the
4413	4413	purpose for which such certificate was issued, such nonprofit museum
4414	4414	shall be liable for tax on all materials purchased for the project, and upon
4415	4415	payment thereof it may recover the same from the contractor together with
4416	4416	reasonable attorney fees. Any contractor or any agent, employee or
4417	4417	subcontractor thereof, who shall use or otherwise dispose of any materials
4418	4418	purchased under such a certificate for any purpose other than that for
4419	4419	which such a certificate is issued without the payment of the sales or
4420	4420	compensating tax otherwise imposed upon such materials, shall be guilty
4421	4421	of a misdemeanor and, upon conviction therefor, shall be subject to the
4422	4422	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
4423	4423	(uuu) all sales of tangible personal property and services purchased
4424	4424	by Kansas children's service league, hereinafter referred to as KCSL,
4425	4425	which is exempt from federal income taxation pursuant to section 501(c)
4426	4426	(3) of the federal internal revenue code of 1986, and which such property
4427	4427	and services are used for the purpose of providing for the prevention and
4428	4428	treatment of child abuse and maltreatment as well as meeting additional
4429	4429	critical needs for children, juveniles and family, and all sales of any such
4430	4430	property by or on behalf of KCSL for any such purpose; and all sales of
4431	4431	tangible personal property or services purchased by a contractor for the
4432	4432	purpose of constructing, maintaining, repairing, enlarging, furnishing or
4433	4433	remodeling facilities for the operation of services for KCSL for any such
4434	4434	purpose that would be exempt from taxation under the provisions of this
4435	4435	section if purchased directly by KCSL. Nothing in this subsection shall be
4436	4436	1
4437	4437	2
4438	4438	3
4439	4439	4
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4459	4459	24
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4465	4465	30
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4472	4472	37
4473	4473	38
4474	4474	39
4475	4475	40
4476	4476	41
4477	4477	42
4478	4478	43 HB 2010 53
4479	4479	deemed to exempt the purchase of any construction machinery, equipment
4480	4480	or tools used in the constructing, maintaining, repairing, enlarging,
4481	4481	furnishing or remodeling such facilities for KCSL. When KCSL contracts
4482	4482	for the purpose of constructing, maintaining, repairing, enlarging,
4483	4483	furnishing or remodeling such facilities, it shall obtain from the state and
4484	4484	furnish to the contractor an exemption certificate for the project involved,
4485	4485	and the contractor may purchase materials for incorporation in such
4486	4486	project. The contractor shall furnish the number of such certificate to all
4487	4487	suppliers from whom such purchases are made, and such suppliers shall
4488	4488	execute invoices covering the same bearing the number of such certificate.
4489	4489	Upon completion of the project the contractor shall furnish to KCSL a
4490	4490	sworn statement, on a form to be provided by the director of taxation, that
4491	4491	all purchases so made were entitled to exemption under this subsection.
4492	4492	All invoices shall be held by the contractor for a period of five years and
4493	4493	shall be subject to audit by the director of taxation. If any materials
4494	4494	purchased under such a certificate are found not to have been incorporated
4495	4495	in the building or other project or not to have been returned for credit or
4496	4496	the sales or compensating tax otherwise imposed upon such materials that
4497	4497	will not be so incorporated in the building or other project reported and
4498	4498	paid by such contractor to the director of taxation not later than the 20
4499	4499	th
4500	4500	day of the month following the close of the month in which it shall be
4501	4501	determined that such materials will not be used for the purpose for which
4502	4502	such certificate was issued, KCSL shall be liable for tax on all materials
4503	4503	purchased for the project, and upon payment thereof it may recover the
4504	4504	same from the contractor together with reasonable attorney fees. Any
4505	4505	contractor or any agent, employee or subcontractor thereof, who shall use
4506	4506	or otherwise dispose of any materials purchased under such a certificate
4507	4507	for any purpose other than that for which such a certificate is issued
4508	4508	without the payment of the sales or compensating tax otherwise imposed
4509	4509	upon such materials, shall be guilty of a misdemeanor and, upon
4510	4510	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4511	4511	79-3615(h), and amendments thereto;
4512	4512	(vvv) all sales of tangible personal property or services, including the
4513	4513	renting and leasing of tangible personal property or services, purchased by
4514	4514	jazz in the woods, inc., a Kansas corporation that is exempt from federal
4515	4515	income taxation pursuant to section 501(c)(3) of the federal internal
4516	4516	revenue code, for the purpose of providing jazz in the woods, an event
4517	4517	benefiting children-in-need and other nonprofit charities assisting such
4518	4518	children, and all sales of any such property by or on behalf of such
4519	4519	organization for such purpose;
4520	4520	(www) all sales of tangible personal property purchased by or on
4521	4521	behalf of the Frontenac education foundation, which is exempt from
4522	4522	federal income taxation pursuant to section 501(c)(3) of the federal
4523	4523	1
4524	4524	2
4525	4525	3
4526	4526	4
4527	4527	5
4528	4528	6
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4553	4553	31
4554	4554	32
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4556	4556	34
4557	4557	35
4558	4558	36
4559	4559	37
4560	4560	38
4561	4561	39
4562	4562	40
4563	4563	41
4564	4564	42
4565	4565	43 HB 2010 54
4566	4566	internal revenue code, for the purpose of providing education support for
4567	4567	students, and all sales of any such property by or on behalf of such
4568	4568	organization for such purpose;
4569	4569	(xxx) all sales of personal property and services purchased by the
4570	4570	booth theatre foundation, inc., an organization, which is exempt from
4571	4571	federal income taxation pursuant to section 501(c)(3) of the federal
4572	4572	internal revenue code of 1986, and which such personal property and
4573	4573	services are used by any such organization in the constructing, equipping,
4574	4574	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4575	4575	of the booth theatre, and all sales of tangible personal property or services
4576	4576	purchased by a contractor for the purpose of constructing, equipping,
4577	4577	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4578	4578	the booth theatre for such organization, that would be exempt from
4579	4579	taxation under the provisions of this section if purchased directly by such
4580	4580	organization. Nothing in this subsection shall be deemed to exempt the
4581	4581	purchase of any construction machinery, equipment or tools used in the
4582	4582	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
4583	4583	furnishing or remodeling facilities for any such organization. When any
4584	4584	such organization shall contract for the purpose of constructing, equipping,
4585	4585	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4586	4586	facilities, it shall obtain from the state and furnish to the contractor an
4587	4587	exemption certificate for the project involved, and the contractor may
4588	4588	purchase materials for incorporation in such project. The contractor shall
4589	4589	furnish the number of such certificate to all suppliers from whom such
4590	4590	purchases are made, and such suppliers shall execute invoices covering the
4591	4591	same bearing the number of such certificate. Upon completion of the
4592	4592	project the contractor shall furnish to such organization concerned a sworn
4593	4593	statement, on a form to be provided by the director of taxation, that all
4594	4594	purchases so made were entitled to exemption under this subsection. All
4595	4595	invoices shall be held by the contractor for a period of five years and shall
4596	4596	be subject to audit by the director of taxation. If any materials purchased
4597	4597	under such a certificate are found not to have been incorporated in such
4598	4598	facilities or not to have been returned for credit or the sales or
4599	4599	compensating tax otherwise imposed upon such materials that will not be
4600	4600	so incorporated in such facilities reported and paid by such contractor to
4601	4601	the director of taxation not later than the 20
4602	4602	th
4603	4603	day of the month following
4604	4604	the close of the month in which it shall be determined that such materials
4605	4605	will not be used for the purpose for which such certificate was issued, such
4606	4606	organization concerned shall be liable for tax on all materials purchased
4607	4607	for the project, and upon payment thereof it may recover the same from
4608	4608	the contractor together with reasonable attorney fees. Any contractor or
4609	4609	any agent, employee or subcontractor thereof, who shall use or otherwise
4610	4610	dispose of any materials purchased under such a certificate for any purpose
4611	4611	1
4612	4612	2
4613	4613	3
4614	4614	4
4615	4615	5
4616	4616	6
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4641	4641	31
4642	4642	32
4643	4643	33
4644	4644	34
4645	4645	35
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4647	4647	37
4648	4648	38
4649	4649	39
4650	4650	40
4651	4651	41
4652	4652	42
4653	4653	43 HB 2010 55
4654	4654	other than that for which such a certificate is issued without the payment
4655	4655	of the sales or compensating tax otherwise imposed upon such materials,
4656	4656	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4657	4657	subject to the penalties provided for in K.S.A. 79-3615(h), and
4658	4658	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
4659	4659	to the effective date of this act upon the gross receipts received from any
4660	4660	sale which that would have been exempted by the provisions of this
4661	4661	subsection had such sale occurred after the effective date of this act shall
4662	4662	be refunded. Each claim for a sales tax refund shall be verified and
4663	4663	submitted to the director of taxation upon forms furnished by the director
4664	4664	and shall be accompanied by any additional documentation required by the
4665	4665	director. The director shall review each claim and shall refund that amount
4666	4666	of sales tax paid as determined under the provisions of this subsection. All
4667	4667	refunds shall be paid from the sales tax refund fund upon warrants of the
4668	4668	director of accounts and reports pursuant to vouchers approved by the
4669	4669	director or the director's designee;
4670	4670	(yyy) all sales of tangible personal property and services purchased
4671	4671	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
4672	4672	which is exempt from federal income taxation pursuant to section 501(c)
4673	4673	(3) of the federal internal revenue code of 1986, and which such property
4674	4674	and services are used for the purpose of encouraging private philanthropy
4675	4675	to further the vision, values, and goals of TLC for children and families,
4676	4676	inc.; and all sales of such property and services by or on behalf of TLC
4677	4677	charities for any such purpose and all sales of tangible personal property or
4678	4678	services purchased by a contractor for the purpose of constructing,
4679	4679	maintaining, repairing, enlarging, furnishing or remodeling facilities for
4680	4680	the operation of services for TLC charities for any such purpose that would
4681	4681	be exempt from taxation under the provisions of this section if purchased
4682	4682	directly by TLC charities. Nothing in this subsection shall be deemed to
4683	4683	exempt the purchase of any construction machinery, equipment or tools
4684	4684	used in the constructing, maintaining, repairing, enlarging, furnishing or
4685	4685	remodeling such facilities for TLC charities. When TLC charities contracts
4686	4686	for the purpose of constructing, maintaining, repairing, enlarging,
4687	4687	furnishing or remodeling such facilities, it shall obtain from the state and
4688	4688	furnish to the contractor an exemption certificate for the project involved,
4689	4689	and the contractor may purchase materials for incorporation in such
4690	4690	project. The contractor shall furnish the number of such certificate to all
4691	4691	suppliers from whom such purchases are made, and such suppliers shall
4692	4692	execute invoices covering the same bearing the number of such certificate.
4693	4693	Upon completion of the project the contractor shall furnish to TLC
4694	4694	charities a sworn statement, on a form to be provided by the director of
4695	4695	taxation, that all purchases so made were entitled to exemption under this
4696	4696	subsection. All invoices shall be held by the contractor for a period of five
4697	4697	1
4698	4698	2
4699	4699	3
4700	4700	4
4701	4701	5
4702	4702	6
4703	4703	7
4704	4704	8
4705	4705	9
4706	4706	10
4707	4707	11
4708	4708	12
4709	4709	13
4710	4710	14
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4712	4712	16
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4717	4717	21
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4719	4719	23
4720	4720	24
4721	4721	25
4722	4722	26
4723	4723	27
4724	4724	28
4725	4725	29
4726	4726	30
4727	4727	31
4728	4728	32
4729	4729	33
4730	4730	34
4731	4731	35
4732	4732	36
4733	4733	37
4734	4734	38
4735	4735	39
4736	4736	40
4737	4737	41
4738	4738	42
4739	4739	43 HB 2010 56
4740	4740	years and shall be subject to audit by the director of taxation. If any
4741	4741	materials purchased under such a certificate are found not to have been
4742	4742	incorporated in the building or other project or not to have been returned
4743	4743	for credit or the sales or compensating tax otherwise imposed upon such
4744	4744	materials that will not be incorporated into the building or other project
4745	4745	reported and paid by such contractor to the director of taxation not later
4746	4746	than the 20
4747	4747	th
4748	4748	day of the month following the close of the month in which it
4749	4749	shall be determined that such materials will not be used for the purpose for
4750	4750	which such certificate was issued, TLC charities shall be liable for tax on
4751	4751	all materials purchased for the project, and upon payment thereof it may
4752	4752	recover the same from the contractor together with reasonable attorney
4753	4753	fees. Any contractor or any agent, employee or subcontractor thereof, who
4754	4754	shall use or otherwise dispose of any materials purchased under such a
4755	4755	certificate for any purpose other than that for which such a certificate is
4756	4756	issued without the payment of the sales or compensating tax otherwise
4757	4757	imposed upon such materials, shall be guilty of a misdemeanor and, upon
4758	4758	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4759	4759	79-3615(h), and amendments thereto;
4760	4760	(zzz) all sales of tangible personal property purchased by the rotary
4761	4761	club of shawnee foundation, which is exempt from federal income taxation
4762	4762	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
4763	4763	as amended, used for the purpose of providing contributions to community
4764	4764	service organizations and scholarships;
4765	4765	(aaaa) all sales of personal property and services purchased by or on
4766	4766	behalf of victory in the valley, inc., which is exempt from federal income
4767	4767	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4768	4768	for the purpose of providing a cancer support group and services for
4769	4769	persons with cancer, and all sales of any such property by or on behalf of
4770	4770	any such organization for any such purpose;
4771	4771	(bbbb) all sales of entry or participation fees, charges or tickets by
4772	4772	Guadalupe health foundation, which is exempt from federal income
4773	4773	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4774	4774	for such organization's annual fundraising event which purpose is to
4775	4775	provide health care healthcare services for uninsured workers;
4776	4776	(cccc) all sales of tangible personal property or services purchased by
4777	4777	or on behalf of wayside waifs, inc., which is exempt from federal income
4778	4778	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4779	4779	for the purpose of providing such organization's annual fundraiser, an
4780	4780	event whose purpose is to support the care of homeless and abandoned
4781	4781	animals, animal adoption efforts, education programs for children and
4782	4782	efforts to reduce animal over-population and animal welfare services, and
4783	4783	all sales of any such property, including entry or participation fees or
4784	4784	charges, by or on behalf of such organization for such purpose;
4785	4785	1
4786	4786	2
4787	4787	3
4788	4788	4
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4821	4821	37
4822	4822	38
4823	4823	39
4824	4824	40
4825	4825	41
4826	4826	42
4827	4827	43 HB 2010 57
4828	4828	(dddd) all sales of tangible personal property or services purchased
4829	4829	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
4830	4830	of which are exempt from federal income taxation pursuant to section
4831	4831	501(c)(3) of the federal internal revenue code, for the purpose of providing
4832	4832	education, training and employment opportunities for people with
4833	4833	disabilities and other barriers to employment;
4834	4834	(eeee) all sales of tangible personal property or services purchased by
4835	4835	or on behalf of all American beef battalion, inc., which is exempt from
4836	4836	federal income taxation pursuant to section 501(c)(3) of the federal
4837	4837	internal revenue code, for the purpose of educating, promoting and
4838	4838	participating as a contact group through the beef cattle industry in order to
4839	4839	carry out such projects that provide support and morale to members of the
4840	4840	United States armed forces and military services;
4841	4841	(ffff) all sales of tangible personal property and services purchased by
4842	4842	sheltered living, inc., which is exempt from federal income taxation
4843	4843	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
4844	4844	and which such property and services are used for the purpose of
4845	4845	providing residential and day services for people with developmental
4846	4846	disabilities or intellectual disability, or both, and all sales of any such
4847	4847	property by or on behalf of sheltered living, inc., for any such purpose; and
4848	4848	all sales of tangible personal property or services purchased by a
4849	4849	contractor for the purpose of rehabilitating, constructing, maintaining,
4850	4850	repairing, enlarging, furnishing or remodeling homes and facilities for
4851	4851	sheltered living, inc., for any such purpose that would be exempt from
4852	4852	taxation under the provisions of this section if purchased directly by
4853	4853	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
4854	4854	the purchase of any construction machinery, equipment or tools used in the
4855	4855	constructing, maintaining, repairing, enlarging, furnishing or remodeling
4856	4856	such homes and facilities for sheltered living, inc. When sheltered living,
4857	4857	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
4858	4858	repairing, enlarging, furnishing or remodeling such homes and facilities, it
4859	4859	shall obtain from the state and furnish to the contractor an exemption
4860	4860	certificate for the project involved, and the contractor may purchase
4861	4861	materials for incorporation in such project. The contractor shall furnish the
4862	4862	number of such certificate to all suppliers from whom such purchases are
4863	4863	made, and such suppliers shall execute invoices covering the same bearing
4864	4864	the number of such certificate. Upon completion of the project the
4865	4865	contractor shall furnish to sheltered living, inc., a sworn statement, on a
4866	4866	form to be provided by the director of taxation, that all purchases so made
4867	4867	were entitled to exemption under this subsection. All invoices shall be held
4868	4868	by the contractor for a period of five years and shall be subject to audit by
4869	4869	the director of taxation. If any materials purchased under such a certificate
4870	4870	are found not to have been incorporated in the building or other project or
4871	4871	1
4872	4872	2
4873	4873	3
4874	4874	4
4875	4875	5
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4895	4895	25
4896	4896	26
4897	4897	27
4898	4898	28
4899	4899	29
4900	4900	30
4901	4901	31
4902	4902	32
4903	4903	33
4904	4904	34
4905	4905	35
4906	4906	36
4907	4907	37
4908	4908	38
4909	4909	39
4910	4910	40
4911	4911	41
4912	4912	42
4913	4913	43 HB 2010 58
4914	4914	not to have been returned for credit or the sales or compensating tax
4915	4915	otherwise imposed upon such materials that will not be so incorporated in
4916	4916	the building or other project reported and paid by such contractor to the
4917	4917	director of taxation not later than the 20
4918	4918	th
4919	4919	day of the month following the
4920	4920	close of the month in which it shall be determined that such materials will
4921	4921	not be used for the purpose for which such certificate was issued, sheltered
4922	4922	living, inc., shall be liable for tax on all materials purchased for the
4923	4923	project, and upon payment thereof it may recover the same from the
4924	4924	contractor together with reasonable attorney fees. Any contractor or any
4925	4925	agent, employee or subcontractor thereof, who shall use or otherwise
4926	4926	dispose of any materials purchased under such a certificate for any purpose
4927	4927	other than that for which such a certificate is issued without the payment
4928	4928	of the sales or compensating tax otherwise imposed upon such materials,
4929	4929	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4930	4930	subject to the penalties provided for in K.S.A. 79-3615(h), and
4931	4931	amendments thereto;
4932	4932	(gggg) all sales of game birds for which the primary purpose is use in
4933	4933	hunting;
4934	4934	(hhhh) all sales of tangible personal property or services purchased
4935	4935	on or after July 1, 2014, for the purpose of and in conjunction with
4936	4936	constructing, reconstructing, enlarging or remodeling a business identified
4937	4937	under the North American industry classification system (NAICS)
4938	4938	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
4939	4939	installation of machinery and equipment purchased for installation at any
4940	4940	such business. The exemption provided in this subsection shall not apply
4941	4941	to projects that have actual total costs less than $50,000. When a person
4942	4942	contracts for the construction, reconstruction, enlargement or remodeling
4943	4943	of any such business, such person shall obtain from the state and furnish to
4944	4944	the contractor an exemption certificate for the project involved, and the
4945	4945	contractor may purchase materials, machinery and equipment for
4946	4946	incorporation in such project. The contractor shall furnish the number of
4947	4947	such certificates to all suppliers from whom such purchases are made, and
4948	4948	such suppliers shall execute invoices covering the same bearing the
4949	4949	number of such certificate. Upon completion of the project, the contractor
4950	4950	shall furnish to the owner of the business a sworn statement, on a form to
4951	4951	be provided by the director of taxation, that all purchases so made were
4952	4952	entitled to exemption under this subsection. All invoices shall be held by
4953	4953	the contractor for a period of five years and shall be subject to audit by the
4954	4954	director of taxation. Any contractor or any agent, employee or
4955	4955	subcontractor of the contractor, who shall use or otherwise dispose of any
4956	4956	materials, machinery or equipment purchased under such a certificate for
4957	4957	any purpose other than that for which such a certificate is issued without
4958	4958	the payment of the sales or compensating tax otherwise imposed thereon,
4959	4959	1
4960	4960	2
4961	4961	3
4962	4962	4
4963	4963	5
4964	4964	6
4965	4965	7
4966	4966	8
4967	4967	9
4968	4968	10
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4970	4970	12
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4973	4973	15
4974	4974	16
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4977	4977	19
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4979	4979	21
4980	4980	22
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4982	4982	24
4983	4983	25
4984	4984	26
4985	4985	27
4986	4986	28
4987	4987	29
4988	4988	30
4989	4989	31
4990	4990	32
4991	4991	33
4992	4992	34
4993	4993	35
4994	4994	36
4995	4995	37
4996	4996	38
4997	4997	39
4998	4998	40
4999	4999	41
5000	5000	42
5001	5001	43 HB 2010 59
5002	5002	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
5003	5003	subject to the penalties provided for in K.S.A. 79-3615(h), and
5004	5004	amendments thereto;
5005	5005	(iiii) all sales of tangible personal property or services purchased by a
5006	5006	contractor for the purpose of constructing, maintaining, repairing,
5007	5007	enlarging, furnishing or remodeling facilities for the operation of services
5008	5008	for Wichita children's home for any such purpose that would be exempt
5009	5009	from taxation under the provisions of this section if purchased directly by
5010	5010	Wichita children's home. Nothing in this subsection shall be deemed to
5011	5011	exempt the purchase of any construction machinery, equipment or tools
5012	5012	used in the constructing, maintaining, repairing, enlarging, furnishing or
5013	5013	remodeling such facilities for Wichita children's home. When Wichita
5014	5014	children's home contracts for the purpose of constructing, maintaining,
5015	5015	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
5016	5016	from the state and furnish to the contractor an exemption certificate for the
5017	5017	project involved, and the contractor may purchase materials for
5018	5018	incorporation in such project. The contractor shall furnish the number of
5019	5019	such certificate to all suppliers from whom such purchases are made, and
5020	5020	such suppliers shall execute invoices covering the same bearing the
5021	5021	number of such certificate. Upon completion of the project, the contractor
5022	5022	shall furnish to Wichita children's home a sworn statement, on a form to be
5023	5023	provided by the director of taxation, that all purchases so made were
5024	5024	entitled to exemption under this subsection. All invoices shall be held by
5025	5025	the contractor for a period of five years and shall be subject to audit by the
5026	5026	director of taxation. If any materials purchased under such a certificate are
5027	5027	found not to have been incorporated in the building or other project or not
5028	5028	to have been returned for credit or the sales or compensating tax otherwise
5029	5029	imposed upon such materials that will not be so incorporated in the
5030	5030	building or other project reported and paid by such contractor to the
5031	5031	director of taxation not later than the 20
5032	5032	th
5033	5033	day of the month following the
5034	5034	close of the month in which it shall be determined that such materials will
5035	5035	not be used for the purpose for which such certificate was issued, Wichita
5036	5036	children's home shall be liable for the tax on all materials purchased for the
5037	5037	project, and upon payment, it may recover the same from the contractor
5038	5038	together with reasonable attorney fees. Any contractor or any agent,
5039	5039	employee or subcontractor, who shall use or otherwise dispose of any
5040	5040	materials purchased under such a certificate for any purpose other than that
5041	5041	for which such a certificate is issued without the payment of the sales or
5042	5042	compensating tax otherwise imposed upon such materials, shall be guilty
5043	5043	of a misdemeanor and, upon conviction, shall be subject to the penalties
5044	5044	provided for in K.S.A. 79-3615(h), and amendments thereto;
5045	5045	(jjjj) all sales of tangible personal property or services purchased by
5046	5046	or on behalf of the beacon, inc., that is exempt from federal income
5047	5047	1
5048	5048	2
5049	5049	3
5050	5050	4
5051	5051	5
5052	5052	6
5053	5053	7
5054	5054	8
5055	5055	9
5056	5056	10
5057	5057	11
5058	5058	12
5059	5059	13
5060	5060	14
5061	5061	15
5062	5062	16
5063	5063	17
5064	5064	18
5065	5065	19
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5067	5067	21
5068	5068	22
5069	5069	23
5070	5070	24
5071	5071	25
5072	5072	26
5073	5073	27
5074	5074	28
5075	5075	29
5076	5076	30
5077	5077	31
5078	5078	32
5079	5079	33
5080	5080	34
5081	5081	35
5082	5082	36
5083	5083	37
5084	5084	38
5085	5085	39
5086	5086	40
5087	5087	41
5088	5088	42
5089	5089	43 HB 2010 60
5090	5090	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
5091	5091	for the purpose of providing those desiring help with food, shelter, clothing
5092	5092	and other necessities of life during times of special need;
5093	5093	(kkkk) all sales of tangible personal property and services purchased
5094	5094	by or on behalf of reaching out from within, inc., which is exempt from
5095	5095	federal income taxation pursuant to section 501(c)(3) of the federal
5096	5096	internal revenue code, for the purpose of sponsoring self-help programs for
5097	5097	incarcerated persons that will enable such incarcerated persons to become
5098	5098	role models for non-violence while in correctional facilities and productive
5099	5099	family members and citizens upon return to the community;
5100	5100	(llll) all sales of tangible personal property and services purchased by
5101	5101	Gove county healthcare endowment foundation, inc., which is exempt
5102	5102	from federal income taxation pursuant to section 501(c)(3) of the federal
5103	5103	internal revenue code of 1986, and which such property and services are
5104	5104	used for the purpose of constructing and equipping an airport in Quinter,
5105	5105	Kansas, and all sales of tangible personal property or services purchased
5106	5106	by a contractor for the purpose of constructing and equipping an airport in
5107	5107	Quinter, Kansas, for such organization, that would be exempt from
5108	5108	taxation under the provisions of this section if purchased directly by such
5109	5109	organization. Nothing in this subsection shall be deemed to exempt the
5110	5110	purchase of any construction machinery, equipment or tools used in the
5111	5111	constructing or equipping of facilities for such organization. When such
5112	5112	organization shall contract for the purpose of constructing or equipping an
5113	5113	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
5114	5114	contractor an exemption certificate for the project involved, and the
5115	5115	contractor may purchase materials for incorporation in such project. The
5116	5116	contractor shall furnish the number of such certificate to all suppliers from
5117	5117	whom such purchases are made, and such suppliers shall execute invoices
5118	5118	covering the same bearing the number of such certificate. Upon
5119	5119	completion of the project, the contractor shall furnish to such organization
5120	5120	concerned a sworn statement, on a form to be provided by the director of
5121	5121	taxation, that all purchases so made were entitled to exemption under this
5122	5122	subsection. All invoices shall be held by the contractor for a period of five
5123	5123	years and shall be subject to audit by the director of taxation. If any
5124	5124	materials purchased under such a certificate are found not to have been
5125	5125	incorporated in such facilities or not to have been returned for credit or the
5126	5126	sales or compensating tax otherwise imposed upon such materials that will
5127	5127	not be so incorporated in such facilities reported and paid by such
5128	5128	contractor to the director of taxation no later than the 20
5129	5129	th
5130	5130	day of the month
5131	5131	following the close of the month in which it shall be determined that such
5132	5132	materials will not be used for the purpose for which such certificate was
5133	5133	issued, such organization concerned shall be liable for tax on all materials
5134	5134	purchased for the project, and upon payment thereof it may recover the
5135	5135	1
5136	5136	2
5137	5137	3
5138	5138	4
5139	5139	5
5140	5140	6
5141	5141	7
5142	5142	8
5143	5143	9
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5160	5160	26
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5162	5162	28
5163	5163	29
5164	5164	30
5165	5165	31
5166	5166	32
5167	5167	33
5168	5168	34
5169	5169	35
5170	5170	36
5171	5171	37
5172	5172	38
5173	5173	39
5174	5174	40
5175	5175	41
5176	5176	42
5177	5177	43 HB 2010 61
5178	5178	same from the contractor together with reasonable attorney fees. Any
5179	5179	contractor or any agent, employee or subcontractor thereof, who purchased
5180	5180	under such a certificate for any purpose other than that for which such a
5181	5181	certificate is issued without the payment of the sales or compensating tax
5182	5182	otherwise imposed upon such materials, shall be guilty of a misdemeanor
5183	5183	and, upon conviction therefor, shall be subject to the penalties provided for
5184	5184	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
5185	5185	subsection shall expire and have no effect on and after July 1, 2019;
5186	5186	(mmmm) all sales of gold or silver coins; and palladium, platinum,
5187	5187	gold or silver bullion. For the purposes of this subsection, "bullion" means
5188	5188	bars, ingots or commemorative medallions of gold, silver, platinum,
5189	5189	palladium, or a combination thereof, for which the value of the metal
5190	5190	depends on its content and not the form;
5191	5191	(nnnn) all sales of tangible personal property or services purchased
5192	5192	by friends of hospice of Jefferson county, an organization that is exempt
5193	5193	from federal income taxation pursuant to section 501(c)(3) of the federal
5194	5194	internal revenue code of 1986, for the purpose of providing support to the
5195	5195	Jefferson county hospice agency in end-of-life care of Jefferson county
5196	5196	families, friends and neighbors, and all sales of entry or participation fees,
5197	5197	charges or tickets by friends of hospice of Jefferson county for such
5198	5198	organization's fundraising event for such purpose;
5199	5199	(oooo) all sales of tangible personal property or services purchased
5200	5200	for the purpose of and in conjunction with constructing, reconstructing,
5201	5201	enlarging or remodeling a qualified business facility by a qualified firm or
5202	5202	qualified supplier that meets the requirements established in K.S.A. 2024
5203	5203	Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
5204	5204	been approved for a project exemption certificate by the secretary of
5205	5205	commerce, and the sale and installation of machinery and equipment
5206	5206	purchased by such qualified firm or qualified supplier for installation at
5207	5207	any such qualified business facility. When a person shall contract for the
5208	5208	construction, reconstruction, enlargement or remodeling of any such
5209	5209	qualified business facility, such person shall obtain from the state and
5210	5210	furnish to the contractor an exemption certificate for the project involved,
5211	5211	and the contractor may purchase materials, machinery and equipment for
5212	5212	incorporation in such project. The contractor shall furnish the number of
5213	5213	such certificates to all suppliers from whom such purchases are made, and
5214	5214	such suppliers shall execute invoices covering the same bearing the
5215	5215	number of such certificate. Upon completion of the project, the contractor
5216	5216	shall furnish to the owner of the qualified firm or qualified supplier a
5217	5217	sworn statement, on a form to be provided by the director of taxation, that
5218	5218	all purchases so made were entitled to exemption under this subsection.
5219	5219	All invoices shall be held by the contractor for a period of five years and
5220	5220	shall be subject to audit by the director of taxation. Any contractor or any
5221	5221	1
5222	5222	2
5223	5223	3
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5225	5225	5
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5227	5227	7
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5230	5230	10
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5233	5233	13
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5242	5242	22
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5244	5244	24
5245	5245	25
5246	5246	26
5247	5247	27
5248	5248	28
5249	5249	29
5250	5250	30
5251	5251	31
5252	5252	32
5253	5253	33
5254	5254	34
5255	5255	35
5256	5256	36
5257	5257	37
5258	5258	38
5259	5259	39
5260	5260	40
5261	5261	41
5262	5262	42
5263	5263	43 HB 2010 62
5264	5264	agent, employee or subcontractor thereof who shall use or otherwise
5265	5265	dispose of any materials, machinery or equipment purchased under such a
5266	5266	certificate for any purpose other than that for which such a certificate is
5267	5267	issued without the payment of the sales or compensating tax otherwise
5268	5268	imposed thereon, shall be guilty of a misdemeanor and, upon conviction
5269	5269	therefor, shall be subject to the penalties provided for in K.S.A. 79-
5270	5270	3615(h), and amendments thereto. As used in this subsection, "qualified
5271	5271	business facility," "qualified firm" and "qualified supplier" mean the same
5272	5272	as defined in K.S.A. 2024 Supp. 74-50,311, and amendments thereto;
5273	5273	(pppp) (1) all sales of tangible personal property or services
5274	5274	purchased by a not-for-profit corporation that is designated as an area
5275	5275	agency on aging by the secretary for aging and disabilities services and is
5276	5276	exempt from federal income taxation pursuant to section 501(c)(3) of the
5277	5277	federal internal revenue code for the purpose of coordinating and
5278	5278	providing seniors and those living with disabilities with services that
5279	5279	promote person-centered care, including home-delivered meals,
5280	5280	congregate meal settings, long-term case management, transportation,
5281	5281	information, assistance and other preventative and intervention services to
5282	5282	help service recipients remain in their homes and communities or for the
5283	5283	purpose of constructing, equipping, reconstructing, maintaining, repairing,
5284	5284	enlarging, furnishing or remodeling facilities for such area agency on
5285	5285	aging; and
5286	5286	(2) all sales of tangible personal property or services purchased by a
5287	5287	contractor for the purpose of constructing, equipping, reconstructing,
5288	5288	maintaining, repairing, enlarging, furnishing or remodeling facilities for an
5289	5289	area agency on aging that would be exempt from taxation under the
5290	5290	provisions of this section if purchased directly by such area agency on
5291	5291	aging. Nothing in this paragraph shall be deemed to exempt the purchase
5292	5292	of any construction machinery, equipment or tools used in the
5293	5293	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
5294	5294	furnishing or remodeling facilities for an area agency on aging. When an
5295	5295	area agency on aging contracts for the purpose of constructing, equipping,
5296	5296	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
5297	5297	facilities, it shall obtain from the state and furnish to the contractor an
5298	5298	exemption certificate for the project involved, and such contractor may
5299	5299	purchase materials for incorporation in such project. The contractor shall
5300	5300	furnish the number of such certificate to all suppliers from whom such
5301	5301	purchases are made, and such suppliers shall execute invoices covering the
5302	5302	same bearing the number of such certificate. Upon completion of the
5303	5303	project, the contractor shall furnish to such area agency on aging a sworn
5304	5304	statement, on a form to be provided by the director of taxation, that all
5305	5305	purchases so made were entitled to exemption under this subsection. All
5306	5306	invoices shall be held by the contractor for a period of five years and shall
5307	5307	1
5308	5308	2
5309	5309	3
5310	5310	4
5311	5311	5
5312	5312	6
5313	5313	7
5314	5314	8
5315	5315	9
5316	5316	10
5317	5317	11
5318	5318	12
5319	5319	13
5320	5320	14
5321	5321	15
5322	5322	16
5323	5323	17
5324	5324	18
5325	5325	19
5326	5326	20
5327	5327	21
5328	5328	22
5329	5329	23
5330	5330	24
5331	5331	25
5332	5332	26
5333	5333	27
5334	5334	28
5335	5335	29
5336	5336	30
5337	5337	31
5338	5338	32
5339	5339	33
5340	5340	34
5341	5341	35
5342	5342	36
5343	5343	37
5344	5344	38
5345	5345	39
5346	5346	40
5347	5347	41
5348	5348	42
5349	5349	43 HB 2010 63
5350	5350	be subject to audit by the director of taxation. If any materials purchased
5351	5351	under such a certificate are found not to have been incorporated in the
5352	5352	building or other project or not to have been returned for credit or the sales
5353	5353	or compensating tax otherwise imposed upon such materials that will not
5354	5354	be so incorporated in the building or other project reported and paid by
5355	5355	such contractor to the director of taxation not later than the 20
5356	5356	th
5357	5357	day of the
5358	5358	month following the close of the month in which it shall be determined
5359	5359	that such materials will not be used for the purpose for which such
5360	5360	certificate was issued, the area agency on aging concerned shall be liable
5361	5361	for tax on all materials purchased for the project, and upon payment
5362	5362	thereof, the area agency on aging may recover the same from the
5363	5363	contractor together with reasonable attorney fees. Any contractor or any
5364	5364	agent, employee or subcontractor thereof who shall use or otherwise
5365	5365	dispose of any materials purchased under such a certificate for any purpose
5366	5366	other than that for which such a certificate is issued without the payment
5367	5367	of the sales or compensating tax otherwise imposed upon such materials
5368	5368	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
5369	5369	subject to the penalties provided for in K.S.A. 79-3615(h), and
5370	5370	amendments thereto;
5371	5371	(qqqq) all sales of tangible personal property or services purchased
5372	5372	by Kansas suicide prevention HQ, inc., an organization that is exempt
5373	5373	from federal income taxation pursuant to section 501(c)(3) of the federal
5374	5374	internal revenue code of 1986, for the purpose of bringing suicide
5375	5375	prevention training and awareness to communities across the state;
5376	5376	(rrrr) all sales of the services of slaughtering, butchering, custom
5377	5377	cutting, dressing, processing and packaging of an animal for human
5378	5378	consumption when the animal is delivered or furnished by a customer that
5379	5379	owns the animal and such meat or poultry is for use or consumption by
5380	5380	such customer;
5381	5381	(ssss) all sales of tangible personal property or services purchased by
5382	5382	or on behalf of doorstep inc., an organization that is exempt from federal
5383	5383	income taxation pursuant to section 501(c)(3) of the federal internal
5384	5384	revenue code of 1986, for the purpose of providing short-term emergency
5385	5385	aid to families and individuals in need, including assistance with food,
5386	5386	clothing, rent, prescription medications, transportation and utilities, and
5387	5387	providing information on services to promote long-term self-sufficiency;
5388	5388	(tttt) on and after January 1, 2024, all sales of tangible personal
5389	5389	property or services purchased by exploration place, inc., an organization
5390	5390	that is exempt from federal income taxation pursuant to section 501(c)(3)
5391	5391	of the federal internal revenue code, and which such property and services
5392	5392	are used for the purpose of constructing, remodeling, furnishing or
5393	5393	equipping a riverfront amphitheater, a destination playscape, an education
5394	5394	center and indoor renovations at exploration place in Wichita, Kansas, all
5395	5395	1
5396	5396	2
5397	5397	3
5398	5398	4
5399	5399	5
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5403	5403	9
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5411	5411	17
5412	5412	18
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5414	5414	20
5415	5415	21
5416	5416	22
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5419	5419	25
5420	5420	26
5421	5421	27
5422	5422	28
5423	5423	29
5424	5424	30
5425	5425	31
5426	5426	32
5427	5427	33
5428	5428	34
5429	5429	35
5430	5430	36
5431	5431	37
5432	5432	38
5433	5433	39
5434	5434	40
5435	5435	41
5436	5436	42
5437	5437	43 HB 2010 64
5438	5438	sales of tangible personal property or services purchased by Kansas
5439	5439	children's discovery center inc. in Topeka, Kansas, and which such
5440	5440	property and services are used for the purpose of constructing, remodeling,
5441	5441	furnishing or equipping projects that include indoor-outdoor classrooms,
5442	5442	an expanded multi-media gallery, a workshop and loading dock and safety
5443	5443	upgrades such as a tornado shelter, lactation room, first aid room and
5444	5444	sensory room and all sales of tangible personal property or services
5445	5445	purchased by a contractor for the purpose of constructing, remodeling,
5446	5446	furnishing or equipping such projects, for such organizations, that would
5447	5447	be exempt from taxation under the provisions of this section if purchased
5448	5448	directly by such organizations. Nothing in this subsection shall be deemed
5449	5449	to exempt the purchase of any construction machinery, equipment or tools
5450	5450	used in the constructing, remodeling, furnishing or equipping of facilities
5451	5451	for such organization. When such organization shall contract for the
5452	5452	purpose of constructing, remodeling, furnishing or equipping such
5453	5453	projects, it shall obtain from the state and furnish to the contractor an
5454	5454	exemption certificate for the project involved, and the contractor may
5455	5455	purchase materials for incorporation in such project. The contractor shall
5456	5456	furnish the number of such certificate to all suppliers from whom such
5457	5457	purchases are made, and such suppliers shall execute invoices covering the
5458	5458	same bearing the number of such certificate. Upon completion of the
5459	5459	project, the contractor shall furnish to such organization a sworn statement,
5460	5460	on a form to be provided by the director of taxation, that all purchases so
5461	5461	made were entitled to exemption under this subsection. All invoices shall
5462	5462	be held by the contractor for a period of five years and shall be subject to
5463	5463	audit by the director of taxation. If any materials purchased under such a
5464	5464	certificate are found not to have been incorporated in such facilities or not
5465	5465	to have been returned for credit or the sales or compensating tax otherwise
5466	5466	imposed upon such materials that will not be so incorporated in such
5467	5467	facilities reported and paid by such contractor to the director of taxation no
5468	5468	later than the 20
5469	5469	th
5470	5470	day of the month following the close of the month in
5471	5471	which it shall be determined that such materials will not be used for the
5472	5472	purpose for which such certificate was issued, such organization shall be
5473	5473	liable for tax on all materials purchased for the project, and upon payment
5474	5474	thereof may recover the same from the contractor together with reasonable
5475	5475	attorney fees. Any contractor or agent, employee or subcontractor thereof,
5476	5476	who purchased under such a certificate for any purpose other than that for
5477	5477	which such a certificate is issued without the payment of the sales or
5478	5478	compensating tax otherwise imposed upon such materials, shall be guilty
5479	5479	of a misdemeanor and, upon conviction therefor, shall be subject to the
5480	5480	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
5481	5481	Sales tax paid on and after January 1, 2024, but prior to the effective date
5482	5482	of this act, upon the gross receipts received from any sale exempted by the
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5526	5526	amendatory provisions of this subsection shall be refunded. Each claim for
5527	5527	a sales tax refund shall be verified and submitted to the director of taxation
5528	5528	upon forms furnished by the director and shall be accompanied by any
5529	5529	additional documentation required by the director. The director shall
5530	5530	review each claim and shall refund that amount of sales tax paid as
5531	5531	determined under the provisions of this subsection. All refunds shall be
5532	5532	paid from the sales tax refund fund upon warrants of the director of
5533	5533	accounts and reports pursuant to vouchers approved by the director or the
5534	5534	director's designee. The provisions of this subsection shall expire and have
5535	5535	no effect on and after December 31, 2030;
5536	5536	(uuuu) (1) (A) all sales of equipment, machinery, software, ancillary
5537	5537	components, appurtenances, accessories or other infrastructure purchased
5538	5538	for use in the provision of communications services; and
5539	5539	(B) all services purchased by a provider in the provision of the
5540	5540	communications service used in the repair, maintenance or installation in
5541	5541	such communications service.
5542	5542	(2) As used in this subsection:
5543	5543	(A) "Communications service" means internet access service,
5544	5544	telecommunications service, video service or any combination thereof.
5545	5545	(B) "Equipment, machinery, software, ancillary components,
5546	5546	appurtenances, accessories or other infrastructure" includes, but is not
5547	5547	limited to:
5548	5548	(i) Wires, cables, fiber, conduits, antennas, poles, switches, routers,
5549	5549	amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,
5550	5550	transmitters, circuit cards, insulating and protective materials and cases,
5551	5551	power equipment, backup power equipment, diagnostic equipment, storage
5552	5552	devices, modems, cable modem termination systems and servers;
5553	5553	(ii) other general central office or headend equipment, such as
5554	5554	channel cards, frames and cabinets;
5555	5555	(iii) equipment used in successor technologies, including items used
5556	5556	to monitor, test, maintain, enable or facilitate qualifying equipment,
5557	5557	machinery, software, ancillary components, appurtenances and
5558	5558	accessories; and
5559	5559	(iv) other infrastructure that is used in whole or in part to provide
5560	5560	communications services, including broadcasting, distributing, sending,
5561	5561	receiving, storing, transmitting, retransmitting, amplifying, switching,
5562	5562	providing connectivity for or routing communications services.
5563	5563	(C) "Internet access service" means the same as internet access as
5564	5564	defined in section 1105 of the internet tax freedom act amendments of
5565	5565	2007, public law 110-108.
5566	5566	(D) "Provider" means a person or entity that sells communications
5567	5567	service, including an affiliate or subsidiary.
5568	5568	(E) "Telecommunications service" means the same as defined in
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5612	5612	K.S.A. 79-3602, and amendments thereto.
5613	5613	(F) "Video service" means the same as defined in K.S.A. 12-2022,
5614	5614	and amendments thereto.
5615	5615	(3) The provisions of this subsection shall expire and have no effect
5616	5616	on and after July 1, 2029;
5617	5617	(vvvv) (1) all sales of tangible personal property or services
5618	5618	purchased by a contractor for the purpose of constructing, equipping,
5619	5619	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
5620	5620	a building that is operated by, or is intended to be operated by, the Kansas
5621	5621	fairgrounds foundation, a not-for-profit corporation exempt from federal
5622	5622	income taxation pursuant to section 501(c)(3) of the federal internal
5623	5623	revenue code of 1986, and located on the grounds of the Kansas state fair,
5624	5624	and such tangible personal property would be exempt from taxation under
5625	5625	the provisions of this paragraph if purchased directly by such eligible not-
5626	5626	for-profit corporation. Nothing in this subsection shall be deemed to
5627	5627	exempt the purchase of any construction machinery, equipment or tools
5628	5628	used in the constructing, equipping, reconstructing, maintaining, repairing,
5629	5629	enlarging, furnishing or remodeling a building for such eligible not-for-
5630	5630	profit corporation. When such eligible not-for-profit corporation contracts
5631	5631	for the purpose of constructing, equipping, reconstructing, maintaining,
5632	5632	repairing, enlarging, furnishing or remodeling a building, such corporation
5633	5633	shall obtain from the state and furnish to the contractor an exemption
5634	5634	certificate for the project involved, and such contractor may purchase
5635	5635	materials for incorporation in such project. The contractor shall furnish the
5636	5636	number of such certificate to all suppliers from whom such purchases are
5637	5637	made, and such suppliers shall execute invoices covering such purchases
5638	5638	bearing the number of such certificate. Upon completion of the project, the
5639	5639	contractor shall furnish to such eligible not-for-profit corporation a sworn
5640	5640	statement, on a form to be provided by the director of taxation, that all
5641	5641	purchases so made were entitled to exemption under this subsection. All
5642	5642	invoices shall be held by the contractor for a period of five years and shall
5643	5643	be subject to audit by the director of taxation. If any materials purchased
5644	5644	under such a certificate are found not to have been incorporated in the
5645	5645	building or returned for credit, the contractor shall report and pay the sales
5646	5646	or compensating tax to the director of taxation not later than the 20
5647	5647	th
5648	5648	day of
5649	5649	the month following the close of the month in which it is determined that
5650	5650	such materials will not be used for the purpose for which such certificate
5651	5651	was issued. The eligible not-for-profit corporation concerned shall be
5652	5652	liable for tax on all materials purchased for the project, and upon payment
5653	5653	thereof, the eligible not-for-profit corporation may recover the same from
5654	5654	the contractor together with reasonable attorney fees. Any contractor or
5655	5655	any agent, employee or subcontractor thereof who shall use or otherwise
5656	5656	dispose of any materials purchased under such a certificate for any purpose
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5699	5699	43 HB 2010 67
5700	5700	other than that for which such a certificate is issued without the payment
5701	5701	of the sales or compensating tax otherwise imposed upon such materials
5702	5702	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
5703	5703	subject to the penalties provided for in K.S.A. 79-3615(h), and
5704	5704	amendments thereto.; and
5705	5705	(2) sales tax paid on and after May 19, 2023, but prior to the effective
5706	5706	date of this act upon the gross receipts received from any sale which that
5707	5707	would have been exempted by the provisions of this subsection had such
5708	5708	sale occurred after the effective date of this act shall be refunded. Each
5709	5709	claim for a sales tax refund shall be verified and submitted to the director
5710	5710	of taxation upon forms furnished by the director and shall be accompanied
5711	5711	by any additional documentation required by the director. The director
5712	5712	shall review each claim and shall refund that amount of sales tax paid as
5713	5713	determined under the provisions of this subsection. All refunds shall be
5714	5714	paid from the sales tax refund fund upon warrants of the director of
5715	5715	accounts and reports pursuant to vouchers approved by the director or the
5716	5716	director's designee; and
5717	5717	(wwww) (1) all sales of tangible personal property or services
5718	5718	purchased by a pregnancy resource center or residential maternity facility.;
5719	5719	and
5720	5720	(2) as used in this subsection, "pregnancy resource center" or
5721	5721	"residential maternity facility" means an organization that is:
5722	5722	(A) Exempt from federal income taxation pursuant to section 501(c)
5723	5723	(3) of the federal internal revenue code of 1986;
5724	5724	(B) a nonprofit organization organized under the laws of this state;
5725	5725	and
5726	5726	(C) a pregnancy resource center or residential maternity facility that:
5727	5727	(i) Maintains a dedicated phone number for clients;
5728	5728	(ii) maintains in this state its primary physical office, clinic or
5729	5729	residential home that is open for clients for a minimum of 20 hours per
5730	5730	week, excluding state holidays;
5731	5731	(iii) offers services, at no cost to the client, for the express purpose of
5732	5732	providing assistance to women in order to carry their pregnancy to term,
5733	5733	encourage parenting or adoption, prevent abortion and promote healthy
5734	5734	childbirth; and
5735	5735	(iv) utilizes trained healthcare providers, as defined by K.S.A. 2024
5736	5736	Supp. 79-32,316, and amendments thereto, to perform any available
5737	5737	medical procedures.
5738	5738	New Sec. 23. The provisions of this act are severable. If any portion
5739	5739	of this act is held by a court to be unconstitutional or invalid, or the
5740	5740	application of any portion of this act to any person or circumstance is held
5741	5741	by a court to be unconstitutional or invalid, the invalidity shall not affect
5742	5742	other portions of this act that can be given effect without the invalid
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5785	5785	43 HB 2010 68
5786	5786	portion or application, and the applicability of such other portions of this
5787	5787	act to any person or circumstance remains valid and enforceable.
5788	5788	Sec. 24. K.S.A. 21-5301, 21-5302, 21-5303, 38-2003, 65-4a02, 65-
5789	5789	4a03, 65-4a04, 65-4a05, 65-4a06, 65-4a07, 65-4a08, 65-4a09, 65-4a10,
5790	5790	65-4a11, 65-4a12, 65-2837, 65-6702, 65-6703, 65-6704, 65-6705, 65-
5791	5791	6707, 65-6709, 65-6710, 65-6711, 65-6712, 65-6714, 65-6715, 65-6721,
5792	5792	65-6722, 65-6724, 65-6725, 65-6726, 65-6731, 65-6732, 65-6741, 65-
5793	5793	6743, 65-6744, 65-6745, 65-6746, 65-6747, 65-6748, 65-6749, 65-67a01,
5794	5794	65-67a02, 65-67a04, 65-67a07, 65-67a09, 76-3308 and 79-32,195 and
5795	5795	K.S.A. 2024 Supp. 60-1901, 60-1906, 65-445, 65-4a01, 65-2401, 65-6701,
5796	5796	65-6708, 65-6723, 65-6742, 79-32,182b, 79-32,261 and 79-3606 are
5797	5797	hereby repealed.
5798	5798	Sec. 25. This act shall take effect and be in force from and after its
5799	5799	publication in the statute book.
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