15 Feb 2025 Kansas Statehouse Insider – Week 05
Inclement weather in the middle of the week forced the legislature to postpone committee meetings, work later into the evenings and, in a rare occurrence, hold hearings on Friday afternoon ahead of the session’s first major deadline next week.
Lawmakers have one remaining day of committee work next Monday before spending long hours on the floor of their respective chambers, prior to ‘Turnaround,” or the mid-point of the session where most bills must be passed out of their house of origin to stay alive for the year. A bill is subject to the ‘Turnaround’ deadline unless it is blessed by legislative leadership by being referred to an “exempt” committee – e.g., Federal and State Affairs, Appropriations, Tax, and Ways and Means.
Also, next week, the House is scheduled to review and debate the state budget bill, leading to long days (and nights) prior to the beginning of the second half of the session. The House Appropriations Committee is already trimming millions of dollars from proposed agency budgets and other spending initiatives in an attempt to pare down state expenditures to meet revenues.
Livestock Theft Penalty Enhancement
House Bill 2253 was introduced at the request of Representatives Megan Steele (R-Wamego) and Kevin Schwertfeger (R-Turon) to enhance criminal penalties for the theft of “livestock” as defined in K.S.A. 22-4807a, or implements of husbandry, to a severity level 5, nonperson felony. During a hearing on February 13 before the House Judiciary Committee, stakeholders requested an amendment to add theft of “grain” to the bill. The Committee will consider final bill action on February 17.
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. The House Agriculture Committee amended the bill and advanced it out favorably. The committee amended the “scale ticket” section of the bill to say that the scale ticket requirements were only necessary when the scale was used for commercial purposes.
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. Following a hearing in the Senate Transportation Committee, no further action has been taken.
State Budget Demand Transfers
Senate Bill 181 would limit the annual growth of expenditures and transfers from the State General Fund (SGF) that may be approved by the Kansas Legislature to the previous year’s SGF spending as adjusted for the Consumer Price Index (CPI) Midwest and Kansas population growth, starting in FY 2027. The Governor’s recommendation would also be subject to the same limitation. The bill was passed out of committee and will be debated by the full Senate.
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 also increase the number of eligible acres per county from 10,000 acres (currently) to 15,000 acres. The legislation would also seek to expand eligibility criteria and potentially allow for dryland farming practices if approved by USDA. Agribusiness stakeholders worked with the Kansas Dept. of Agriculture to amend the bill to state limit new enrolled acres per county to no more than 1,600 acres per year. The House Agriculture Committee amended the bill and then passed it out favorably.
Single Sales Factor Apportionment of Corporate Income Tax
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 was referred to the House Tax Committee where it awaits a hearing. As a tax bill, it is exempt from “Legislative Turnaround” requirements.
KDHE Remediation Authority
House Bill 2340 was introduced to address a specific remedial dispute between a property owner and the Kansas Department of Health and Environment. The bill, which is narrowly focused, 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. Last week, the House Commerce Committee advanced the bill out of committee favorably.
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, which was vetoed by Governor Laura Kelly, would have exempted individuals and properties previously verified by the federal interagency Committee on Foreign Investment in the United States (CFIUS). This year, 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 exempt CFIUS-approved or vetted properties. A hearing has not yet been scheduled for the bill.
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 bill was referred to the House Tax Committee where it awaits a hearing. As a tax bill, it is exempt from “Legislative Turnaround” requirements.
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.
Property Tax Relief
- 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. The measure would eliminate, beginning in tax year 2026, the statewide mill levies of 1 mill for state educational buildings and 0.5 mills for state institutions buildings, and beginning in fiscal year 2027, would create demand transfers from the State General Fund to the Kansas Educational Building Fund and to the State Institutions Building Fund. In fiscal year 2027 the transfer to the EBF would be $56 million, and the transfer to the SIBF would be $25 million. The bill passed the Senate on a vote of 38-2.
- House Bill 2011 as amended, 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 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 float each year and be set at that rate which generates the same revenue as 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 caused by the reduced mill levy. The House Tax Committee passed the bill out favorably.
- 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 28-11.
- HCR 5011 Following the Senate’s passage of SCR 1603, House Republicans crafted their own proposed 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 cap would be transferred to new owners if the property were sold. As introduced, the bill would not apply to commercial or industrial properties. The House Tax Committee held a hearing on the bill on February 13.
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 smaller scale, non-utility ESS equipment are working with bill proponents to ensure this type of equipment would qualify for the property tax exemption. The House Tax Committee advanced the bill out favorably.
Utility Bills
- Utility ROE. House Bill 2032 would authorize the KCC to amend electric public utility return on equity based on whether the utility’s average retail rate has increased or decreased. Evergy opposed the measure. While no further action will happen on the bill this year, the Committee Chairman indicated he supports the intent of the bill and will work with proponents to find other ways to control electric utility rates.
- 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 House passed the bill 116-2.
- 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. The bill did not receive a hearing.
- ROFR House Bill 2226 would create a right-of-first-refusal for state-regulated utility companies to construct transmission infrastructure. The bill did not receive a hearing.
- Special Economic Development Rates Senate Bill 81would 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. The bill is not excepted to advance this year.
- 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 the February 11 hearing in Senate Utilities Committee. The bill is unlikely to move forward without amendment.
- Large Transmission Lines. Senate Bill 266 was introduced on Thursday to require legislative approval to build large, high-impact electric transmission lines. The bill was introduced by Senator Caryn Tyson in the Senate Tax Committee.
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 which held a hearing 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.
Drone Critical Components and Procurement of Goods and Services
House Bill 2293 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. The bill was referred to the House Elections Committee but has not been scheduled for hearing.
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 was not scheduled for hearing.
Milk Producers Trust Fund
On February 13, the House Committee on Agriculture held a hearing on House Bill 2254, a bill that would require milk processors to hold payments in trust for milk producers until the processors received payment in full, with funds in escrow considered held in trust, and would specify that funds held in escrow are the property of the milk producer.
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 Senate on a vote of 39-0, the bill was referred to the House Transportation Committee.
Immigration
- SCR 1602 was introduced to “encourage the Governor to cooperate with federal enforcement of immigration laws.” After the Senate passed the bill 31-9, it was referred to the House Committee on Federal and State Affairs. The committee held a hearing on February 13, and passed the bill out of committee on February 14.
- House Bill 2066 would require business entities and public employers to register and use e-verify program for employment purposes. The bill was referred to the House Committee on Federal and State Affairs where no hearing was held. SB 196 is the Senate companion bill. No hearing has been scheduled on this bill.
- SB 178 would require law enforcement agencies to enter into agreements with US immigration and customs enforcement. A hearing was scheduled, but then cancelled, in the Senate Committee on Federal and State Affairs.
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. During a House Local Government Committee hearing on the House companion bill, House Bill 2025, the Committee Chair indicated that he would request an interim committee to study the issue.
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, but 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 real estate development. Specifically, the bill requires local government authorities to approve or deny a building permit for all residential and commercial development (not industrial) 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 Commerce Committee advanced the bill out of committee favorably on February 13.
State Water Plan Funding and Soil Conservation District Funding
The House Water Committee amendedHouse Bill 2113 and then passed it out of committee favorably. As amended by the committee, the bill would create a state conservation fund and make annual transfers of $2.5M into the 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.
Water Program Task Force
House Bill 2172 would establish a 29-member Water Program Task Force to evaluate the state’s water program and funding for such program. The Task Force members would be appointed by April 30, 2025. The task force would submit its report to the Legislature and the Governor on or before January 31, 2026. The House Committee on Agriculture held a hearing on the bill on February 10 and will take final action on the bill on February 17.
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. This week, the Senate passed the bill 39-0. The House has referred the bill to the House Committee on Agriculture and Natural Resources.
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. The House Agriculture Committee held a hearing on the bill but took no further action.
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. The Senate Agriculture Committee amended the bill to change reporting dates and then passed it out of committee favorably. The full Senate will likely debate the bill next week.
Kansas Promise Scholarship Program
Senate Bill 44 would expand the Kansas promise scholarship programto allowprivate postsecondary educational institutions to participate. Following a hearing in the Senate Education Committee on February 4, no further action was taken.
Mandatory Meal and Rest Periods
House Bill 2239 would require employers to provide each employee with scheduled meal and rest periods as set forth in the bill. The bill was referred to the House Commerce Committee where no further action has been taken.
Increased State Minimum Wage
House Bill 2151 would increase the Kansas minimum wage to $15 an hour. The bill was referred to the House Commerce Committee. No action has been taken on this bill or on the Senate companion bill Senate Bill 218.
Kansas Paid Sick Time Act
Senate Bill 216 was introduced to create the Kansas paid sick time act. The bill has been referred to the Senate Commerce Committee, but no hearing was scheduled.
Career Support for Disability Workforce Act
House Bill 2310 would enact the career advancement, resources, employment and supports for the disability workforce act. The House Commerce Committee held a hearing on the bill on Tuesday.
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. The Senate Judiciary Committee held a hearing on the bill last week.
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 Committee on Government Efficiency passed the bill favorably.
- 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. The Senate Judiciary Committee held a hearing on the bill on February 14.
- Senate Bill 229 would terminate all occupational licensing after five years. Senate Commerce Committee held a hearing on the bill, and then bill was then referred to a blessed committee to allow it to be considered following Legislative Turnaround.
- 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. A hearing is scheduled on the bill for February 17 in the House Committee on Federal and State Affairs.
- HB 2291 regulatory relief division of attorney general and creating a regulatory sandbox. The bill was passed out of the House Commerce Committee.
- HCR 5008 would amend Art. 2 of the Kansas constitution to provide the legislature with direct oversight of regulations of executive branch agencies. The House Judiciary Committee is scheduled to take final committee action on February 17.
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 on a vote of 104-14.
Construction Wages
House Bill 2264 was introduced to restore local government control over wages, compensation, and benefits for construction projects. The bill was referred to the House Committee on Local Government. A hearing scheduled for Monday, February 17, has been cancelled.
EV Registration Fees
House Bill 2121 would increase annual license fees of electric and hybrid passenger vehicles and trucks. Following a hearing in the House Transportation Committee, the bill was advanced to full House for consideration.
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. The House Commerce Committee held a hearing on the bill on Monday.
Key 2025 Legislative Deadlines
February 20 – Last day for non-exempt bills in original Chamber (Turnaround Day)
March 18 -Last day for non-exempt committees to meet
March 21 – Last day for non-exempt bills in either Chamber
March 28 – First Adjournment
April 10 – Veto Session begins
Other Relevant Legislation
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
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 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 223 Providing Russell county retailers’ sales tax authority
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 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 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