07 Mar 2025 Kansas Statehouse Insider – Week 08
Kansas lawmakers now have only 7 days to hold hearings and wrap up any remaining pertinent issues by March 18. After that date, the Legislature will spend about a week debating passage of bills prior to their first adjournment on March 28.
Following a short break, the Legislature will return on April 10 for a brief Veto Session to consider final action on bills and possibly take an override vote on any bills vetoed by Governor Laura Kelly. Feeling this pressure, committee chairs in both the Senate and House of Representatives have scheduled numerous bills for hearing and action in the session’s upcoming week.
Key 2025 Legislative Deadlines
March 18 -Last day most committees meet
March 21 – Last day for consideration of non-exempt bills
March 28 – First Adjournment
April 10 – Veto Session begins
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. The bill was amended in Committee to limit newly- enrolled acres to no more than 1,600 acres per county, per year. After passing out of committee, the bill was removed from the House calendar and referred to the Committee on Calendar and Printing. On March 7, the bill was placed back on the House calendar and may receive further action next week.
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 “scale ticket” section of the bill to say that the scale ticket requirements were only necessary for scales used for commercial purposes. After passing the House 120-2, the Senate Committee on Agriculture and Natural Resources has scheduled a hearing for March 13.
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. During a hearing in the House Tax Committee this week, the estimated fiscal cost to the state from the legislation was stated as $115M in FY 2026, $90M in FY 2027, and $73M in FY 2028. As a compromise to reduce the cost to the state, there will be an amendment offered to pass a mandatory single sales factor method into law that would delay the effective date for all taxpayers until 2028 (tax year 2027). When fully implemented, there is expected to be a positive return to the state of around $10M. Further action on the bill is anticipated next week.
Economic Incentive Tax Program Repeal
The Senate Tax Committee held a multi-day hearing this week Senate Bill 283, a bill that 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 and the bill is unlikely to move forward this year without amendment to remove the HPIP and PEAK provisions.
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 has scheduled a hearing for March 11.
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 (KDHE) 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 is also scheduled to present to the House Committee on Agriculture and Natural Resources on Tuesday, March 11.
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. Beginning in tax year 2026, the measure would eliminate the statewide mill levies of 1 mill for the state educational building fund, and 0.5 mills for state institution buildings. Beginning in fiscal year 2027, it 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. After passing the Senate 38-2, the House Taxation Committee held a hearing on Feb. 27.
Senate Bill 195 would establish a property tax task force to study the Kansas property tax system and develop recommendations for changes. The Senate Tax Committee held a
hearing on March 3.
Senate Bill 280 Sen. Stephen Owens (R-Hesston) introduced the bill to 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 6, to be continued 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 has not scheduled the bill for hearing.
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 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. After passing out of the House Tax Committee, the full House has not taken further action.
House Bill 2396 would allow a property tax funding limit following successful protest petitions. The bill would also 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. The bill would also repeal the revenue neutral rate notice and hearing requirements for taxing jurisdictions. On March 7, the House passed the bill 115-6.
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. On February 27, the House Tax Committee amended the bill to make it applicable to commercial and industrial properties. On March 7, the full House passed the bill 117-4. In addition, HB 2394 was introduced to define the number of years in the rolling average to six years.
Utilities
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. No further action will happen on the bill. The Committee Chairman supports the intent of the bill and will work with proponents to find other ways to control electric utility rates.
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. Following a hearing on February 27, 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, requesting the state corporation commission to engage a consulting firm to study new nuclear energy generation currently resides in the Senate Utilities Committee. No hearing has been scheduled.
Senate Begins Review of State Budget
After passing the House, the Senate began its review of the state budget bill Sub HB 2007. During its first few days of reviewing the budget, the Senate Ways and Means Committee cut an additional $132 million in various expenditures. The committee removed about $48 million in projects funded with lottery revenues, including about $27 million allocated to the Commerce Department. The committee also removed another roughly $40 million in higher education projects, and removed close to $4 million from the Department of Wildlife and Parks. 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 percent cut in general operating expenses. The spending plan includes money for pay raises to bring some state employees up to market pay. While the state still has about $1.8 billion in its rainy-day fund, the House-approved budget is projected to run in the red by fiscal year 2028. 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.
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 bill was passed out of committee and is on the Senate calendar.
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. After passing the House 106-15, the
Senate Committee on Agriculture has scheduled the bill for hearing on March 10.
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 has scheduled a hearing on March 13.
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. The Senate passed the bill 39-0. The House Committee on Agriculture and Natural Resources held a hearing on
March 4.
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 Agriculture Committee, the bill received no further action and is no longer a live bill this session.
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 percent, 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 passed the bill 40-0. The House Water Committee held a hearing on March 6, and passed the bill out of committee favorably the same day.
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 held a hearing on March 3. The Senate Tax Committee held a hearing on Senate companion bill Senate Bill 259, and will take final action on the bill on March 10.
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 type of equipment would qualify for the property tax exemption. After passing the House on a vote of 90-29, the Senate Tax Committee has scheduled a hearing for Tuesday, March 11.
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, and the House Tax Committee held a hearing on February 10.
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.
The House passed the bill 86-37, and the Senate Committee on Government Efficiency has scheduled a hearing on March 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 further action has been taken.
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 further action has been taken.
Prohibiting Foreign Ownership of Real Property
On an after the effective date of the legislation, HB 2290 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. Unlike legislation from 2024, the bill does not exempt CFIUS-approved or vetted properties. Find additional information here. On March 3, the House Commerce Committee placed the contents of the bill into House Sub for SB 9 and passed the bill out favorably. On March 7, the full House passed the measure on a vote of 104-18. The bill will now go to the Senate where it can either be approved, as amended, or referred to a conference committee between the House and Senate.
Drone Critical Components and Procurement of Goods and Services
House Bill 2293 would 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. The bill also broadly prohibits state agencies from procuring any finished goods or services from these foreign principals, unless the entities have either received clearance indicating no unresolved national security concerns under U.S. Code, or the entities maintain active national security agreements with either the Committee on Foreign Investment in the United States or the Department of Defense as of July 1, 2025. On March 3, the House Commerce Committee amended the bill by removing section 2, related to procurements. The House Commerce Committee placed the contents of the bill into House Sub for SB 9 and passed the bill out favorably. On March 7, the full House passed Hse Sub SB 9 on a vote of 104-18. The bill will now go to the Senate where it can either be approved, as amended, or referred to a conference committee between the House and Senate.
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. After passing the House 123-0, the Senate Committee on Agriculture and Natural Resources has scheduled a hearing for March 13.
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. The Senate passed the bill unanimously. The House Transportation Committee held a hearing and passed the bill out favorably on March 5.
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.” After the Senate passed the bill 31-9, it was referred to the House Committee on Federal and State Affairs. The committee passed the bill out of committee on February 14, and is on the House calendar.
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. 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 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. After the House passed the bill 82-39, the Senate Commerce Committee held a hearing on March 5.
Kansas Promise Scholarship Program
Senate Bill 44 would expand the Kansas promise scholarship programto allowprivate postsecondary educational institutions to participate. After passing the Senate 37-3, the House
Education Committee held a hearing on March 5.
Medical Cannabis Act
Senate Bill 294 would create the medical cannabis act. The bill was introduced on March 6 and referred to the Senate Committee on Federal and State Affairs.
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. On March 7, the House Judiciary Committee amended the bill and passed it out favorably.
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. After passing the Senate 39-1, the bill is scheduled for hearing in the House Judiciary Committee on March 11.
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. After passing the Senate on a unanimous vote, the House Committee on Legislative Modernization held a hearing on March 3.
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, the bill was referred to a blessed committee on February 14 to survive Legislative Turnaround, but no further action has been 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 has been taken.
HB 2291 would create a regulatory relief division of the attorney general and a regulatory sandbox program for start-up businesses. After passing the House 90-28, the Senate Commerce Committee will hold a hearing on March 10.
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. After passing the House 86-37, the Senate Judiciary Committee held a hearing on March 6.
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, and the Senate Judiciary Committee held a hearing on February 26.
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. The House did not take action on the bill, and it is no longer a live bill this session.
EV Registration Fees
House Bill 2121 would increase annual license fees of electric and hybrid passenger vehicles and trucks. After passing the House 99-20, the Senate Transportation Committee scheduled a hearing on March 11.
Local Government Eco-Devo Program Reporting
KHouse Bill 2304 would require local governments to report certain local eco devo incentive program information to the secretary of commerce. After passing the House 97-26, the bill was transferred to the Senate Committee on Government Efficiency which has scheduled a hearing for March 10.
Other Relevant Legislation Surviving Turnaround
SB 148 Excluding from sales taxation the installing or applying tangible personal property for the reconstruction, repair or replacement of a building
SB 223 Providing Russell county retailers’ sales tax authority
HB 2189 income tax credit for taking land by eminent domain
HB 2275 Providing Finney county sales tax