31 Jan 2025 Kansas Statehouse Insider – Week 03
Schools from around the state brought students to the statehouse this week to celebrate Kansas Day as lawmakers scrambled against the clock to get their bills introduced in this truncated 2025 legislative session. Social issues including gender affirming care dominated the headlines this week. Meanwhile, the first major piece of property tax legislation cleared the Senate chamber eliminating the state’s 1.5 mill property tax levy.
With the legislature’s, “Turnaround,” scheduled for Feb. 20, a date by which all non-exempt bills must be passed out of their house of origin, committee chairs have scheduled numerous pieces of legislation for hearing and action next week.
Legislative Action Day
The 2025 Legislative Action Day, held on January 29 in Topeka, was a successful event. Members in attendance heard from guest speakers Senate Majority Leader Chase Blasi, and Chairman of the House Tax Committee, Representative Adam Smith. Members also received informational briefings on legislative actions impacting our industry, before heading to our state capitol for personal visits with state legislators. The evening included a well-attended dinner reception at the Topeka Country Club for members and legislators. All members are invited to attend this valuable annual event which is made available free of charge thanks to our many generous sponsors.
Conservation Reserve Enhancement Program
On Wednesday, Feb. 5, the House Committee on Agriculture will hold a hearing on House Bill 2111. KDA requested introduction of the bill to amend existing conservation reserve enhancement program statutes that would 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 would also expand eligibility criteria and potentially allow for dryland farming practices if approved by USDA.
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 on Jan. 29 in the Senate Transportation Committee.
Immigration
- SCR 1602 was introduced to “encourage the Governor to cooperate with federal enforcement of immigration laws.” The Senate debated and amended the bill before passing it favorably 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.
Neonicotinoid Legislation
On January 30 in the Senate Committee on Agriculture and Natural Resources, Sen. Marci Francisco (D-Lawrence), introduced a bill prohibiting the use of neonicotinoid coated seeds in the state. As of January 31, the bill had not been formally read-in or assigned a bill number.
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. Following a hearing on the bill, 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 now been referred to the House Tax Committee for consideration.
- 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. If passed by the legislature, the measure would be included as a ballot question on a special state-wide election in November of 2025 and, if passed, would become effective in 2026. The Senate Tax Committee passed the measure out of committee and it now awaits for full Senate consideration.
Personal Property Tax Exemptions
Senate Bill 10 would exempt certain personal property, such as ATVs, watercraft, and certain trailers from personal property taxation. The bill passed the Senate on a vote of 37-3 and has been referred to the House Tax Committee for consideration.
Corporate Income Tax, Single Sales Factor Apportionment
Legislation will be introduced again this year to 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 will allow 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.
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
On February 6th, the House Agriculture Committee will hold a hearing on House Bill 2063, a bill that would establish a state conservation fund, working lands conservation fund, and wildlife conservation fund using $60 million from the state general fund.
Soil Conservation District Funding
House Bill 2113 would transfer $5,000,000 from the state general fund state water plan fund each July 1 to match federal funding for soil conservation districts. The bill would sunset
the water technical assistance fund and the water project grant fund on July 1, 2028.
Muti-Year Flex Accounts
On January 30, the Senate Agriculture Committee held a hearing on Senate Bill 58, a bill that would amend the muti-year flex account (MYFA)statutes. The amendments would 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. The committee may take final action on the bill on Feb. 4.
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. It would also require a report to the legislature and the Governor. The bill was referred to the House Committee on Agriculture.
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.
Childcare Income Tax Credit
House Bill 2078 would create an income tax credit for contributions to a childcareprovider. No hearing has been scheduled.
Seward County Sales Tax
House Bill 2004 would provide a countywide retailers’ sales tax authority for Seward County, KS for the purpose of financing the costs of roadways, bridge construction, maintenance and improvement in the county. After passing from the House Tax Committee, the full House passed the measure on a vote of 116-1.
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. After passing the House and Senate, Governor Laura Kelly vetoed the bill, and the legislature did not attempt to override the veto. A new bill has been introduced in the House Commerce Committee but as of January 31 had not been formally read-in or assigned a bill number.
Rural Opportunity Zones Extension
Senate Bill 69 would extend the rural opportunity zone loan repayment and income tax credit program by five years. A hearing is scheduled for February 6 in the Senate Tax Committee.
Three-Mile Extraterritorial Planning and 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 37 would repeal this three-mile extraterritorial planning and zoning authority. A hearing on the bill was held on Jan. 30 in the Senate Local Government Committee. Following a hearing on House companion bill House Bill 2025 on January 29, there was a request to study the issue further in an interim committee.
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 Act
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. A hearing was held in the House Commerce Committee 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.
Utility Bills
- 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.
- Utility ROE House Bill 2032 authorizes KCC to amend electric public utility return on equity based on whether the utility’s all-in average retail rate has increased or decreased.
- Competitive Bidding House Bill 2041 would require a competitive bid process for the permitting of electric transmission lines.
- New Energy Storage Systems Property Tax Exemption House Bill 2083 provides a 10-year property tax exemption for new energy storage systems installed after Jan. 1, 2026.
- ROFR A right-of-first-refusal transmission bill has been introduced in the House Utilities Committee.
- SB 51 would provide sales tax exemptions on equipment and construction for large ($250M+) data centers. A hearing was held in the Senate Commerce Committee.
- SB 61 would require utilities to pay lawyer fees for successful appeals of condemnation cases. A hearing was held on the bill in the Senate Utilities Committee.
- SB 81 would direct Evergy’s economic development rates to long-term job producers, was introduced and has a hearing on Wednesday in Senate Utilities.
- SB 93 would require the election of KCC board members.
Solid Waste Permits
House Bill 2064 was introduced to remove an exception from solid waste permits for the disposal of solid waste from oil and gas wells via land spreading. A hearing is scheduled for February 4 in the House Committee on Agriculture and Natural Resources.
Water Pollution Control Permit Extension
House Bill 2085 extends the renewal period for water pollution control permits from five to 10 years.A hearing on the bill is scheduled for Thursday, Jan. 30 in House Water Committee.
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. No hearing has been scheduled.
Executive Branch Agency Regulations
On Feb. 3 the House Judiciary Committee will hold 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. A hearing was held in the House Judiciary Committee on Jan. 28.
EV Registration Fees
A hearing has been schedule on House Bill 2121 for Wednesday, Feb. 5 in the House Transportation Committee. The bill proposes to increase the annual license fees of electric and hybrid passenger vehicles and trucks.
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 2122 Modifying threshold for quarterly payments of truck and truck tractor annual vehicle registration fees and eliminating two-quarter grace period
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
HB 2151 Increasing the Kansas minimum wage to $15 an hour