Kansas 2025-2026 Regular Session

Kansas Senate Bill SB198 Compare Versions

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

Old	New	Differences
1	1	Session of 2025
2	2	SENATE BILL No. 198
3	3	By Committee on Public Health and Welfare
4	4	2-5
5	5	AN ACT concerning abortion; prohibiting abortion procedures, except
6	6	when necessary to save the life of the pregnant woman; providing a
7	7	private cause of action for civil enforcement of violations of such
8	8	prohibition; amending K.S.A. 65-2837, 65-6731, 65-67a01, 76-3308
9	9	and 79-32,195 and K.S.A. 2024 Supp. 60-1906, 65-2401, 79-32,182b,
10	10	79-32,261 and 79-3606 and repealing the existing sections; also
11	11	repealing K.S.A. 65-4a02, 65-4a03, 65-4a04, 65-4a05, 65-4a06, 65-
12	12	4a07, 65-4a08, 65-4a09, 65-4a10, 65-4a11, 65-4a12, 65-6702, 65-6703,
13	13	65-6704, 65-6705, 65-6707, 65-6709, 65-6710, 65-6711, 65-6712, 65-
14	14	6714, 65-6715, 65-6721, 65-6722, 65-6724, 65-6725, 65-6726, 65-
15	15	6741, 65-6743, 65-6744, 65-6745, 65-6746, 65-6747, 65-6748 and 65-
16	16	6749 and K.S.A. 2024 Supp. 65-4a01, 65-6701, 65-6708, 65-6723 and
17	17	65-6742.
18	18	Be it enacted by the Legislature of the State of Kansas:
19	19	New Section 1. (a) It shall be unlawful for any person to knowingly
20	20	perform or induce or attempt to perform or induce an abortion except
21	21	when necessary to preserve the life of a pregnant woman in a medical
22	22	emergency.
23	23	(b) It shall not be a violation of this section if a physician provides
24	24	medical treatment to a pregnant woman that results in accidental or
25	25	unintentional injury to or the death of the unborn child.
26	26	(c) Nothing in this section shall be construed to authorize the
27	27	performance or induction of an abortion that is otherwise prohibited by
28	28	federal or state law.
29	29	New Sec. 2. It shall be unlawful for any person to manufacture,
30	30	distribute, prescribe, dispense, sell, give or otherwise provide mifepristone,
31	31	mifegyne, mifeperex or any other substantially similar generic or
32	32	nongeneric abortifacient drug in this state for the purpose of inducing an
33	33	abortion in violation of section 1, and amendments thereto.
34	34	New Sec. 3. Nothing in section 1 or 2, and amendments thereto, shall
35	35	be construed to:
36	36	(a) Impose any liability against the woman upon whom an abortion is
37	37	performed or induced or attempted to be performed or induced; or
38	38	(b) prohibit the administration of misoprostol for the purpose of
39	39	treatment of a miscarriage.
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76	76	New Sec. 4. (a) Violations of section 1 or 2, and amendments thereto,
77	77	shall be enforced exclusively through the private civil enforcement actions
78	78	provided under section 5, and amendments thereto. Notwithstanding any
79	79	other provision of law, no enforcement of sections 1 and 2, and
80	80	amendments thereto, may be taken or threatened by any state agency,
81	81	political subdivision, county attorney or district attorney or any officer or
82	82	employee thereof against any person.
83	83	(b) Nothing in this section shall be construed to:
84	84	(1) Render any of the conduct prohibited by sections 1 and 2, and
85	85	amendments thereto, or by any other provision of law to be lawful;
86	86	(2) limit or affect, in any way, the availability of any relief established
87	87	under section 5, and amendments thereto; or
88	88	(3) limit the enforceability of any other laws that regulate or prohibit
89	89	abortion.
90	90	New Sec. 5. (a) Except for the entities and individuals described in
91	91	section 4, and amendments thereto, any person may bring a civil action
92	92	against any person who:
93	93	(1) Violates section 1 or 2, and amendments thereto; or
94	94	(2) knowingly engages in conduct that aids or abets a violation of
95	95	section 1 or 2, and amendments thereto, including paying for or
96	96	reimbursing the costs of an abortion through insurance or otherwise,
97	97	regardless of whether the person knew or should have known that the
98	98	performance or induction of the abortion would violate section 1, and
99	99	amendments thereto.
100	100	(b) (1) Except as otherwise provided, if the party bringing a cause of
101	101	action pursuant to this section prevails, the court shall award:
102	102	(A) Injunctive relief sufficient to prevent the defendant from violating
103	103	section 1 or 2, and amendments thereto, or engaging in acts that aid or abet
104	104	violations of section 1 or 2, and amendments thereto;
105	105	(B) (i) statutory damages in an amount of not less than $10,000 for
106	106	each abortion that the defendant performed or induced or attempted to
107	107	perform or induce in violation of section 1, and amendments thereto, and
108	108	for each abortion performed or induced or attempted to perform or induce
109	109	in violation of section 1, and amendments thereto, that the defendant aided
110	110	or abetted; and
111	111	(ii) statutory damages in an amount of not less than $10,000 for each
112	112	violation of section 2, and amendments thereto; and
113	113	(C) attorney fees and court costs.
114	114	(2) A court shall not award attorney fees or court costs to any
115	115	defendant who is the prevailing party in such action.
116	116	(c) A court shall not make any award under this section if the
117	117	defendant demonstrates that the defendant previously paid statutory
118	118	damages in a prior action that was brought for the same violation of
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162	162	section 1 or 2, and amendments thereto, or for the same conduct that aided
163	163	or abetted a violation of section 1 or 2, and amendments thereto.
164	164	(d) No action shall be maintained under this section after six years
165	165	from the time the cause of action accrues.
166	166	(e) Notwithstanding any other law, the following may not be asserted
167	167	as an affirmative defense to any claims in an action brought under this
168	168	section:
169	169	(1) Ignorance or mistake of law;
170	170	(2) a defendant's belief that the provisions of sections 1 through 8,
171	171	and amendments thereto, are unconstitutional;
172	172	(3) a defendant's reliance on any court decision that has been
173	173	overruled on appeal or by a subsequent court, even if such court decision
174	174	had not been overruled when the defendant engaged in conduct that
175	175	violates section 1 or 2, and amendments thereto;
176	176	(4) a defendant's reliance on any state or federal court decision that is
177	177	not binding on the court in which the action has been brought;
178	178	(5) nonmutual issue preclusion or nonmutual claim preclusion; or
179	179	(6) the consent of the pregnant woman to the abortion.
180	180	(f) In any action brought pursuant to subsection (a)(2), it is an
181	181	affirmative defense that the defendant reasonably believed, after
182	182	conducting a reasonable investigation, that the physician performing or
183	183	inducing or attempting to perform or induce the abortion had complied or
184	184	would comply with section 1, and amendments thereto. The defendant
185	185	shall have the burden of proving the affirmative defense under this
186	186	subsection by a preponderance of the evidence.
187	187	(g) No entity or person described in section 4, and amendments
188	188	thereto, shall intervene in any action brought under this section. No entity
189	189	or person shall be prohibited from filing an amicus curiae brief in any such
190	190	action.
191	191	(h) Nothing in this section shall be construed to impose liability on
192	192	any speech or conduct protected by the amendment 1 to the constitution of
193	193	the United States or by section 11 of the bill of rights of the constitution of
194	194	the state of Kansas.
195	195	New Sec. 6. Any action brought under section 5, and amendments
196	196	thereto, shall be brought in:
197	197	(a) The county where all or a substantial part of the events or
198	198	omissions giving rise to the claim occurred;
199	199	(b) the county of residence for the defendant who is a natural person,
200	200	if any, at the time the cause of action accrued;
201	201	(c) the county where the principal office in this state of the defendant
202	202	that is not a natural person, if any, is located; or
203	203	(d) the county of residence for the plaintiff if the plaintiff is a natural
204	204	person residing in this state.
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248	248	New Sec. 7. As used in sections 1 through 7, and amendments
249	249	thereto:
250	250	(a) (1) "Abortion" means the use or prescription of any instrument,
251	251	medicine, drug or any other substance or device to terminate the
252	252	pregnancy of a woman with an intention to cause the premature
253	253	termination of the pregnancy knowing that such termination will with
254	254	reasonable likelihood cause the death of the unborn child. Such use or
255	255	prescription is not an "abortion" if done with the intent to:
256	256	(A) Preserve the life or health of the unborn child;
257	257	(B) increase the probability of a live birth;
258	258	(C) remove a dead unborn child who died as the result of natural
259	259	causes in utero, accidental trauma or a criminal assault on the pregnant
260	260	woman or the unborn child; or
261	261	(D) remove an ectopic pregnancy.
262	262	(2) "Abortion" does not include the prescription, dispensing,
263	263	administration, sale or use of any method of contraception, including, but
264	264	not limited to, any type of emergency contraception intended to be taken
265	265	or used immediately subsequent to sexual intercourse.
266	266	(b) "Imminent harm" exclusively includes a physical condition and
267	267	does not include any mental condition, including, but not limited to, any
268	268	claim or diagnosis that the pregnant woman will engage in conduct
269	269	intended to result in her own death or some other form of self-harm.
270	270	(c) "Medical emergency" means a condition that, in reasonable
271	271	medical judgment, necessitates the immediate abortion of a woman's
272	272	pregnancy to preserve the life of the pregnant woman because such
273	273	woman's life is endangered and subject to imminent harm arising from the
274	274	pregnancy by a physical disorder, illness or injury, including a life-
275	275	endangering physical condition caused by or arising from the pregnancy
276	276	itself.
277	277	(d) "Miscarriage" means the nondeliberate and spontaneous expulsion
278	278	of a nonviable fetus that has a gestational age of fewer than 20 weeks.
279	279	(e) "Unborn child" means a living individual of the species homo
280	280	sapiens at any stage of gestation from fertilization to birth.
281	281	New Sec. 8. The provisions of sections 1 through 7, and amendments
282	282	thereto, are hereby declared severable. If any part or provision of sections
283	283	1 through 7, and amendments thereto, is held to be void, invalid or
284	284	unconstitutional, such part or provision shall not affect or impair any of the
285	285	remaining parts or provisions of sections 1 through 7, and amendments
286	286	thereto, and any such remaining provisions shall continue in full force and
287	287	effect.
288	288	Sec. 9. K.S.A. 2024 Supp. 60-1906 is hereby amended to read as
289	289	follows: 60-1906. (a) No civil action may be commenced in any court for a
290	290	claim of wrongful life or wrongful birth, and no damages may be
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334	334	recovered in any civil action for any physical condition of a minor that
335	335	existed at the time of such minor's birth if the damages sought arise out of
336	336	a claim that a person's action or omission contributed to such minor's
337	337	mother not obtaining an abortion.
338	338	(b) Nothing in this section shall be deemed to create any new cause of
339	339	action, nor preclude any otherwise proper cause of action based on a claim
340	340	that, but for a person's wrongful action or omission, the death or physical
341	341	injury of the mother would not have occurred, or the handicap, disease or
342	342	disability of an individual prior to birth would have been prevented, cured
343	343	or ameliorated in a manner that preserved the health and life of such
344	344	individual.
345	345	(c) If any provision or clause of this act or application thereof to any
346	346	person or circumstance is held invalid, such invalidity shall not affect other
347	347	provisions or applications of the act which that can be given effect without
348	348	the invalid provision or application, and to this end, the provisions of this
349	349	act are declared to be severable.
350	350	(d) As used in this section:
351	351	(1) "Abortion" has the same meaning as such term is means the same
352	352	as defined in K.S.A. 65-6701 section 7, and amendments thereto.
353	353	(2) "Claim of wrongful birth" means a cause of action brought by a
354	354	parent, legal guardian or other individual legally required to provide for
355	355	the support of a minor, which that seeks damages, whether economic or
356	356	noneconomic, as a result of a physical condition of such minor that existed
357	357	at the time of such minor's birth, and which is based on a claim that a
358	358	person's action or omission contributed to such minor's mother not
359	359	obtaining an abortion.
360	360	(3) "Claim of wrongful life" means a cause of action brought by, or
361	361	on behalf of, a minor, which that seeks damages, whether economic or
362	362	noneconomic, for such minor as a result of a physical condition of such
363	363	minor that existed at the time of such minor's birth, and which is based on
364	364	a claim that a person's action or omission contributed to such minor's
365	365	mother not obtaining an abortion.
366	366	Sec. 10. K.S.A. 2024 Supp. 65-2401 is hereby amended to read as
367	367	follows: 65-2401. As used in this act:
368	368	(a) "Vital statistics" includes the registration, preparation,
369	369	transcription, collection, compilation, and preservation of data pertaining
370	370	to birth, adoption, legitimation, death, stillbirth, marriage, divorce,
371	371	annulment of marriage, induced termination of pregnancy, and data
372	372	incidental thereto.
373	373	(b) "Live birth" means the complete expulsion or extraction from its
374	374	mother of a human child, irrespective of the duration of pregnancy, which,
375	375	that after such expulsion or extraction, breathes or shows any other
376	376	evidence of life, such as beating of the heart, pulsation of the umbilical
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420	420	cord, or definite movement of voluntary muscles, whether or not the
421	421	umbilical cord has been cut or the placenta is attached.
422	422	(c) "Gestational age" means the age of the human child as measured
423	423	in weeks as determined by either the last date of the mother's menstrual
424	424	period, a sonogram conducted prior to the 20
425	425	th
426	426	week of pregnancy or the
427	427	confirmed known date of conception.
428	428	(d) "Stillbirth" means any complete expulsion or extraction from its
429	429	mother of a human child, the gestational age of which is not less than 20
430	430	completed weeks, resulting in other than a live birth, as defined in this
431	431	section, and which that is not an induced termination of pregnancy.
432	432	(e) "Induced termination of pregnancy" means abortion, as defined in
433	433	K.S.A. 65-6701 section 7, and amendments thereto.
434	434	(f) "Dead body" means a lifeless human body or such parts of a
435	435	human body or the bones thereof from the state of which it reasonably may
436	436	be concluded that death recently occurred.
437	437	(g) "Person in charge of interment" means any person who places or
438	438	causes to be placed a stillborn child or dead body or the ashes, after
439	439	cremation, in a grave, vault, urn or other receptacle, or otherwise disposes
440	440	thereof.
441	441	(h) "Secretary" means the secretary of health and environment.
442	442	(i) "Cause of death certifier" means a person licensed to practice
443	443	medicine and surgery by the state board of healing arts, a physician
444	444	assistant licensed by the state board of healing arts, an advanced practice
445	445	registered nurse licensed by the state board of nursing or a district coroner,
446	446	deputy coroner or special deputy coroner.
447	447	(j) "Employee" means a person who has applied for employment or is
448	448	currently employed in the office of vital statistics.
449	449	Sec. 11. K.S.A. 65-2837 is hereby amended to read as follows: 65-
450	450	2837. As used in K.S.A. 65-2836, and amendments thereto, and in this
451	451	section:
452	452	(a) "Professional incompetency" means:
453	453	(1) One or more instances involving failure to adhere to the
454	454	applicable standard of care to a degree that constitutes gross negligence, as
455	455	determined by the board.
456	456	(2) Repeated instances involving failure to adhere to the applicable
457	457	standard of care to a degree that constitutes ordinary negligence, as
458	458	determined by the board.
459	459	(3) A pattern of practice or other behavior that demonstrates a
460	460	manifest incapacity or incompetence to practice the healing arts.
461	461	(b) "Unprofessional conduct" means:
462	462	(1) Solicitation of professional patronage through the use of
463	463	fraudulent or false advertisements, or profiting by the acts of those
464	464	representing themselves to be agents of the licensee.
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508	508	(2) Representing to a patient that a manifestly incurable disease,
509	509	condition or injury can be permanently cured.
510	510	(3) Assisting in the care or treatment of a patient without the consent
511	511	of the patient, the attending physician or the patient's legal representatives.
512	512	(4) The use of any letters, words or terms as an affix, on stationery, in
513	513	advertisements or otherwise indicating that such person is entitled to
514	514	practice a branch of the healing arts for which such person is not licensed.
515	515	(5) Performing, procuring or aiding and abetting in the performance
516	516	or procurement of a criminal an abortion, as define in section 7, and
517	517	amendments thereto.
518	518	(6) Willful betrayal of confidential information.
519	519	(7) Advertising professional superiority or the performance of
520	520	professional services in a superior manner.
521	521	(8) Advertising to guarantee any professional service or to perform
522	522	any operation painlessly.
523	523	(9) Participating in any action as a staff member of a medical care
524	524	facility that is designed to exclude or that results in the exclusion of any
525	525	person licensed to practice medicine and surgery from the medical staff of
526	526	a nonprofit medical care facility licensed in this state because of the
527	527	branch of the healing arts practiced by such person or without just cause.
528	528	(10) Failure to effectuate the declaration of a qualified patient as
529	529	provided in K.S.A. 65-28,107(a), and amendments thereto.
530	530	(11) Prescribing, ordering, dispensing, administering, selling,
531	531	supplying or giving any amphetamines or sympathomimetic amines,
532	532	except as authorized by K.S.A. 65-2837a, and amendments thereto.
533	533	(12) Conduct likely to deceive, defraud or harm the public.
534	534	(13) Making a false or misleading statement regarding the licensee's
535	535	skill or the efficacy or value of the drug, treatment or remedy prescribed
536	536	by the licensee or at the licensee's direction in the treatment of any disease
537	537	or other condition of the body or mind.
538	538	(14) Aiding or abetting the practice of the healing arts by an
539	539	unlicensed, incompetent or impaired person.
540	540	(15) Allowing another person or organization to use the licensee's
541	541	license to practice the healing arts.
542	542	(16) Commission of any act of sexual abuse, misconduct or other
543	543	improper sexual contact that exploits the licensee-patient relationship with
544	544	a patient or a person responsible for health care healthcare decisions
545	545	concerning such patient.
546	546	(17) The use of any false, fraudulent or deceptive statement in any
547	547	document connected with the practice of the healing arts including the
548	548	intentional falsifying or fraudulent altering of a patient or medical care
549	549	facility record.
550	550	(18) Obtaining any fee by fraud, deceit or misrepresentation.
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594	594	(19) Directly or indirectly giving or receiving any fee, commission,
595	595	rebate or other compensation for professional services not actually and
596	596	personally rendered, other than through the legal functioning of lawful
597	597	professional partnerships, corporations, limited liability companies or
598	598	associations.
599	599	(20) Failure to transfer patient records to another licensee when
600	600	requested to do so by the subject patient or by such patient's legally
601	601	designated representative.
602	602	(21) Performing unnecessary tests, examinations or services that have
603	603	no legitimate medical purpose.
604	604	(22) Charging an excessive fee for services rendered.
605	605	(23) Prescribing, dispensing, administering or distributing a
606	606	prescription drug or substance, including a controlled substance, in an
607	607	improper or inappropriate manner, or for other than a valid medical
608	608	purpose, or not in the course of the licensee's professional practice.
609	609	(24) Repeated failure to practice healing arts with that level of care,
610	610	skill and treatment that is recognized by a reasonably prudent similar
611	611	practitioner as being acceptable under similar conditions and
612	612	circumstances.
613	613	(25) Failure to keep written medical records that accurately describe
614	614	the services rendered to the patient, including patient histories, pertinent
615	615	findings, examination results and test results.
616	616	(26) Delegating professional responsibilities to a person when the
617	617	licensee knows or has reason to know that such person is not qualified by
618	618	training, experience or licensure to perform them.
619	619	(27) Using experimental forms of therapy without proper informed
620	620	patient consent, without conforming to generally accepted criteria or
621	621	standard protocols, without keeping detailed legible records or without
622	622	having periodic analysis of the study and results reviewed by a committee
623	623	or peers.
624	624	(28) Prescribing, dispensing, administering or distributing an anabolic
625	625	steroid or human growth hormone for other than a valid medical purpose.
626	626	Bodybuilding, muscle enhancement or increasing muscle bulk or strength
627	627	through the use of an anabolic steroid or human growth hormone by a
628	628	person who is in good health is not a valid medical purpose.
629	629	(29) Referring a patient to a health care healthcare entity for services
630	630	if the licensee has a significant investment interest in the health care
631	631	healthcare entity, unless the licensee informs the patient in writing of such
632	632	significant investment interest and that the patient may obtain such
633	633	services elsewhere.
634	634	(30) Failing to properly supervise, direct or delegate acts that
635	635	constitute the healing arts to persons who perform professional services
636	636	pursuant to such licensee's direction, supervision, order, referral,
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680	680	delegation or practice protocols.
681	681	(31) Violating K.S.A. 65-6703, and amendments thereto.
682	682	(32) Charging, billing or otherwise soliciting payment from any
683	683	patient, patient's representative or insurer for anatomic pathology services,
684	684	if such services are not personally rendered by the licensee or under such
685	685	licensee's direct supervision. As used in this subsection, "anatomic
686	686	pathology services" means the gross or microscopic examination of
687	687	histologic processing of human organ tissue or the examination of human
688	688	cells from fluids, aspirates, washings, brushings or smears, including blood
689	689	banking services, and subcellular or molecular pathology services,
690	690	performed by or under the supervision of a person licensed to practice
691	691	medicine and surgery or a clinical laboratory. Nothing in this subsection
692	692	shall be construed to prohibit billing for anatomic pathology services by:
693	693	(A) A hospital;
694	694	(B) a clinical laboratory when samples are transferred between
695	695	clinical laboratories for the provision of anatomic pathology services; or
696	696	(C) a physician providing services to a patient pursuant to a medical
697	697	retainer agreement in compliance with K.S.A. 65-4978, and amendments
698	698	thereto, when the bill to the patient for such services:
699	699	(i) Identifies the laboratory or physician that performed the services;
700	700	(ii) discloses in writing to the patient the actual amount charged by
701	701	the physician or laboratory that performed the service; and
702	702	(iii) is consistent with rules and regulations adopted by the board for
703	703	appropriate billing standards applicable to such services when furnished
704	704	under these agreements.
705	705	(33)(32) Engaging in conduct that violates patient trust and exploits
706	706	the licensee-patient relationship for personal gain.
707	707	(34)(33) Obstructing a board investigation including, but not limited
708	708	to, engaging in one or more of the following acts:
709	709	(A) Falsifying or concealing a material fact;
710	710	(B) knowingly making or causing to be made any false or misleading
711	711	statement or writing; or
712	712	(C) other acts or conduct likely to deceive or defraud the board.
713	713	(c) "False advertisement" means any advertisement that is false,
714	714	misleading or deceptive in a material respect. In determining whether any
715	715	advertisement is misleading, there shall be taken into account not only
716	716	representations made or suggested by statement, word, design, device,
717	717	sound or any combination thereof, but also the extent to which the
718	718	advertisement fails to reveal facts material in the light of such
719	719	representations made.
720	720	(d) "Advertisement" means all representations disseminated in any
721	721	manner or by any means for the purpose of inducing, or that are likely to
722	722	induce, directly or indirectly, the purchase of professional services.
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766	766	(e) "Licensee" for purposes of this section and K.S.A. 65-2836, and
767	767	amendments thereto, means all persons issued a license, permit or special
768	768	permit pursuant to article 28 of chapter 65 of the Kansas Statutes
769	769	Annotated, and amendments thereto.
770	770	(f) "License" for purposes of this section and K.S.A. 65-2836, and
771	771	amendments thereto, means any license, permit or special permit granted
772	772	under article 28 of chapter 65 of the Kansas Statutes Annotated, and
773	773	amendments thereto.
774	774	(g) "Health careHealthcare entity" means any corporation, firm,
775	775	partnership or other business entity that provides services for diagnosis or
776	776	treatment of human health conditions and that is owned separately from a
777	777	referring licensee's principle practice.
778	778	(h) "Significant investment interest" means ownership of at least 10%
779	779	of the value of the firm, partnership or other business entity that owns or
780	780	leases the health care healthcare entity, or ownership of at least 10% of the
781	781	shares of stock of the corporation that owns or leases the health care
782	782	healthcare entity.
783	783	Sec. 12. K.S.A. 65-6731 is hereby amended to read as follows: 65-
784	784	6731. As used in K.S.A. 65-6731 through 65-6738, and amendments
785	785	thereto:
786	786	(a) "Abortion" has the same meaning as such term is means the same
787	787	as defined in K.S.A. 65-6701 section 7, and amendments thereto.
788	788	(b) "Health benefit plan" means any hospital or medical expense
789	789	policy, health, hospital or medical services corporation contract, and a plan
790	790	provided by a municipal group-funded pool, or a health maintenance
791	791	organization contract offered by any employer or any certificate issued
792	792	under any such policy, contract or plan.
793	793	(c) "Health careHealthcare entity" means an individual physician or
794	794	other health care healthcare professional, a hospital, a provider-sponsored
795	795	organization, a health maintenance organization or any other health care
796	796	healthcare facility or organization.
797	797	(d) "School district" means any public school district organized under
798	798	the laws of this state.
799	799	(e) "State agency" has the same meaning as such term is means the
800	800	same as defined in K.S.A. 75-3701, and amendments thereto.
801	801	Sec. 13. K.S.A. 65-67a01 is hereby amended to read as follows: 65-
802	802	67a01. As used in this act:
803	803	(a) "Abortion" means an abortion as defined by K.S.A. 65-6701 in
804	804	section 7, and amendments thereto.
805	805	(b) (1) "Consideration" means:
806	806	(A) Any payment made or debt incurred;
807	807	(B) any gift, honorarium or recognition of value bestowed;
808	808	(C) any price, charge or fee which that is waived, forgiven, reduced
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852	852	or indefinitely delayed;
853	853	(D) any loan or debt which that is canceled or otherwise forgiven; or
854	854	(E) the transfer of any item from one person to another or provision
855	855	of any service or granting of any opportunity for which a charge is
856	856	customarily made, without charge or for a reduced charge.
857	857	(2) "Consideration" shall does not mean:
858	858	(A) A payment in an amount not to exceed $25 for the cost of
859	859	transporting, processing, preserving and storing fetal tissue; or
860	860	(B) a payment in an amount not to exceed the actual cost, as
861	861	documented by the delivery service, of transporting fetal tissue.
862	862	(c) "Delivery service" means a common carrier as defined by K.S.A.
863	863	66-105, and amendments thereto, or other person or entity used to
864	864	transport fetal tissue.
865	865	(d) "Fetal tissue" means any tissue, cells or organs obtained from a
866	866	dead human embryo or fetus after an abortion or after a stillbirth.
867	867	(e) "Person" means a person as defined by K.S.A. 65-425, and
868	868	amendments thereto.
869	869	(f) "Stillbirth" means a stillbirth as defined by K.S.A. 65-2401, and
870	870	amendments thereto.
871	871	Sec. 14. K.S.A. 76-3308 is hereby amended to read as follows: 76-
872	872	3308. (a) The authority shall have all the powers necessary to carry out the
873	873	purposes and provisions of this act, including, without limitation, the
874	874	following powers to:
875	875	(1) Have the duties, privileges, immunities, rights, liabilities and
876	876	disabilities of a body corporate and a political instrumentality of the state;
877	877	(2) have perpetual existence and succession;
878	878	(3) adopt, have and use a seal and to alter the same at its pleasure;
879	879	(4) sue and be sued in its own name;
880	880	(5) make and execute contracts, guarantees or any other instruments
881	881	and agreements necessary or convenient for the exercise of its powers and
882	882	functions including, without limitation, to make and execute contracts with
883	883	hospitals or other health care healthcare businesses to operate and manage
884	884	any or all of the hospital facilities or operations and to incur liabilities and
885	885	secure the obligations of any entity or individual;
886	886	(6) borrow money and to issue bonds evidencing the same and pledge
887	887	all or any part of the authority's assets therefor;
888	888	(7) purchase, lease, trade, exchange or otherwise acquire, maintain,
889	889	hold, improve, mortgage, sell, lease and dispose of personal property,
890	890	whether tangible or intangible, and any interest therein; and to purchase,
891	891	lease, trade, exchange or otherwise acquire real property or any interest
892	892	therein, and to maintain, hold, improve, mortgage, lease and otherwise
893	893	transfer such real property, so long as such transactions do not conflict
894	894	with the mission of the authority as specified in this act;
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938	938	(8) incur or assume indebtedness to, and enter into contracts with the
939	939	Kansas development finance authority, which is authorized to borrow
940	940	money and provide financing for the authority;
941	941	(9) develop policies and procedures generally applicable to the
942	942	procurement of goods, services and construction, based upon sound
943	943	business practices;
944	944	(10) contract for and to accept any gifts, grants and loans of funds,
945	945	property, or any other aid in any form from the federal government, the
946	946	state, any state agency, or any other source, or any combination thereof,
947	947	and to comply with the provisions of the terms and conditions thereof;
948	948	(11) acquire space, equipment, services, supplies and insurance
949	949	necessary to carry out the purposes of this act;
950	950	(12) deposit any moneys of the authority in any banking institution
951	951	within or without the state or in any depository authorized to receive such
952	952	deposits, one or more persons to act as custodians of the moneys of the
953	953	authority, to give surety bonds in such amounts in form and for such
954	954	purposes as the board requires;
955	955	(13) procure such insurance, participate in such insurance plans or
956	956	provide such self insurance or both as it deems necessary or convenient to
957	957	carry out the purposes and provisions of this act; the purchase of
958	958	insurance, participation in an insurance plan or creation of a self-insurance
959	959	fund by the authority shall not be deemed as a waiver or relinquishment of
960	960	any sovereign immunity to which the authority or its officers, directors,
961	961	employees or agents are otherwise entitled;
962	962	(14) appoint, supervise and set the salary and compensation of a
963	963	president of the authority who shall be appointed by and serve at the
964	964	pleasure of the board;
965	965	(15) fix, revise, charge and collect rates, rentals, fees and other
966	966	charges for the services or facilities furnished by or on behalf of the
967	967	authority, and to establish policies and procedures regarding any such
968	968	service rendered for the use, occupancy or operation of any such facility;
969	969	such charges and policies and procedures not to be subject to supervision
970	970	or regulation by any commission, board, bureau or agency of the state; and
971	971	(16) do any and all things necessary or convenient to carry out the
972	972	authority's purposes and exercise the powers given in this act.
973	973	(b) The authority may create, own in whole or in part, or otherwise
974	974	acquire or dispose of any entity organized for a purpose related to or in
975	975	support of the mission of the authority.
976	976	(c) The authority may participate in joint ventures with individuals,
977	977	corporations, governmental bodies or agencies, partnerships, associations,
978	978	insurers or other entities to facilitate any activities or programs consistent
979	979	with the public purpose and intent of this act.
980	980	(d) The authority may create a nonprofit entity or entities for the
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1024	1024	purpose of soliciting, accepting and administering grants, outright gifts and
1025	1025	bequests, endowment gifts and bequests and gifts and bequests in trust of
1026	1026	which entity or entities shall not engage in trust business.
1027	1027	(e) In carrying out any activities authorized by this act, the authority
1028	1028	may provide appropriate assistance, including the making of loans and
1029	1029	providing time of employees, to corporations, partnerships, associations,
1030	1030	joint ventures or other entities, whether or not such corporations,
1031	1031	partnerships, associations, joint ventures or other entities are owned or
1032	1032	controlled in whole or in part, directly or indirectly, by the authority.
1033	1033	(f) Effective with the transfer date, all moneys of the authority shall
1034	1034	be deposited in one or more banks or trust companies in one or more
1035	1035	special accounts. All banks and trust companies are authorized to give
1036	1036	security for such deposits if required by the authority. The moneys in such
1037	1037	accounts shall be paid out on a warrant or other orders of the treasurer of
1038	1038	the authority or any such other person or persons as the authority may
1039	1039	authorize to execute such warrants or orders.
1040	1040	(g) Notwithstanding any provision of law to the contrary, the
1041	1041	authority, effective with the transfer date, may invest the authority's
1042	1042	operating funds in any obligations or securities as authorized by the board.
1043	1043	The board shall adopt written investment guidelines.
1044	1044	(h) The authority is authorized to negotiate contracts with one or
1045	1045	more qualified parties to provide collection services. The selection of a
1046	1046	collection services provider shall be based on responses to a request for
1047	1047	proposals from qualified professional firms and shall be administered in
1048	1048	accordance with policies adopted by the board.
1049	1049	(i) Notwithstanding any provision of law to the contrary, no abortion,
1050	1050	as defined in section 7, and amendments thereto, shall be performed,
1051	1051	except in the event of a medical emergency, in any medical facility,
1052	1052	hospital or clinic owned, leased or operated by the authority, except as
1053	1053	provided in section 1, and amendments thereto. The provisions of this
1054	1054	subsection are not applicable to any member of the physician faculty of the
1055	1055	university of Kansas school of medicine when such abortion is performed
1056	1056	outside the scope of such member's employment on property not owned,
1057	1057	leased or operated by the authority. As used in this subsection, "medical
1058	1058	emergency" means a condition that, in reasonable medical judgment, so
1059	1059	complicates the medical condition of the pregnant woman as to necessitate
1060	1060	the immediate abortion of her pregnancy to avert the death of the woman
1061	1061	or for which a delay necessary to comply with the applicable statutory
1062	1062	requirements will create serious risk of substantial and irreversible
1063	1063	physical impairment of a major bodily function. No condition shall be
1064	1064	deemed a medical emergency if based on a claim or diagnosis that the
1065	1065	woman will engage in conduct which would result in her death or in
1066	1066	substantial and irreversible physical impairment of a major bodily
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1110	1110	function.
1111	1111	Sec. 15. K.S.A. 2024 Supp. 79-32,182b is hereby amended to read as
1112	1112	follows: 79-32,182b. (a) For all taxable years commencing after December
1113	1113	31, 2022, a credit shall be allowed against the tax imposed by the Kansas
1114	1114	income tax act on the Kansas taxable income of a taxpayer for
1115	1115	expenditures in research and development activities conducted within this
1116	1116	state in an amount equal to 10% of the amount by which the amount
1117	1117	expended for such activities in the taxable year of the taxpayer exceeds the
1118	1118	taxpayer's average of the actual expenditures for such purposes made in
1119	1119	such taxable year and the next preceding two taxable years.
1120	1120	(b) In any one taxable year, the amount of such credit allowable for
1121	1121	deduction from the taxpayer's tax liability shall not exceed 25% of the total
1122	1122	amount of such credit plus any applicable carry forward amount. The
1123	1123	amount by which that portion of the credit allowed by subsections (a) and
1124	1124	(b) to be claimed in any one taxable year exceeds the taxpayer's tax
1125	1125	liability in such year may be carried forward until the total amount of the
1126	1126	credit is used.
1127	1127	(c) As used in this section, the term "expenditures in research and
1128	1128	development activities" means expenditures made for such purposes, other
1129	1129	than expenditures of moneys made available to the taxpayer pursuant to
1130	1130	federal or state law, which that are treated as expenses allowable for
1131	1131	deduction under the provisions of the federal internal revenue code of
1132	1132	1986, as amended, except that for taxable years commencing after
1133	1133	December 31, 2013, expenditures in research and development activities
1134	1134	shall not include any expenditures for the performance of any abortion, as
1135	1135	defined in K.S.A. 65-6701 section 7, and amendments thereto.
1136	1136	(d) For tax year 2023 and all tax years thereafter, the income tax
1137	1137	credit allowed pursuant to this section shall be transferable by a taxpayer
1138	1138	without a current tax liability. The tax credit may be transferred to any
1139	1139	person and be claimed by the transferee as a credit against the transferee's
1140	1140	Kansas income tax liability in the tax year when it was transferred. The
1141	1141	credit shall be claimed and may be carried forward by the transferee as
1142	1142	provided and limited by subsection (b). No person shall be entitled to a
1143	1143	refund for the transferred tax credit. Only the full credit may be
1144	1144	transferred, and the credit may only be transferred one time.
1145	1145	Documentation of any credit acquired by transfer shall be provided by the
1146	1146	taxpayer or the transferee in the manner required by the secretary of
1147	1147	revenue.
1148	1148	Sec. 16. K.S.A. 79-32,195 is hereby amended to read as follows: 79-
1149	1149	32,195. As used in this act, the following words and phrases shall have the
1150	1150	meanings ascribed to them herein: (a) "Business firm" means any business
1151	1151	entity authorized to do business in the state of Kansas which that is subject
1152	1152	to the state income tax imposed by the provisions of the Kansas income
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1196	1196	tax act, any individual subject to the state income tax imposed by the
1197	1197	provisions of the Kansas income tax act, any national banking association,
1198	1198	state bank, trust company or savings and loan association paying an annual
1199	1199	tax on its net income pursuant to article 11 of chapter 79 of the Kansas
1200	1200	Statutes Annotated, and amendments thereto, or any insurance company
1201	1201	paying the premium tax and privilege fees imposed pursuant to K.S.A. 40-
1202	1202	252, and amendments thereto;
1203	1203	(b) "Community services" means:
1204	1204	(1) The conduct of activities which that meet a demonstrated
1205	1205	community need and which that are designed to achieve improved
1206	1206	educational and social services for Kansas children and their families, and
1207	1207	which that are coordinated with communities including, but not limited to,
1208	1208	social and human services organizations that address the causes of poverty
1209	1209	through programs and services that assist low income persons in the areas
1210	1210	of employment, food, housing, emergency assistance and health care
1211	1211	healthcare;
1212	1212	(2) crime prevention;
1213	1213	(3) health carehealthcare services; and
1214	1214	(4) youth apprenticeship and technical training.
1215	1215	(c) "Crime prevention" means any nongovernmental activity which
1216	1216	that aids in the prevention of crime.
1217	1217	(d) "Youth apprenticeship and technical training" means conduct of
1218	1218	activities which that are designed to improve the access to and quality of
1219	1219	apprenticeship and technical training which that support an emphasis on
1220	1220	rural construction projects as well as the necessary equipment, facilities
1221	1221	and supportive mentorship for youth apprenticeships and technical
1222	1222	training.
1223	1223	(e) "Community service organization" means any organization
1224	1224	performing community services in Kansas and which that:
1225	1225	(1) Has obtained a ruling from the internal revenue service of the
1226	1226	United States department of the treasury that such organization is exempt
1227	1227	from income taxation under the provisions of section 501(c)(3) of the
1228	1228	federal internal revenue code; or
1229	1229	(2) is incorporated in the state of Kansas or another state as a
1230	1230	nonstock, nonprofit corporation; or
1231	1231	(3) has been designated as a community development corporation by
1232	1232	the United States government under the provisions of title VII of the
1233	1233	economic opportunity act of 1964; or
1234	1234	(4) is chartered by the United States congress.
1235	1235	(f) "Contributions" shall mean and include means and includes the
1236	1236	donation of cash, services or property other than used clothing in an
1237	1237	amount or value of $250 or more. Stocks and bonds contributed shall be
1238	1238	valued at the stock market price on the date of transfer. Services
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1282	1282	contributed shall be valued at the standard billing rate for not-for-profit
1283	1283	clients. Personal property items contributed shall be valued at the lesser of
1284	1284	its fair market value or cost to the donor and may be inclusive of costs
1285	1285	incurred in making the contribution, but shall not include sales tax.
1286	1286	Contributions of real estate are allowable for credit only when title thereto
1287	1287	is in fee simple absolute and is clear of any encumbrances. The amount of
1288	1288	credit allowable shall be based upon the lesser of two current independent
1289	1289	appraisals conducted by state licensed appraisers.
1290	1290	(g) "Health careHealthcare services" shall include, but not be
1291	1291	includes, but is not limited to, the following: Services provided by local
1292	1292	health departments, city, county or district hospitals, city or county nursing
1293	1293	homes, or other residential institutions, preventive health care healthcare
1294	1294	services offered by a community service organization including
1295	1295	immunizations, prenatal care, the postponement of entry into nursing
1296	1296	homes by home health care healthcare services, and community based
1297	1297	services for persons with a disability, mental health services, indigent
1298	1298	health care healthcare, physician or health care healthcare worker
1299	1299	recruitment, health education, emergency medical services, services
1300	1300	provided by rural health clinics, integration of health care healthcare
1301	1301	services, home health services and services provided by rural health
1302	1302	networks, except that for taxable years commencing after December 31,
1303	1303	2013, health care "healthcare services shall" does not include any service
1304	1304	involving the performance of any abortion, as defined in K.S.A. 65-6701
1305	1305	section 7, and amendments thereto.
1306	1306	(h) "Rural community" means any city having a population of fewer
1307	1307	than 15,000 located in a county that is not part of a standard metropolitan
1308	1308	statistical area as defined by the United States department of commerce or
1309	1309	its successor agency. However, any such city located in a county defined
1310	1310	as a standard metropolitan statistical area shall be deemed a "rural
1311	1311	community" if a substantial number of persons in such county derive their
1312	1312	income from agriculture and, in any county where there is only one city
1313	1313	within the county which that has a population of more than 15,000 and
1314	1314	which classifies as a standard metropolitan statistical area, all other cities
1315	1315	in that such county having a population of less than 15,000 shall be
1316	1316	deemed a rural community.
1317	1317	Sec. 17. K.S.A. 2024 Supp. 79-32,261 is hereby amended to read as
1318	1318	follows: 79-32,261. (a) (1) On and after July 1, 2008, Any taxpayer who
1319	1319	contributes in the manner prescribed by this paragraph to a community
1320	1320	college located in Kansas for capital improvements, to a technical college
1321	1321	for deferred maintenance or the purchase of technology or equipment or to
1322	1322	a postsecondary educational institution located in Kansas for deferred
1323	1323	maintenance, shall be allowed a credit against the tax imposed by the
1324	1324	Kansas income tax act, the premium tax or privilege fees imposed
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1368	1368	pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as
1369	1369	measured by net income of financial institutions imposed pursuant to
1370	1370	article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments
1371	1371	thereto. The tax credit allowed by this paragraph is applicable for the tax
1372	1372	year 2008 for any contributions made on and after July 1, 2008, and for the
1373	1373	tax years 2009, 2010, 2011 and 2012 for any contributions made during
1374	1374	the entire tax year. The amount of the credit allowed by this paragraph
1375	1375	shall not exceed 60% of the total amount contributed during the taxable
1376	1376	year by the taxpayer to a community college or a technical college located
1377	1377	in Kansas for such purposes. The amount of the credit allowed by this
1378	1378	paragraph shall not exceed 50% of the total amount contributed during the
1379	1379	taxable year by the taxpayer to a postsecondary educational institution for
1380	1380	such purposes. If the amount of the credit allowed by this paragraph for a
1381	1381	taxpayer who contributes to a community college or a technical college
1382	1382	exceeds the taxpayer's income tax liability imposed by the Kansas income
1383	1383	tax act, such excess amount shall be refunded to the taxpayer. If the
1384	1384	amount of the tax credit for a taxpayer who contributes to a postsecondary
1385	1385	educational institution exceeds the taxpayer's income tax liability for the
1386	1386	taxable year, the amount which that exceeds the tax liability may be
1387	1387	carried over for deduction from the taxpayer's income tax liability in the
1388	1388	next succeeding taxable year or years until the total amount of the tax
1389	1389	credit has been deducted from tax liability, except that no such tax credit
1390	1390	shall be carried over for deduction after the third taxable year succeeding
1391	1391	the taxable year in which the contribution is made. Prior to the issuance of
1392	1392	any tax credits pursuant to this paragraph, the structure of the process in
1393	1393	which contributions received by a community college, a technical college
1394	1394	or a postsecondary educational institution qualify as tax credits allowed
1395	1395	and issued pursuant to this paragraph shall be developed by a community
1396	1396	college, a technical college and a postsecondary educational institution in
1397	1397	consultation with the secretary of revenue and the foundation or
1398	1398	endowment association of any such community college, technical college
1399	1399	or postsecondary educational institution in a manner that complies with
1400	1400	requirements specified in the federal internal revenue code of 1986, as
1401	1401	amended, so that contributions qualify as charitable contributions
1402	1402	allowable as deductions from federal adjusted gross income.
1403	1403	(2) On and after July 1, 2022, any taxpayer who contributes in the
1404	1404	manner prescribed by this paragraph to a community college or technical
1405	1405	college located in Kansas for capital improvements, deferred maintenance
1406	1406	or the purchase of technology or equipment shall be allowed a credit
1407	1407	against the tax imposed by the Kansas income tax act, the premium tax or
1408	1408	privilege fees imposed pursuant to K.S.A. 40-252, and amendments
1409	1409	thereto, or the privilege tax as measured by net income of financial
1410	1410	institutions imposed pursuant to article 11 of chapter 79 of the Kansas
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1453	1453	43 SB 198 18
1454	1454	Statutes Annotated, and amendments thereto. The tax credit allowed by
1455	1455	this paragraph is applicable for the tax year 2022 for any contributions
1456	1456	made on and after July 1, 2022, and for the tax years 2023, 2024, 2025 and
1457	1457	2026 for any contributions made during the entire tax year. The amount of
1458	1458	the credit allowed by this paragraph shall equal 60% of the total amount
1459	1459	contributed during the taxable year by the taxpayer to a community college
1460	1460	or a technical college located in Kansas for such purposes. Prior to the
1461	1461	issuance of any tax credits pursuant to this paragraph, the structure of the
1462	1462	process in which contributions received by a community college or
1463	1463	technical college qualify as tax credits allowed and issued pursuant to this
1464	1464	paragraph shall be developed by a community college and technical
1465	1465	college in consultation with the secretary of revenue and the foundation or
1466	1466	endowment association of any such community college or technical
1467	1467	college in a manner that complies with requirements specified in the
1468	1468	federal internal revenue code of 1986, as amended, so that contributions
1469	1469	qualify as charitable contributions allowable as deductions from federal
1470	1470	adjusted gross income.
1471	1471	(b) (1) Upon receipt of any contributions to a community college
1472	1472	made pursuant to the provisions of subsection (a)(1), the treasurer of the
1473	1473	community college shall deposit such contributions to the credit of the
1474	1474	capital outlay fund of such community college established as provided by
1475	1475	K.S.A. 71-501a, and amendments thereto. Expenditures from such fund
1476	1476	shall be made for the purposes described in K.S.A. 71-501(a), and
1477	1477	amendments thereto, except that expenditures shall not be made from such
1478	1478	fund for new construction or the acquisition of real property for use as
1479	1479	building sites or for educational programs.
1480	1480	(2) Upon receipt of any contributions to a technical college made
1481	1481	pursuant to the provisions of subsection (a)(1), such contributions shall be
1482	1482	deposited to the credit of a deferred maintenance fund or a technology and
1483	1483	equipment fund established by the technical college which that received
1484	1484	the contribution. Expenditures from such fund shall be made only for the
1485	1485	purpose as provided in subsection (b)(1).
1486	1486	(3) Upon receipt of any such contributions to a postsecondary
1487	1487	educational institution made pursuant to the provisions of subsection (a)
1488	1488	(1), such contributions shall be deposited to the credit of the appropriate
1489	1489	deferred maintenance support fund of the postsecondary educational
1490	1490	institution that received the contribution. Expenditures from such fund
1491	1491	shall be made only for the purposes designated for such fund pursuant to
1492	1492	law.
1493	1493	(4) Upon receipt of any such contributions to a community college or
1494	1494	technical college made pursuant to the provisions of subsection (a)(2), the
1495	1495	treasurer of the community college or technical college shall deposit such
1496	1496	contributions to the credit of the capital outlay fund of such community
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1539	1539	43 SB 198 19
1540	1540	college or technical college established as provided by K.S.A. 71-501a,
1541	1541	and amendments thereto. Expenditures from such fund shall be made for
1542	1542	the purposes designated for such fund pursuant to law.
1543	1543	(c) (1) In no event shall the total amount of credits allowed under
1544	1544	subsection (a)(1) for taxpayers who contribute to any one such community
1545	1545	college or technical college exceed the following amounts: For the tax year
1546	1546	2008, an amount not to exceed $78,125; for the tax year 2009, an amount
1547	1547	not to exceed $156,250; and for the tax years 2010, 2011 and 2012, an
1548	1548	amount not to exceed $208,233.33.
1549	1549	(2) In no event shall the total of credits allowed under subsection (a)
1550	1550	(1) for taxpayers who contribute to postsecondary educational institutions
1551	1551	exceed the following amounts: For the tax year 2008, an amount not to
1552	1552	exceed $5,625,000; for the tax year 2009, an amount not to exceed
1553	1553	$11,250,000; and for the tax years 2010, 2011 and 2012, an amount not to
1554	1554	exceed $15,000,000. Except as otherwise provided, the allocation of such
1555	1555	tax credits for each individual state educational institution shall be
1556	1556	determined by the state board of regents in consultation with the secretary
1557	1557	of revenue and the university foundation or endowment association of
1558	1558	each postsecondary educational institution, and such determination shall
1559	1559	be completed prior to the issuance of any tax credits pursuant to subsection
1560	1560	(a)(1). Not more than 40% of the total of credits allowed under subsection
1561	1561	(a)(1) shall be allocated to any one postsecondary educational institution
1562	1562	unless all such postsecondary educational institutions approve an
1563	1563	allocation to any one such postsecondary educational institution which
1564	1564	that exceeds 40% of the total of such credits allowed under subsection (a)
1565	1565	(1).
1566	1566	(3) For the tax years 2022 through 2026, the amount of such credit
1567	1567	awarded under subsection (a)(2) for each taxpayer shall not exceed
1568	1568	$250,000 per tax year.
1569	1569	(4) In no event shall the total of credits allowed under subsection (a)
1570	1570	(2) for contributions to any one community college or technical college
1571	1571	exceed $500,000 per tax year.
1572	1572	(5) In no event shall the total of credits allowed under subsection (a)
1573	1573	(2) exceed $5,000,000 for each tax year that the credit remains in effect.
1574	1574	(d) As used in this section:
1575	1575	(1) "Community college" means a community college established
1576	1576	under the provisions of the community college act;
1577	1577	(2) "deferred maintenance" means the maintenance, repair,
1578	1578	reconstruction or rehabilitation of a building located at a technical college
1579	1579	or a postsecondary educational institution which that has been deferred,
1580	1580	any utility systems relating to such building, any life-safety upgrades to
1581	1581	such building and any improvements necessary to be made to such
1582	1582	building in order to comply with the requirements of the Americans with
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1625	1625	43 SB 198 20
1626	1626	disabilities act or other federal or state law, except that for taxable years
1627	1627	commencing after December 31, 2013, deferred maintenance shall not
1628	1628	include any maintenance, repair, reconstruction or rehabilitation of any
1629	1629	building in which any abortion, as defined in K.S.A. 65-6701 section 7,
1630	1630	and amendments thereto, is performed;
1631	1631	(3) "postsecondary educational institution" means the university of
1632	1632	Kansas, Kansas state university of agriculture and applied science, Wichita
1633	1633	state university, Emporia state university, Pittsburg state university, Fort
1634	1634	Hays state university and Washburn university of Topeka; and
1635	1635	(4) "technical college" means a technical college as designated
1636	1636	pursuant to K.S.A. 74-32,458, 74-32,460, 74-32,461, 74-32,462, 74-
1637	1637	32,464 and 74-32,465, and amendments thereto, and the institute of
1638	1638	technology at Washburn university.
1639	1639	(e) (1) Any taxpayer not subject to Kansas income, privilege or
1640	1640	premiums tax who contributes to a community college, technical college
1641	1641	or postsecondary educational institution, hereinafter designated the
1642	1642	transferor, may sell, assign, convey or otherwise transfer tax credits
1643	1643	allowed and earned pursuant to this section. The sale price of a tax credit
1644	1644	shall be at least 50% of the full value of the credit. Such credit shall be
1645	1645	deemed to be allowed and earned by any such taxpayer which that is only
1646	1646	disqualified therefrom by reason of not being subject to such Kansas taxes.
1647	1647	The taxpayer acquiring earned credits, hereinafter designated the
1648	1648	transferee, may use the amount of the acquired credits to offset up to 100%
1649	1649	of the taxpayer's income, privilege or premiums tax liability for the taxable
1650	1650	year in which such acquisition was made. Such credits may be sold or
1651	1651	transferred only one time and, if sold or transferred, shall be transferred in
1652	1652	the tax year such credit is earned or the two successive tax years. A
1653	1653	transferred credit shall be claimed in the year purchased. The transferor
1654	1654	shall enter into a written agreement with the transferee establishing the
1655	1655	terms and conditions of the sale or transfer and shall perfect such transfer
1656	1656	by notifying the secretary of revenue in writing within 30 calendar days
1657	1657	following the effective date of the transfer, subject to the review and
1658	1658	approval or denial of such transfer by the secretary of revenue. The
1659	1659	transferor and transferee shall provide any information pertaining to the
1660	1660	sale or transfer as may be required by the secretary of revenue to
1661	1661	administer and carry out the provisions of this section. The amount
1662	1662	received by the transferor of such tax credit shall be taxable as income of
1663	1663	the transferor, and the excess of the value of such credit over the amount
1664	1664	paid by the transferee for such credit shall be taxable as income of the
1665	1665	transferee.
1666	1666	(2) The provisions of this subsection shall not apply to tax credits
1667	1667	earned pursuant to subsection (a)(2).
1668	1668	(f) The secretary of revenue shall submit an annual report to the
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1711	1711	43 SB 198 21
1712	1712	legislature to assist the legislature in the evaluation of the utilization of any
1713	1713	credits claimed pursuant to this act, including information specific as to
1714	1714	each community college, technical college or postsecondary educational
1715	1715	institution. Such report shall be due on or before the first day of the
1716	1716	legislative session following the tax year in which the credits were
1717	1717	claimed.
1718	1718	(g) The secretary of revenue shall adopt rules and regulations
1719	1719	necessary to administer the provisions of this section.
1720	1720	Sec. 18. K.S.A. 2024 Supp. 79-3606 is hereby amended to read as
1721	1721	follows: 79-3606. The following shall be exempt from the tax imposed by
1722	1722	this act:
1723	1723	(a) All sales of motor-vehicle fuel or other articles upon which a sales
1724	1724	or excise tax has been paid, not subject to refund, under the laws of this
1725	1725	state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
1726	1726	3301, and amendments thereto, including consumable material for such
1727	1727	electronic cigarettes, cereal malt beverages and malt products as defined
1728	1728	by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
1729	1729	malt syrup and malt extract, that is not subject to taxation under the
1730	1730	provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
1731	1731	taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
1732	1732	pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
1733	1733	laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
1734	1734	thereto, and gross receipts from regulated sports contests taxed pursuant to
1735	1735	the Kansas professional regulated sports act, and amendments thereto;
1736	1736	(b) all sales of tangible personal property or service, including the
1737	1737	renting and leasing of tangible personal property, purchased directly by the
1738	1738	state of Kansas, a political subdivision thereof, other than a school or
1739	1739	educational institution, or purchased by a public or private nonprofit
1740	1740	hospital, public hospital authority, nonprofit blood, tissue or organ bank or
1741	1741	nonprofit integrated community care organization and used exclusively for
1742	1742	state, political subdivision, hospital, public hospital authority, nonprofit
1743	1743	blood, tissue or organ bank or nonprofit integrated community care
1744	1744	organization purposes, except when: (1) Such state, hospital or public
1745	1745	hospital authority is engaged or proposes to engage in any business
1746	1746	specifically taxable under the provisions of this act and such items of
1747	1747	tangible personal property or service are used or proposed to be used in
1748	1748	such business; or (2) such political subdivision is engaged or proposes to
1749	1749	engage in the business of furnishing gas, electricity or heat to others and
1750	1750	such items of personal property or service are used or proposed to be used
1751	1751	in such business;
1752	1752	(c) all sales of tangible personal property or services, including the
1753	1753	renting and leasing of tangible personal property, purchased directly by a
1754	1754	public or private elementary or secondary school or public or private
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1798	1798	nonprofit educational institution and used primarily by such school or
1799	1799	institution for nonsectarian programs and activities provided or sponsored
1800	1800	by such school or institution or in the erection, repair or enlargement of
1801	1801	buildings to be used for such purposes. The exemption herein provided
1802	1802	shall not apply to erection, construction, repair, enlargement or equipment
1803	1803	of buildings used primarily for human habitation, except that such
1804	1804	exemption shall apply to the erection, construction, repair, enlargement or
1805	1805	equipment of buildings used for human habitation by the cerebral palsy
1806	1806	research foundation of Kansas located in Wichita, Kansas, multi
1807	1807	community diversified services, incorporated, located in McPherson,
1808	1808	Kansas, the Kansas state school for the blind and the Kansas state school
1809	1809	for the deaf;
1810	1810	(d) all sales of tangible personal property or services purchased by a
1811	1811	contractor for the purpose of constructing, equipping, reconstructing,
1812	1812	maintaining, repairing, enlarging, furnishing or remodeling facilities for
1813	1813	any public or private nonprofit hospital or public hospital authority, public
1814	1814	or private elementary or secondary school, a public or private nonprofit
1815	1815	educational institution, state correctional institution including a privately
1816	1816	constructed correctional institution contracted for state use and ownership,
1817	1817	that would be exempt from taxation under the provisions of this act if
1818	1818	purchased directly by such hospital or public hospital authority, school,
1819	1819	educational institution or a state correctional institution; and all sales of
1820	1820	tangible personal property or services purchased by a contractor for the
1821	1821	purpose of constructing, equipping, reconstructing, maintaining, repairing,
1822	1822	enlarging, furnishing or remodeling facilities for any political subdivision
1823	1823	of the state or district described in subsection (s), the total cost of which is
1824	1824	paid from funds of such political subdivision or district and that would be
1825	1825	exempt from taxation under the provisions of this act if purchased directly
1826	1826	by such political subdivision or district. Nothing in this subsection or in
1827	1827	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
1828	1828	deemed to exempt the purchase of any construction machinery, equipment
1829	1829	or tools used in the constructing, equipping, reconstructing, maintaining,
1830	1830	repairing, enlarging, furnishing or remodeling facilities for any political
1831	1831	subdivision of the state or any such district. As used in this subsection,
1832	1832	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
1833	1833	political subdivision" shall mean general tax revenues, the proceeds of any
1834	1834	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
1835	1835	purpose of constructing, equipping, reconstructing, repairing, enlarging,
1836	1836	furnishing or remodeling facilities that are to be leased to the donor. When
1837	1837	any political subdivision of the state, district described in subsection (s),
1838	1838	public or private nonprofit hospital or public hospital authority, public or
1839	1839	private elementary or secondary school, public or private nonprofit
1840	1840	educational institution, state correctional institution including a privately
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1884	1884	constructed correctional institution contracted for state use and ownership
1885	1885	shall contract for the purpose of constructing, equipping, reconstructing,
1886	1886	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
1887	1887	shall obtain from the state and furnish to the contractor an exemption
1888	1888	certificate for the project involved, and the contractor may purchase
1889	1889	materials for incorporation in such project. The contractor shall furnish the
1890	1890	number of such certificate to all suppliers from whom such purchases are
1891	1891	made, and such suppliers shall execute invoices covering the same bearing
1892	1892	the number of such certificate. Upon completion of the project the
1893	1893	contractor shall furnish to the political subdivision, district described in
1894	1894	subsection (s), hospital or public hospital authority, school, educational
1895	1895	institution or department of corrections concerned a sworn statement, on a
1896	1896	form to be provided by the director of taxation, that all purchases so made
1897	1897	were entitled to exemption under this subsection. As an alternative to the
1898	1898	foregoing procedure, any such contracting entity may apply to the
1899	1899	secretary of revenue for agent status for the sole purpose of issuing and
1900	1900	furnishing project exemption certificates to contractors pursuant to rules
1901	1901	and regulations adopted by the secretary establishing conditions and
1902	1902	standards for the granting and maintaining of such status. All invoices
1903	1903	shall be held by the contractor for a period of five years and shall be
1904	1904	subject to audit by the director of taxation. If any materials purchased
1905	1905	under such a certificate are found not to have been incorporated in the
1906	1906	building or other project or not to have been returned for credit or the sales
1907	1907	or compensating tax otherwise imposed upon such materials that will not
1908	1908	be so incorporated in the building or other project reported and paid by
1909	1909	such contractor to the director of taxation not later than the 20
1910	1910	th
1911	1911	day of the
1912	1912	month following the close of the month in which it shall be determined
1913	1913	that such materials will not be used for the purpose for which such
1914	1914	certificate was issued, the political subdivision, district described in
1915	1915	subsection (s), hospital or public hospital authority, school, educational
1916	1916	institution or the contractor contracting with the department of corrections
1917	1917	for a correctional institution concerned shall be liable for tax on all
1918	1918	materials purchased for the project, and upon payment thereof it may
1919	1919	recover the same from the contractor together with reasonable attorney
1920	1920	fees. Any contractor or any agent, employee or subcontractor thereof, who
1921	1921	shall use or otherwise dispose of any materials purchased under such a
1922	1922	certificate for any purpose other than that for which such a certificate is
1923	1923	issued without the payment of the sales or compensating tax otherwise
1924	1924	imposed upon such materials, shall be guilty of a misdemeanor and, upon
1925	1925	conviction therefor, shall be subject to the penalties provided for in K.S.A.
1926	1926	79-3615(h), and amendments thereto;
1927	1927	(e) all sales of tangible personal property or services purchased by a
1928	1928	contractor for the erection, repair or enlargement of buildings or other
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1972	1972	projects for the government of the United States, its agencies or
1973	1973	instrumentalities, that would be exempt from taxation if purchased directly
1974	1974	by the government of the United States, its agencies or instrumentalities.
1975	1975	When the government of the United States, its agencies or
1976	1976	instrumentalities shall contract for the erection, repair, or enlargement of
1977	1977	any building or other project, it shall obtain from the state and furnish to
1978	1978	the contractor an exemption certificate for the project involved, and the
1979	1979	contractor may purchase materials for incorporation in such project. The
1980	1980	contractor shall furnish the number of such certificates to all suppliers
1981	1981	from whom such purchases are made, and such suppliers shall execute
1982	1982	invoices covering the same bearing the number of such certificate. Upon
1983	1983	completion of the project the contractor shall furnish to the government of
1984	1984	the United States, its agencies or instrumentalities concerned a sworn
1985	1985	statement, on a form to be provided by the director of taxation, that all
1986	1986	purchases so made were entitled to exemption under this subsection. As an
1987	1987	alternative to the foregoing procedure, any such contracting entity may
1988	1988	apply to the secretary of revenue for agent status for the sole purpose of
1989	1989	issuing and furnishing project exemption certificates to contractors
1990	1990	pursuant to rules and regulations adopted by the secretary establishing
1991	1991	conditions and standards for the granting and maintaining of such status.
1992	1992	All invoices shall be held by the contractor for a period of five years and
1993	1993	shall be subject to audit by the director of taxation. Any contractor or any
1994	1994	agent, employee or subcontractor thereof, who shall use or otherwise
1995	1995	dispose of any materials purchased under such a certificate for any purpose
1996	1996	other than that for which such a certificate is issued without the payment
1997	1997	of the sales or compensating tax otherwise imposed upon such materials,
1998	1998	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
1999	1999	subject to the penalties provided for in K.S.A. 79-3615(h), and
2000	2000	amendments thereto;
2001	2001	(f) tangible personal property purchased by a railroad or public utility
2002	2002	for consumption or movement directly and immediately in interstate
2003	2003	commerce;
2004	2004	(g) sales of aircraft including remanufactured and modified aircraft
2005	2005	sold to persons using directly or through an authorized agent such aircraft
2006	2006	as certified or licensed carriers of persons or property in interstate or
2007	2007	foreign commerce under authority of the laws of the United States or any
2008	2008	foreign government or sold to any foreign government or agency or
2009	2009	instrumentality of such foreign government and all sales of aircraft for use
2010	2010	outside of the United States and sales of aircraft repair, modification and
2011	2011	replacement parts and sales of services employed in the remanufacture,
2012	2012	modification and repair of aircraft;
2013	2013	(h) all rentals of nonsectarian textbooks by public or private
2014	2014	elementary or secondary schools;
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2058	2058	(i) the lease or rental of all films, records, tapes, or any type of sound
2059	2059	or picture transcriptions used by motion picture exhibitors;
2060	2060	(j) meals served without charge or food used in the preparation of
2061	2061	such meals to employees of any restaurant, eating house, dining car, hotel,
2062	2062	drugstore or other place where meals or drinks are regularly sold to the
2063	2063	public if such employees' duties are related to the furnishing or sale of
2064	2064	such meals or drinks;
2065	2065	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
2066	2066	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
2067	2067	delivered in this state to a bona fide resident of another state, which motor
2068	2068	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
2069	2069	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
2070	2070	remain in this state more than 10 days;
2071	2071	(l) all isolated or occasional sales of tangible personal property,
2072	2072	services, substances or things, except isolated or occasional sale of motor
2073	2073	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
2074	2074	amendments thereto;
2075	2075	(m) all sales of tangible personal property that become an ingredient
2076	2076	or component part of tangible personal property or services produced,
2077	2077	manufactured or compounded for ultimate sale at retail within or without
2078	2078	the state of Kansas; and any such producer, manufacturer or compounder
2079	2079	may obtain from the director of taxation and furnish to the supplier an
2080	2080	exemption certificate number for tangible personal property for use as an
2081	2081	ingredient or component part of the property or services produced,
2082	2082	manufactured or compounded;
2083	2083	(n) all sales of tangible personal property that is consumed in the
2084	2084	production, manufacture, processing, mining, drilling, refining or
2085	2085	compounding of tangible personal property, the treating of by-products or
2086	2086	wastes derived from any such production process, the providing of
2087	2087	services or the irrigation of crops for ultimate sale at retail within or
2088	2088	without the state of Kansas; and any purchaser of such property may
2089	2089	obtain from the director of taxation and furnish to the supplier an
2090	2090	exemption certificate number for tangible personal property for
2091	2091	consumption in such production, manufacture, processing, mining,
2092	2092	drilling, refining, compounding, treating, irrigation and in providing such
2093	2093	services;
2094	2094	(o) all sales of animals, fowl and aquatic plants and animals, the
2095	2095	primary purpose of which is use in agriculture or aquaculture, as defined in
2096	2096	K.S.A. 47-1901, and amendments thereto, the production of food for
2097	2097	human consumption, the production of animal, dairy, poultry or aquatic
2098	2098	plant and animal products, fiber or fur, or the production of offspring for
2099	2099	use for any such purpose or purposes;
2100	2100	(p) all sales of drugs dispensed pursuant to a prescription order by a
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2144	2144	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
2145	2145	1626, and amendments thereto. As used in this subsection, "drug" means a
2146	2146	compound, substance or preparation and any component of a compound,
2147	2147	substance or preparation, other than food and food ingredients, dietary
2148	2148	supplements or alcoholic beverages, recognized in the official United
2149	2149	States pharmacopeia, official homeopathic pharmacopoeia of the United
2150	2150	States or official national formulary, and supplement to any of them,
2151	2151	intended for use in the diagnosis, cure, mitigation, treatment or prevention
2152	2152	of disease or intended to affect the structure or any function of the body,
2153	2153	except that for taxable years commencing after December 31, 2013, this
2154	2154	subsection shall not apply to any sales of drugs used in the performance or
2155	2155	induction of an abortion, as defined in K.S.A. 65-6701 section 7, and
2156	2156	amendments thereto;
2157	2157	(q) all sales of insulin dispensed by a person licensed by the state
2158	2158	board of pharmacy to a person for treatment of diabetes at the direction of
2159	2159	a person licensed to practice medicine by the state board of healing arts;
2160	2160	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
2161	2161	enteral feeding systems, prosthetic devices and mobility enhancing
2162	2162	equipment prescribed in writing by a person licensed to practice the
2163	2163	healing arts, dentistry or optometry, and in addition to such sales, all sales
2164	2164	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
2165	2165	and repair and replacement parts therefor, including batteries, by a person
2166	2166	licensed in the practice of dispensing and fitting hearing aids pursuant to
2167	2167	the provisions of K.S.A. 74-5808, and amendments thereto. For the
2168	2168	purposes of this subsection: (1) "Mobility enhancing equipment" means
2169	2169	equipment including repair and replacement parts to same, but does not
2170	2170	include durable medical equipment, which is primarily and customarily
2171	2171	used to provide or increase the ability to move from one place to another
2172	2172	and which is appropriate for use either in a home or a motor vehicle; is not
2173	2173	generally used by persons with normal mobility; and does not include any
2174	2174	motor vehicle or equipment on a motor vehicle normally provided by a
2175	2175	motor vehicle manufacturer; and (2) "prosthetic device" means a
2176	2176	replacement, corrective or supportive device including repair and
2177	2177	replacement parts for same worn on or in the body to artificially replace a
2178	2178	missing portion of the body, prevent or correct physical deformity or
2179	2179	malfunction or support a weak or deformed portion of the body;
2180	2180	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
2181	2181	all sales of tangible personal property or services purchased directly or
2182	2182	indirectly by a groundwater management district organized or operating
2183	2183	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
2184	2184	by a rural water district organized or operating under the authority of
2185	2185	K.S.A. 82a-612, and amendments thereto, or by a water supply district
2186	2186	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
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2230	2230	3522 et seq. or 19-3545, and amendments thereto, which property or
2231	2231	services are used in the construction activities, operation or maintenance of
2232	2232	the district;
2233	2233	(t) all sales of farm machinery and equipment or aquaculture
2234	2234	machinery and equipment, repair and replacement parts therefor and
2235	2235	services performed in the repair and maintenance of such machinery and
2236	2236	equipment. For the purposes of this subsection the term "farm machinery
2237	2237	and equipment or aquaculture machinery and equipment" shall include a
2238	2238	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
2239	2239	thereto, and is equipped with a bed or cargo box for hauling materials, and
2240	2240	shall also include machinery and equipment used in the operation of
2241	2241	Christmas tree farming but shall not include any passenger vehicle, truck,
2242	2242	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
2243	2243	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
2244	2244	machinery and equipment" includes precision farming equipment that is
2245	2245	portable or is installed or purchased to be installed on farm machinery and
2246	2246	equipment. "Precision farming equipment" includes the following items
2247	2247	used only in computer-assisted farming, ranching or aquaculture
2248	2248	production operations: Soil testing sensors, yield monitors, computers,
2249	2249	monitors, software, global positioning and mapping systems, guiding
2250	2250	systems, modems, data communications equipment and any necessary
2251	2251	mounting hardware, wiring and antennas. Each purchaser of farm
2252	2252	machinery and equipment or aquaculture machinery and equipment
2253	2253	exempted herein must certify in writing on the copy of the invoice or sales
2254	2254	ticket to be retained by the seller that the farm machinery and equipment
2255	2255	or aquaculture machinery and equipment purchased will be used only in
2256	2256	farming, ranching or aquaculture production. Farming or ranching shall
2257	2257	include the operation of a feedlot and farm and ranch work for hire and the
2258	2258	operation of a nursery;
2259	2259	(u) all leases or rentals of tangible personal property used as a
2260	2260	dwelling if such tangible personal property is leased or rented for a period
2261	2261	of more than 28 consecutive days;
2262	2262	(v) all sales of tangible personal property to any contractor for use in
2263	2263	preparing meals for delivery to homebound elderly persons over 60 years
2264	2264	of age and to homebound disabled persons or to be served at a group-
2265	2265	sitting at a location outside of the home to otherwise homebound elderly
2266	2266	persons over 60 years of age and to otherwise homebound disabled
2267	2267	persons, as all or part of any food service project funded in whole or in
2268	2268	part by government or as part of a private nonprofit food service project
2269	2269	available to all such elderly or disabled persons residing within an area of
2270	2270	service designated by the private nonprofit organization, and all sales of
2271	2271	tangible personal property for use in preparing meals for consumption by
2272	2272	indigent or homeless individuals whether or not such meals are consumed
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2316	2316	at a place designated for such purpose, and all sales of food products by or
2317	2317	on behalf of any such contractor or organization for any such purpose;
2318	2318	(w) all sales of natural gas, electricity, heat and water delivered
2319	2319	through mains, lines or pipes: (1) To residential premises for
2320	2320	noncommercial use by the occupant of such premises; (2) for agricultural
2321	2321	use and also, for such use, all sales of propane gas; (3) for use in the
2322	2322	severing of oil; and (4) to any property which is exempt from property
2323	2323	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
2324	2324	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
2325	2325	and amendments thereto. For all sales of natural gas, electricity and heat
2326	2326	delivered through mains, lines or pipes pursuant to the provisions of
2327	2327	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
2328	2328	on December 31, 2005;
2329	2329	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
2330	2330	for the production of heat or lighting for noncommercial use of an
2331	2331	occupant of residential premises occurring prior to January 1, 2006;
2332	2332	(y) all sales of materials and services used in the repairing, servicing,
2333	2333	altering, maintaining, manufacturing, remanufacturing, or modification of
2334	2334	railroad rolling stock for use in interstate or foreign commerce under
2335	2335	authority of the laws of the United States;
2336	2336	(z) all sales of tangible personal property and services purchased
2337	2337	directly by a port authority or by a contractor therefor as provided by the
2338	2338	provisions of K.S.A. 12-3418, and amendments thereto;
2339	2339	(aa) all sales of materials and services applied to equipment that is
2340	2340	transported into the state from without the state for repair, service,
2341	2341	alteration, maintenance, remanufacture or modification and that is
2342	2342	subsequently transported outside the state for use in the transmission of
2343	2343	liquids or natural gas by means of pipeline in interstate or foreign
2344	2344	commerce under authority of the laws of the United States;
2345	2345	(bb) all sales of used mobile homes or manufactured homes. As used
2346	2346	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
2347	2347	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
2348	2348	"sales of used mobile homes or manufactured homes" means sales other
2349	2349	than the original retail sale thereof;
2350	2350	(cc) all sales of tangible personal property or services purchased prior
2351	2351	to January 1, 2012, except as otherwise provided, for the purpose of and in
2352	2352	conjunction with constructing, reconstructing, enlarging or remodeling a
2353	2353	business or retail business that meets the requirements established in
2354	2354	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
2355	2355	machinery and equipment purchased for installation at any such business
2356	2356	or retail business, and all sales of tangible personal property or services
2357	2357	purchased on or after January 1, 2012, for the purpose of and in
2358	2358	conjunction with constructing, reconstructing, enlarging or remodeling a
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2401	2401	43 SB 198 29
2402	2402	business that meets the requirements established in K.S.A. 74-50,115(e),
2403	2403	and amendments thereto, and the sale and installation of machinery and
2404	2404	equipment purchased for installation at any such business. When a person
2405	2405	shall contract for the construction, reconstruction, enlargement or
2406	2406	remodeling of any such business or retail business, such person shall
2407	2407	obtain from the state and furnish to the contractor an exemption certificate
2408	2408	for the project involved, and the contractor may purchase materials,
2409	2409	machinery and equipment for incorporation in such project. The contractor
2410	2410	shall furnish the number of such certificates to all suppliers from whom
2411	2411	such purchases are made, and such suppliers shall execute invoices
2412	2412	covering the same bearing the number of such certificate. Upon
2413	2413	completion of the project the contractor shall furnish to the owner of the
2414	2414	business or retail business a sworn statement, on a form to be provided by
2415	2415	the director of taxation, that all purchases so made were entitled to
2416	2416	exemption under this subsection. All invoices shall be held by the
2417	2417	contractor for a period of five years and shall be subject to audit by the
2418	2418	director of taxation. Any contractor or any agent, employee or
2419	2419	subcontractor thereof, who shall use or otherwise dispose of any materials,
2420	2420	machinery or equipment purchased under such a certificate for any
2421	2421	purpose other than that for which such a certificate is issued without the
2422	2422	payment of the sales or compensating tax otherwise imposed thereon, shall
2423	2423	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
2424	2424	to the penalties provided for in K.S.A. 79-3615(h), and amendments
2425	2425	thereto. As used in this subsection, "business" and "retail business" mean
2426	2426	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
2427	2427	exemption certificates that have been previously issued under this
2428	2428	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
2429	2429	and amendments thereto, but not including K.S.A. 74-50,115(e), and
2430	2430	amendments thereto, prior to January 1, 2012, and have not expired will be
2431	2431	effective for the term of the project or two years from the effective date of
2432	2432	the certificate, whichever occurs earlier. Project exemption certificates that
2433	2433	are submitted to the department of revenue prior to January 1, 2012, and
2434	2434	are found to qualify will be issued a project exemption certificate that will
2435	2435	be effective for a two-year period or for the term of the project, whichever
2436	2436	occurs earlier;
2437	2437	(dd) all sales of tangible personal property purchased with food
2438	2438	stamps issued by the United States department of agriculture;
2439	2439	(ee) all sales of lottery tickets and shares made as part of a lottery
2440	2440	operated by the state of Kansas;
2441	2441	(ff) on and after July 1, 1988, all sales of new mobile homes or
2442	2442	manufactured homes to the extent of 40% of the gross receipts, determined
2443	2443	without regard to any trade-in allowance, received from such sale. As used
2444	2444	in this subsection, "mobile homes" and "manufactured homes" mean the
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2488	2488	same as defined in K.S.A. 58-4202, and amendments thereto;
2489	2489	(gg) all sales of tangible personal property purchased in accordance
2490	2490	with vouchers issued pursuant to the federal special supplemental food
2491	2491	program for women, infants and children;
2492	2492	(hh) all sales of medical supplies and equipment, including durable
2493	2493	medical equipment, purchased directly by a nonprofit skilled nursing home
2494	2494	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
2495	2495	and amendments thereto, for the purpose of providing medical services to
2496	2496	residents thereof. This exemption shall not apply to tangible personal
2497	2497	property customarily used for human habitation purposes. As used in this
2498	2498	subsection, "durable medical equipment" means equipment including
2499	2499	repair and replacement parts for such equipment, that can withstand
2500	2500	repeated use, is primarily and customarily used to serve a medical purpose,
2501	2501	generally is not useful to a person in the absence of illness or injury and is
2502	2502	not worn in or on the body, but does not include mobility enhancing
2503	2503	equipment as defined in subsection (r), oxygen delivery equipment, kidney
2504	2504	dialysis equipment or enteral feeding systems;
2505	2505	(ii) all sales of tangible personal property purchased directly by a
2506	2506	nonprofit organization for nonsectarian comprehensive multidiscipline
2507	2507	youth development programs and activities provided or sponsored by such
2508	2508	organization, and all sales of tangible personal property by or on behalf of
2509	2509	any such organization. This exemption shall not apply to tangible personal
2510	2510	property customarily used for human habitation purposes;
2511	2511	(jj) all sales of tangible personal property or services, including the
2512	2512	renting and leasing of tangible personal property, purchased directly on
2513	2513	behalf of a community-based facility for people with intellectual disability
2514	2514	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
2515	2515	amendments thereto, and licensed in accordance with the provisions of
2516	2516	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
2517	2517	personal property or services purchased by contractors during the time
2518	2518	period from July, 2003, through June, 2006, for the purpose of
2519	2519	constructing, equipping, maintaining or furnishing a new facility for a
2520	2520	community-based facility for people with intellectual disability or mental
2521	2521	health center located in Riverton, Cherokee County, Kansas, that would
2522	2522	have been eligible for sales tax exemption pursuant to this subsection if
2523	2523	purchased directly by such facility or center. This exemption shall not
2524	2524	apply to tangible personal property customarily used for human habitation
2525	2525	purposes;
2526	2526	(kk) (1) (A) all sales of machinery and equipment that are used in this
2527	2527	state as an integral or essential part of an integrated production operation
2528	2528	by a manufacturing or processing plant or facility;
2529	2529	(B) all sales of installation, repair and maintenance services
2530	2530	performed on such machinery and equipment; and
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2574	2574	(C) all sales of repair and replacement parts and accessories
2575	2575	purchased for such machinery and equipment.
2576	2576	(2) For purposes of this subsection:
2577	2577	(A) "Integrated production operation" means an integrated series of
2578	2578	operations engaged in at a manufacturing or processing plant or facility to
2579	2579	process, transform or convert tangible personal property by physical,
2580	2580	chemical or other means into a different form, composition or character
2581	2581	from that in which it originally existed. Integrated production operations
2582	2582	shall include: (i) Production line operations, including packaging
2583	2583	operations; (ii) preproduction operations to handle, store and treat raw
2584	2584	materials; (iii) post production handling, storage, warehousing and
2585	2585	distribution operations; and (iv) waste, pollution and environmental
2586	2586	control operations, if any;
2587	2587	(B) "production line" means the assemblage of machinery and
2588	2588	equipment at a manufacturing or processing plant or facility where the
2589	2589	actual transformation or processing of tangible personal property occurs;
2590	2590	(C) "manufacturing or processing plant or facility" means a single,
2591	2591	fixed location owned or controlled by a manufacturing or processing
2592	2592	business that consists of one or more structures or buildings in a
2593	2593	contiguous area where integrated production operations are conducted to
2594	2594	manufacture or process tangible personal property to be ultimately sold at
2595	2595	retail. Such term shall not include any facility primarily operated for the
2596	2596	purpose of conveying or assisting in the conveyance of natural gas,
2597	2597	electricity, oil or water. A business may operate one or more manufacturing
2598	2598	or processing plants or facilities at different locations to manufacture or
2599	2599	process a single product of tangible personal property to be ultimately sold
2600	2600	at retail;
2601	2601	(D) "manufacturing or processing business" means a business that
2602	2602	utilizes an integrated production operation to manufacture, process,
2603	2603	fabricate, finish or assemble items for wholesale and retail distribution as
2604	2604	part of what is commonly regarded by the general public as an industrial
2605	2605	manufacturing or processing operation or an agricultural commodity
2606	2606	processing operation. (i) Industrial manufacturing or processing operations
2607	2607	include, by way of illustration but not of limitation, the fabrication of
2608	2608	automobiles, airplanes, machinery or transportation equipment, the
2609	2609	fabrication of metal, plastic, wood or paper products, electricity power
2610	2610	generation, water treatment, petroleum refining, chemical production,
2611	2611	wholesale bottling, newspaper printing, ready mixed concrete production,
2612	2612	and the remanufacturing of used parts for wholesale or retail sale. Such
2613	2613	processing operations shall include operations at an oil well, gas well,
2614	2614	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
2615	2615	sand or gravel that has been extracted from the earth is cleaned, separated,
2616	2616	crushed, ground, milled, screened, washed or otherwise treated or prepared
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2660	2660	before its transmission to a refinery or before any other wholesale or retail
2661	2661	distribution. (ii) Agricultural commodity processing operations include, by
2662	2662	way of illustration but not of limitation, meat packing, poultry slaughtering
2663	2663	and dressing, processing and packaging farm and dairy products in sealed
2664	2664	containers for wholesale and retail distribution, feed grinding, grain
2665	2665	milling, frozen food processing, and grain handling, cleaning, blending,
2666	2666	fumigation, drying and aeration operations engaged in by grain elevators
2667	2667	or other grain storage facilities. (iii) Manufacturing or processing
2668	2668	businesses do not include, by way of illustration but not of limitation,
2669	2669	nonindustrial businesses whose operations are primarily retail and that
2670	2670	produce or process tangible personal property as an incidental part of
2671	2671	conducting the retail business, such as retailers who bake, cook or prepare
2672	2672	food products in the regular course of their retail trade, grocery stores,
2673	2673	meat lockers and meat markets that butcher or dress livestock or poultry in
2674	2674	the regular course of their retail trade, contractors who alter, service, repair
2675	2675	or improve real property, and retail businesses that clean, service or
2676	2676	refurbish and repair tangible personal property for its owner;
2677	2677	(E) "repair and replacement parts and accessories" means all parts
2678	2678	and accessories for exempt machinery and equipment, including, but not
2679	2679	limited to, dies, jigs, molds, patterns and safety devices that are attached to
2680	2680	exempt machinery or that are otherwise used in production, and parts and
2681	2681	accessories that require periodic replacement such as belts, drill bits,
2682	2682	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
2683	2683	other refractory items for exempt kiln equipment used in production
2684	2684	operations;
2685	2685	(F) "primary" or "primarily" mean more than 50% of the time.
2686	2686	(3) For purposes of this subsection, machinery and equipment shall
2687	2687	be deemed to be used as an integral or essential part of an integrated
2688	2688	production operation when used to:
2689	2689	(A) Receive, transport, convey, handle, treat or store raw materials in
2690	2690	preparation of its placement on the production line;
2691	2691	(B) transport, convey, handle or store the property undergoing
2692	2692	manufacturing or processing at any point from the beginning of the
2693	2693	production line through any warehousing or distribution operation of the
2694	2694	final product that occurs at the plant or facility;
2695	2695	(C) act upon, effect, promote or otherwise facilitate a physical change
2696	2696	to the property undergoing manufacturing or processing;
2697	2697	(D) guide, control or direct the movement of property undergoing
2698	2698	manufacturing or processing;
2699	2699	(E) test or measure raw materials, the property undergoing
2700	2700	manufacturing or processing or the finished product, as a necessary part of
2701	2701	the manufacturer's integrated production operations;
2702	2702	(F) plan, manage, control or record the receipt and flow of inventories
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2745	2745	43 SB 198 33
2746	2746	of raw materials, consumables and component parts, the flow of the
2747	2747	property undergoing manufacturing or processing and the management of
2748	2748	inventories of the finished product;
2749	2749	(G) produce energy for, lubricate, control the operating of or
2750	2750	otherwise enable the functioning of other production machinery and
2751	2751	equipment and the continuation of production operations;
2752	2752	(H) package the property being manufactured or processed in a
2753	2753	container or wrapping in which such property is normally sold or
2754	2754	transported;
2755	2755	(I) transmit or transport electricity, coke, gas, water, steam or similar
2756	2756	substances used in production operations from the point of generation, if
2757	2757	produced by the manufacturer or processor at the plant site, to that
2758	2758	manufacturer's production operation; or, if purchased or delivered from
2759	2759	off-site, from the point where the substance enters the site of the plant or
2760	2760	facility to that manufacturer's production operations;
2761	2761	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
2762	2762	solvents or other substances that are used in production operations;
2763	2763	(K) provide and control an environment required to maintain certain
2764	2764	levels of air quality, humidity or temperature in special and limited areas
2765	2765	of the plant or facility, where such regulation of temperature or humidity is
2766	2766	part of and essential to the production process;
2767	2767	(L) treat, transport or store waste or other byproducts of production
2768	2768	operations at the plant or facility; or
2769	2769	(M) control pollution at the plant or facility where the pollution is
2770	2770	produced by the manufacturing or processing operation.
2771	2771	(4) The following machinery, equipment and materials shall be
2772	2772	deemed to be exempt even though it may not otherwise qualify as
2773	2773	machinery and equipment used as an integral or essential part of an
2774	2774	integrated production operation: (A) Computers and related peripheral
2775	2775	equipment that are utilized by a manufacturing or processing business for
2776	2776	engineering of the finished product or for research and development or
2777	2777	product design; (B) machinery and equipment that is utilized by a
2778	2778	manufacturing or processing business to manufacture or rebuild tangible
2779	2779	personal property that is used in manufacturing or processing operations,
2780	2780	including tools, dies, molds, forms and other parts of qualifying machinery
2781	2781	and equipment; (C) portable plants for aggregate concrete, bulk cement
2782	2782	and asphalt including cement mixing drums to be attached to a motor
2783	2783	vehicle; (D) industrial fixtures, devices, support facilities and special
2784	2784	foundations necessary for manufacturing and production operations, and
2785	2785	materials and other tangible personal property sold for the purpose of
2786	2786	fabricating such fixtures, devices, facilities and foundations. An exemption
2787	2787	certificate for such purchases shall be signed by the manufacturer or
2788	2788	processor. If the fabricator purchases such material, the fabricator shall
2789	2789	1
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2830	2830	42
2831	2831	43 SB 198 34
2832	2832	also sign the exemption certificate; (E) a manufacturing or processing
2833	2833	business' laboratory equipment that is not located at the plant or facility,
2834	2834	but that would otherwise qualify for exemption under subsection (3)(E);
2835	2835	(F) all machinery and equipment used in surface mining activities as
2836	2836	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
2837	2837	from the time a reclamation plan is filed to the acceptance of the
2838	2838	completed final site reclamation.
2839	2839	(5) "Machinery and equipment used as an integral or essential part of
2840	2840	an integrated production operation" shall not include:
2841	2841	(A) Machinery and equipment used for nonproduction purposes,
2842	2842	including, but not limited to, machinery and equipment used for plant
2843	2843	security, fire prevention, first aid, accounting, administration, record
2844	2844	keeping, advertising, marketing, sales or other related activities, plant
2845	2845	cleaning, plant communications and employee work scheduling;
2846	2846	(B) machinery, equipment and tools used primarily in maintaining
2847	2847	and repairing any type of machinery and equipment or the building and
2848	2848	plant;
2849	2849	(C) transportation, transmission and distribution equipment not
2850	2850	primarily used in a production, warehousing or material handling
2851	2851	operation at the plant or facility, including the means of conveyance of
2852	2852	natural gas, electricity, oil or water, and equipment related thereto, located
2853	2853	outside the plant or facility;
2854	2854	(D) office machines and equipment including computers and related
2855	2855	peripheral equipment not used directly and primarily to control or measure
2856	2856	the manufacturing process;
2857	2857	(E) furniture and other furnishings;
2858	2858	(F) buildings, other than exempt machinery and equipment that is
2859	2859	permanently affixed to or becomes a physical part of the building, and any
2860	2860	other part of real estate that is not otherwise exempt;
2861	2861	(G) building fixtures that are not integral to the manufacturing
2862	2862	operation, such as utility systems for heating, ventilation, air conditioning,
2863	2863	communications, plumbing or electrical;
2864	2864	(H) machinery and equipment used for general plant heating, cooling
2865	2865	and lighting;
2866	2866	(I) motor vehicles that are registered for operation on public
2867	2867	highways; or
2868	2868	(J) employee apparel, except safety and protective apparel that is
2869	2869	purchased by an employer and furnished gratuitously to employees who
2870	2870	are involved in production or research activities.
2871	2871	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
2872	2872	of the machinery and equipment that qualify or do not qualify as an
2873	2873	integral or essential part of an integrated production operation. When
2874	2874	machinery or equipment is used as an integral or essential part of
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2917	2917	43 SB 198 35
2918	2918	production operations part of the time and for nonproduction purposes at
2919	2919	other times, the primary use of the machinery or equipment shall
2920	2920	determine whether or not such machinery or equipment qualifies for
2921	2921	exemption.
2922	2922	(7) The secretary of revenue shall adopt rules and regulations
2923	2923	necessary to administer the provisions of this subsection;
2924	2924	(ll) all sales of educational materials purchased for distribution to the
2925	2925	public at no charge by a nonprofit corporation organized for the purpose of
2926	2926	encouraging, fostering and conducting programs for the improvement of
2927	2927	public health, except that for taxable years commencing after December
2928	2928	31, 2013, this subsection shall not apply to any sales of such materials
2929	2929	purchased by a nonprofit corporation which performs any abortion, as
2930	2930	defined in K.S.A. 65-6701 section 7, and amendments thereto;
2931	2931	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
2932	2932	herbicides, germicides, pesticides and fungicides; and services, purchased
2933	2933	and used for the purpose of producing plants in order to prevent soil
2934	2934	erosion on land devoted to agricultural use;
2935	2935	(nn) except as otherwise provided in this act, all sales of services
2936	2936	rendered by an advertising agency or licensed broadcast station or any
2937	2937	member, agent or employee thereof;
2938	2938	(oo) all sales of tangible personal property purchased by a community
2939	2939	action group or agency for the exclusive purpose of repairing or
2940	2940	weatherizing housing occupied by low-income individuals;
2941	2941	(pp) all sales of drill bits and explosives actually utilized in the
2942	2942	exploration and production of oil or gas;
2943	2943	(qq) all sales of tangible personal property and services purchased by
2944	2944	a nonprofit museum or historical society or any combination thereof,
2945	2945	including a nonprofit organization that is organized for the purpose of
2946	2946	stimulating public interest in the exploration of space by providing
2947	2947	educational information, exhibits and experiences, that is exempt from
2948	2948	federal income taxation pursuant to section 501(c)(3) of the federal
2949	2949	internal revenue code of 1986;
2950	2950	(rr) all sales of tangible personal property that will admit the
2951	2951	purchaser thereof to any annual event sponsored by a nonprofit
2952	2952	organization that is exempt from federal income taxation pursuant to
2953	2953	section 501(c)(3) of the federal internal revenue code of 1986, except that
2954	2954	for taxable years commencing after December 31, 2013, this subsection
2955	2955	shall not apply to any sales of such tangible personal property purchased
2956	2956	by a nonprofit organization which performs any abortion, as defined in
2957	2957	K.S.A. 65-6701 section 7, and amendments thereto;
2958	2958	(ss) all sales of tangible personal property and services purchased by
2959	2959	a public broadcasting station licensed by the federal communications
2960	2960	commission as a noncommercial educational television or radio station;
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2962	2962	2
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3000	3000	40
3001	3001	41
3002	3002	42
3003	3003	43 SB 198 36
3004	3004	(tt) all sales of tangible personal property and services purchased by
3005	3005	or on behalf of a not-for-profit corporation that is exempt from federal
3006	3006	income taxation pursuant to section 501(c)(3) of the federal internal
3007	3007	revenue code of 1986, for the sole purpose of constructing a Kansas
3008	3008	Korean War memorial;
3009	3009	(uu) all sales of tangible personal property and services purchased by
3010	3010	or on behalf of any rural volunteer fire-fighting organization for use
3011	3011	exclusively in the performance of its duties and functions;
3012	3012	(vv) all sales of tangible personal property purchased by any of the
3013	3013	following organizations that are exempt from federal income taxation
3014	3014	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
3015	3015	for the following purposes, and all sales of any such property by or on
3016	3016	behalf of any such organization for any such purpose:
3017	3017	(1) The American heart association, Kansas affiliate, inc. for the
3018	3018	purposes of providing education, training, certification in emergency
3019	3019	cardiac care, research and other related services to reduce disability and
3020	3020	death from cardiovascular diseases and stroke;
3021	3021	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
3022	3022	advocacy for persons with mental illness and to education, research and
3023	3023	support for their families;
3024	3024	(3) the Kansas mental illness awareness council for the purposes of
3025	3025	advocacy for persons who are mentally ill and for education, research and
3026	3026	support for them and their families;
3027	3027	(4) the American diabetes association Kansas affiliate, inc. for the
3028	3028	purpose of eliminating diabetes through medical research, public education
3029	3029	focusing on disease prevention and education, patient education including
3030	3030	information on coping with diabetes, and professional education and
3031	3031	training;
3032	3032	(5) the American lung association of Kansas, inc. for the purpose of
3033	3033	eliminating all lung diseases through medical research, public education
3034	3034	including information on coping with lung diseases, professional education
3035	3035	and training related to lung disease and other related services to reduce the
3036	3036	incidence of disability and death due to lung disease;
3037	3037	(6) the Kansas chapters of the Alzheimer's disease and related
3038	3038	disorders association, inc. for the purpose of providing assistance and
3039	3039	support to persons in Kansas with Alzheimer's disease, and their families
3040	3040	and caregivers;
3041	3041	(7) the Kansas chapters of the Parkinson's disease association for the
3042	3042	purpose of eliminating Parkinson's disease through medical research and
3043	3043	public and professional education related to such disease;
3044	3044	(8) the national kidney foundation of Kansas and western Missouri
3045	3045	for the purpose of eliminating kidney disease through medical research
3046	3046	and public and private education related to such disease;
3047	3047	1
3048	3048	2
3049	3049	3
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3089	3089	43 SB 198 37
3090	3090	(9) the heartstrings community foundation for the purpose of
3091	3091	providing training, employment and activities for adults with
3092	3092	developmental disabilities;
3093	3093	(10) the cystic fibrosis foundation, heart of America chapter, for the
3094	3094	purposes of assuring the development of the means to cure and control
3095	3095	cystic fibrosis and improving the quality of life for those with the disease;
3096	3096	(11) the spina bifida association of Kansas for the purpose of
3097	3097	providing financial, educational and practical aid to families and
3098	3098	individuals with spina bifida. Such aid includes, but is not limited to,
3099	3099	funding for medical devices, counseling and medical educational
3100	3100	opportunities;
3101	3101	(12) the CHWC, Inc., for the purpose of rebuilding urban core
3102	3102	neighborhoods through the construction of new homes, acquiring and
3103	3103	renovating existing homes and other related activities, and promoting
3104	3104	economic development in such neighborhoods;
3105	3105	(13) the cross-lines cooperative council for the purpose of providing
3106	3106	social services to low income individuals and families;
3107	3107	(14) the dreams work, inc., for the purpose of providing young adult
3108	3108	day services to individuals with developmental disabilities and assisting
3109	3109	families in avoiding institutional or nursing home care for a
3110	3110	developmentally disabled member of their family;
3111	3111	(15) the KSDS, Inc., for the purpose of promoting the independence
3112	3112	and inclusion of people with disabilities as fully participating and
3113	3113	contributing members of their communities and society through the
3114	3114	training and providing of guide and service dogs to people with
3115	3115	disabilities, and providing disability education and awareness to the
3116	3116	general public;
3117	3117	(16) the lyme association of greater Kansas City, Inc., for the purpose
3118	3118	of providing support to persons with lyme disease and public education
3119	3119	relating to the prevention, treatment and cure of lyme disease;
3120	3120	(17) the dream factory, inc., for the purpose of granting the dreams of
3121	3121	children with critical and chronic illnesses;
3122	3122	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
3123	3123	students and families with education and resources necessary to enable
3124	3124	each child to develop fine character and musical ability to the fullest
3125	3125	potential;
3126	3126	(19) the international association of lions clubs for the purpose of
3127	3127	creating and fostering a spirit of understanding among all people for
3128	3128	humanitarian needs by providing voluntary services through community
3129	3129	involvement and international cooperation;
3130	3130	(20) the Johnson county young matrons, inc., for the purpose of
3131	3131	promoting a positive future for members of the community through
3132	3132	volunteerism, financial support and education through the efforts of an all
3133	3133	1
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3135	3135	3
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3175	3175	43 SB 198 38
3176	3176	volunteer organization;
3177	3177	(21) the American cancer society, inc., for the purpose of eliminating
3178	3178	cancer as a major health problem by preventing cancer, saving lives and
3179	3179	diminishing suffering from cancer, through research, education, advocacy
3180	3180	and service;
3181	3181	(22) the community services of Shawnee, inc., for the purpose of
3182	3182	providing food and clothing to those in need;
3183	3183	(23) the angel babies association, for the purpose of providing
3184	3184	assistance, support and items of necessity to teenage mothers and their
3185	3185	babies; and
3186	3186	(24) the Kansas fairgrounds foundation for the purpose of the
3187	3187	preservation, renovation and beautification of the Kansas state fairgrounds;
3188	3188	(ww) all sales of tangible personal property purchased by the habitat
3189	3189	for humanity for the exclusive use of being incorporated within a housing
3190	3190	project constructed by such organization;
3191	3191	(xx) all sales of tangible personal property and services purchased by
3192	3192	a nonprofit zoo that is exempt from federal income taxation pursuant to
3193	3193	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
3194	3194	of such zoo by an entity itself exempt from federal income taxation
3195	3195	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
3196	3196	contracted with to operate such zoo and all sales of tangible personal
3197	3197	property or services purchased by a contractor for the purpose of
3198	3198	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3199	3199	furnishing or remodeling facilities for any nonprofit zoo that would be
3200	3200	exempt from taxation under the provisions of this section if purchased
3201	3201	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
3202	3202	this subsection shall be deemed to exempt the purchase of any construction
3203	3203	machinery, equipment or tools used in the constructing, equipping,
3204	3204	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3205	3205	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
3206	3206	the purpose of constructing, equipping, reconstructing, maintaining,
3207	3207	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
3208	3208	from the state and furnish to the contractor an exemption certificate for the
3209	3209	project involved, and the contractor may purchase materials for
3210	3210	incorporation in such project. The contractor shall furnish the number of
3211	3211	such certificate to all suppliers from whom such purchases are made, and
3212	3212	such suppliers shall execute invoices covering the same bearing the
3213	3213	number of such certificate. Upon completion of the project the contractor
3214	3214	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
3215	3215	to be provided by the director of taxation, that all purchases so made were
3216	3216	entitled to exemption under this subsection. All invoices shall be held by
3217	3217	the contractor for a period of five years and shall be subject to audit by the
3218	3218	director of taxation. If any materials purchased under such a certificate are
3219	3219	1
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3260	3260	42
3261	3261	43 SB 198 39
3262	3262	found not to have been incorporated in the building or other project or not
3263	3263	to have been returned for credit or the sales or compensating tax otherwise
3264	3264	imposed upon such materials that will not be so incorporated in the
3265	3265	building or other project reported and paid by such contractor to the
3266	3266	director of taxation not later than the 20
3267	3267	th
3268	3268	day of the month following the
3269	3269	close of the month in which it shall be determined that such materials will
3270	3270	not be used for the purpose for which such certificate was issued, the
3271	3271	nonprofit zoo concerned shall be liable for tax on all materials purchased
3272	3272	for the project, and upon payment thereof it may recover the same from
3273	3273	the contractor together with reasonable attorney fees. Any contractor or
3274	3274	any agent, employee or subcontractor thereof, who shall use or otherwise
3275	3275	dispose of any materials purchased under such a certificate for any purpose
3276	3276	other than that for which such a certificate is issued without the payment
3277	3277	of the sales or compensating tax otherwise imposed upon such materials,
3278	3278	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3279	3279	subject to the penalties provided for in K.S.A. 79-3615(h), and
3280	3280	amendments thereto;
3281	3281	(yy) all sales of tangible personal property and services purchased by
3282	3282	a parent-teacher association or organization, and all sales of tangible
3283	3283	personal property by or on behalf of such association or organization;
3284	3284	(zz) all sales of machinery and equipment purchased by over-the-air,
3285	3285	free access radio or television station that is used directly and primarily for
3286	3286	the purpose of producing a broadcast signal or is such that the failure of
3287	3287	the machinery or equipment to operate would cause broadcasting to cease.
3288	3288	For purposes of this subsection, machinery and equipment shall include,
3289	3289	but not be limited to, that required by rules and regulations of the federal
3290	3290	communications commission, and all sales of electricity which are
3291	3291	essential or necessary for the purpose of producing a broadcast signal or is
3292	3292	such that the failure of the electricity would cause broadcasting to cease;
3293	3293	(aaa) all sales of tangible personal property and services purchased by
3294	3294	a religious organization that is exempt from federal income taxation
3295	3295	pursuant to section 501(c)(3) of the federal internal revenue code, and used
3296	3296	exclusively for religious purposes, and all sales of tangible personal
3297	3297	property or services purchased by a contractor for the purpose of
3298	3298	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
3299	3299	furnishing or remodeling facilities for any such organization that would be
3300	3300	exempt from taxation under the provisions of this section if purchased
3301	3301	directly by such organization. Nothing in this subsection shall be deemed
3302	3302	to exempt the purchase of any construction machinery, equipment or tools
3303	3303	used in the constructing, equipping, reconstructing, maintaining, repairing,
3304	3304	enlarging, furnishing or remodeling facilities for any such organization.
3305	3305	When any such organization shall contract for the purpose of constructing,
3306	3306	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3307	3307	1
3308	3308	2
3309	3309	3
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3343	3343	37
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3346	3346	40
3347	3347	41
3348	3348	42
3349	3349	43 SB 198 40
3350	3350	remodeling facilities, it shall obtain from the state and furnish to the
3351	3351	contractor an exemption certificate for the project involved, and the
3352	3352	contractor may purchase materials for incorporation in such project. The
3353	3353	contractor shall furnish the number of such certificate to all suppliers from
3354	3354	whom such purchases are made, and such suppliers shall execute invoices
3355	3355	covering the same bearing the number of such certificate. Upon
3356	3356	completion of the project the contractor shall furnish to such organization
3357	3357	concerned a sworn statement, on a form to be provided by the director of
3358	3358	taxation, that all purchases so made were entitled to exemption under this
3359	3359	subsection. All invoices shall be held by the contractor for a period of five
3360	3360	years and shall be subject to audit by the director of taxation. If any
3361	3361	materials purchased under such a certificate are found not to have been
3362	3362	incorporated in the building or other project or not to have been returned
3363	3363	for credit or the sales or compensating tax otherwise imposed upon such
3364	3364	materials that will not be so incorporated in the building or other project
3365	3365	reported and paid by such contractor to the director of taxation not later
3366	3366	than the 20
3367	3367	th
3368	3368	day of the month following the close of the month in which it
3369	3369	shall be determined that such materials will not be used for the purpose for
3370	3370	which such certificate was issued, such organization concerned shall be
3371	3371	liable for tax on all materials purchased for the project, and upon payment
3372	3372	thereof it may recover the same from the contractor together with
3373	3373	reasonable attorney fees. Any contractor or any agent, employee or
3374	3374	subcontractor thereof, who shall use or otherwise dispose of any materials
3375	3375	purchased under such a certificate for any purpose other than that for
3376	3376	which such a certificate is issued without the payment of the sales or
3377	3377	compensating tax otherwise imposed upon such materials, shall be guilty
3378	3378	of a misdemeanor and, upon conviction therefor, shall be subject to the
3379	3379	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
3380	3380	Sales tax paid on and after July 1, 1998, but prior to the effective date of
3381	3381	this act upon the gross receipts received from any sale exempted by the
3382	3382	amendatory provisions of this subsection shall be refunded. Each claim for
3383	3383	a sales tax refund shall be verified and submitted to the director of taxation
3384	3384	upon forms furnished by the director and shall be accompanied by any
3385	3385	additional documentation required by the director. The director shall
3386	3386	review each claim and shall refund that amount of sales tax paid as
3387	3387	determined under the provisions of this subsection. All refunds shall be
3388	3388	paid from the sales tax refund fund upon warrants of the director of
3389	3389	accounts and reports pursuant to vouchers approved by the director or the
3390	3390	director's designee;
3391	3391	(bbb) all sales of food for human consumption by an organization that
3392	3392	is exempt from federal income taxation pursuant to section 501(c)(3) of
3393	3393	the federal internal revenue code of 1986, pursuant to a food distribution
3394	3394	program that offers such food at a price below cost in exchange for the
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3436	3436	42
3437	3437	43 SB 198 41
3438	3438	performance of community service by the purchaser thereof;
3439	3439	(ccc) on and after July 1, 1999, all sales of tangible personal property
3440	3440	and services purchased by a primary care clinic or health center the
3441	3441	primary purpose of which is to provide services to medically underserved
3442	3442	individuals and families, and that is exempt from federal income taxation
3443	3443	pursuant to section 501(c)(3) of the federal internal revenue code, and all
3444	3444	sales of tangible personal property or services purchased by a contractor
3445	3445	for the purpose of constructing, equipping, reconstructing, maintaining,
3446	3446	repairing, enlarging, furnishing or remodeling facilities for any such clinic
3447	3447	or center that would be exempt from taxation under the provisions of this
3448	3448	section if purchased directly by such clinic or center, except that for
3449	3449	taxable years commencing after December 31, 2013, this subsection shall
3450	3450	not apply to any sales of such tangible personal property and services
3451	3451	purchased by a primary care clinic or health center which performs any
3452	3452	abortion, as defined in K.S.A. 65-6701 section 7, and amendments thereto.
3453	3453	Nothing in this subsection shall be deemed to exempt the purchase of any
3454	3454	construction machinery, equipment or tools used in the constructing,
3455	3455	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3456	3456	remodeling facilities for any such clinic or center. When any such clinic or
3457	3457	center shall contract for the purpose of constructing, equipping,
3458	3458	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
3459	3459	facilities, it shall obtain from the state and furnish to the contractor an
3460	3460	exemption certificate for the project involved, and the contractor may
3461	3461	purchase materials for incorporation in such project. The contractor shall
3462	3462	furnish the number of such certificate to all suppliers from whom such
3463	3463	purchases are made, and such suppliers shall execute invoices covering the
3464	3464	same bearing the number of such certificate. Upon completion of the
3465	3465	project the contractor shall furnish to such clinic or center concerned a
3466	3466	sworn statement, on a form to be provided by the director of taxation, that
3467	3467	all purchases so made were entitled to exemption under this subsection.
3468	3468	All invoices shall be held by the contractor for a period of five years and
3469	3469	shall be subject to audit by the director of taxation. If any materials
3470	3470	purchased under such a certificate are found not to have been incorporated
3471	3471	in the building or other project or not to have been returned for credit or
3472	3472	the sales or compensating tax otherwise imposed upon such materials that
3473	3473	will not be so incorporated in the building or other project reported and
3474	3474	paid by such contractor to the director of taxation not later than the 20
3475	3475	th
3476	3476	day of the month following the close of the month in which it shall be
3477	3477	determined that such materials will not be used for the purpose for which
3478	3478	such certificate was issued, such clinic or center concerned shall be liable
3479	3479	for tax on all materials purchased for the project, and upon payment
3480	3480	thereof it may recover the same from the contractor together with
3481	3481	reasonable attorney fees. Any contractor or any agent, employee or
3482	3482	1
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3518	3518	37
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3521	3521	40
3522	3522	41
3523	3523	42
3524	3524	43 SB 198 42
3525	3525	subcontractor thereof, who shall use or otherwise dispose of any materials
3526	3526	purchased under such a certificate for any purpose other than that for
3527	3527	which such a certificate is issued without the payment of the sales or
3528	3528	compensating tax otherwise imposed upon such materials, shall be guilty
3529	3529	of a misdemeanor and, upon conviction therefor, shall be subject to the
3530	3530	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3531	3531	(ddd) on and after January 1, 1999, and before January 1, 2000, all
3532	3532	sales of materials and services purchased by any class II or III railroad as
3533	3533	classified by the federal surface transportation board for the construction,
3534	3534	renovation, repair or replacement of class II or III railroad track and
3535	3535	facilities used directly in interstate commerce. In the event any such track
3536	3536	or facility for which materials and services were purchased sales tax
3537	3537	exempt is not operational for five years succeeding the allowance of such
3538	3538	exemption, the total amount of sales tax that would have been payable
3539	3539	except for the operation of this subsection shall be recouped in accordance
3540	3540	with rules and regulations adopted for such purpose by the secretary of
3541	3541	revenue;
3542	3542	(eee) on and after January 1, 1999, and before January 1, 2001, all
3543	3543	sales of materials and services purchased for the original construction,
3544	3544	reconstruction, repair or replacement of grain storage facilities, including
3545	3545	railroad sidings providing access thereto;
3546	3546	(fff) all sales of material handling equipment, racking systems and
3547	3547	other related machinery and equipment that is used for the handling,
3548	3548	movement or storage of tangible personal property in a warehouse or
3549	3549	distribution facility in this state; all sales of installation, repair and
3550	3550	maintenance services performed on such machinery and equipment; and
3551	3551	all sales of repair and replacement parts for such machinery and
3552	3552	equipment. For purposes of this subsection, a warehouse or distribution
3553	3553	facility means a single, fixed location that consists of buildings or
3554	3554	structures in a contiguous area where storage or distribution operations are
3555	3555	conducted that are separate and apart from the business' retail operations,
3556	3556	if any, and that do not otherwise qualify for exemption as occurring at a
3557	3557	manufacturing or processing plant or facility. Material handling and
3558	3558	storage equipment shall include aeration, dust control, cleaning, handling
3559	3559	and other such equipment that is used in a public grain warehouse or other
3560	3560	commercial grain storage facility, whether used for grain handling, grain
3561	3561	storage, grain refining or processing, or other grain treatment operation;
3562	3562	(ggg) all sales of tangible personal property and services purchased
3563	3563	by or on behalf of the Kansas academy of science, which is exempt from
3564	3564	federal income taxation pursuant to section 501(c)(3) of the federal
3565	3565	internal revenue code of 1986, and used solely by such academy for the
3566	3566	preparation, publication and dissemination of education materials;
3567	3567	(hhh) all sales of tangible personal property and services purchased
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3610	3610	43 SB 198 43
3611	3611	by or on behalf of all domestic violence shelters that are member agencies
3612	3612	of the Kansas coalition against sexual and domestic violence;
3613	3613	(iii) all sales of personal property and services purchased by an
3614	3614	organization that is exempt from federal income taxation pursuant to
3615	3615	section 501(c)(3) of the federal internal revenue code of 1986, and such
3616	3616	personal property and services are used by any such organization in the
3617	3617	collection, storage and distribution of food products to nonprofit
3618	3618	organizations that distribute such food products to persons pursuant to a
3619	3619	food distribution program on a charitable basis without fee or charge, and
3620	3620	all sales of tangible personal property or services purchased by a
3621	3621	contractor for the purpose of constructing, equipping, reconstructing,
3622	3622	maintaining, repairing, enlarging, furnishing or remodeling facilities used
3623	3623	for the collection and storage of such food products for any such
3624	3624	organization which is exempt from federal income taxation pursuant to
3625	3625	section 501(c)(3) of the federal internal revenue code of 1986, that would
3626	3626	be exempt from taxation under the provisions of this section if purchased
3627	3627	directly by such organization. Nothing in this subsection shall be deemed
3628	3628	to exempt the purchase of any construction machinery, equipment or tools
3629	3629	used in the constructing, equipping, reconstructing, maintaining, repairing,
3630	3630	enlarging, furnishing or remodeling facilities for any such organization.
3631	3631	When any such organization shall contract for the purpose of constructing,
3632	3632	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3633	3633	remodeling facilities, it shall obtain from the state and furnish to the
3634	3634	contractor an exemption certificate for the project involved, and the
3635	3635	contractor may purchase materials for incorporation in such project. The
3636	3636	contractor shall furnish the number of such certificate to all suppliers from
3637	3637	whom such purchases are made, and such suppliers shall execute invoices
3638	3638	covering the same bearing the number of such certificate. Upon
3639	3639	completion of the project the contractor shall furnish to such organization
3640	3640	concerned a sworn statement, on a form to be provided by the director of
3641	3641	taxation, that all purchases so made were entitled to exemption under this
3642	3642	subsection. All invoices shall be held by the contractor for a period of five
3643	3643	years and shall be subject to audit by the director of taxation. If any
3644	3644	materials purchased under such a certificate are found not to have been
3645	3645	incorporated in such facilities or not to have been returned for credit or the
3646	3646	sales or compensating tax otherwise imposed upon such materials that will
3647	3647	not be so incorporated in such facilities reported and paid by such
3648	3648	contractor to the director of taxation not later than the 20
3649	3649	th
3650	3650	day of the
3651	3651	month following the close of the month in which it shall be determined
3652	3652	that such materials will not be used for the purpose for which such
3653	3653	certificate was issued, such organization concerned shall be liable for tax
3654	3654	on all materials purchased for the project, and upon payment thereof it
3655	3655	may recover the same from the contractor together with reasonable
3656	3656	1
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3698	3698	43 SB 198 44
3699	3699	attorney fees. Any contractor or any agent, employee or subcontractor
3700	3700	thereof, who shall use or otherwise dispose of any materials purchased
3701	3701	under such a certificate for any purpose other than that for which such a
3702	3702	certificate is issued without the payment of the sales or compensating tax
3703	3703	otherwise imposed upon such materials, shall be guilty of a misdemeanor
3704	3704	and, upon conviction therefor, shall be subject to the penalties provided for
3705	3705	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
3706	3706	July 1, 2005, but prior to the effective date of this act upon the gross
3707	3707	receipts received from any sale exempted by the amendatory provisions of
3708	3708	this subsection shall be refunded. Each claim for a sales tax refund shall be
3709	3709	verified and submitted to the director of taxation upon forms furnished by
3710	3710	the director and shall be accompanied by any additional documentation
3711	3711	required by the director. The director shall review each claim and shall
3712	3712	refund that amount of sales tax paid as determined under the provisions of
3713	3713	this subsection. All refunds shall be paid from the sales tax refund fund
3714	3714	upon warrants of the director of accounts and reports pursuant to vouchers
3715	3715	approved by the director or the director's designee;
3716	3716	(jjj) all sales of dietary supplements dispensed pursuant to a
3717	3717	prescription order by a licensed practitioner or a mid-level practitioner as
3718	3718	defined by K.S.A. 65-1626, and amendments thereto. As used in this
3719	3719	subsection, "dietary supplement" means any product, other than tobacco,
3720	3720	intended to supplement the diet that: (1) Contains one or more of the
3721	3721	following dietary ingredients: A vitamin, a mineral, an herb or other
3722	3722	botanical, an amino acid, a dietary substance for use by humans to
3723	3723	supplement the diet by increasing the total dietary intake or a concentrate,
3724	3724	metabolite, constituent, extract or combination of any such ingredient; (2)
3725	3725	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
3726	3726	liquid form, or if not intended for ingestion, in such a form, is not
3727	3727	represented as conventional food and is not represented for use as a sole
3728	3728	item of a meal or of the diet; and (3) is required to be labeled as a dietary
3729	3729	supplement, identifiable by the supplemental facts box found on the label
3730	3730	and as required pursuant to 21 C.F.R. § 101.36;
3731	3731	(lll) all sales of tangible personal property and services purchased by
3732	3732	special olympics Kansas, inc. for the purpose of providing year-round
3733	3733	sports training and athletic competition in a variety of olympic-type sports
3734	3734	for individuals with intellectual disabilities by giving them continuing
3735	3735	opportunities to develop physical fitness, demonstrate courage, experience
3736	3736	joy and participate in a sharing of gifts, skills and friendship with their
3737	3737	families, other special olympics athletes and the community, and activities
3738	3738	provided or sponsored by such organization, and all sales of tangible
3739	3739	personal property by or on behalf of any such organization;
3740	3740	(mmm) all sales of tangible personal property purchased by or on
3741	3741	behalf of the Marillac center, inc., which is exempt from federal income
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3784	3784	43 SB 198 45
3785	3785	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
3786	3786	for the purpose of providing psycho-social-biological and special
3787	3787	education services to children, and all sales of any such property by or on
3788	3788	behalf of such organization for such purpose;
3789	3789	(nnn) all sales of tangible personal property and services purchased
3790	3790	by the west Sedgwick county-sunrise rotary club and sunrise charitable
3791	3791	fund for the purpose of constructing a boundless playground which is an
3792	3792	integrated, barrier free and developmentally advantageous play
3793	3793	environment for children of all abilities and disabilities;
3794	3794	(ooo) all sales of tangible personal property by or on behalf of a
3795	3795	public library serving the general public and supported in whole or in part
3796	3796	with tax money or a not-for-profit organization whose purpose is to raise
3797	3797	funds for or provide services or other benefits to any such public library;
3798	3798	(ppp) all sales of tangible personal property and services purchased
3799	3799	by or on behalf of a homeless shelter that is exempt from federal income
3800	3800	taxation pursuant to section 501(c)(3) of the federal income tax code of
3801	3801	1986, and used by any such homeless shelter to provide emergency and
3802	3802	transitional housing for individuals and families experiencing
3803	3803	homelessness, and all sales of any such property by or on behalf of any
3804	3804	such homeless shelter for any such purpose;
3805	3805	(qqq) all sales of tangible personal property and services purchased
3806	3806	by TLC for children and families, inc., hereinafter referred to as TLC,
3807	3807	which is exempt from federal income taxation pursuant to section 501(c)
3808	3808	(3) of the federal internal revenue code of 1986, and such property and
3809	3809	services are used for the purpose of providing emergency shelter and
3810	3810	treatment for abused and neglected children as well as meeting additional
3811	3811	critical needs for children, juveniles and family, and all sales of any such
3812	3812	property by or on behalf of TLC for any such purpose; and all sales of
3813	3813	tangible personal property or services purchased by a contractor for the
3814	3814	purpose of constructing, maintaining, repairing, enlarging, furnishing or
3815	3815	remodeling facilities for the operation of services for TLC for any such
3816	3816	purpose that would be exempt from taxation under the provisions of this
3817	3817	section if purchased directly by TLC. Nothing in this subsection shall be
3818	3818	deemed to exempt the purchase of any construction machinery, equipment
3819	3819	or tools used in the constructing, maintaining, repairing, enlarging,
3820	3820	furnishing or remodeling such facilities for TLC. When TLC contracts for
3821	3821	the purpose of constructing, maintaining, repairing, enlarging, furnishing
3822	3822	or remodeling such facilities, it shall obtain from the state and furnish to
3823	3823	the contractor an exemption certificate for the project involved, and the
3824	3824	contractor may purchase materials for incorporation in such project. The
3825	3825	contractor shall furnish the number of such certificate to all suppliers from
3826	3826	whom such purchases are made, and such suppliers shall execute invoices
3827	3827	covering the same bearing the number of such certificate. Upon
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3830	3830	3
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3869	3869	42
3870	3870	43 SB 198 46
3871	3871	completion of the project the contractor shall furnish to TLC a sworn
3872	3872	statement, on a form to be provided by the director of taxation, that all
3873	3873	purchases so made were entitled to exemption under this subsection. All
3874	3874	invoices shall be held by the contractor for a period of five years and shall
3875	3875	be subject to audit by the director of taxation. If any materials purchased
3876	3876	under such a certificate are found not to have been incorporated in the
3877	3877	building or other project or not to have been returned for credit or the sales
3878	3878	or compensating tax otherwise imposed upon such materials that will not
3879	3879	be so incorporated in the building or other project reported and paid by
3880	3880	such contractor to the director of taxation not later than the 20
3881	3881	th
3882	3882	day of the
3883	3883	month following the close of the month in which it shall be determined
3884	3884	that such materials will not be used for the purpose for which such
3885	3885	certificate was issued, TLC shall be liable for tax on all materials
3886	3886	purchased for the project, and upon payment thereof it may recover the
3887	3887	same from the contractor together with reasonable attorney fees. Any
3888	3888	contractor or any agent, employee or subcontractor thereof, who shall use
3889	3889	or otherwise dispose of any materials purchased under such a certificate
3890	3890	for any purpose other than that for which such a certificate is issued
3891	3891	without the payment of the sales or compensating tax otherwise imposed
3892	3892	upon such materials, shall be guilty of a misdemeanor and, upon
3893	3893	conviction therefor, shall be subject to the penalties provided for in K.S.A.
3894	3894	79-3615(h), and amendments thereto;
3895	3895	(rrr) all sales of tangible personal property and services purchased by
3896	3896	any county law library maintained pursuant to law and sales of tangible
3897	3897	personal property and services purchased by an organization that would
3898	3898	have been exempt from taxation under the provisions of this subsection if
3899	3899	purchased directly by the county law library for the purpose of providing
3900	3900	legal resources to attorneys, judges, students and the general public, and
3901	3901	all sales of any such property by or on behalf of any such county law
3902	3902	library;
3903	3903	(sss) all sales of tangible personal property and services purchased by
3904	3904	catholic charities or youthville, hereinafter referred to as charitable family
3905	3905	providers, which is exempt from federal income taxation pursuant to
3906	3906	section 501(c)(3) of the federal internal revenue code of 1986, and which
3907	3907	such property and services are used for the purpose of providing
3908	3908	emergency shelter and treatment for abused and neglected children as well
3909	3909	as meeting additional critical needs for children, juveniles and family, and
3910	3910	all sales of any such property by or on behalf of charitable family
3911	3911	providers for any such purpose; and all sales of tangible personal property
3912	3912	or services purchased by a contractor for the purpose of constructing,
3913	3913	maintaining, repairing, enlarging, furnishing or remodeling facilities for
3914	3914	the operation of services for charitable family providers for any such
3915	3915	purpose which would be exempt from taxation under the provisions of this
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3954	3954	39
3955	3955	40
3956	3956	41
3957	3957	42
3958	3958	43 SB 198 47
3959	3959	section if purchased directly by charitable family providers. Nothing in
3960	3960	this subsection shall be deemed to exempt the purchase of any construction
3961	3961	machinery, equipment or tools used in the constructing, maintaining,
3962	3962	repairing, enlarging, furnishing or remodeling such facilities for charitable
3963	3963	family providers. When charitable family providers contracts for the
3964	3964	purpose of constructing, maintaining, repairing, enlarging, furnishing or
3965	3965	remodeling such facilities, it shall obtain from the state and furnish to the
3966	3966	contractor an exemption certificate for the project involved, and the
3967	3967	contractor may purchase materials for incorporation in such project. The
3968	3968	contractor shall furnish the number of such certificate to all suppliers from
3969	3969	whom such purchases are made, and such suppliers shall execute invoices
3970	3970	covering the same bearing the number of such certificate. Upon
3971	3971	completion of the project the contractor shall furnish to charitable family
3972	3972	providers a sworn statement, on a form to be provided by the director of
3973	3973	taxation, that all purchases so made were entitled to exemption under this
3974	3974	subsection. All invoices shall be held by the contractor for a period of five
3975	3975	years and shall be subject to audit by the director of taxation. If any
3976	3976	materials purchased under such a certificate are found not to have been
3977	3977	incorporated in the building or other project or not to have been returned
3978	3978	for credit or the sales or compensating tax otherwise imposed upon such
3979	3979	materials that will not be so incorporated in the building or other project
3980	3980	reported and paid by such contractor to the director of taxation not later
3981	3981	than the 20
3982	3982	th
3983	3983	day of the month following the close of the month in which it
3984	3984	shall be determined that such materials will not be used for the purpose for
3985	3985	which such certificate was issued, charitable family providers shall be
3986	3986	liable for tax on all materials purchased for the project, and upon payment
3987	3987	thereof it may recover the same from the contractor together with
3988	3988	reasonable attorney fees. Any contractor or any agent, employee or
3989	3989	subcontractor thereof, who shall use or otherwise dispose of any materials
3990	3990	purchased under such a certificate for any purpose other than that for
3991	3991	which such a certificate is issued without the payment of the sales or
3992	3992	compensating tax otherwise imposed upon such materials, shall be guilty
3993	3993	of a misdemeanor and, upon conviction therefor, shall be subject to the
3994	3994	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3995	3995	(ttt) all sales of tangible personal property or services purchased by a
3996	3996	contractor for a project for the purpose of restoring, constructing,
3997	3997	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
3998	3998	remodeling a home or facility owned by a nonprofit museum that has been
3999	3999	granted an exemption pursuant to subsection (qq), which such home or
4000	4000	facility is located in a city that has been designated as a qualified
4001	4001	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
4002	4002	amendments thereto, and which such project is related to the purposes of
4003	4003	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
4004	4004	1
4005	4005	2
4006	4006	3
4007	4007	4
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4036	4036	33
4037	4037	34
4038	4038	35
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4040	4040	37
4041	4041	38
4042	4042	39
4043	4043	40
4044	4044	41
4045	4045	42
4046	4046	43 SB 198 48
4047	4047	exempt from taxation under the provisions of this section if purchased
4048	4048	directly by such nonprofit museum. Nothing in this subsection shall be
4049	4049	deemed to exempt the purchase of any construction machinery, equipment
4050	4050	or tools used in the restoring, constructing, equipping, reconstructing,
4051	4051	maintaining, repairing, enlarging, furnishing or remodeling a home or
4052	4052	facility for any such nonprofit museum. When any such nonprofit museum
4053	4053	shall contract for the purpose of restoring, constructing, equipping,
4054	4054	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4055	4055	a home or facility, it shall obtain from the state and furnish to the
4056	4056	contractor an exemption certificate for the project involved, and the
4057	4057	contractor may purchase materials for incorporation in such project. The
4058	4058	contractor shall furnish the number of such certificates to all suppliers
4059	4059	from whom such purchases are made, and such suppliers shall execute
4060	4060	invoices covering the same bearing the number of such certificate. Upon
4061	4061	completion of the project, the contractor shall furnish to such nonprofit
4062	4062	museum a sworn statement on a form to be provided by the director of
4063	4063	taxation that all purchases so made were entitled to exemption under this
4064	4064	subsection. All invoices shall be held by the contractor for a period of five
4065	4065	years and shall be subject to audit by the director of taxation. If any
4066	4066	materials purchased under such a certificate are found not to have been
4067	4067	incorporated in the building or other project or not to have been returned
4068	4068	for credit or the sales or compensating tax otherwise imposed upon such
4069	4069	materials that will not be so incorporated in a home or facility or other
4070	4070	project reported and paid by such contractor to the director of taxation not
4071	4071	later than the 20
4072	4072	th
4073	4073	day of the month following the close of the month in
4074	4074	which it shall be determined that such materials will not be used for the
4075	4075	purpose for which such certificate was issued, such nonprofit museum
4076	4076	shall be liable for tax on all materials purchased for the project, and upon
4077	4077	payment thereof it may recover the same from the contractor together with
4078	4078	reasonable attorney fees. Any contractor or any agent, employee or
4079	4079	subcontractor thereof, who shall use or otherwise dispose of any materials
4080	4080	purchased under such a certificate for any purpose other than that for
4081	4081	which such a certificate is issued without the payment of the sales or
4082	4082	compensating tax otherwise imposed upon such materials, shall be guilty
4083	4083	of a misdemeanor and, upon conviction therefor, shall be subject to the
4084	4084	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
4085	4085	(uuu) all sales of tangible personal property and services purchased
4086	4086	by Kansas children's service league, hereinafter referred to as KCSL,
4087	4087	which is exempt from federal income taxation pursuant to section 501(c)
4088	4088	(3) of the federal internal revenue code of 1986, and which such property
4089	4089	and services are used for the purpose of providing for the prevention and
4090	4090	treatment of child abuse and maltreatment as well as meeting additional
4091	4091	critical needs for children, juveniles and family, and all sales of any such
4092	4092	1
4093	4093	2
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4132	4132	41
4133	4133	42
4134	4134	43 SB 198 49
4135	4135	property by or on behalf of KCSL for any such purpose; and all sales of
4136	4136	tangible personal property or services purchased by a contractor for the
4137	4137	purpose of constructing, maintaining, repairing, enlarging, furnishing or
4138	4138	remodeling facilities for the operation of services for KCSL for any such
4139	4139	purpose that would be exempt from taxation under the provisions of this
4140	4140	section if purchased directly by KCSL. Nothing in this subsection shall be
4141	4141	deemed to exempt the purchase of any construction machinery, equipment
4142	4142	or tools used in the constructing, maintaining, repairing, enlarging,
4143	4143	furnishing or remodeling such facilities for KCSL. When KCSL contracts
4144	4144	for the purpose of constructing, maintaining, repairing, enlarging,
4145	4145	furnishing or remodeling such facilities, it shall obtain from the state and
4146	4146	furnish to the contractor an exemption certificate for the project involved,
4147	4147	and the contractor may purchase materials for incorporation in such
4148	4148	project. The contractor shall furnish the number of such certificate to all
4149	4149	suppliers from whom such purchases are made, and such suppliers shall
4150	4150	execute invoices covering the same bearing the number of such certificate.
4151	4151	Upon completion of the project the contractor shall furnish to KCSL a
4152	4152	sworn statement, on a form to be provided by the director of taxation, that
4153	4153	all purchases so made were entitled to exemption under this subsection.
4154	4154	All invoices shall be held by the contractor for a period of five years and
4155	4155	shall be subject to audit by the director of taxation. If any materials
4156	4156	purchased under such a certificate are found not to have been incorporated
4157	4157	in the building or other project or not to have been returned for credit or
4158	4158	the sales or compensating tax otherwise imposed upon such materials that
4159	4159	will not be so incorporated in the building or other project reported and
4160	4160	paid by such contractor to the director of taxation not later than the 20
4161	4161	th
4162	4162	day of the month following the close of the month in which it shall be
4163	4163	determined that such materials will not be used for the purpose for which
4164	4164	such certificate was issued, KCSL shall be liable for tax on all materials
4165	4165	purchased for the project, and upon payment thereof it may recover the
4166	4166	same from the contractor together with reasonable attorney fees. Any
4167	4167	contractor or any agent, employee or subcontractor thereof, who shall use
4168	4168	or otherwise dispose of any materials purchased under such a certificate
4169	4169	for any purpose other than that for which such a certificate is issued
4170	4170	without the payment of the sales or compensating tax otherwise imposed
4171	4171	upon such materials, shall be guilty of a misdemeanor and, upon
4172	4172	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4173	4173	79-3615(h), and amendments thereto;
4174	4174	(vvv) all sales of tangible personal property or services, including the
4175	4175	renting and leasing of tangible personal property or services, purchased by
4176	4176	jazz in the woods, inc., a Kansas corporation that is exempt from federal
4177	4177	income taxation pursuant to section 501(c)(3) of the federal internal
4178	4178	revenue code, for the purpose of providing jazz in the woods, an event
4179	4179	1
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4218	4218	40
4219	4219	41
4220	4220	42
4221	4221	43 SB 198 50
4222	4222	benefiting children-in-need and other nonprofit charities assisting such
4223	4223	children, and all sales of any such property by or on behalf of such
4224	4224	organization for such purpose;
4225	4225	(www) all sales of tangible personal property purchased by or on
4226	4226	behalf of the Frontenac education foundation, which is exempt from
4227	4227	federal income taxation pursuant to section 501(c)(3) of the federal
4228	4228	internal revenue code, for the purpose of providing education support for
4229	4229	students, and all sales of any such property by or on behalf of such
4230	4230	organization for such purpose;
4231	4231	(xxx) all sales of personal property and services purchased by the
4232	4232	booth theatre foundation, inc., an organization, which is exempt from
4233	4233	federal income taxation pursuant to section 501(c)(3) of the federal
4234	4234	internal revenue code of 1986, and which such personal property and
4235	4235	services are used by any such organization in the constructing, equipping,
4236	4236	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4237	4237	of the booth theatre, and all sales of tangible personal property or services
4238	4238	purchased by a contractor for the purpose of constructing, equipping,
4239	4239	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4240	4240	the booth theatre for such organization, that would be exempt from
4241	4241	taxation under the provisions of this section if purchased directly by such
4242	4242	organization. Nothing in this subsection shall be deemed to exempt the
4243	4243	purchase of any construction machinery, equipment or tools used in the
4244	4244	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
4245	4245	furnishing or remodeling facilities for any such organization. When any
4246	4246	such organization shall contract for the purpose of constructing, equipping,
4247	4247	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4248	4248	facilities, it shall obtain from the state and furnish to the contractor an
4249	4249	exemption certificate for the project involved, and the contractor may
4250	4250	purchase materials for incorporation in such project. The contractor shall
4251	4251	furnish the number of such certificate to all suppliers from whom such
4252	4252	purchases are made, and such suppliers shall execute invoices covering the
4253	4253	same bearing the number of such certificate. Upon completion of the
4254	4254	project the contractor shall furnish to such organization concerned a sworn
4255	4255	statement, on a form to be provided by the director of taxation, that all
4256	4256	purchases so made were entitled to exemption under this subsection. All
4257	4257	invoices shall be held by the contractor for a period of five years and shall
4258	4258	be subject to audit by the director of taxation. If any materials purchased
4259	4259	under such a certificate are found not to have been incorporated in such
4260	4260	facilities or not to have been returned for credit or the sales or
4261	4261	compensating tax otherwise imposed upon such materials that will not be
4262	4262	so incorporated in such facilities reported and paid by such contractor to
4263	4263	the director of taxation not later than the 20
4264	4264	th
4265	4265	day of the month following
4266	4266	the close of the month in which it shall be determined that such materials
4267	4267	1
4268	4268	2
4269	4269	3
4270	4270	4
4271	4271	5
4272	4272	6
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4308	4308	42
4309	4309	43 SB 198 51
4310	4310	will not be used for the purpose for which such certificate was issued, such
4311	4311	organization concerned shall be liable for tax on all materials purchased
4312	4312	for the project, and upon payment thereof it may recover the same from
4313	4313	the contractor together with reasonable attorney fees. Any contractor or
4314	4314	any agent, employee or subcontractor thereof, who shall use or otherwise
4315	4315	dispose of any materials purchased under such a certificate for any purpose
4316	4316	other than that for which such a certificate is issued without the payment
4317	4317	of the sales or compensating tax otherwise imposed upon such materials,
4318	4318	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4319	4319	subject to the penalties provided for in K.S.A. 79-3615(h), and
4320	4320	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
4321	4321	to the effective date of this act upon the gross receipts received from any
4322	4322	sale which would have been exempted by the provisions of this subsection
4323	4323	had such sale occurred after the effective date of this act shall be refunded.
4324	4324	Each claim for a sales tax refund shall be verified and submitted to the
4325	4325	director of taxation upon forms furnished by the director and shall be
4326	4326	accompanied by any additional documentation required by the director.
4327	4327	The director shall review each claim and shall refund that amount of sales
4328	4328	tax paid as determined under the provisions of this subsection. All refunds
4329	4329	shall be paid from the sales tax refund fund upon warrants of the director
4330	4330	of accounts and reports pursuant to vouchers approved by the director or
4331	4331	the director's designee;
4332	4332	(yyy) all sales of tangible personal property and services purchased
4333	4333	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
4334	4334	which is exempt from federal income taxation pursuant to section 501(c)
4335	4335	(3) of the federal internal revenue code of 1986, and which such property
4336	4336	and services are used for the purpose of encouraging private philanthropy
4337	4337	to further the vision, values, and goals of TLC for children and families,
4338	4338	inc.; and all sales of such property and services by or on behalf of TLC
4339	4339	charities for any such purpose and all sales of tangible personal property or
4340	4340	services purchased by a contractor for the purpose of constructing,
4341	4341	maintaining, repairing, enlarging, furnishing or remodeling facilities for
4342	4342	the operation of services for TLC charities for any such purpose that would
4343	4343	be exempt from taxation under the provisions of this section if purchased
4344	4344	directly by TLC charities. Nothing in this subsection shall be deemed to
4345	4345	exempt the purchase of any construction machinery, equipment or tools
4346	4346	used in the constructing, maintaining, repairing, enlarging, furnishing or
4347	4347	remodeling such facilities for TLC charities. When TLC charities contracts
4348	4348	for the purpose of constructing, maintaining, repairing, enlarging,
4349	4349	furnishing or remodeling such facilities, it shall obtain from the state and
4350	4350	furnish to the contractor an exemption certificate for the project involved,
4351	4351	and the contractor may purchase materials for incorporation in such
4352	4352	project. The contractor shall furnish the number of such certificate to all
4353	4353	1
4354	4354	2
4355	4355	3
4356	4356	4
4357	4357	5
4358	4358	6
4359	4359	7
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4377	4377	25
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4379	4379	27
4380	4380	28
4381	4381	29
4382	4382	30
4383	4383	31
4384	4384	32
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4386	4386	34
4387	4387	35
4388	4388	36
4389	4389	37
4390	4390	38
4391	4391	39
4392	4392	40
4393	4393	41
4394	4394	42
4395	4395	43 SB 198 52
4396	4396	suppliers from whom such purchases are made, and such suppliers shall
4397	4397	execute invoices covering the same bearing the number of such certificate.
4398	4398	Upon completion of the project the contractor shall furnish to TLC
4399	4399	charities a sworn statement, on a form to be provided by the director of
4400	4400	taxation, that all purchases so made were entitled to exemption under this
4401	4401	subsection. All invoices shall be held by the contractor for a period of five
4402	4402	years and shall be subject to audit by the director of taxation. If any
4403	4403	materials purchased under such a certificate are found not to have been
4404	4404	incorporated in the building or other project or not to have been returned
4405	4405	for credit or the sales or compensating tax otherwise imposed upon such
4406	4406	materials that will not be incorporated into the building or other project
4407	4407	reported and paid by such contractor to the director of taxation not later
4408	4408	than the 20
4409	4409	th
4410	4410	day of the month following the close of the month in which it
4411	4411	shall be determined that such materials will not be used for the purpose for
4412	4412	which such certificate was issued, TLC charities shall be liable for tax on
4413	4413	all materials purchased for the project, and upon payment thereof it may
4414	4414	recover the same from the contractor together with reasonable attorney
4415	4415	fees. Any contractor or any agent, employee or subcontractor thereof, who
4416	4416	shall use or otherwise dispose of any materials purchased under such a
4417	4417	certificate for any purpose other than that for which such a certificate is
4418	4418	issued without the payment of the sales or compensating tax otherwise
4419	4419	imposed upon such materials, shall be guilty of a misdemeanor and, upon
4420	4420	conviction therefor, shall be subject to the penalties provided for in K.S.A.
4421	4421	79-3615(h), and amendments thereto;
4422	4422	(zzz) all sales of tangible personal property purchased by the rotary
4423	4423	club of shawnee foundation, which is exempt from federal income taxation
4424	4424	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
4425	4425	as amended, used for the purpose of providing contributions to community
4426	4426	service organizations and scholarships;
4427	4427	(aaaa) all sales of personal property and services purchased by or on
4428	4428	behalf of victory in the valley, inc., which is exempt from federal income
4429	4429	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4430	4430	for the purpose of providing a cancer support group and services for
4431	4431	persons with cancer, and all sales of any such property by or on behalf of
4432	4432	any such organization for any such purpose;
4433	4433	(bbbb) all sales of entry or participation fees, charges or tickets by
4434	4434	Guadalupe health foundation, which is exempt from federal income
4435	4435	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4436	4436	for such organization's annual fundraising event which purpose is to
4437	4437	provide health care healthcare services for uninsured workers;
4438	4438	(cccc) all sales of tangible personal property or services purchased by
4439	4439	or on behalf of wayside waifs, inc., which is exempt from federal income
4440	4440	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4441	4441	1
4442	4442	2
4443	4443	3
4444	4444	4
4445	4445	5
4446	4446	6
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4467	4467	27
4468	4468	28
4469	4469	29
4470	4470	30
4471	4471	31
4472	4472	32
4473	4473	33
4474	4474	34
4475	4475	35
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4477	4477	37
4478	4478	38
4479	4479	39
4480	4480	40
4481	4481	41
4482	4482	42
4483	4483	43 SB 198 53
4484	4484	for the purpose of providing such organization's annual fundraiser, an
4485	4485	event whose purpose is to support the care of homeless and abandoned
4486	4486	animals, animal adoption efforts, education programs for children and
4487	4487	efforts to reduce animal over-population and animal welfare services, and
4488	4488	all sales of any such property, including entry or participation fees or
4489	4489	charges, by or on behalf of such organization for such purpose;
4490	4490	(dddd) all sales of tangible personal property or services purchased
4491	4491	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
4492	4492	of which are exempt from federal income taxation pursuant to section
4493	4493	501(c)(3) of the federal internal revenue code, for the purpose of providing
4494	4494	education, training and employment opportunities for people with
4495	4495	disabilities and other barriers to employment;
4496	4496	(eeee) all sales of tangible personal property or services purchased by
4497	4497	or on behalf of all American beef battalion, inc., which is exempt from
4498	4498	federal income taxation pursuant to section 501(c)(3) of the federal
4499	4499	internal revenue code, for the purpose of educating, promoting and
4500	4500	participating as a contact group through the beef cattle industry in order to
4501	4501	carry out such projects that provide support and morale to members of the
4502	4502	United States armed forces and military services;
4503	4503	(ffff) all sales of tangible personal property and services purchased by
4504	4504	sheltered living, inc., which is exempt from federal income taxation
4505	4505	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
4506	4506	and which such property and services are used for the purpose of
4507	4507	providing residential and day services for people with developmental
4508	4508	disabilities or intellectual disability, or both, and all sales of any such
4509	4509	property by or on behalf of sheltered living, inc., for any such purpose; and
4510	4510	all sales of tangible personal property or services purchased by a
4511	4511	contractor for the purpose of rehabilitating, constructing, maintaining,
4512	4512	repairing, enlarging, furnishing or remodeling homes and facilities for
4513	4513	sheltered living, inc., for any such purpose that would be exempt from
4514	4514	taxation under the provisions of this section if purchased directly by
4515	4515	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
4516	4516	the purchase of any construction machinery, equipment or tools used in the
4517	4517	constructing, maintaining, repairing, enlarging, furnishing or remodeling
4518	4518	such homes and facilities for sheltered living, inc. When sheltered living,
4519	4519	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
4520	4520	repairing, enlarging, furnishing or remodeling such homes and facilities, it
4521	4521	shall obtain from the state and furnish to the contractor an exemption
4522	4522	certificate for the project involved, and the contractor may purchase
4523	4523	materials for incorporation in such project. The contractor shall furnish the
4524	4524	number of such certificate to all suppliers from whom such purchases are
4525	4525	made, and such suppliers shall execute invoices covering the same bearing
4526	4526	the number of such certificate. Upon completion of the project the
4527	4527	1
4528	4528	2
4529	4529	3
4530	4530	4
4531	4531	5
4532	4532	6
4533	4533	7
4534	4534	8
4535	4535	9
4536	4536	10
4537	4537	11
4538	4538	12
4539	4539	13
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4541	4541	15
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4550	4550	24
4551	4551	25
4552	4552	26
4553	4553	27
4554	4554	28
4555	4555	29
4556	4556	30
4557	4557	31
4558	4558	32
4559	4559	33
4560	4560	34
4561	4561	35
4562	4562	36
4563	4563	37
4564	4564	38
4565	4565	39
4566	4566	40
4567	4567	41
4568	4568	42
4569	4569	43 SB 198 54
4570	4570	contractor shall furnish to sheltered living, inc., a sworn statement, on a
4571	4571	form to be provided by the director of taxation, that all purchases so made
4572	4572	were entitled to exemption under this subsection. All invoices shall be held
4573	4573	by the contractor for a period of five years and shall be subject to audit by
4574	4574	the director of taxation. If any materials purchased under such a certificate
4575	4575	are found not to have been incorporated in the building or other project or
4576	4576	not to have been returned for credit or the sales or compensating tax
4577	4577	otherwise imposed upon such materials that will not be so incorporated in
4578	4578	the building or other project reported and paid by such contractor to the
4579	4579	director of taxation not later than the 20
4580	4580	th
4581	4581	day of the month following the
4582	4582	close of the month in which it shall be determined that such materials will
4583	4583	not be used for the purpose for which such certificate was issued, sheltered
4584	4584	living, inc., shall be liable for tax on all materials purchased for the
4585	4585	project, and upon payment thereof it may recover the same from the
4586	4586	contractor together with reasonable attorney fees. Any contractor or any
4587	4587	agent, employee or subcontractor thereof, who shall use or otherwise
4588	4588	dispose of any materials purchased under such a certificate for any purpose
4589	4589	other than that for which such a certificate is issued without the payment
4590	4590	of the sales or compensating tax otherwise imposed upon such materials,
4591	4591	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4592	4592	subject to the penalties provided for in K.S.A. 79-3615(h), and
4593	4593	amendments thereto;
4594	4594	(gggg) all sales of game birds for which the primary purpose is use in
4595	4595	hunting;
4596	4596	(hhhh) all sales of tangible personal property or services purchased
4597	4597	on or after July 1, 2014, for the purpose of and in conjunction with
4598	4598	constructing, reconstructing, enlarging or remodeling a business identified
4599	4599	under the North American industry classification system (NAICS)
4600	4600	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
4601	4601	installation of machinery and equipment purchased for installation at any
4602	4602	such business. The exemption provided in this subsection shall not apply
4603	4603	to projects that have actual total costs less than $50,000. When a person
4604	4604	contracts for the construction, reconstruction, enlargement or remodeling
4605	4605	of any such business, such person shall obtain from the state and furnish to
4606	4606	the contractor an exemption certificate for the project involved, and the
4607	4607	contractor may purchase materials, machinery and equipment for
4608	4608	incorporation in such project. The contractor shall furnish the number of
4609	4609	such certificates to all suppliers from whom such purchases are made, and
4610	4610	such suppliers shall execute invoices covering the same bearing the
4611	4611	number of such certificate. Upon completion of the project, the contractor
4612	4612	shall furnish to the owner of the business a sworn statement, on a form to
4613	4613	be provided by the director of taxation, that all purchases so made were
4614	4614	entitled to exemption under this subsection. All invoices shall be held by
4615	4615	1
4616	4616	2
4617	4617	3
4618	4618	4
4619	4619	5
4620	4620	6
4621	4621	7
4622	4622	8
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4641	4641	27
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4643	4643	29
4644	4644	30
4645	4645	31
4646	4646	32
4647	4647	33
4648	4648	34
4649	4649	35
4650	4650	36
4651	4651	37
4652	4652	38
4653	4653	39
4654	4654	40
4655	4655	41
4656	4656	42
4657	4657	43 SB 198 55
4658	4658	the contractor for a period of five years and shall be subject to audit by the
4659	4659	director of taxation. Any contractor or any agent, employee or
4660	4660	subcontractor of the contractor, who shall use or otherwise dispose of any
4661	4661	materials, machinery or equipment purchased under such a certificate for
4662	4662	any purpose other than that for which such a certificate is issued without
4663	4663	the payment of the sales or compensating tax otherwise imposed thereon,
4664	4664	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4665	4665	subject to the penalties provided for in K.S.A. 79-3615(h), and
4666	4666	amendments thereto;
4667	4667	(iiii) all sales of tangible personal property or services purchased by a
4668	4668	contractor for the purpose of constructing, maintaining, repairing,
4669	4669	enlarging, furnishing or remodeling facilities for the operation of services
4670	4670	for Wichita children's home for any such purpose that would be exempt
4671	4671	from taxation under the provisions of this section if purchased directly by
4672	4672	Wichita children's home. Nothing in this subsection shall be deemed to
4673	4673	exempt the purchase of any construction machinery, equipment or tools
4674	4674	used in the constructing, maintaining, repairing, enlarging, furnishing or
4675	4675	remodeling such facilities for Wichita children's home. When Wichita
4676	4676	children's home contracts for the purpose of constructing, maintaining,
4677	4677	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
4678	4678	from the state and furnish to the contractor an exemption certificate for the
4679	4679	project involved, and the contractor may purchase materials for
4680	4680	incorporation in such project. The contractor shall furnish the number of
4681	4681	such certificate to all suppliers from whom such purchases are made, and
4682	4682	such suppliers shall execute invoices covering the same bearing the
4683	4683	number of such certificate. Upon completion of the project, the contractor
4684	4684	shall furnish to Wichita children's home a sworn statement, on a form to be
4685	4685	provided by the director of taxation, that all purchases so made were
4686	4686	entitled to exemption under this subsection. All invoices shall be held by
4687	4687	the contractor for a period of five years and shall be subject to audit by the
4688	4688	director of taxation. If any materials purchased under such a certificate are
4689	4689	found not to have been incorporated in the building or other project or not
4690	4690	to have been returned for credit or the sales or compensating tax otherwise
4691	4691	imposed upon such materials that will not be so incorporated in the
4692	4692	building or other project reported and paid by such contractor to the
4693	4693	director of taxation not later than the 20
4694	4694	th
4695	4695	day of the month following the
4696	4696	close of the month in which it shall be determined that such materials will
4697	4697	not be used for the purpose for which such certificate was issued, Wichita
4698	4698	children's home shall be liable for the tax on all materials purchased for the
4699	4699	project, and upon payment, it may recover the same from the contractor
4700	4700	together with reasonable attorney fees. Any contractor or any agent,
4701	4701	employee or subcontractor, who shall use or otherwise dispose of any
4702	4702	materials purchased under such a certificate for any purpose other than that
4703	4703	1
4704	4704	2
4705	4705	3
4706	4706	4
4707	4707	5
4708	4708	6
4709	4709	7
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4715	4715	13
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4718	4718	16
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4721	4721	19
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4728	4728	26
4729	4729	27
4730	4730	28
4731	4731	29
4732	4732	30
4733	4733	31
4734	4734	32
4735	4735	33
4736	4736	34
4737	4737	35
4738	4738	36
4739	4739	37
4740	4740	38
4741	4741	39
4742	4742	40
4743	4743	41
4744	4744	42
4745	4745	43 SB 198 56
4746	4746	for which such a certificate is issued without the payment of the sales or
4747	4747	compensating tax otherwise imposed upon such materials, shall be guilty
4748	4748	of a misdemeanor and, upon conviction, shall be subject to the penalties
4749	4749	provided for in K.S.A. 79-3615(h), and amendments thereto;
4750	4750	(jjjj) all sales of tangible personal property or services purchased by
4751	4751	or on behalf of the beacon, inc., that is exempt from federal income
4752	4752	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
4753	4753	for the purpose of providing those desiring help with food, shelter, clothing
4754	4754	and other necessities of life during times of special need;
4755	4755	(kkkk) all sales of tangible personal property and services purchased
4756	4756	by or on behalf of reaching out from within, inc., which is exempt from
4757	4757	federal income taxation pursuant to section 501(c)(3) of the federal
4758	4758	internal revenue code, for the purpose of sponsoring self-help programs for
4759	4759	incarcerated persons that will enable such incarcerated persons to become
4760	4760	role models for non-violence while in correctional facilities and productive
4761	4761	family members and citizens upon return to the community;
4762	4762	(llll) all sales of tangible personal property and services purchased by
4763	4763	Gove county healthcare endowment foundation, inc., which is exempt
4764	4764	from federal income taxation pursuant to section 501(c)(3) of the federal
4765	4765	internal revenue code of 1986, and which such property and services are
4766	4766	used for the purpose of constructing and equipping an airport in Quinter,
4767	4767	Kansas, and all sales of tangible personal property or services purchased
4768	4768	by a contractor for the purpose of constructing and equipping an airport in
4769	4769	Quinter, Kansas, for such organization, that would be exempt from
4770	4770	taxation under the provisions of this section if purchased directly by such
4771	4771	organization. Nothing in this subsection shall be deemed to exempt the
4772	4772	purchase of any construction machinery, equipment or tools used in the
4773	4773	constructing or equipping of facilities for such organization. When such
4774	4774	organization shall contract for the purpose of constructing or equipping an
4775	4775	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
4776	4776	contractor an exemption certificate for the project involved, and the
4777	4777	contractor may purchase materials for incorporation in such project. The
4778	4778	contractor shall furnish the number of such certificate to all suppliers from
4779	4779	whom such purchases are made, and such suppliers shall execute invoices
4780	4780	covering the same bearing the number of such certificate. Upon
4781	4781	completion of the project, the contractor shall furnish to such organization
4782	4782	concerned a sworn statement, on a form to be provided by the director of
4783	4783	taxation, that all purchases so made were entitled to exemption under this
4784	4784	subsection. All invoices shall be held by the contractor for a period of five
4785	4785	years and shall be subject to audit by the director of taxation. If any
4786	4786	materials purchased under such a certificate are found not to have been
4787	4787	incorporated in such facilities or not to have been returned for credit or the
4788	4788	sales or compensating tax otherwise imposed upon such materials that will
4789	4789	1
4790	4790	2
4791	4791	3
4792	4792	4
4793	4793	5
4794	4794	6
4795	4795	7
4796	4796	8
4797	4797	9
4798	4798	10
4799	4799	11
4800	4800	12
4801	4801	13
4802	4802	14
4803	4803	15
4804	4804	16
4805	4805	17
4806	4806	18
4807	4807	19
4808	4808	20
4809	4809	21
4810	4810	22
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4812	4812	24
4813	4813	25
4814	4814	26
4815	4815	27
4816	4816	28
4817	4817	29
4818	4818	30
4819	4819	31
4820	4820	32
4821	4821	33
4822	4822	34
4823	4823	35
4824	4824	36
4825	4825	37
4826	4826	38
4827	4827	39
4828	4828	40
4829	4829	41
4830	4830	42
4831	4831	43 SB 198 57
4832	4832	not be so incorporated in such facilities reported and paid by such
4833	4833	contractor to the director of taxation no later than the 20
4834	4834	th
4835	4835	day of the month
4836	4836	following the close of the month in which it shall be determined that such
4837	4837	materials will not be used for the purpose for which such certificate was
4838	4838	issued, such organization concerned shall be liable for tax on all materials
4839	4839	purchased for the project, and upon payment thereof it may recover the
4840	4840	same from the contractor together with reasonable attorney fees. Any
4841	4841	contractor or any agent, employee or subcontractor thereof, who purchased
4842	4842	under such a certificate for any purpose other than that for which such a
4843	4843	certificate is issued without the payment of the sales or compensating tax
4844	4844	otherwise imposed upon such materials, shall be guilty of a misdemeanor
4845	4845	and, upon conviction therefor, shall be subject to the penalties provided for
4846	4846	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
4847	4847	subsection shall expire and have no effect on and after July 1, 2019;
4848	4848	(mmmm) all sales of gold or silver coins; and palladium, platinum,
4849	4849	gold or silver bullion. For the purposes of this subsection, "bullion" means
4850	4850	bars, ingots or commemorative medallions of gold, silver, platinum,
4851	4851	palladium, or a combination thereof, for which the value of the metal
4852	4852	depends on its content and not the form;
4853	4853	(nnnn) all sales of tangible personal property or services purchased
4854	4854	by friends of hospice of Jefferson county, an organization that is exempt
4855	4855	from federal income taxation pursuant to section 501(c)(3) of the federal
4856	4856	internal revenue code of 1986, for the purpose of providing support to the
4857	4857	Jefferson county hospice agency in end-of-life care of Jefferson county
4858	4858	families, friends and neighbors, and all sales of entry or participation fees,
4859	4859	charges or tickets by friends of hospice of Jefferson county for such
4860	4860	organization's fundraising event for such purpose;
4861	4861	(oooo) all sales of tangible personal property or services purchased
4862	4862	for the purpose of and in conjunction with constructing, reconstructing,
4863	4863	enlarging or remodeling a qualified business facility by a qualified firm or
4864	4864	qualified supplier that meets the requirements established in K.S.A. 2024
4865	4865	Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
4866	4866	been approved for a project exemption certificate by the secretary of
4867	4867	commerce, and the sale and installation of machinery and equipment
4868	4868	purchased by such qualified firm or qualified supplier for installation at
4869	4869	any such qualified business facility. When a person shall contract for the
4870	4870	construction, reconstruction, enlargement or remodeling of any such
4871	4871	qualified business facility, such person shall obtain from the state and
4872	4872	furnish to the contractor an exemption certificate for the project involved,
4873	4873	and the contractor may purchase materials, machinery and equipment for
4874	4874	incorporation in such project. The contractor shall furnish the number of
4875	4875	such certificates to all suppliers from whom such purchases are made, and
4876	4876	such suppliers shall execute invoices covering the same bearing the
4877	4877	1
4878	4878	2
4879	4879	3
4880	4880	4
4881	4881	5
4882	4882	6
4883	4883	7
4884	4884	8
4885	4885	9
4886	4886	10
4887	4887	11
4888	4888	12
4889	4889	13
4890	4890	14
4891	4891	15
4892	4892	16
4893	4893	17
4894	4894	18
4895	4895	19
4896	4896	20
4897	4897	21
4898	4898	22
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4902	4902	26
4903	4903	27
4904	4904	28
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4907	4907	31
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4911	4911	35
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4913	4913	37
4914	4914	38
4915	4915	39
4916	4916	40
4917	4917	41
4918	4918	42
4919	4919	43 SB 198 58
4920	4920	number of such certificate. Upon completion of the project, the contractor
4921	4921	shall furnish to the owner of the qualified firm or qualified supplier a
4922	4922	sworn statement, on a form to be provided by the director of taxation, that
4923	4923	all purchases so made were entitled to exemption under this subsection.
4924	4924	All invoices shall be held by the contractor for a period of five years and
4925	4925	shall be subject to audit by the director of taxation. Any contractor or any
4926	4926	agent, employee or subcontractor thereof who shall use or otherwise
4927	4927	dispose of any materials, machinery or equipment purchased under such a
4928	4928	certificate for any purpose other than that for which such a certificate is
4929	4929	issued without the payment of the sales or compensating tax otherwise
4930	4930	imposed thereon, shall be guilty of a misdemeanor and, upon conviction
4931	4931	therefor, shall be subject to the penalties provided for in K.S.A. 79-
4932	4932	3615(h), and amendments thereto. As used in this subsection, "qualified
4933	4933	business facility," "qualified firm" and "qualified supplier" mean the same
4934	4934	as defined in K.S.A. 2024 Supp. 74-50,311, and amendments thereto;
4935	4935	(pppp) (1) all sales of tangible personal property or services
4936	4936	purchased by a not-for-profit corporation that is designated as an area
4937	4937	agency on aging by the secretary for aging and disabilities services and is
4938	4938	exempt from federal income taxation pursuant to section 501(c)(3) of the
4939	4939	federal internal revenue code for the purpose of coordinating and
4940	4940	providing seniors and those living with disabilities with services that
4941	4941	promote person-centered care, including home-delivered meals,
4942	4942	congregate meal settings, long-term case management, transportation,
4943	4943	information, assistance and other preventative and intervention services to
4944	4944	help service recipients remain in their homes and communities or for the
4945	4945	purpose of constructing, equipping, reconstructing, maintaining, repairing,
4946	4946	enlarging, furnishing or remodeling facilities for such area agency on
4947	4947	aging; and
4948	4948	(2) all sales of tangible personal property or services purchased by a
4949	4949	contractor for the purpose of constructing, equipping, reconstructing,
4950	4950	maintaining, repairing, enlarging, furnishing or remodeling facilities for an
4951	4951	area agency on aging that would be exempt from taxation under the
4952	4952	provisions of this section if purchased directly by such area agency on
4953	4953	aging. Nothing in this paragraph shall be deemed to exempt the purchase
4954	4954	of any construction machinery, equipment or tools used in the
4955	4955	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
4956	4956	furnishing or remodeling facilities for an area agency on aging. When an
4957	4957	area agency on aging contracts for the purpose of constructing, equipping,
4958	4958	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4959	4959	facilities, it shall obtain from the state and furnish to the contractor an
4960	4960	exemption certificate for the project involved, and such contractor may
4961	4961	purchase materials for incorporation in such project. The contractor shall
4962	4962	furnish the number of such certificate to all suppliers from whom such
4963	4963	1
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4999	4999	37
5000	5000	38
5001	5001	39
5002	5002	40
5003	5003	41
5004	5004	42
5005	5005	43 SB 198 59
5006	5006	purchases are made, and such suppliers shall execute invoices covering the
5007	5007	same bearing the number of such certificate. Upon completion of the
5008	5008	project, the contractor shall furnish to such area agency on aging a sworn
5009	5009	statement, on a form to be provided by the director of taxation, that all
5010	5010	purchases so made were entitled to exemption under this subsection. All
5011	5011	invoices shall be held by the contractor for a period of five years and shall
5012	5012	be subject to audit by the director of taxation. If any materials purchased
5013	5013	under such a certificate are found not to have been incorporated in the
5014	5014	building or other project or not to have been returned for credit or the sales
5015	5015	or compensating tax otherwise imposed upon such materials that will not
5016	5016	be so incorporated in the building or other project reported and paid by
5017	5017	such contractor to the director of taxation not later than the 20
5018	5018	th
5019	5019	day of the
5020	5020	month following the close of the month in which it shall be determined
5021	5021	that such materials will not be used for the purpose for which such
5022	5022	certificate was issued, the area agency on aging concerned shall be liable
5023	5023	for tax on all materials purchased for the project, and upon payment
5024	5024	thereof, the area agency on aging may recover the same from the
5025	5025	contractor together with reasonable attorney fees. Any contractor or any
5026	5026	agent, employee or subcontractor thereof who shall use or otherwise
5027	5027	dispose of any materials purchased under such a certificate for any purpose
5028	5028	other than that for which such a certificate is issued without the payment
5029	5029	of the sales or compensating tax otherwise imposed upon such materials
5030	5030	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
5031	5031	subject to the penalties provided for in K.S.A. 79-3615(h), and
5032	5032	amendments thereto;
5033	5033	(qqqq) all sales of tangible personal property or services purchased
5034	5034	by Kansas suicide prevention HQ, inc., an organization that is exempt
5035	5035	from federal income taxation pursuant to section 501(c)(3) of the federal
5036	5036	internal revenue code of 1986, for the purpose of bringing suicide
5037	5037	prevention training and awareness to communities across the state;
5038	5038	(rrrr) all sales of the services of slaughtering, butchering, custom
5039	5039	cutting, dressing, processing and packaging of an animal for human
5040	5040	consumption when the animal is delivered or furnished by a customer that
5041	5041	owns the animal and such meat or poultry is for use or consumption by
5042	5042	such customer;
5043	5043	(ssss) all sales of tangible personal property or services purchased by
5044	5044	or on behalf of doorstep inc., an organization that is exempt from federal
5045	5045	income taxation pursuant to section 501(c)(3) of the federal internal
5046	5046	revenue code of 1986, for the purpose of providing short-term emergency
5047	5047	aid to families and individuals in need, including assistance with food,
5048	5048	clothing, rent, prescription medications, transportation and utilities, and
5049	5049	providing information on services to promote long-term self-sufficiency;
5050	5050	(tttt) on and after January 1, 2024, all sales of tangible personal
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5090	5090	40
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5092	5092	42
5093	5093	43 SB 198 60
5094	5094	property or services purchased by exploration place, inc., an organization
5095	5095	that is exempt from federal income taxation pursuant to section 501(c)(3)
5096	5096	of the federal internal revenue code, and which such property and services
5097	5097	are used for the purpose of constructing, remodeling, furnishing or
5098	5098	equipping a riverfront amphitheater, a destination playscape, an education
5099	5099	center and indoor renovations at exploration place in Wichita, Kansas, all
5100	5100	sales of tangible personal property or services purchased by Kansas
5101	5101	children's discovery center inc. in Topeka, Kansas, and which such
5102	5102	property and services are used for the purpose of constructing, remodeling,
5103	5103	furnishing or equipping projects that include indoor-outdoor classrooms,
5104	5104	an expanded multi-media gallery, a workshop and loading dock and safety
5105	5105	upgrades such as a tornado shelter, lactation room, first aid room and
5106	5106	sensory room and all sales of tangible personal property or services
5107	5107	purchased by a contractor for the purpose of constructing, remodeling,
5108	5108	furnishing or equipping such projects, for such organizations, that would
5109	5109	be exempt from taxation under the provisions of this section if purchased
5110	5110	directly by such organizations. Nothing in this subsection shall be deemed
5111	5111	to exempt the purchase of any construction machinery, equipment or tools
5112	5112	used in the constructing, remodeling, furnishing or equipping of facilities
5113	5113	for such organization. When such organization shall contract for the
5114	5114	purpose of constructing, remodeling, furnishing or equipping such
5115	5115	projects, it shall obtain from the state and furnish to the contractor an
5116	5116	exemption certificate for the project involved, and the contractor may
5117	5117	purchase materials for incorporation in such project. The contractor shall
5118	5118	furnish the number of such certificate to all suppliers from whom such
5119	5119	purchases are made, and such suppliers shall execute invoices covering the
5120	5120	same bearing the number of such certificate. Upon completion of the
5121	5121	project, the contractor shall furnish to such organization a sworn statement,
5122	5122	on a form to be provided by the director of taxation, that all purchases so
5123	5123	made were entitled to exemption under this subsection. All invoices shall
5124	5124	be held by the contractor for a period of five years and shall be subject to
5125	5125	audit by the director of taxation. If any materials purchased under such a
5126	5126	certificate are found not to have been incorporated in such facilities or not
5127	5127	to have been returned for credit or the sales or compensating tax otherwise
5128	5128	imposed upon such materials that will not be so incorporated in such
5129	5129	facilities reported and paid by such contractor to the director of taxation no
5130	5130	later than the 20
5131	5131	th
5132	5132	day of the month following the close of the month in
5133	5133	which it shall be determined that such materials will not be used for the
5134	5134	purpose for which such certificate was issued, such organization shall be
5135	5135	liable for tax on all materials purchased for the project, and upon payment
5136	5136	thereof may recover the same from the contractor together with reasonable
5137	5137	attorney fees. Any contractor or agent, employee or subcontractor thereof,
5138	5138	who purchased under such a certificate for any purpose other than that for
5139	5139	1
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5180	5180	42
5181	5181	43 SB 198 61
5182	5182	which such a certificate is issued without the payment of the sales or
5183	5183	compensating tax otherwise imposed upon such materials, shall be guilty
5184	5184	of a misdemeanor and, upon conviction therefor, shall be subject to the
5185	5185	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
5186	5186	Sales tax paid on and after January 1, 2024, but prior to the effective date
5187	5187	of this act, upon the gross receipts received from any sale exempted by the
5188	5188	amendatory provisions of this subsection shall be refunded. Each claim for
5189	5189	a sales tax refund shall be verified and submitted to the director of taxation
5190	5190	upon forms furnished by the director and shall be accompanied by any
5191	5191	additional documentation required by the director. The director shall
5192	5192	review each claim and shall refund that amount of sales tax paid as
5193	5193	determined under the provisions of this subsection. All refunds shall be
5194	5194	paid from the sales tax refund fund upon warrants of the director of
5195	5195	accounts and reports pursuant to vouchers approved by the director or the
5196	5196	director's designee. The provisions of this subsection shall expire and have
5197	5197	no effect on and after December 31, 2030;
5198	5198	(uuuu) (1) (A) all sales of equipment, machinery, software, ancillary
5199	5199	components, appurtenances, accessories or other infrastructure purchased
5200	5200	for use in the provision of communications services; and
5201	5201	(B) all services purchased by a provider in the provision of the
5202	5202	communications service used in the repair, maintenance or installation in
5203	5203	such communications service.
5204	5204	(2) As used in this subsection:
5205	5205	(A) "Communications service" means internet access service,
5206	5206	telecommunications service, video service or any combination thereof.
5207	5207	(B) "Equipment, machinery, software, ancillary components,
5208	5208	appurtenances, accessories or other infrastructure" includes, but is not
5209	5209	limited to:
5210	5210	(i) Wires, cables, fiber, conduits, antennas, poles, switches, routers,
5211	5211	amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,
5212	5212	transmitters, circuit cards, insulating and protective materials and cases,
5213	5213	power equipment, backup power equipment, diagnostic equipment, storage
5214	5214	devices, modems, cable modem termination systems and servers;
5215	5215	(ii) other general central office or headend equipment, such as
5216	5216	channel cards, frames and cabinets;
5217	5217	(iii) equipment used in successor technologies, including items used
5218	5218	to monitor, test, maintain, enable or facilitate qualifying equipment,
5219	5219	machinery, software, ancillary components, appurtenances and
5220	5220	accessories; and
5221	5221	(iv) other infrastructure that is used in whole or in part to provide
5222	5222	communications services, including broadcasting, distributing, sending,
5223	5223	receiving, storing, transmitting, retransmitting, amplifying, switching,
5224	5224	providing connectivity for or routing communications services.
5225	5225	1
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5265	5265	41
5266	5266	42
5267	5267	43 SB 198 62
5268	5268	(C) "Internet access service" means the same as internet access as
5269	5269	defined in section 1105 of the internet tax freedom act amendments of
5270	5270	2007, public law 110-108.
5271	5271	(D) "Provider" means a person or entity that sells communications
5272	5272	service, including an affiliate or subsidiary.
5273	5273	(E) "Telecommunications service" means the same as defined in
5274	5274	K.S.A. 79-3602, and amendments thereto.
5275	5275	(F) "Video service" means the same as defined in K.S.A. 12-2022,
5276	5276	and amendments thereto.
5277	5277	(3) The provisions of this subsection shall expire and have no effect
5278	5278	on and after July 1, 2029;
5279	5279	(vvvv) (1) all sales of tangible personal property or services
5280	5280	purchased by a contractor for the purpose of constructing, equipping,
5281	5281	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
5282	5282	a building that is operated by, or is intended to be operated by, the Kansas
5283	5283	fairgrounds foundation, a not-for-profit corporation exempt from federal
5284	5284	income taxation pursuant to section 501(c)(3) of the federal internal
5285	5285	revenue code of 1986, and located on the grounds of the Kansas state fair,
5286	5286	and such tangible personal property would be exempt from taxation under
5287	5287	the provisions of this paragraph if purchased directly by such eligible not-
5288	5288	for-profit corporation. Nothing in this subsection shall be deemed to
5289	5289	exempt the purchase of any construction machinery, equipment or tools
5290	5290	used in the constructing, equipping, reconstructing, maintaining, repairing,
5291	5291	enlarging, furnishing or remodeling a building for such eligible not-for-
5292	5292	profit corporation. When such eligible not-for-profit corporation contracts
5293	5293	for the purpose of constructing, equipping, reconstructing, maintaining,
5294	5294	repairing, enlarging, furnishing or remodeling a building, such corporation
5295	5295	shall obtain from the state and furnish to the contractor an exemption
5296	5296	certificate for the project involved, and such contractor may purchase
5297	5297	materials for incorporation in such project. The contractor shall furnish the
5298	5298	number of such certificate to all suppliers from whom such purchases are
5299	5299	made, and such suppliers shall execute invoices covering such purchases
5300	5300	bearing the number of such certificate. Upon completion of the project, the
5301	5301	contractor shall furnish to such eligible not-for-profit corporation a sworn
5302	5302	statement, on a form to be provided by the director of taxation, that all
5303	5303	purchases so made were entitled to exemption under this subsection. All
5304	5304	invoices shall be held by the contractor for a period of five years and shall
5305	5305	be subject to audit by the director of taxation. If any materials purchased
5306	5306	under such a certificate are found not to have been incorporated in the
5307	5307	building or returned for credit, the contractor shall report and pay the sales
5308	5308	or compensating tax to the director of taxation not later than the 20
5309	5309	th
5310	5310	day of
5311	5311	the month following the close of the month in which it is determined that
5312	5312	such materials will not be used for the purpose for which such certificate
5313	5313	1
5314	5314	2
5315	5315	3
5316	5316	4
5317	5317	5
5318	5318	6
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5354	5354	42
5355	5355	43 SB 198 63
5356	5356	was issued. The eligible not-for-profit corporation concerned shall be
5357	5357	liable for tax on all materials purchased for the project, and upon payment
5358	5358	thereof, the eligible not-for-profit corporation may recover the same from
5359	5359	the contractor together with reasonable attorney fees. Any contractor or
5360	5360	any agent, employee or subcontractor thereof who shall use or otherwise
5361	5361	dispose of any materials purchased under such a certificate for any purpose
5362	5362	other than that for which such a certificate is issued without the payment
5363	5363	of the sales or compensating tax otherwise imposed upon such materials
5364	5364	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
5365	5365	subject to the penalties provided for in K.S.A. 79-3615(h), and
5366	5366	amendments thereto.
5367	5367	(2) Sales tax paid on and after May 19, 2023, but prior to the effective
5368	5368	date of this act upon the gross receipts received from any sale which would
5369	5369	have been exempted by the provisions of this subsection had such sale
5370	5370	occurred after the effective date of this act shall be refunded. Each claim
5371	5371	for a sales tax refund shall be verified and submitted to the director of
5372	5372	taxation upon forms furnished by the director and shall be accompanied by
5373	5373	any additional documentation required by the director. The director shall
5374	5374	review each claim and shall refund that amount of sales tax paid as
5375	5375	determined under the provisions of this subsection. All refunds shall be
5376	5376	paid from the sales tax refund fund upon warrants of the director of
5377	5377	accounts and reports pursuant to vouchers approved by the director or the
5378	5378	director's designee; and
5379	5379	(wwww) (1) All sales of tangible personal property or services
5380	5380	purchased by a pregnancy resource center or residential maternity facility.
5381	5381	(2) As used in this subsection, "pregnancy resource center" or
5382	5382	"residential maternity facility" means an organization that is:
5383	5383	(A) Exempt from federal income taxation pursuant to section 501(c)
5384	5384	(3) of the federal internal revenue code of 1986;
5385	5385	(B) a nonprofit organization organized under the laws of this state;
5386	5386	and
5387	5387	(C) a pregnancy resource center or residential maternity facility that:
5388	5388	(i) Maintains a dedicated phone number for clients;
5389	5389	(ii) maintains in this state its primary physical office, clinic or
5390	5390	residential home that is open for clients for a minimum of 20 hours per
5391	5391	week, excluding state holidays;
5392	5392	(iii) offers services, at no cost to the client, for the express purpose of
5393	5393	providing assistance to women in order to carry their pregnancy to term,
5394	5394	encourage parenting or adoption, prevent abortion, as define in section 7,
5395	5395	and amendments thereto, and promote healthy childbirth; and
5396	5396	(iv) utilizes trained healthcare providers, as defined by K.S.A. 2024
5397	5397	Supp. 79-32,316, and amendments thereto, to perform any available
5398	5398	medical procedures.
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5441	5441	43 SB 198 64
5442	5442	Sec. 19. K.S.A. 65-4a02, 65-4a03, 65-4a04, 65-4a05, 65-4a06, 65-
5443	5443	4a07, 65-4a08, 65-4a09, 65-4a10, 65-4a11, 65-4a12, 65-2837, 65-6702,
5444	5444	65-6703, 65-6704, 65-6705, 65-6707, 65-6709, 65-6710, 65-6711, 65-
5445	5445	6712, 65-6714, 65-6715, 65-6721, 65-6722, 65-6724, 65-6725, 65-6726,
5446	5446	65-6731, 65-6741, 65-6743, 65-6744, 65-6745, 65-6746, 65-6747, 65-
5447	5447	6748, 65-6749, 65-67a01, 76-3308 and 79-32,195 and K.S.A. 2024 Supp.
5448	5448	60-1906, 65-4a01, 65-2401, 65-6701, 65-6708, 65-6723, 65-6742, 79-
5449	5449	32,182b, 79-32,261 and 79-3606 are hereby repealed.
5450	5450	Sec. 20. This act shall take effect and be in force from and after its
5451	5451	publication in the statute book.
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