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Photograph of Charlie RothCharlie Roth - State Representative - 71st District of Kansas - Republican

Legislative Updates

Legislative Update - Week 11 - March 23-27, 2009


We’re entering the last week of the regular session, and as predicted, most of the attention is focused on the budget and an energy bill that would allow for construction of the coal fired power plant in western Kansas. The Kansas Legislature will take up the budget agreement for FY 2010 early this week, along with another measure on energy. Conference committees forged agreements on both comprehensive measures last week, paving the way for what could be a relatively short and orderly few days “under the dome” prior to first adjournment April 3rd.

With that introduction here is everything you could possibly want to know about the Kansas legislature.

BUDGET AGREEMENT

Work on the FY 2010 budget agreement came together with very little drama, trauma or blood shed. The negotiators began Wednesday night and wrapped up their work 24 hours later. Thanks to the economic stimulus money from the federal government, conferees were able to hold off deep cuts that had been feared as a result of the revenue shortfalls. Cuts were made in literally every agency and every budget, but not nearly so deep as to force the issue of furloughs of state workers or mothball numerous programs, as had initially been predicted.

K-12 public education funds were reduced slightly in the budget measure, along with higher education and numerous social service programs. For education funding, a complicated formula to draw down the federal economic stimulus dollars must be followed. Very little leeway was afforded to lawmakers to make further budget cuts in education and still allow Kansas to leverage these federal funds for schools and universities.

The Mega budget preserves key state economic development programs, rejecting calls for merging KTEC into the Department of Commerce.

Another highlight of the budget is the expansion of the children’s health insurance program, Healthwave, so that an estimated 8,000 more young Kansans can become insured. Protecting access to social services for those in need via Medicaid and other programs was achieved using the federal economic stimulus dollars to fill the Kansas budget shortfall in that area.

This is hardly the last time lawmakers will debate budget matters. Next month the consensus revenue estimating group will update the economic forecast for Kansas. Once those new revenue projections are known, lawmakers will return to the statehouse in late April to make further revisions to the FY 2010 budget. Democrat legislative leaders say they’re done cutting budgets and want lawmakers to look at recent tax cuts as an alternative to balance the budget. The Governor’s original budget called for a delay of implementing a variety of tax cuts that would total $60 million.

A number of key budget items were left for the omnibus session, including $75 million in funding for local units of government for the so-called “slider” payment to offset property tax revenue loss associated with the exemption of new machinery and equipment.

OTHER LEGISLATIVE ISSUES...

Tuition Legacy: HB 2007 was signed into law by Governor Sebelius Friday, allowing Kansas universities to develop programs for review by the Board of Regents to lower tuition for targeted undergraduate students to recruit them to Kansas. This measure is designed to help Kansas stem the “brain drain” by boosting enrollment in Kansas universities through innovative tuition programs.

Higher Education Admissions: HB 2197 changes state law to allow the Kansas Board of Regents to establish admission standards for Kansas colleges and universities as opposed to Kansas legislators via statutory provisions. This measure modernizes the state’s admissions policies.

Graduated Drivers License: After working for years to implement the proposal, KDOT leaders and others saw success this year in passing a graduated driver’s license program which will delay by a year the age when young Kansans can begin driving. Other restrictions in the bill relate to banning cell phone use by young drivers behind the wheel, etc. The new law takes effect January 1, 2010.

Guns in the courtroom: SB 19 would allow prosecutors to carry concealed firearms in county courthouses and other court related facilities. The measure clarifies that the chief judge of any judicial district still holds the authority to restrict or prohibit firearms in the courtrooms of that particular judicial district. This measure is meant to provide an added level of security to prosecutors in counties where, due to budget constraints, the county courthouse does not have security personnel on duty. The conference committee has come to tentative agreement on SB 19, awaiting final approval of language from the revisor.

Docket fees for court operations: SB 134 would allow the Kansas Supreme Court to impose a surcharge of up to $10 per fee (for a series of fees) for costs for non-judicial personnel. The imposition of the increased surcharge would be allowed for one year, from July 1, 2009, to June 30, 2010. The original legislation would have allowed the court to impose an unlimited level of docket fee to fund court operations. The Judiciary conference committee will meet this week on multiple bills.

Sales Tax Holiday: HB 2328, the bill which would have implemented a sales tax “holiday” on back to school items, failed to garner the needed votes to pass on to final action in the House. HB 2328 will not see further action this session unless amended into another tax bill on the floor. The measure is not conferencable since it has failed to pass either chamber.

PEAK Law: HB 2365, known as the Promoting Employment Across Kansas Act (PEAK) is a measure designed to encourage economic development by incentivizing businesses to create or relocate facilities and/or jobs to Kansas. Proponents argue PEAK will help Kansas compete with other states through creative and aggressive business development and recruitment. Companies to be targeted will have jobs in engineering, manufacturing, IT, business processing, call centers and contract packaging. HB 2365 was slated for debate in the House on Wednesday, but due to time limitations discussion was postponed until next week. A compromise is said to have been reached to get the measure out of the House with bipartisan support.

Prop K: HB 2150, or Proposition K, is a measure that would bring sweeping changes to the current property tax system. If implemented, Prop K would do away with the existing ad valorem system and impose a capped 2% standard increase across the board. Prop K received much focus in the House Taxation committee. The committee held several days of hearings and assigned a subcommittee to further study the complex issue. The subcommittee recognized broad concern with the current property tax valuation system due to the volatility of valuation increases and the substantial overall increase over the last decade. The Subcommittee recommended an Interim Committee further study the property tax valuation system as a whole and specifically look into options such as Prop K.

Scrap Metal: SB 237, a measure which requires scrap metal dealers to record information of the transaction, receive a signed statement from the seller that the seller is indeed the owner of the scrap metal, record the vehicle identification number and obtain an appropriate vehicle title or bill of sale, hold the scrap metal for 30 days if notified by law enforcement, and prohibits the dealer from receiving scrap metal from a minor. The measure was modeled after compromise legislation passed by the Unified Government of Wyandotte County. SB 237 passed both chambers and is currently in conference. House Judiciary committee inserted a section to the bill which deals with the crime of traffic in contraband in a correctional institution. Judiciary Conference committee has not yet set a time to meet, but it is anticipated on Monday or Tuesday of next week.

Transportation Districts: SB 78, which allows transportation development districts the ability to use sales tax revenue generated from the district to pay for projects directly, was passed un-amended by both houses and is on its way to the Governor. Currently, projects must be paid by the issuance of bonds and the sales tax generated can only be used to pay towards debt service of the bonds.

Smoking Ban: HB 2111 is now the statewide smoking ban and awaits another round of Senate debate this week. The Senate was poised to debate the measure (having already passed it early in the session) last week, but there were threats of noxious amendments ranging from a repeal of the state’s recently enacted expanded gaming law to a garden variety of loopholes and other weakening steps. That debate will now be in the week ahead. The next step would be to have House members “vote to concur” in the Senate actions, thus by-passing the House leadership and committee structure that have kept the issue contained so far this session.

Annexation Bills: H. Substitute for 51, an annexation bill which was originally HB 2029, passed the House with a vote of 77-48.

    Key Aspects of H. Sub for 51 (originally HB 2029):
  • Reduce the time following an annexation before the board of county commissioners is required to hold a hearing to consider whether the city has provided the services promised in the annexation plan.
  • Reduce the time after it is shown that the city has not provided the municipal services stated in the annexation plan, before a landowner may petition to the board of county commissioners to de-annex the land in question.
  • Prohibit annexation of any portion of unplatted agricultural land of 21 acres or more without the written consent of the landowner.
  • An election would be required for any proposed annexation to be made through approval by the board of county commissioners. The election will consist of qualified voters residing in the area proposed to be annexed, and if a majority of those voting reject the annexation, the city would be prohibited from annexing the land for at least four years from the election date.

H. Sub for 51 is the only annexation bill in conference, as the others (SB’s 204, H. Sub for 254 and H. Sub for 257) await action in the House. The Senate committee has refused action on any annexation measure so it remains unknown if the House conferees will pursue action in conference.

TAX ISSUES IN CONFERENCE COMMITTEE

House Sub. for SB 98 would clarify that agricultural land is to be use-valued for Kansas estate tax purposes regardless of whether such land was held directly by decedents or was held in non-publicly traded legal entities, including certain partnerships, corporations, limited liability companies, or limited liability partnerships. This is a fix needed to make clear the original intent of the law which is currently being misinterpreted by the Kansas Department of Revenue. This provision would be retroactive back to December 31, 2006.

HB 2172, provides sales tax exemptions for several entities, as well as, a provision to remove the sunset on an existing sales tax exemption for cash rebates granted by manufacturers to purchasers or lessees of new motor vehicles.

    Exemptions included in HB 2172:
  • Purchases made by or on behalf of Goodwill Industries Easter Seals of Kansas, Inc. and Goodwill Industries of Kansas, Inc. for the purpose of providing education, training, and employment opportunities for people with disabilities and other barriers to employment.
  • Sales of game birds used in hunting; fees and charges for participation in guide and non-guided hunts and fishing excursions and expeditions; and hunting or fishing leases.
  • Purchases by or on behalf of Sheltered Living, Inc.
  • Purchases made by or on behalf of All American Beef Battalion, Inc., for the purpose of educating, promoting, and participating as a contact group through the beef cattle industry in order to carry out such projects that provide support and morale to members of the United States armed forces and military services.

The conference committee on taxation is scheduled to meet this week and at that time will begin working towards compromise on all tax related matters.


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