March 2, 2000

Journal of the House

Hall of the House of Represenatitives
Topeka, KS, Thursday, March 2, 2000, 11:00 a.m.
 The House met pursuant to adjournment with Speaker pro tem Mays in the chair.

 The roll was called with 118 members present.

 Rep. Helgerson was excused on verified illness.

 Reps, Ballou, Phill Kline, Larkin, O'Neal, Pottorff and Rehorn were excused on excused
absence by the Speaker.

   Prayer by guest chaplain, the Rev. William Dulin, pastor, Calvary Church of God in Christ,
Lawrence, and guest of Rep. Sloan:

                 Lord in the name of Jesus, I thank you for this day and for this opportunity
            to stand before this assembly, and now Lord I ask for your blessing and
            guidance upon each and every one of these here today. For Lord in your
            word you said if we will acknowledge you in all of our ways you shall direct
            our paths. We pause to acknowledge you and ask for your direction in every
            decision that is to be made, and in every plan that is brought forth or will be,
            that your name will be glorified and the people of this state and this nation
            edified. It is these and all blessings we ask in Jesus' name; thank God, Amen
            and Amen.

     The Pledge of Allegiance was led by Rep. Schwartz.

 From Larry Froelich, RPh, Executive Secretary, Kansas State Board of Pharmacy,
pursuant to K.S.A. 65-4102, list of medications for scheduling/rescheduling as controlled

 From Kathleen Sebelius, Insurance Commissioner, Kansas Insurance Department,
Report to Kansas Legislature 2000 Session on Rate and Form Filings Laws in Other States,
Re: 1999 SB 121.

     The complete reports are kept on file and open for inspection in the office of the Chief

 On motion of Rep. Holmes, the House concurred in Senate amendments to Sub. HB
2290, An act relating to certain loans and pledges of credit by certain public utilities;
repealing K.S.A. 66-1213.

 On roll call, the vote was: Yeas 117; Nays 0; Present but not voting: 0; Absent or not
voting: 8.

 Yeas: Aday, Alldritt, Allen, Aurand, Ballard, Barnes, Beggs, Benlon, Bethell, Boston,
Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dahl, Dean, Dreher, Edmonds,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Freeborn, Garner,
Gatewood, Geringer, Gilbert, Glasscock, Grant, Gregory, Haley, Hayzlett, Henderson,
Henry, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jenkins,
Jennison, Johnson, Johnston, Kirk, Klein, Phil Kline, Krehbiel, Kuether, Landwehr, Lane,
Light, Lightner, Lloyd, M. Long, P. Long, Loyd, Mason, Mayans, Mays, McClure,
McCreary, McKechnie, McKinney, Merrick, Minor, Mollenkamp, Jim Morrison, Judy
Morrison, Myers, Neufeld, Nichols, O'Brien, O'Connor, Osborne, Palmer, Pauls, E.
Peterson, J. Peterson, Phelps, Powell, Powers, Ray, Reardon, Reinhardt, Ruff, Schwartz,
Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Tedder,
Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells,
Welshimer, Wilk.

 Nays: None.

 Present but not voting: None.

 Absent or not voting: Adkins, Ballou, Helgerson, Phill Kline, Larkin, O'Neal, Pottorff,

   On motion of Rep. Glasscock, the House went into Committee of the Whole, with Rep.
Aurand in the chair.

 On motion of Rep. Aurand, Committee of the Whole report, as follows, was adopted:

 Recommended that committee report to HB 2823 be adopted; and the bill be passed as

 Committee report to HB 2620 be adopted; also, on motion of Rep. Beggs be amended
on page 2, after line 39 by inserting the following:

      ``Sec.  2. K.S.A. 1999 Supp. 79-1448 is hereby amended to read as follows: 79-1448.
Any taxpayer may complain or appeal to the county appraiser from the classification or
appraisal of the taxpayer's property by giving notice to the county appraiser within 30 days
subsequent to the date of mailing of the valuation notice required by K.S.A. 79-1460, and
amendments thereto, for real property, and on or before May 15 for personal property. The
county appraiser or the appraiser's designee shall arrange to hold an informal meeting with
the aggrieved taxpayer with reference to the property in question. At such meeting it shall
be the duty of the county appraiser or the county appraiser's designee to initiate production
of evidence to substantiate the valuation of such property, including the affording to the
taxpayer of the opportunity to review the data sheet of comparable sales utilized in the
determination of such valuation. The county appraiser may extend the time in which the
taxpayer may informally appeal from the classification or appraisal of the taxpayer's property
for just and adequate reasons. Except as provided in K.S.A. 79-1404, and amendments
thereto, no informal meeting regarding real property shall be scheduled to take place after
May 15, nor shall a final determination be given by the appraiser after May 20. Any final
determination shall be accompanied by a written explanation of the reasoning upon which
such determination is based when such determination is not in favor of the taxpayer. Any
taxpayer who is aggrieved by the final determination of the county appraiser may appeal to
the hearing officer or panel appointed pursuant to K.S.A. 79-1611, and amendments thereto,
and such hearing officer, or panel, for just cause shown and recorded, is authorized to change
the classification or valuation of specific tracts or individual items of real or personal property
in the same manner provided for in K.S.A. 79-1606, and amendments thereto. In lieu of
appealing to a hearing officer or panel appointed pursuant to K.S.A. 79-1611, and
amendments thereto, any taxpayer aggrieved by the final determination of the county
appraiser, except with regard to land devoted to agricultural use, wherein the value of the
property, is less than $2,000,000, as reflected on the valuation notice, or the property
constitutes single family residential property, may appeal to the small claims division of the
state board of tax appeals within the time period prescribed by K.S.A. 79-1606, and
amendments thereto. Any taxpayer who is aggrieved by the final determination of a hearing
officer or panel may appeal to the state board of tax appeals as provided in K.S.A. 79-1609,
and amendments thereto. An informal meeting with the county appraiser or the appraiser's
designee shall be a condition precedent to an appeal to the county or district hearing panel.'';

      On page 3, in line 38, before ``and'' by inserting ``, 79-1448'';

      By renumbering existing sections accordingly;

      In the title, in line 11, before ``and'' by inserting ``, 79-1448''; and HB 2620 be passed as

 On motion of Rep. Findley, HB 2621 be amended on page 2, in line 28, by striking
``there'' and inserting ``their'';

 Also, on motion of Rep. Campbell HB 2621 be amended on page 2, in line 31, after the
period by inserting ``The provisions of this subsection shall apply only when the mortgagee
serves as the escrow agent for the mortgagor for the purpose of paying property tax.'';

 Also, on further motion of Rep. Campbell HB 2621 be amended on page 2, in line 31,
after the period by inserting ``For the purposes of this subsection, such mortgage contract
shall not be deemed satisfied if there is an agreement for the making of future advances
secured by such contract.'';

 Also, on further motion of Rep. Campbell HB 2621 be amended on page 2, in line 29,
before ``satisfaction'' by inserting ``entering of record of''; in line 30, before the comma by
inserting ``in accordance with the provisions of K.S.A. 58-2309a, and amendments thereto'';
also in line 30, by striking ``mortgagee'' and inserting ``register of deeds'';

  and HB 2621 be passed as amended.

      The Select Committee on Information Management recommends HB 2743 be
amended by substituting a new bill to be designated as ``Substitute for HOUSE BILL No.
2743,'' as follows:

  ``Substitute for HOUSE BILL No. 2743
  By Select Committee on Information Management

AN  ACT concerning telecommunications; relating to the deployment of high speed data
      transmission services; amending K.S.A. 1999 Supp. 66-1,187 and 66-2005 and repealing
      the existing sections.'';

            and the substitute bill be passed.

 (Sub. HB 2743 was thereupon introduced and read by title.)

 (Having been referred separately, Sub. HB 2743 is now in Committee on Utilites.)

   Upon unanimous consent, the House referred back to the regular order of business,
Introduction of Bills and Concurrent Resolutions.

 The following bills were thereupon introduced and read by title:

   HB 3009, An act concerning the judicial council; relating to the publications fee fund;
authorizing certain fees and donations, by Committee on Appropriations.

 HB 3010, An act concerning the job expansion and investment credit act of 1976;
amending K.S.A. 1999 Supp. 74-50,131 and 79-32,160a and repealing the existing sections,
by Committee on Appropriations.

 HB 3011, An act concerning the Kansas investments in major projects and
comprehensive training act; amending K.S.A. 1999 Supp. 74-50,103, 74-50,104, 74-50,106
and 74-50,111 and repealing the existing sections, by Committee on Appropriations.

 The following resolutions were introduced and read by title:

      HOUSE RESOLUTION No. 6011--

By Committee on Utilities

A  RESOLUTION requesting the State Corporation Commission to conduct a review and
      study of the ``one-call'' law and system and submit a report and recommendations to the
      Legislature and Governor.


            Be it resolved by the House of Representatives of the State of Kansas: That the State
Corporation Commission be requested to conduct a review and study of the Kansas
Underground Utility Damage Prevention Act (K.S.A. 1999 Supp. 77-1808 et seq.) and the
system provided for by that act, commonly known as ``one-call'' or ``dig-safe''; and

      Be it further resolved: That the Commission be urged to provide for participation of
interested parties in the study and to utilize the United States Department of
Transportation's Common Ground Study (August 1999) as a basis for the review and study;

      Be it further resolved: That the review, study and recommendations include, but not be
limited to: (1) Whether water and sewer lines should be included in the system; (2) whether
salt water disposal and injection lines should be included in the system when the lines are
located in sensitive groundwater areas; (3) the feasibility of implementation of a positive
response system by locators; (4) extension of the period for which locate tickets are valid,
calculating the period from the time the locate is performed instead of from the time of the
request; (5) registration and standardized training of locators; (6) the impact of directional
drilling on ``one-call'' practices; (7) the different policies necessary for compliance with ``one-
call'' by large operators and small operators; (8) appropriateness of existing fees for
participation in the system; (9) whether state agencies with controlled access rights-of-way
should be required to be members of the system; (10) enforcement of required membership
in the system; (11) facilitation of a common geographic information system (GIS) mapping
database; (12) the complaint process for the system; (13) compensation for losses due to
line breaks, contractor delays, location errors and other similar occurrences; and (14)
statutory changes related to ``one-call''; and

      Be it further resolved: That the Commission be requested to submit a report of the
review and study, together with any recommendations, to the House and Senate Standing
Committees on Utilities and to the Governor on or before January 8, 2001.

      HOUSE RESOLUTION No. 6012--

By Committee on Taxation

A  RESOLUTION requiring the Attorney General to prosecute an action to determine the
      reasonableness of attorney fees awarded to the local outside counsel in the national
      tobacco settlement case.

            WHEREAS,  The Committee on Taxation received testimony concerning the
employment of local outside counsel to represent the State of Kansas in litigation against
the tobacco companies; and

      WHEREAS,  The Committee heard testimony that if another law firm had been
employed, Kansas may have received a greater amount of revenue from the National
Tobacco Settlement; and

      WHEREAS,  According to the order issued by the Tobacco Settlement Arbitration Panel
that rewarded $27,000,000 to Kansas local outside counsel, ``The role of National Counsel
in this state was very prominent and active,'' ``that there was more work spent by National
Counsel in Kansas than in several other states,'' and the National Counsel ``provided most
of the personnel power and resources for the Kansas effort''; and

      WHEREAS,  There was limited litigation in Kansas, and in fact, according to the order
of the Tobacco Settlement Arbitration Panel, ``There was no ruling on the industry's motion
to dismiss, there was no discovery, no expert designations, no depositions and no trial date
was set''; and

      WHEREAS,  Rule 1.5 of the Model Rules of Professional Conduct as adopted by rule of
the Kansas Supreme Court requires that any fee charged by a Kansas lawyer be reasonable
and subject to judicial review; and

      WHEREAS,  The contract entered into by the State of Kansas and local outside counsel
is also subject to such rule; and

      WHEREAS,  The fee received by local outside counsel in the amount of $27,000,000 is
unreasonable in light of the lack of expertise and effort by such counsel, and the result
obtained thereby: Now, therefore,

      Be it resolved by the House of Representatives:

      (1) That in accordance with K.S.A. 75-702 the Attorney General be directed to bring
an action in the Shawnee County District Court seeking judicial review pursuant to MRPC 
1.5 as to the reasonableness of the attorney fees awarded to the local outside counsel;

       (2) That the Attorney General obtain a copy of the transcript and briefs submitted to
the Tobacco Settlement Arbitration Panel and submit such evidence to the court or seek a
subpoena from the court directing production of the same;

      (3) That the Attorney General submit to the court as evidence the entire record of the
proceedings of the House Committee on Taxation occurring from February 14, 1999,
through February 17, 1999;

      (4) That all evidence submitted to the court in such action shall be made available for
review by any member of the legislative coordinating council, and the chairperson, vice-
chairperson and ranking minority member of the Committee on Taxation;

      (5) That the Attorney General, in the event that a conflict appears with respect to
paragraph (1), shall hire special counsel who will aggressively pursue on behalf of the client,
the State of Kansas, that the award of $27,000,000 for work done on the tobacco case by
the local outside counsel is unreasonable and a violation of MRPC 1.5; and

      (6) That, in the event any amount of such fee is declared to be unreasonable and
excessive, the Attorney General shall seek from the court an order providing that upon
receipt, such amount shall be remitted by the local outside counsel to the state treasurer
who shall deposit the entire amount thereof in the state treasury to the credit of the
children's initiatives fund; and

      Be it further resolved: That the chief clerk of the House of Representatives be directed
to provide an enrolled copy of this resolution to the Attorney General.

   On motion of Rep. Weber, the House adjourned until 11:00 a.m., Friday, March 3, 2000.


JANET E. JONES, Chief Clerk.