07 Feb 2025 Kansas Statehouse Insider – Week 04
Kansas legislative committees worked rapidly throughout the session’s fourth week, holding more than 75 hearings as the ‘Turnaround’ week quickly approaches on February 20.
‘Turnaround’ refers to the mid-point of the session where most bills must be passed out of their house of origin for hearings to begin in the opposite chamber. A bill is subject to the ‘Turnaround’ deadline unless it is “blessed” by legislative leadership or resides in an exempt committee (Federal and State Affairs, Appropriations, Tax and Ways and Means).
Lawmakers and advocates work to have their interests advanced through the committee process, and several bills have been passed to the opposite chamber. Still looming are agreements on overall tax policy between the House and Senate, and the ever-present item of constructing a fiscally responsible state budget.
Livestock Theft Penalty Enhancement
House Bill 2253 was introduced to enhance criminal penalties for the theft of livestock or implements of husbandry to a severity level 5, nonperson felony. Stakeholders are seeking to amend the bill to add “grain theft” to the bill. The bill was referred to the House Judiciary Committee.
Conservation Reserve Enhancement Program
On February 5, the House Committee on Agriculture held a hearing on House Bill 2111, a bill that would amend existing conservation reserve enhancement program statutes to increase the state acreage cap from 40,000 acres to 60,000 acres. This change would also increase the number of eligible acres per county from 10,000 acres (currently) to 15,000 acres. The legislation would also expand eligibility criteria and potentially allow for dryland farming practices if approved by USDA. Agribusiness stakeholders requested that the bill be amended to set a county cap of no more than 12,000 acres.
Gross Weight Exemption for Ag Commodities
Senate Bill 17 exempts haulers of grain and certain other agricultural goods from gross weight limitations during the harvest season. A hearing was held on the bill in the Senate Transportation Committee.
Immigration
- SCR 1602 was introduced to “encourage the Governor to cooperate with federal enforcement of immigration laws.” The Senate amended the bill before passing it on a vote of 31-9.
- House Bill 2066 would require business entities and public employers to register and use e-verify program for employment purposes. SB 196 is the Senate companion bill.
- SB 178 would require law enforcement agencies to enter into agreements with US immigration and customs enforcement.
Corporate Income Tax, Single Sales Factor Apportionment
Introduced on February 7, House Bill 2336 would require corporate taxpayers to use a single factor sales method to apportion income for tax purposes, rather than the current three-factor system for apportioning incomes. The bill allows a three-year phase-in period and will also include market-based sourcing provisions to replace the cost of performance requirements. Past similar legislation had an estimated cost to the state of approximately $20 million, but the fiscal note on the new legislation is unknown. The bill will be referred to the House Tax Committee.
Weights and Measures
The state department of agriculture requested introduction of House Bill 2255, a lengthy bill that would make comprehensive changes to the state’s weights and measures law. Most of the changes are focused on new licensing and training requirements for licensed scale service companies. A hearing is scheduled in the House Committee on Agriculture and Natural Resources on Monday, February 10.
Conservation District Funding
Senate Bill 36 would make permanent a temporary increase in the current cap on moneys disbursed by the state division of conservation, to conservation districts across the state, and to provide increased matching basis for state moneys disbursed to conservation districts. The bill was passed out favorably by the Senate Agriculture Committee.
New Conservation Funds
The House Agriculture Committee held a hearing on House Bill 2063, a bill that would transfer $60 million from the state general fund to a new state conservation fund, working lands conservation fund, and wildlife conservation fund.
Soil Conservation District Funding and State Water Plan Funding
House Bill 2113 would create a state conservation fund and make annual transfers of $5,000,000 into the new fund from the state general fund. The bill would also increase the annual transfers from the state general fund to the state water plan fund from $35M currently, to $55M, on July 1, 2025; July 1, 2026, and July 1, 2027. The bill would sunset the water technical assistance fund and the water project grant fund on July 1, 2028. A hearing on the bill is scheduled for Tuesday, February 11 in the House Water Committee.
Muti-Year Flex Accounts
Senate Bill 58 would amend the muti-year flex account (MYFA)statutes to streamline enrollment calculations based on net irrigation requirement (NIR) allocation, plus 10%, rather than on average use. The bill would eliminate the potential to double-count overlapping acreage, and would align MYFA with participation in local enhanced management areas (LEMAs),intensive groundwater use management areas (IGUCAs), and water conservation areas. On February 6, the Senate Agriculture Committee amended the bill to change the reporting dates and then passed the bill out of committee favorably.
Water Program Task Force
House Bill 2172 would establish the Water Program Task Force to evaluate the state’s water program and funding for such program. The bill would require the task force to submit a report to the Legislature and Governor. The House Committee on Agriculture will hold a hearing on the bill on Monday, February 10.
Income Tax Rate Trigger
Modeled on laws passed in other states, House Bill 2318 would add a trigger to automatically decrease individual and corporate income tax rates when state revenues increase.
Property Tax Relief
- House Bill 2011 would decrease the rate of ad valorem tax imposed by school districts from 20 (currently) to 18.5 in school years 2025 and 2026. The House Tax Committee passed the bill out favorably.
- Senate Bill 35 would discontinue state property tax levies which are currently used for the Kansas educational building fund and the state institutions building fund. This measure would remove 1.5 mills from the state portion of the property tax mill levy for all taxpayers. The lost revenue from the measure be backfilled from the state general fund through demand transfers. The bill passed the Senate on a vote of 38-2. The bill has been referred to the House Tax Committee.
- SCR 1603 would amend the Kansas Constitution to limit annual increases in real property valuations to 3 percent. A similar bill was passed by the Senate last year but did not advance in the House. As a constitutional question, the bill requires passage of a 2/3 supermajority of the legislature but does not require the Governor’s signature. The measure would be included as a ballot question on a special state-wide election in 2025 and become effective in 2026. The Senate passed the bill on a vote of 28-11. The bill now heads to the House for consideration.
- Alternative House Property Tax Bill. Following the Senate’s passage of SCR 1603, House Republicans began crafting their own proposed constitutional amendment to limit residential appraisal increases by utilizing a rolling six-year average of home property values across the state, with a goal of smoothing out spikes in property valuations. The cap would be transferred to new owners if the property is sold or transferred. However, the bill would not apply to commercial or industrial properties.
New Energy Storage Systems Property Tax Exemption
House Bill 2083 would amend Kansas personal property tax law on machinery and equipment to provide a 10-year property tax exemption for new energy storage systems that are installed after January 1, 2026. The House Tax Committee has held a hearing on the bill. Stakeholders of smaller scale, non-utility NESS equipment are working with bill proponents to amend the bill in order to include this type of equipment in the property tax exemption.
Personal Property Tax Exemptions
Senate Bill 10 would exempt certain personal property, such as ATVs, watercraft, and certain trailers from personal property taxation. The Senate passed the bill on a vote of 37-3. The bill was referred to the House Tax Committee, and a hearing is scheduled for Monday, February 10.
Construction Sales Tax Exemption
House Bill 2162 would create a sales tax exemption for the service of installing tangible personal property for the reconstruction, restoration, remodeling, renovation, repair, or replacement of a building or facility. The bill was referred to the House Committee on Taxation, but no hearing has been scheduled.
Childcare Income Tax Credit
House Bill 2078 would create an income tax credit for contributions to a childcareprovider. The bill was referred to the House Committee on Taxation, but no hearing has been scheduled.
Prohibiting Foreign Ownership of Real Property
Last session, the House passed legislation to prohibit principals from federally designated countries of concern from holding or acquiring interest in real property in the state within 100 miles of a military installation. The bill exempted individuals and properties previously verified by the federal interagency Committee on Foreign Investment in the United States (CFIUS). After passing the House and Senate, Governor Laura Kelly vetoed the bill, and the legislature did not attempt to override the veto. On February 5, House Bill 2290 was introduced and referred to the House Appropriations Committee. On and after the effective date of the legislation, the bill would prohibit certain identified “countries of concern” from directly or indirectly acquiring any interest (except a de minimis interest, as defined) in any real property located within 100 miles of the boundary of any military installation located in Kansas, or any adjacent state. Unlike legislation from 2024, House Bill 2290 does not contain exempt CFIUS-approved or vetted properties.
Drone Critical Components and Procurement of Goods and Services
House Bill 2293, introduced on February 5, would prohibit the acquisition of critical components of drone technology from countries of concern and prohibit state agencies from procuring final or finished goods or services from countries of concern. The bill has been initially referred to the House Appropriations Committee but is likely to be referred to another committee.
Prohibiting Lobbying by Foreign Adversaries
House Bill 2205 would prohibit lobbying for or by foreign adversaries.
Neonicotinoid Prohibition
Senate Bill 235 was introduced by Sen. Marci Francisco (D-Lawrence) to make it unlawful sell, use, or distribute certain seeds coated with neonicotinoid pesticides in the state. The bill was referred to the Senate Committee on Agriculture, but a hearing has not been scheduled.
Occupational Licensing Repeal
Senate Bill 229 would providefor the termination of current and new occupational licensing requirements adopted by an agency or enacted by the legislature after a period of five years unless extended by a joint resolution of the legislature. A hearing on the bill is scheduled for Wednesday, February 12 in the Senate Commerce Committee.
Rural Opportunity Zones Extension
Senate Bill 69 would extend the rural opportunity zone loan repayment and income tax credit program by five years. The Senate Tax Committee held a hearing on the bill on February 6.
Three-Mile Extraterritorial Zoning Authority
Current law allows city planning commissions to apply subdivision regulations to land outside of the city but within three miles of the nearest point of the city limits provided such land does not extend more than 1/2 the distance between the city and another city. Senate Bill 37would repeal this three-mile extraterritorial planning and zoning authority. The Senate Local Government Committee held a hearing on the bill on January 30. The House Committee on Local Government held a hearing on House companion bill House Bill 2025, during which the Committee Chair stated that he had requested an interim committee to study the bill.
County Home Rule
SCR 1605 proposes an amendment to article 9 of the Kansas Constitution to grant counties home rule powers. The bill was referred to the Senate Committee on Federal and State Affairs.
Fast Tracking of Construction Permits
House Bill 2088 would enact the fast-track permits act to require local governments to meet specified deadlines for issuing building permits and other required approvals for real estate development. The House Commerce Committee held a hearing on the bill on Jan. 30.
Kansas Promise Scholarship Program
Senate Bill 44 would expand the Kansas promise scholarship programto allowprivate postsecondary educational institutions to participate. A hearing is scheduled for February 4 in the Senate Education Committee.
Mandatory Scheduled Meal and Rest Periods
House Bill 2239 was introduced and referred to the House Commerce Committee. The bill would require every employer to provide each employee with scheduled meal and rest periods as set forth in the bill.
Increased State Minimum Wage
House Bill 2151 was introduced and referred to the House Commerce Committee. The bill would increase the Kansas minimum wage to $15 an hour. Senate Bill 218 is the Senate companion bill.
Utility Bills
- Utility ROE House Bill 2032 authorizes KCC to amend electric public utility return on equity based on whether the utility’s average retail rate has increased or decreased. A hearing was held on February 4, where Evergy opposed the measure. No further action on the bill is likely this year but could be picked up again next year.
- Transmission Line Permits House Bil 2040 extends the time in which the state corporation commission must make a final order on a transmission line siting application. The bill was advanced favorably out of the House Utilities Committee.
- KCC Code of Conduct House Bill 2108 would create a code of conduct for the KCC when dealing with large energy facilities in agricultural areas.
- ROFR House Bill 2226 would create a right-of-first-refusal for state-regulated utility companies to construct transmission infrastructure. No hearing has been scheduled.
- Senate Bill 81 would direct Evergy’s economic development rates toward long-term job producers rather than projects that do not result in many new employees, like data centers.
- Senate Bill 167 would prohibit electric public utilities from recovering from ratepayers the costs associated with electric vehicle charging stations and requiring electric public utilities to establish electric vehicle charging service rate schedules. A hearing is scheduled for February 11 in the Senate Utilities Committee.
Water Pollution Control Permit Extension
House Bill 2085 extends the renewal period for water pollution control permits from five to 10 years.Following a hearing in the House Water Committee, the bill was passed out favorably.
3rd Party Litigation Funding
Senate Bill 54 would limit discovery and disclosure of third-party litigation funding agreements in certain circumstances and require reporting of such agreements to the judicial council for study. A hearing is scheduled for Monday, February 10 in the Senate Judiciary Committee.
Executive Branch Agency Regulations
- Senate Bill 222 would prohibit deference to state agency’s interpretation of statutes and regulations by a court or administrative hearing officer. The bill seeks to adopt recent administrative law from a 2024 U.S. Supreme Court decision.
- Senate Bill 229 would terminate all occupational licensing requirements adopted by an agency or enacted by the legislature after five years. The bill is scheduled for hearing on February 12 in the Senate Commerce Committee.
- The House Judiciary Committee held a hearing on HCR 5008, a measure that would amend Art. 2 of the Kansas constitution to provide the legislature with direct oversight of regulations of executive branch agencies.
Telecommunications as Critical Infrastructure Facilitates
House Bill 2061 would include aboveground and belowground lines, cables, and wires in the definition of a critical infrastructure facility used for telecommunications or video services for the crimes of trespassing on a critical infrastructure facility and criminal damage to a critical infrastructure facility. The House Judiciary Committee advanced the bill from committee.
EV Registration Fees
House Bill 2121 would increase annual license fees of electric and hybrid passenger vehicles and trucks. The House Transportation Committee held a hearing on the bill on February 5.
Newly Introduced Legislation
SB 147 Modifying uninsured and underinsured motorist coverage liability limitations for bodily injury or death
SB 148 Excluding from sales taxation the service of installing or applying tangible personal property for the reconstruction, repair or replacement of a building
SB 173 requiring the board of county commissioners to approve the commercial wind or solar electric generation project
SB 181 Limiting expenditures and demand transfers from state general fund and providing additional requirements on governor’s and legislature’s budget
SB 189 Providing injured employees the freedom of choice to designate their healthcare provider, requiring employer to pay for those services
SB 195 Establishing the property tax task force to study the Kansas property tax system and develop recommendations for changes
SB 216 Establishing the Kansas paid sick time act
SB 220 Increasing the penalty for unlawful employment under child labor law
SB 223 Providing Russell county retailers’ sales tax authority
HB 2187amending government eminent domain authority prohibiting ED for recreational trails and parks
HB 2189 income tax credit for taking land by eminent domain
HB 2191 authorizing government legal notice to be given via website
HB 2254 Requiring milk processors to hold payments in trust for milk producers until full payment is received, escrow account
HB 2260 Prohibiting the use of an electronic communications device while operating a motor vehicle and providing penalties
HB 2262 Permitting micro utility trucks to be operated on certain highways and streets and providing conditions for such operation
HB 2264 local government control over wages for construction projects
HB 2275 Providing Finney county sales tax
HB 2281 abolishing the Kansas agricultural production and economic recovery loan deposit programs
HB 2288 Creating the motor vehicle right to repair act (includes gross weight over 10,000 lbs)
HB 2291 regulatory relief division of attorney general and regulatory sandbox
HB 2300 limitations on land transactions for wind and solar energy projects, allowing a consumer to revoke land transactions
HB 2301 Returning to nonaccountability of the executive branch agencies that report to the governor act – regarding performance-based budgeting
HB 2303 longitudinal data act for the purpose of tracking and analyzing workforce data
HB 2304 Requiring local governments to report certain local eco devo incentive program information to the secretary of commerce
HB 2310 Enacting the career advancement, resources, employment and supports for the disability workforce act
Other Relevant Legislation
SB 8 duty of caution when approaching stationary vehicles
SB 77 Requiring state agencies to provide notice of revocation of admin regulations, removing certain state agencies from agency review
SB 79 waiver from supplemental nutrition assistance program rules to allow state to prohibit the purchase of candy and soft drinks
SB 81 Prohibiting large facilities receiving certain tariffs or failing to meet workforce demand from qualifying for eco devo electric rates
SB 86 intercity passenger rail service program and making transfers to passenger rail service fund
SB 90 Providing a local property tax exemption on first $100,000 of residential value
SB 103 authorizing cities and counties to propose an earnings tax for ballot
SB 108 authorizing county earnings tax
SB 109 providing a remittance credit to retailers for the collection of sales and compensating use tax
SB 112 regarding city and county right-of-way land requirements and fair compensation
SB 122 prohibiting the use of an electronic communications device while operating a motor vehicle
SB 124 imposing unilateral annexation restrictions on cities and expanding causes of action for landowners to challenge such annexations
HB 2101 Prohibiting municipalities from adopting a guaranteed income program
HB 2103 Including participation in learning experiences and agricultural activities as excuse for absence from school
HB 2135 Making provisions of commercial industrial hemp act applicable if KDA has submitted a state plan to the federal gov for state hemp monitoring and regulation
HB 2138 Authorizing school districts to levy up to two mills for the purposes of school building safety, security and compliance with ADA
HB 2148 Prohibiting permitting and siting of electric transmission lines within any area designated by US department of energy as a national interest electric transmission corridor
HB 2149 regarding distributed energy retailers disclosure information