The first major move in this session’s political chess match was made this week as the Senate debated and approved the much talked about constitutional amendment that, if approved by voters later this year, would give the Legislature the power to regulate abortion. In a case from last year, the Kansas Supreme Court ruled the Kansas Constitution protects a woman’s access to abortion.
The politics of this issue are weighty under the dome and the impact of how this plays out is far-reaching. Add to that the Medicaid expansion issue, complete with its own politics, and you have the makings of a good political logjam. This week’s action seems to have breached that logjam and allowed for movement on key issues.
Action on the resolution moves over to the House with some expecting a vote as early as this next week.
Sports Betting. This topic heated up as the Senate Federal and State Affairs Committee held two days of hearings on SB 283. The Chamber’s legislative policies encourage revenue from sports betting to be used to offset onerous taxes such as the state’s high food sales tax rate – one of the highest in the nation. You won’t be able to place your bet on Patrick Mahomes and the Chiefs in this year’s big game. However, if all goes well you might be able to place that bet on the Royals winning the World Series this October.
Economic Development. The House and Senate Commerce Committees, chaired by Representative
Sean Tarwater and Senator
Julia Lynn respectively, held several days of hearings seeking input on barriers to economic growth in the state. The presentations ran the gamut from high-volume energy users to policy think tanks offering their perspectives on the barriers and potential solutions.
This week the Department of Commerce offered up its plan to remake a powerful economic development tool as a sunset provision looms for Sales Tax Revenue Bonds – more commonly known as STAR Bonds. The program has come under fire in recent years amidst claims that approved projects have strayed too far from what the Legislature intended. HB 2529 extends the sunset provision and seeks to amend the program to aid in making the program more useful to rural economic development efforts while also addressing concerns raised by critics of the current version of the program.
Work Force. The workforce shortage has drawn considerable attention this year. Lawmakers have discussed barriers to employment and possible solutions including the idea of providing for licensing reciprocity. The idea is to cut “red tape” and make Kansas more attractive by allowing workers to rely on their professional certification from another state to more easily work in Kansas.
Lawmakers have also heard about barriers that exist and potential solutions for those who are re-entering the workforce after incarceration. Supporting a smooth transition to gainful employment has numerous benefits for those seeking employment as well as benefits for employers trying to resolve workforce challenges.
Two bills of note were the subject of hearings this week. Both bills were supported by the Chamber and both are designed to help prepare students for their careers beyond high school.
- HB 2507 provides liability protection for businesses that participate in high school work-based learning programs. Conferees addressed the concerns of employers who are interested in working with schools and high school students as they explore career options. The employers noted that liability concerns have created barriers to fully engaging students in these valuable partnerships. Some concerns were raised during the hearing, but optimism is high that these concerns can be addressed, clearing the way for passing this bill.
- HB 2515 creates the Kansas Promise Scholarship Program. This program would be open to graduates of Kansas high schools who meet certain other eligibility criteria. In exchange for the scholarships, students must commit to working in Kansas for at least two years or enroll full-time in a Kansas postsecondary educational institution. In short, the program is a “last dollar” program that helps close the tuition gap for students enrolling in community college and technical school programs that provide training for high-demand careers.
Transportation. The much-awaited comprehensive transportation bill - dubbed FORWARD - was introduced in the House Appropriations Committee early in the week with the Senate Ways and Means Committee following suit a couple of days later.
With the Economic Lifelines Transportation Day at the Capitol coming up on February 5th lawmakers will no doubt hear a lot of support for the new plan. Unlike previous ten-year plans that were largely inflexible after being created, FORWARD is designed to be an adaptable, rolling plan. This allows the flexibility to address emerging projects of critical importance while keeping a pipeline stocked with projects that can be advance to implementation with little to no delay.
The Chamber has been an active participant in the work leading up to creation of the FORWARD plan with the objective of seeing that U.S 69 highway is identified as a critical project for the future of Overland Park. We will be actively engaged throughout the Legislative process, supporting adoption of FORWARD.
Taxation. Legislative committees have devoted substantial time this session to a variety of tax-related issues and more are surely to follow.
Of note are discussions focused on taxation of foreign income; allowing Kansans to itemize their state return even if they used the standard deduction on their federal return; taxation of internet-based sales and marketplace facilitators; and, a reduction in the food sales tax rate to name just a few. Lawmakers will spend a lot of time in the coming weeks sorting through the various proposals and assessing economic impact before determining which ideas make the most sense for Kansas.
Property Tax. Bills addressing everything from updated guidelines for appraisers to funding the Local Ad Valorem Tax Reduction Fund, and even the repeal of property tax lids have been introduced this year. A few that warrant attention are highlighted here:
- SB 263 – Requires a current year property tax estimate on the annual notice of valuation
- SB 272 – Prohibits county appraisers and the state board of tax appeals from increasing the valuation of county appraised property in valuation appeals
- SB 294 – Establishes notice and public hearing requirements prior to approval by a governing body to exceed its certified tax rate for property tax purposes.
It’s clear lawmakers are hearing from constituents regarding property taxes and these bills – and many others – represent reaction to these concerns. Which ideas survive to the end is anybody’s guess this early in the session, but there will not be a lack of discussion surrounding tax policy in the coming weeks!
University of Kansas Cancer Center. Since receiving the coveted National Cancer Institute Cancer Center designation, the Center has had its eye on the goal of ultimately being named a Comprehensive Cancer Center – the gold standard among cancer research and treatment centers. To support that effort SB 255 was introduced to increase and solidify the Center’s funding stream. The bill allocates $10 million annually toward their efforts via a demand transfer. This amount represents a $5 million increase over current funding.
The Chamber provided testimony in support of this effort. Estimates show the elevated designation would lead to nearly 200 new jobs with an economic impact of more than $112 million for our region. More importantly, the elevated status and related investment assures area residents that state-of-the-art cancer care is conducted right here in Kansas City.
Medicaid Expansion. On Thursday the Senate Public Health and Welfare Committee wrapped up five days of hearing testimony from proponents and opponents to Medicaid expansion. The committee members will now turn their attention to the underlying bill (SB 252) to make decisions on how they want to amend the bill based on what they heard. The bill has 22 co-sponsors in the Senate: 11 Republicans and 11 Democrats so supporters are cautiously optimistic that an expansion bill could make it to
Governor Laura Kelly’s desk this year. The Chamber provided testimony in support of the bill during the first day of hearings.
Upcoming Events:
Legislative Policy Series.
Breakfast #2 in our series held in conjunction with the Johnson County Public Policy Council begins at 7:30 a.m. on Saturday,
February 8. Panelists will be: Senator
Dinah Sykes and Representatives
Chris Croft,
Susan Ruiz,
Sean Tarwater and
Brandon Woodard. For more information or to make reservations,
click here.
Public Policy Committee Meeting. The next meeting of the Public Policy and Advocacy Committee will be noon-1:30 p.m. on Friday,
February 14 at the Chamber. Our guest is Director of the Budget
Larry Campbell.
