15 Mar 2025 Kansas Statehouse Insider – Week 09
Kansas lawmakers worked through the last few days of committee work this week before they wrap up hearings on March 18 and begin multiple days of debate on bills. This will be followed by conference committees meeting on amended bills the week of March 24, and then the legislature’s first adjournment on March 28. Following this break, the Legislature will return on April 10 for a brief Veto Session to consider final action on certain bills and possibly take an override vote on any bills vetoed by Governor Laura Kelly.
The Senate Ways and Means completed its initial review and action on the state budget, advancing it out of committee for consideration by the full Senate. In addition, other committees finalized their work and advanced numerous priority bills for consideration by the full House and Senate.
Heading into the final stretch, we appreciate the opportunity to continue to serve as your eyes and ears at the Kansas statehouse. Below is an update of the notable events from the Legislature’s Ninth week.
Key 2025 Legislative Deadlines
March 18 -Last day most committees meet
March 21 – Last day for consideration of most bills
March 28 – First Adjournment
April 10 – Veto Session
Conservation Reserve Enhancement Program
House Bill 2111 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 increase the number of eligible acres per county from 10,000 acres (currently) to 15,000 acres. The legislation also seeks to expand eligibility criteria and potentially allow for dryland farming practices if approved by USDA. As amended, the bill would limit newly- enrolled acres to no more than 1,600 acres per county, per year. On March 11, the House passed the bill on a vote of 115-8. The bill was then received by the Senate and referred to the Senate Committee on Agriculture and Natural Resources on March 12, and has not yet received a hearing.
Single Sales Factor Apportionment of Corporate Income Tax
On March 14, the House Tax Committee amended the corporate income tax Single Sales Factor Apportionment bill (House Bill 2336) and passed it out favorably. As amended, beginning January 1, 2028, the bill would require corporations to use a single sales factor method to apportion income for tax purposes, rather than the current three-factor system for apportioning incomes. The bill will also include market-based sourcing provisions to replace the cost of performance requirements. The bill now goes to the full House for consideration. If the bill is passed by the House, it will go to the Senate for consideration. However, the bill only needs to pass one Chamber to be “conference-able” – meaning it could be discussed in a Tax Conference Committee between the House and Senate and placed into a “bundled” tax bill. Because the fiscal note is now negligible, and there are no strong opponents, there is a good possibility of the bill being passed in some form this year.
Weights and Measures
House Bill 2255 would make comprehensive changes to the state’s weights and measures law, mostly focused on new licensing and training requirements for licensed scale service companies. The House amended the “scale ticket” section of the bill to say that the scale ticket requirements were only necessary for scales used for commercial purposes. The House passed the bill 120-2. The Senate Committee on Agriculture and Natural Resources held a hearing and then advanced the bill out of committee.
Immigration
SB 178 would require law enforcement agencies to enter into agreements with US immigration and customs enforcement. A hearing was scheduled for March 6 but later canceled.
SB 196 would require business entities and public employers to register and use E-verify for their employees. The Senate Committee on Federal and State Affairs held a hearing on the bill on March 6. House companion bill House Bill 2066 did not receive a hearing.
SCR 1602 was introduced to “encourage the Governor to cooperate with federal enforcement of immigration laws.” The Senate passed the bill 31-9. The House Committee on Federal
and State Affairs passed the bill out favorably and it is now on the House calendar for consideration.
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 increase the matching basis for state moneys disbursed to the districts. After passing the Senate on a vote of 39-0, the bill advanced out of the House Committee on Agriculture and Natural Resources and is now on the House calendar for consideration.
KDHE Remediation Authority
House Bill 2340 would remove authority from any state regulatory agency to order the remediation of a specific property, located in Johnson County and previously owned by the U.S. Army, for the removal of pesticide residue in soil, groundwater, or surface water, when the U.S. Army had applied registered commercial pesticide products to land, at or near structures, for the control of pests, prior to 2005. The bill would only apply if the property was used for nonresidential purposes. After passing the House 94-29, the Senate Commerce Committee tabled the bill in committee, essentially killing the bill.
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 no further action was taken on this bill.
PFAS Presentation to House Committees
On March 6, the Kansas Dept. of Health and Environment (KDHA) gave a presentation to the House Water Committee on the presence of per- and polyfluoroalkyl substances (PFAS) chemicals in Kansas soil and groundwater. KDHE stated that the chemicals have been found in livestock and agricultural products. Depending on the chemical, KDHE indicates that USEPA has set standards of between 4 and 10 ppt, and that wastewater facilities are required to treat wastewater prior to discharge. The agency mentioned that the State of Minnesota has passed new PFAS standards, but that Kansas is waiting on guidance from USEPA. The agency also presented to the House Committee on Agriculture and Natural Resources on March 11.
Property Tax Relief
Senate Bill 35 would, beginning in tax year 2026, discontinue state property tax levies for the Kansas educational building fund (1 mill) and state institutions building fund (.5 mill). Funding to replace the mills would be received as demand transfers from the State General Fund. In fiscal year 2027, a transfer of $56M would be made to the EBF and a transfer of $25M would be made to the SIBF. After passing the Senate 38-2, the bill was passed out of the House Taxation Committee and is on the House calendar for consideration.
Senate Bill 195 would establish a property tax task force to study the Kansas property tax system and develop recommendations. The Senate Tax Committee held a hearing on Mar. 3.
Senate Bill 280 would require approval by a majority of electors voting at an election in order for the governing body of any taxing entity to increase its total amount of property tax by more than the annual rate of inflation. The Senate Tax Committee held a hearing on March 10.
SCR 1603 would amend the Kansas Constitution to limit annual increases in real property valuations to 3 percent. As a constitutional question, the bill requires passage of a 2/3 supermajority of the legislature. The measure would be included as a ballot question on a special state-wide election in 2025 and become effective in 2026. After passing from the Senate on a vote of 28-11, the House did not hold a hearing on the bill.
House Bill 2011 would increase the amount of the appraised value of residential property exempt from the statewide school finance levy from $75,000 to $100,000, and it would reduce the statewide school finance mill levy from 20 mills (currently) to 18.5 mills in tax years 2025. Beginning in tax year 2026, the mill levy would be set at that rate which would generate the same revenue as it generated in 2025. The bill would require an annual transfer from the State General Fund (SGF) to the State School District Finance Fund (SSDFF) in the amount of any reduction of revenue to the SSDFF that was caused by the reduced mill levy. The bill passed out of the House Tax Committee and is on the House calendar.
House Bill 2396 would repeal the revenue neutral rate notice and hearing requirements for taxing jurisdictions. The bill would also allow for a property tax funding limit following a successful protest petition. In addition, the bill would create a new $60M fund to provide payments to qualifying taxing jurisdictions, similar to the local ad valorem tax reduction fund that was repealed by the legislature in 2024. Find more information here. After passing the House on a vote of 115-6, a hearing is scheduled in the Senate Tax Committee on March 17.
House Bill 2406 would create a property tax exemption for all commercial and industrial machinery and equipment, regardless of the date the property was placed into service.
HCR 5011 would propose a constitutional amendment to limit residential appraisal increases by utilizing a rolling six-year average of home property values, with a goal of smoothing out spikes in property valuations. The House amended the bill to include commercial and industrial properties. After passing the House on a vote of 117-4, a hearing has been scheduled for March 17 in the Senate Tax Committee. In addition, HB 2394 was introduced to define the number of years in the rolling average to six years.
New Conservation Funds
House Bill 2063 would seek to transfer $60 million from the state general fund to a new state conservation fund, working lands conservation fund, and wildlife conservation fund. After a
hearing in the House Committee on Agriculture and Natural Resources, the bill received no further action and is no longer a live bill this session.
Senate Begins Review of State Budget
This week, the Senate Ways and Means Committee finished its review of the state budget bill Sub HB 2007 and advanced the bill to the full Senate for further consideration. The committee cut more than $132 million in various expenditures. In addition, the Senate removed all funding from the economic development initiatives fund (EDIF) for various purposes, including the State Water Plan Fund and the Ag Marketing Program. It was explained that the move was made as a means to begin deliberate conversations with the House on the intended use of the fund. The committee also reduced certain funding for the state water plan fund. The full Senate will debate the bill soon. As it was passed by the House, the budget contained nearly $10.6 billion in expenditures for state fiscal year 2026, which starts July 1. This was a reduction of $246 million from 2025. The budget eliminated funding for about 1,000 vacant positions and included a 1.5% cut in general operating expenses. The spending plan includes money for pay raises to bring some state employees up to market pay. In addition, the state has about $1.8 billion in its rainy-day fund. In December, the revenue forecast showed the state spending down its ending balance as spending surpasses revenue. The revenue profile at that time showed the state’s ending balance dropping from $3.2 billion in fiscal year 2024 to $1.5 billion in 2026 and eventually falling to about $152 million in 2029. The state was predicted to spend about $1.3 billion more than it received in revenues in 2025, and about $416 million more than revenues in 2026. Senate Bill 125, as amended, will be used as a budget trailer bill.
State Water Plan Funding and Soil Conservation District Funding
House Bill 2113 would increase the annual transfers from the state general fund into 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. The bill would also create a state conservation fund and make annual transfers of $2.5M into the fund from the state general fund. While HB 2113 would increase state water plan funding by about $20M, the proposed state budget bill (HB 2007) would only increase annual water plan funding by about $11M. Final funding for water projects will need to be reconciled between the House and Senate. The bill passed the House on a vote of 106-15. Following a March 10 hearing in the Senate Committee on Agriculture and Natural Resource, the bill was referred to the Senate Committee on Ways and Means.
Water Program Task Force
House Bill 2172 would establish a 23-member water program task force to evaluate the state’s water programs and source of funding for the water plan. Task Force members would be appointed by April 30, 2025, and the task force would submit a report to the Legislature and the Governor on or before January 31, 2026. After passing the House 109-12, the Senate Committee on Agriculture held a hearing on March 13.
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. After passing the Senate on a vote of 40-0. the bill advanced out of the House Committee on Agriculture and Natural Resources and is now on the House calendar for consideration.
Economic Incentive Tax Program Repeal
Senate Bill 283 would discontinue tax credits of the high-performance incentive program (HPIP), discontinue payroll withholding tax benefits of the promoting employment across Kansas (PEAK) act, and discontinue the crediting of certain amounts to the job creation program fund, and repealing certain tax credits. The bill was introduced to repeal or remove these incentive programs as a way to broaden the base and lower the rates. There was broad opposition to the legislation during the hearing, and the bill is unlikely to move forward this year without amendment to remove the HPIP and PEAK provisions.
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. The House Tax Committee passed the bill out of committee, and it is now on the House calendar for consideration. The Senate Tax Committee held a hearing on Senate companion bill Senate Bill 259, and may take final action soon.
Tax Credit Elimination
Senate Bill 296, introduced on March 12, would repeal over 30 expired tax credits, exemptions, incentives, refunds, and limitations, including credits related to agricultural production loans, certain property tax refunds, and investment credits. One of the primary aspects of the bill addresses changes to the “economic revitalization and reinvestment act,” which previously fostered Kansas employment by encouraging product development and engineering leading to new manufactured products in the state. The bill makes technical modifications to the definitions and procedures related to eligible businesses, eligible aviation businesses, and eligible wind or solar energy projects. For taxpayers who invest in qualified business facilities, the bill updates provisions regarding tax credits and removes references to expired sections.
Retailer Remittance Credit
Senate Bill 109 would provide Kansas retailers with a remittance credit for the collection of sales and compensating use tax from customers. If capped at $300 per month, the remittance would cost the state approximately $60M per year. The bill received a hearing in the Senate Tax Committee on February 4, but no further action was taken.
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. Stakeholders of non-utility ESS equipment are working with proponents to ensure this equipment would qualify for the property tax exemption. After passing the House on a vote of 90-29, the Senate Tax Committee held a hearing on March 11.
BOTA Filing Fees
Senate Bill 269 would prohibit filing fees paid by a taxpayer, on appeal to the Board of Tax Appeals, when a previous appeal by the taxpayer, for the same property, remains pending before the board. The House Tax Committee amended the bill with a technical amendment and passed the bill out favorably. The bill is now on the House Calendar.
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 37-3. The House Tax Committee advanced the bill out of committee. It is now on the House calendar for consideration.
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 was held.
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 Tax Committee, but no hearing was held.
Prohibiting Foreign Ownership of Real Property and Drone Critical Components
The House placed into Sub for SB 9 the contents of HB 2290, prohibit foreign ownership of land in the state, and HB 2293, prohibiting critical components of certain drones from foreign adversary countries. As amended, on and after the effective date of the legislation, the bill would prohibit 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. The bill is not retroactive, but it would require current affected properties to register the property with the Kansas Attorney General. The bill does not exempt CFIUS-approved or vetted properties. Find additional information here. The bill would also prohibit Kansas governmental agencies from purchasing drones if their critical components were produced in designated countries of concern. The government agencies could continue to use drone equipment acquired before July 1, 2025, if maintained with previously acquired replacement parts. After passing the House on a vote of 104-18, the Senate non concurred to the House amendments. A conference committee on the bill has been appointed between the House Commerce Committee and the Senate Judiciary Committee.
Prohibiting Guaranteed Income Programs
House Bill 2101 would prohibit cities and counties from adopting an ordinance or enforcing a resolution that establishes or provides for the operation of a guaranteed income program. After passing from the House on a vote of 86-37, the Senate Committee on Government Efficiency held a hearing on March 10.
Milk Producers Trust Fund
House Bill 2254 would require milk processors to hold payments in trust for milk producers until the producer received payment for their milk in full, with the funds held in trust as the property of the milk producer. After passing the House 123-0, the Senate Committee on Agriculture and Natural Resources held a hearing and then advanced the bill out of committee.
New Duty of Caution for Stationary Vehicles
Senate Bill 8 would create a duty of caution for drivers when approaching stationary vehicles displaying hazard warning lights. After passing the House and Senate, the bill was presented to the Governor for consideration on March 14.
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 advanced the bill out of favorably, and it is
on the Senate calendar.
County Home Rule
SCR 1605 proposes an amendment to article 9 of the Kansas Constitution to grant counties home rule powers. No hearing has been scheduled.
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 residential real estate development. Specifically, the bill requires local government authorities to approve or deny a building permit within 60 days of receiving the application. If the authority fails to provide written notice of an application’s approval or denial, the application must be deemed approved by the authority. The House passed the bill 82-39. The Senate Commerce Committee passed the bill out of committee, and it is now on the Senate calendar.
Kansas Promise Scholarship Program
Senate Bill 44 would expand the Kansas promise scholarship programto allowprivate postsecondary educational institutions to participate. The Senate passed the bill 37-3. The House Education Committee passed the bill out of committee, and it was placed on the House calendar for consideration.
Medical Cannabis Act
Senate Bill 294 would create the medical cannabis act. The bill was referred to the Senate Committee on Federal and State Affairs, but no hearing has been scheduled.
Legalization of Marijuana
Senate Bill 295 would remove the criminal penalties for possession of a personal-use quantity of marijuana. The bill was referred to the Senate Committee on Federal and State Affairs, but no hearing has been scheduled.
Scrap Metal Theft Reduction Act
House Bill 2349 would authorize law enforcement officers to conduct investigations of violations of the scrap metal theft reduction act, and would establish criminal penalties for certain violations of the act. It would also permit municipalities to enact or enforce ordinances, resolutions and regulations relating to scrap metal that are not in conflict with the act. The House passed the bill 120-3. The bill has been referred to the Senate Judiciary Committee.
Utilities
Transmission Line Permits. House Bill 2040 extends the time in which the state corporation commission must make a final order on a transmission line siting application. The House passed the bill 116-2. The Senate Utilities Committee amended the bill and passed it out favorably on March 6.
Communication Asset Relocation Reimbursement Senate Bill 57 would require state agencies and political subdivisions to reimburse communication facilities for costs to relocate assets for road projects. Following a hearing in the Senate Utilities Committee the bill was referred to the Senate Ways and Means Committee to survive Legislative Turnaround.
EV Charging Station Fees 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. The measure was strongly opposed by utility companies during a February 11 hearing.
Large Transmission Lines. Senate Bill 266 would require legislative approval to build large, high-impact electric transmission lines. The bill was introduced by Senator Caryn Tyson in the Senate Tax Committee and then referred to the Senate Utilities Committee. No hearing has been scheduled.
Nuclear Energy Feasibility SB 274 would request the state corporation commission to engage a consulting firm to study new nuclear energy generation currently resides in the Senate Utilities Committee. No hearing was scheduled.
Political Subdivision Legal Contracts
Senate Bill 242 was introduced on behalf of the Kansas Attorney General. The purpose of the bill is to assist local governments with contracting with outside legal counsel when pursuing tort litigation. The bill would allow a political subdivision to enter into a contingent fee contract for legal services, but would require a meeting to be called, a list to be provided as to why services are needed, and a contract would be approved in an open meeting. Before a contract would be effective, the political subdivision would be required to receive the Attorney General’s approval. The Senate Judiciary Committee held a hearing on March 3.
3rd Party Litigation Funding
Senate Bill 54 would require disclosure of third-party litigation funding agreements and require reporting of such agreements to the Judicial Council. The Senate passed the bill 39-1. The House Judiciary Committee passed the bill out of committee favorably. The bill is now on the House calendar.
Executive Branch Agency Regulations
Senate Bill 77 would require state agencies to provide notice of revocation of admin regulations and remove certain state agencies from the required agency review. The Senate passed the bill on a unanimous vote. After passing from the House Committee on Legislative Modernization, the bill is now on the House calendar for consideration.
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. After passing the Senate 31-9, the House Judiciary Committee held a hearing on March 6.
Senate Bill 229 would terminate all occupational licensing after five years. Following a hearing in the Senate Commerce Committee, no further action was taken.
HB 2279 was introduced to exempt the state department of wildlife and parks from current restrictions and requirements on executive branch agencies when adopting regulations. The House Committee on Federal and State Affairs held a hearing on February 17, but no further action was taken.
HB 2291 would create a regulatory relief division of the attorney general and a regulatory sandbox program for start-up businesses. The House passed the bill 90-28. The Senate Commerce Committee passed the bill out favorably and the bill is now on the Senate calendar.
HCR 5008 would propose an amendment to Art. 2 of the Kansas constitution to provide the legislature with direct oversight of regulations of executive branch agencies. The question would be put to a public vote in 2025. The bill passed the House on a vote of 86-37. The Senate Judiciary Committee passed the bill out favorably and the bill is now on the Senate calendar.
Critical Infrastructure Facilities
House Bill 2061 would add aboveground and belowground lines, cables, and wires in the definition of 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 passed the bill 104-14. The Senate Judiciary Committee passed the bill out favorably on March 11. The full Senate will debate the bill on March 17.
Local Government Eco-Devo Program Reporting
House Bill 2304 would require local governments to report certain local eco devo incentive program information to the secretary of commerce. After passing the House on a vote of 97-26, the Senate Committee on Government Efficiency held a hearing on the bill on March 10.