21 Feb 2025 Kansas Capitol Review – Week 06
The Kansas legislature powered through this week’s winter storm in order to meet its self-imposed Turnaround Deadline, where most bills are required to advance through their house of origin by Friday, February 21. The House of Representatives sent 89 bills to their Senate counterparts, including the first budget bill of the year, while the senators in the upper chamber passed 64 pieces of legislation across the rotunda.
Both chambers’ Republican supermajority paid dividends for legislative leadership as the legislature overrode Governor Laura Kelly’s veto of a bill banning certain gender-affirming care, 31-9 and 85-34.
Lawmakers received a welcomed long weekend, but plan to return to Topeka next Tuesday for the remaining three weeks of the 2025 legislative session, where they still look to pass a sustainable budget, as well as tax policy.
Prohibiting Foreign Ownership of Real Property
Last session, legislation was passed prohibiting 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. 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, the current bill does not exempt CFIUS-approved or vetted properties. The bill was referred to the House Commerce Committee where a hearing is anticipated soon.
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. The bill was referred to the House Commerce Committee.
Prohibiting Lobbying by Foreign Adversaries
House Bill 2205 would prohibit lobbying for or by certain designated foreign adversaries. The bill was referred to the House Elections Committee. No hearing was scheduled and the bill is not longer a live bill this session.
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 on a vote of 94-29, the bill now goes to the Senate for consideration.
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 and is no longer a live bill for this session.
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 House Agriculture Committee amended the bill to limit new enrolled acres per county to no more than 1,600 acres per year. The bill was then referred to the Committee on Calendar and Printing, and its future is uncertain.
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.
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. The Senate passed the bill 39-1, and it now goes to the House for consideration.
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 passed the bill 40-0, and it now goes to the House for consideration.
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 passed the bill 39-1, and it now goes to the House for consideration.
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. The House Committee on Federal and State Affairs held a hearing on February 17.
HB 2291 would create a regulatory relief division of the attorney general and create a regulatory sandbox. The bill has been referred the House Committee on Federal and State Affairs.
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 passed the bill on a vote of 86-37. It now goes to the Senate for consideration.
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 was taken and the bill is no longer a live bill for this session.
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.
State Budget Bill
On Wednesday, the House, on a vote of83-36, passed a proposed state budget in Sub HB 2007, which proposes a nearly $10.6 billion state general fund budget for 2026, which is about $246 million less than for 2025, and includes the elimination of funding about 1,000 vacant positions and a 1.5% 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. The House found about $34.5 million in savings for 2026 by lapsing 1.5% for state operations funded from the state general revenues. The chamber also cut another $11.1 million in state general funding for about 1,000 vacant full-time positions in fiscal year 2026, which starts July 1. 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 revenues in 2025 and about $416 million in 2026, and to spend about $464 million more than revenues in 2027, $437 million in 2028 and $423 million in 2029. The budget now goes to the Senate for consideration.
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. The House passed the bill 106-15, and it now goes to the Senate for consideration.
Water Program Task Force
House Bill 2172, as amended by the House, the bill would establish a 23-member water program task force to evaluate the state’s water programs and funding. The Task Force members would be appointed by April 30, 2025. The task force would submit a report to the Legislature and the Governor on or before January 31, 2026. The House passed the bill 109-12. It now goes to the Senate for consideration.
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 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. 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%, 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, and it now goes to the House for consideration.
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 House Tax Committee will hold a hearing on the bill on Wednesday, February 26.
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.
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. After passing the Senate on a vote of 38-2, a hearing has been scheduled in the House Taxation Committee on Thursday, February 27.
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. After passing out of the House Tax Committee, the full House has not yet taken further action.
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. After passing from the Senate on a vote of 28-11, the House has not scheduled the bill for hearing.
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 but no further action has been 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 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 passed the bill 90-29, and it now goes to the Senate for 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 Senate passed the bill on a vote of 37-3, and the House Tax Committee held a hearing on February 10.
Property Tax Task Force
Senate Bill 195 would establish a property tax task force to study the Kansas property tax system and develop recommendations for changes. The bill was referred to the Senate Tax Committee but has not been scheduled for a hearing.
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 on a vote of 86-37.
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 childcare provider. The bill was referred to the House Committee on Taxation, but no hearing has been scheduled.
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. The House passed the bill on a vote of 123-0, and the bill now goes to the Senate for consideration.
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. The House passed the bill on a vote of 120-2, and it now goes to the Senate for consideration.
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 took no further action on the bill and it is no longer a live bill for this session.
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 39-0, the bill was referred to the House Transportation Committee and scheduled for hearing on Thursday, February 27.
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.
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 committee with a favorable recommendation.
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 37 would repeal this three-mile extraterritorial planning and zoning authority. House Bill 2025 is the House companion bill. The committees took no further action and the bills are no longer live bills for this session.
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. The House passed the bill on a vote of 82-39. The bill now goes to the Senate for consideration.
Kansas Promise Scholarship Program
Senate Bill 44 would expand the Kansas promise scholarship program to allow private postsecondary educational institutions to participate. The Senate passed the bill 37-3, and it now goes to the House for consideration.
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 but no further action has been taken.
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 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. The House Utilities Committee has scheduled a hearing for Thursday, February 27.
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 the February 11 hearing in Senate Utilities Committee.
Public Utility Fee and Tax Limitations SB 191 was introduced to limit the amount of fees, taxes and other charges on a utility bill that is assessed by a board of public utilities. The bill was referred to the Senate Utilities Committee but did not receive a hearing and is likely no longer a live bill for this session.
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.
Water Pollution Control Permits
House Bill 2085 extends the renewal period for water pollution control permits from five to 10 years. After passing the House on a unanimous vote, the bill was referred to the Senate Committee on Agriculture and Natural Resources.
Solid Waste Permits
House Bill 2064 would remove an exception from solid waste permits for the disposal of solid waste from oil and gas wells via land spreading. The House Agriculture Committee passed the bill out favorably. No further action was taken on the bill and it is likely no longer a live bill for this session.
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. After the House passed the bill 104-14, it was referred to the Senate Judiciary Committee where a hearing was scheduled for Wednesday, 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 this bill, and it is likely no longer a live bill for this session.
EV Registration Fees
House Bill 2121 would increase annual license fees of electric and hybrid passenger vehicles and trucks. After the House passed the bill 99-20, it was referred to the Senate Transportation Committee.
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 passed the bill on a vote of 97-26.
Key 2025 Legislative Deadlines
March 18 – Last day for most committees to meet
March 21 – Last day for consideration of non-exempt bills
March 28 – First Adjournment
April 10 – Veto Session begins
Other Relevant Legislation Surviving Turnaround
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 223 Providing Russell county retailers’ sales tax authority
HB 2189 income tax credit for taking land by eminent domain
HB 2301 Returning to nonaccountability of the executive branch agencies that report to the governor act – regarding performance-based budgeting