Legislative Uodates
The second half of the 2026 Legislative Session began this week with legislative committees meeting on Tuesday, holding hearings on exempt bills and bills that have passed over from the first body.
On Wednesday, both the House and Senate debated tax bills on General Orders. The House took up House Bill 2745, a property tax bill requiring cities and other local governments to cap property tax revenue at 3% annually. The House amended the bill to remove the $60 million relief fund and change protest petition requirements from 10% of voters in the last Presidential election to 5% of voters participating in the Secretary of State election if exceeding the 3% cap. The bill retains the exemption for property new to the tax rolls because of bonding or IRBs. The bill passed the House on a vote of 76-45, which is 8 votes short of a veto proof majority. The bill now goes to the Senate, where it is scheduled to be heard on Tuesday and Wednesday.
The Senate also took up SCR 1616, which caps the assessment of property valuation increases at 3% annually starting with 2022. After an hour long debate, the Senate adopted the concurrent resolution on a vote of 30-10.
The House debated their budget bill on Wednesday. House Bill 2434 was amended in the House Appropriations Committee, to adopt a 1.5% State General Fund cut to operations budget for state agencies. There were attempts at amendments on the House floor for additional funding for school lunches, special education as well as an amendment that would require legislators notify public disclosure commission upon entering a nondisclosure order regarding a new STAR Bond agreement. All the proposed amendments failed. The bill passed the House on a vote of 68-53.
The Senate’s budget bill, Senate Bill 315 has passed out of committee and will run on the floor early next week. Legislative Leadership would like to pass an agreed to budget bill in the next two weeks, so the Governor has an opportunity to line-item veto provisions, leaving time for the legislature to override any veto’s they deem necessary before First Adjournment, the end of regular session, which is set for March 27th.
The House also advanced on Thursday House Sub for Sub for SB 197 to the Senate, which renews the sunset on the Star Bonds program and implements several additional reporting and ROI requirements. The House added an amendment that would allow local governments to reset the base on a new project for the Star Bonds district. This would allow the base amount to be higher, and the Star Bonds districts share lower. The bill passed on a vote of 82-38.
Unemployment Insurance
On Thursday, the House Commerce Committee acted upon House Bill 2764 by adopting a ballon amendment to narrow the scope of amendments of the original bill and inserted the changes into Senate Bill 229. Amendments in the balloon included updating parameters for temporary layoffs, guidelines for supplemental unemployment benefits plans and prohibition of passing UI legislation through a budget proviso. Senate Bill 229 now heads to the full House for consideration.
Aviation Tax Credits
House Bill 2464 extends the aviation tax for 10 years, was heard in the Senate Tax Committee this week. There were no opponents to the bill during the hearing, but the committee raised concerns about the potential layering of the credit. It is anticipated the bill will be worked in the next few weeks.
Unused Tax Credits and HPIP
House Bill 2757 proposes to repeal more than 20 unused or rarely used tax credits and makes changes to the HPIP program. The bill was heard in the House Tax Committee on Thursday. There was discussion the new HPIP wage provisions in the bill added a fiscal note of over $100 million. If the bill advances, the new proposed HPIP provisions will be amended out, leaving only the repeal of the unused tax credits.
World Cup 24-hour Liquor Sales
Senate Bill 393 allows local communities to determine if they want to authorize 23-hour alcohol sales at bars, restaurants, hotels, and liquor stores during the World Cup this summer. The bill was heard in the Senate Commerce Committee on Wednesday. Proponents stated the bill would only apply to the two months during the World Cup, that Missouri has adopted a similar measure and that the bill allows any local community to opt out of the provisions. There were no opponents to the bill, but committee members did question if this legislation was needed statewide.
School Tax Credit
House Bill 2468, which passed the House chamber by a vote of 70-49 last week, was heard in the Senate Education Committee this week. The bill proposes to raise the annual cap on Kansas’ tax credit program for Scholarship Granting Organizations (SGO’s) from $10 million to $20 million. The measure would allow it to grow by 30% in years when scholarships reach 75% of the cap, up to $30 million. It would also opts Kansas into a federal program allowing taxpayers to claim up to $1,700 in federal credits for donations to SGOs, that can be used to help fund private school tuition, tutoring and transportation, often for low-income students. Opponents of the bill argue it will divert tax dollars that could be going towards funding public education.
Benefit Data Matching
Last week, Senate Leadership blessed Senate Bill 363, which would require KDHE and DCF to enter into expanded data-matching agreements to verify eligibility for food and medical assistance and mandate monthly data submissions to CMS beginning January 1, 2027. On Wednesday, the Senate Government Committee on Efficiency amended the bill to exclude pregnant women, individuals over 65 and HCBS waiver recipients including the IDD population as well as added additional reporting requirements. It is expected the full Senate will work the bill next week.
Next Week
Committees will continue to meet on bills that have been passed by the other chamber and exempt bills still alive in their committees. We expect many hearings and discussions on legislation as the session moves toward the first adjournment deadline on March 27.
By-Right Housing-The House Commerce Committee will hear Senate Bill 418, the By-Right Housing Development Act next Thursday. The bill includes mandatory administrative approval within 15 days, statewide standards for certain single-family homes—such as smaller lot sizes and use of the 2018 International Residential Code—and elimination of protest petition requirements for owner-initiated single-family rezonings.
Pharmacy Benefit Managers-The Houses Insurance Committee will have an informational briefing on Senate Bill 360, which enacts the Kansas Consumer Prescription Protection and Accountability Act. The bill expands state regulation of pharmacy benefit managers (PBMs), increases reporting and transparency requirements, and includes a mandatory $10.50 dispensing fee.
No Impact Home Based Business-The Senate Commerce Committee will hear House Bill 2343 which creates the no-impact home-based business fairness act, supporting the development and growth of such businesses by limiting the regulatory power of municipalities. The bill is a carry-over bill from the 2025 Legislative Session, where it passed the House.
Transportation Program-The House Appropriations Committee will hear an update on the Eisenhower Transportation program on Wednesday.
Sales Tax Exemption for Commercial Remodeling
On Thursday, Senate Tax will hear Senate Bill 148, which proposes to exclude commercial remodeling from sales tax. A similar bill was heard in House Taxation
