Updates and Alerts

STATE LEGISLATIVE UPDATE (MAR. 23-27)
Session Reaches First Adjournment

Last Friday marked the end of the main body of the 2026 state legislative session! Committees ceased regularly meeting for the year the prior week, and House and Senate lawmakers spent their final days at the Capitol primarily convened in floor action and conference committee negotiations – where the House and Senate work to resolve differences in bills between the two chambers – as lawmakers moved to advance priority legislation ahead of first adjournment.

Legislative leaders were particularly keen to take action on any legislation they believe may be at risk of a gubernatorial veto so that they preserve the opportunity to consider a veto override when the legislature reconvenes at the Capitol on April 9 for the “veto session” – a short wrap-up period when lawmakers complete any unfinished business and consider gubernatorial vetoes.

Among the major issues that saw action last week included legislation related to property taxes, the state budget, a state sports authority related to the proposed Chiefs stadium, proposed restructuring of higher education governance, health care, alcohol sales during the World Cup, and extension of a number of expiring economic development programs.

Read highlights and action from Week Eleven below.

Taxation
Authorizing a Protest Petition for Certain Property Tax Revenue Growth. The Senate passed (22-18) and the House concurred (63-59) with the Senate’s changes to HB 2745, authorizing voter protest petitions if a local government seeks to collect more in property taxes than it did the year before plus the Midwest consumer price index, up to a 3% maximum increase, whichever is less. A successful protest petition would require signatures from at least 10% of the registered voters as of Jan. 1 in the taxing jurisdiction where the protest petition was filed. If the petition is successful, the local government budget would be returned to the same level of property taxes it collected the year before. There are no exceptions to the limitations on revenue (for example, debt service payments, newly-annexed real property.) The bill also reinstates the “revenue neutral rate” process with revisions to incorporate changes associated with the protest petition process. The legislation would apply to local taxing jurisdictions, including schools. Read a summary of the bill. The bill now goes to the Governor for her consideration.
       The House previously passed its original version of HB 2745 (76-45). As approved by the House, the bill authorized voter protest petitions if a local government sought to collect more than a 3% increase in property tax revenues for the next year from what they took in the year before. A successful protest petition, which would require signatures from not less than 5% of voters who cast a ballot in the last secretary of state election, would veto the local government budget beyond the maximum 3% increase allowed. The limitation on revenue had some exceptions (for example, real property newly annexed or that’s changed use.) The bill also eliminated the current “revenue neutral rate” process. The bill would not apply to schools or the State. The House also amended the original version of the bill to remove an annual state-funded $60 million property tax relief fund that would have provided transfers from that fund to local governments that limit property tax revenue increases to less than 3% and to lower the threshold for a successful protest petition from 10% of voters in the last presidential election. Read a summary of the House’s version of the bill.

Limiting Property Tax Valuation Increases. The House failed to pass (59-63) the conference committee agreement on SCR 1603, putting forth a state constitutional amendment setting growth in the taxable value of real property for purposes of property taxation to be no more than 9% per year, or a lesser amount as defined by law, with some exceptions. Proposed state constitutional amendments require 2/3 approval in both the House (84 votes) and the Senate (27 votes) to advance to a statewide vote. The bill would apply to residential real estate, commercial and industrial real estate, and buildings and improvements on agricultural land. The statewide vote would take place in August 2026. If approved, the amendment would take effect in tax year 2027; the growth limitation for tax year 2027 would be relative to a property’s 2024 assessed valuation. The benefits of the assessed valuation limitation would remain in place when title to the property is transferred, changed, or conveyed to another person. Read a summary of the conference committee agreement. The bill remains in the House-Senate conference committee, eligible for further negotiation.
       The bill previously passed the Senate (28-11) in 2025. The Senate version put forth a state constitutional amendment that limited, for property tax purposes, the growth of taxable value of any real property to 3% per year. The statewide election would be held during the August 2026 primary elections.
       The bill previously passed the House (84-40) in 2026. The House version put forth a state constitutional amendment that limited the taxable value of real property to the lesser of the fair market value of the property or a rolling average fair market value, as defined by law. The legislature would be authorized to establish the number of years to be considered in determining the average fair market value (a six-year rolling average has been discussed) and to establish valuation adjustments for new construction or improvements, changes in property use, changes in the description of property, and property listed as escaped/omitted. The statewide election would be held during the November 2026 general election. The House also added provisions authorizing the legislature to freeze or limit valuations of residential property of qualifying seniors.

Requiring a Public Election for Certain Property Tax Revenue Growth. The Senate Taxation Committee amended, approved and forwarded to the full Senate for consideration HB 2396, requiring a public election if a local government seeks to collect more in property taxes than it did the year before plus the Midwest consumer price index, up to a 3% maximum increase. Read a summary of the bill.

Economic/Workforce Development
Creating A New State Sports Authority and Extending the STAR Bond Incentive Program. The House passed (78-44) and the Senate passed (30-10) the conference committee agreement on HB 2466, establishing a new state sports authority to oversee the construction, financing and management of certain sports facilities for professional sports and other events and extending the sunset of the state’s existing STAR Bonds incentive program for five (5) years.
       Provisions establishing a new state sports authority (formerly HB 2793) don’t explicitly name the Chiefs, but significantly limit the bill’s scope by defining “professional sports” to mean only the national football league and “professional sports team” to mean an organization that is a franchised member of the national football league engaged in the business of professional American football. The bill further expressly prohibits the sports authority from entering into contracts or business relationships with other professional sports or franchises. The definition of “sports facility” includes practice facilities and team headquarters buildings. The sports authority would consist of at least 9 but no more than 11 voting members who must be legal residents of Kansas and have, among other qualifications, relevant education, training and experience related to facility administration, accounting, law, marketing, or other pertinent fields. Authority members must be appointed not later than August 31, 2026, with one appointed by the governor, one each by the Senate president and Speaker of the House, one each by the Senate and House majority leaders, one each by the Senate and House minority leaders, one by the sports team that plays in the facility, and the Secretary of Commerce. The mayors of up to two cities in which a sports facility is located may also have voting membership in the authority if they pledge their local sales tax to the project and meet other conditions. The bill exempts the sports authority from local building permit, code requirements, and fees, and it permits (but does not require) consultation with local governments regarding planning and development. The House previously passed HB 2793 (79-41); the Senate did not separately consider the bill due to lack of time.
       Provisions extending and revising the STAR Bonds incentive program (formerly  SB 197) continue the sunset for the STAR bonds incentive program for five years until 2031; the program would otherwise expire in 2026. Provisions in the bill also impose new eligibility, approval, and reporting measures. It allows the inclusion of more than one project in a STAR Bond project area, and it allows CID and TDD increments to be utilized toward the repayment of STAR Bonds (but excludes countywide sales taxes apportioned with cities for such repayment.) The full House amended the bill to require new STAR bond projects within an existing district whose bonds have already been paid in full to establish a new tax increment base and not use the original base – the higher base means less tax revenue will go towards STAR bonds and more will be retained for use by the local government. Earlier provisions of SB 197 relating to the program’s use for mall facilities or vertical construction were previously removed from the bill. The House previously passed SB 197 (82-38). The Senate previously passed SB 197 (32-8) in 2025.
       Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.

Supporting Sports Tourism. The Senate passed (26-13) and the House passed (105-16) the conference committee agreement on HB 2346, establishing a Kansas sports tourism grant program to provide matching grants to communities from a $1.5 million statewide fund to support and enhance sports tourism events in Kansas. Grants may be for new or recurring eligible sporting events (if applications exceed funds, new events would be prioritized), but grants would generally not be available for most professional, college, and high school sporting events, except for exhibition games. Grant funds would be awarded following a post-event report determination, and the grants would match funds on a dollar-for-dollar basis with sponsor funds. The bill requires $250,000 of the available funds for grants be reserved for projects in counties other than Johnson, Sedgwick, and Wyandotte. Proponents of the measure said currently at least 23 states have state-supported sports tourism incentive programs (with more states considering it), leaving Kansas at a competitive disadvantage in attracting and retaining this important economic driver. The program sunsets in 2031. This bill was held over from the 2025 legislative session. Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.
       The House previously passed HB 2346 (95-21). The Senate passed its version of HB 2346 (28-12).

Extending Two Economic Development Tax Credits. The Senate passed (30-10) and the House passed (78-44) the conference committee agreement on HB 2464, extending the sunset on two key economic development income tax credit programs, aimed at cultivating the aviation/aerospace workforce and encouraging early-stage investment in entrepreneurs, for five (5) more years until 2031.
       Provisions cultivating the aviation/aerospace workforce extend the sunset for income tax credits for contributions to graduates of aerospace and aviation-related educational programs and employers of program graduates. The program, which attracts and cultivates a workforce serving an important industry across Kansas (including a meaningful cluster in Lenexa and Johnson County), is set to expire in 2026. The House previously passed original HB 2464 (81-39). The Senate passed its version of HB 2464 (39-1).
       Provisions encouraging investment in entrepreneurs and new innovative businesses extend the sunset for the angel investor income tax credit (formerly HB 2466). The program, which supports entrepreneurism by encouraging investors to provide seed capital financing to early-stage innovative Kansas businesses, is set to expire in 2026. The bill requires a 25% proportion of credits be utilized for investments in businesses in counties with 50,000 or less in population. The House previously passed original HB 2466 (93-28). The Senate previously passed its version of HB 2466 (34-6).
       Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.

Allowing County/City Opt-In to 23 Hr/Day Alcohol Sales During World Cup. The Senate passed (23-17) and the House passed (86-39) the conference committee agreement on HB 2481, which includes provisions authorizing a county or city to opt-in to allowing licensed entities located within such a county or city to make alcohol sales between the hours of 6:00 a.m. and 5:00 a.m. on the immediately following day, seven days a week, for the period June 11 through July 19, 2026, during the World Cup (formerly SB 393). Entities must be licensed by the State to sell alcoholic liquor or cereal malt beverage in the original package or for consumption on the premises. The bill was backed by the Kansas Restaurant and Hospitality Association. Missouri passed a similar bill last year, with a city/county opt-out. Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.
       The Senate previously passed SB 393 (21-19); the House did not consider it separately due to lack of time.

Requiring Legislative Review of New or Materially Changed Occupational Licensing Requirements. The House passed (89-35) and the Senate passed (30-10) the conference committee agreement on SB 30, requiring that adoption of new occupational licensing requirements and material changes to existing occupational licenses by an executive branch state agency be approved by the legislature (ratified in a bill) and providing a procedure for legislative review of such occupational licensing requirements. The bill would be retroactive to January 1, 2026. Some judiciary and some occupational licensing Boards, including medical, are exempted from the bill. The measure, held over from the 2025 session, is intended to ensure there are not unreasonable or unnecessary workforce barriers. Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.

Cultivating Career Readiness. The Senate passed (39-0) and the House passed (123-0) the conference committee agreement on HB 2485, which includes provisions  requiring postsecondary institutions to adopt and implement credit transfer policies for the ACT WorkKeys assessments as transferable credits toward the attainment of a postsecondary technical degree (formerly HB 2530).  Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.
       As introduced, HB 2530 would have enacted the Career Readiness Education Development Innovation Transferability (CREDIT) act requiring high schools to administer career readiness assessments to students and provide for the transferability of credentials earned through such assessments toward a degree. The House refocused HB 2530 to its current provisions.

Enacting “By-Right” Housing Development.” The Senate passed (35-4) and the House passed (117-5) the conference committee agreement on SB 418, providing a streamlined permit approval process for eligible “by-right” housing developments – meaning regulatory authorities are required to approve such proposed developments as a matter of right (“by-right”) and without discretionary review or approval if they meet certain criteria. A complete application demonstrating the proposed development meets the bill’s criteria would be deemed approved if not otherwise denied within specified timeframes. Housing developments under the bill include single-family homes, townhouses, and accessory dwelling units (secondary housing units subordinate to a primary dwelling unit on the same lot.) Provisions of the bill include allowing for third-party review of new residential construction development documents and inspection of improvements, requiring government to allow certain building provisions for single-family residences of a certain size, and excluding owner-initiated rezoning to a single-family residential district from protest petition provisions. This bill was introduced by Sen. TJ Rose, R-Olathe, and Senate President Ty Masterson, R-Andover. Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.
       The Senate previously passed SB 418 (35-5) and the House passed its version of SB 418 (97-27).

Human Resources
Revising Unemployment Insurance for Negative Balance Employers. The House passed (88-34) the conference committee agreement on SB 229 (formerly HB 2764), discontinuing a negative debt write-off and forgiveness provision for negative balance employers related to unemployment insurance that was already intended to be in effect only for one year. All other provisions in SB 229 were struck in the conference agreement and are expected to be worked on next session in 2027. Read a summary of the conference committee agreement. The Senate is expected to vote on the conference committee agreement when lawmakers return for the veto session.
       The House previously passed HB 2764 (83-36); the Senate did not separately consider the bill. As it passed the House, the bill also included an updated framework for temporary lay-offs and guidelines for supplemental unemployment benefit plans.

Expanding Permissive Hiring Preferences to Include Servicemembers & Eligible Spouses. The Senate passed (33-7) and the House passed (85-38) the conference committee agreement on HB 2626, which includes provisions expanding permissive preferences in private employment to include an expanded list of servicemembers and eligible spouses (formerly HB 2627). Servicemembers and spouses are required to submit certain documentation to verify eligibility. Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.
       The House previously passed HB 2627 (111-11) and the Senate previously passed its version of HB 2627 (40-0).

Education
Revising Higher Education Governance. The Senate (39-0) and the House (120-0) adopted the conference committee agreement for HB 2560 (previously HB 2798), which includes provisions exempting state universities (KU, KSU, WSU, PSU, FHSU and ESU) from certain statutes governing contracts and transactions upon promulgation of policies approved by the Kansas Board of Regents, including statutes concerning execution of certain contracts, procurement of certain goods and services, transactions involving easements, disposition of surplus property, and certain other types of transactions. Supporters of the measure say universities need less red tape in order to be more efficient, responsive, competitive, and innovative. As introduced the bill would have exempted only KU, KSU, and WSU; the Regents expressed concern that as written the bill would reduce key oversight and accountability. The bill was introduced by House Majority Leader Chris Croft, R-Overland Park, and the Governor’s Chief of Staff also testified in support of the bill. Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.
       The House previously passed HB 2798 (111-12); it was not separately considered by the Senate due to lack of time.

Expanding School Choice. The Senate passed (29-10) and the House (87-37) passed the conference committee agreement on SB 361, which includes provisions from the conference committee agreement on HB 2468 electing to have Kansas participate in a federal tax credit program for individual contributions to non-public school scholarship granting organizations. Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.
       The Senate adopted (27-12) and the House adopted (76-44) the conference committee agreement on HB 2468, which in addition to the federal tax credit program provisions also increases the aggregate tax credit limit on the state’s existing Low Income Students Scholarship (LISS) granting program (those provisions are not included in the agreement on SB 361). Read a summary of that conference committee agreement, which has already gone to the Governor for her consideration.

Legal
Creating New Requirements for Certain Expert Witness Testimony. The House passed (124-0) and the Senate concurred (39-0) in SB 398, requiring a proponent to demonstrate that it is more likely than not that certain specialized knowledge will help the trier of fact to understand evidence before certain qualified expert witnesses may testify. This bill codifies changes to federal evidentiary standards (Daubert standard) and is a tort reform measure backed by the Kansas Chamber. The bill also conforms certain provisions with Federal Rule of Evidence 701. Read a summary of the bill. The bill now goes to the Governor for her consideration.
       The Senate previously passed its original version of SB 398 (40-0).

Limiting Local Regulation of Home-Based Businesses. The House passed (75-48) the conference committee agreement on SB 197 (formerly HB 2343), limiting the regulatory power of municipalities over “no impact” home-based businesses. “Rural no-impact home-based businesses” would have additional regulatory protections. The bill excludes the breeding of animals or the operation or hosting of short-term rentals from the definition of home-based business. The permitted use of a home-based business under the bill would not supersede certain restrictions in homeowner association bylaws. Proponents argue there is unnecessary over-regulation of home-based businesses, while cities have raised concerns the measure would prevent them from appropriately regulating business operations that have neighborhood impacts, including in-home daycares, etc. This bill was held over from the 2025 session. Read a summary of the conference committee agreement. The Senate is expected to vote on the conference committee agreement when lawmakers return for the veto session.
       The House previously passed HB 2343 (74-49) in 2025; it was not separately passed by the Senate.

Enacting the Right to Repair Act. The Senate passed (40-0) and the House passed (123-2) the conference committee agreement on HB 2700, enacting the Kansas right-to-repair act establishing a narrowly-tailored right for persons who purchase or lease certain digital electronic equipment to obtain the legal authorization and necessary documentation and parts from original equipment manufacturers to diagnose, maintain, and repair such equipment. The bill’s provisions would be limited to digital electronic equipment made for sale in Kansas on or after July 1, 2027. The bill also includes a number of exceptions. This bill is being sought by Garmin. Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.
       The House previously passed HB 2700 (122-2) and the Senate passed its version (40-0).

Regulating Apps With Respect to Minors. The Senate passed (34-6) but the House did not pass the conference committee agreement on HB 2422, regulating app stores and app development with respect to minors and providing for enforcement under the Kansas consumer protection act (formerly SB 372). Businesses have expressed concerns with some of the bill’s provisions, particularly a private cause of action that has been in and out of the bill, as well as its scope. An app bill aimed at protecting minors that passed in Texas was ruled unconstitutional. Read a summary of the current conference committee agreement. The bill remains in the House-Senate conference committee, subject to additional negotiation.
       The Senate previously passed original SB 372 (34-6). The House did not separately vote on SB 372.

Health Care
Regulating Pharmacy Benefits Managers. The Senate passed (32-8) and the House passed (104-17) the conference committee agreement on SB 20, enacting the Kansas consumer prescription protection and accountability act providing for new regulation and registration of pharmacy benefits managers (PBMs) (formerly SB 360). PBMs manage prescription drug plans and benefits among drug manufacturers, pharmacies, insurers, certain employers, and patients. There are currently 54 licensed PBMs in Kansas. The role of PBMs and their impact on health care costs has been a matter of national discussion amid calls for lower prescription drug costs, with Congress recently approving new national PBM regulations. The bill drew support from regulators and independent pharmacies who say it will lower drug costs, add transparency and fairness, and benefit patients. As currently written, the plan has been opposed by insurers, self-insured employers, and PBMs who say it imposes a costly new dispensing fee “pill tax” on prescriptions, adds administrative overhead, and won’t actually reduce costs. Read a summary of the conference committee agreement. The bill now goes to the Governor for her consideration.
       The Senate previously passed SB 360 (32-8). The House did not separately vote on SB 360.

Insurance
Creating Portable Benefit Plans for Independent Contractors. The Senate passed (40-0) and the House concurred (101-21) on HB 2602, establishing requirements for portable benefit plans for independent contractors, determining types of contributions to such plans, and providing a state income tax deduction. Similar legislation has passed in three states (Utah, Tennessee, and Alabama.) The Senate had amended the bill to include credit unions as portable benefit plan providers and clarify that portable benefit plan providers would be required to make a benefit account available. Read a summary of the bill. The bill now goes to the Governor for her consideration.
       The House previously passed its version of HB 2602 (103-21).

THE COMING WEEK
Lawmakers have completed their work for the main body of the 2026 state legislative session. Lawmakers will return to the Capitol on April 9 for the “veto session,” a short wrap-up period when they will address any unfinished business and consider action on any gubernatorial vetoes.

LENEXA-AREA LEGISLATOR GUIDE
Kansas Senate

Kansas House of Representatives

Interested in a bill and want to learn more?

  • Explore the legislature’s website kslegislature.org to find House and Senate calendars, links to proposed bills, and committee information including live meeting audio links and posted testimony.
  • Watch House and Senate sessions and many committee meetings via the Kansas Legislature’s YouTube channel.
  • Access archived committee meeting audio recordings here.
  • Follow legislative action simultaneously detailed on X/Twitter using the hashtag #ksleg.
  • Call the State Library’s toll-free legislative hotline at (800) 432-3924. Calls and questions are confidential.
  • Ask questions such as how to read the calendar, what’s existing law and what would change in a proposed bill, etc, by contacting Ashley Sherard at asherard@lenexa.org or (913) 888-1414.

 

STATE LAWMAKERS VISIT THE CHAMBER

On Friday, January 16, several Lenexa-area lawmakers brought the State Capitol to the Chamber, joining a packed house of Legislative Affairs, Board of Directors, and Economic Development Council members to provide their insights on the new 2026 state legislative session and answer attendees’ questions about business issues and the legislative process.

Special thanks to Senate Minority Leader Dinah Sykes, D-Lenexa, House Minority Leader Brandon Woodard, D-Lenexa, Representative Jo Ella Hoye, R-Lenexa, and Representative Laura Williams, R-Lenexa, for sharing their time and experience, and to our 2026 Legislative Affairs Chair Dave Kepper of Security Bank of KC for keeping the meeting on track!

 

CHAMBER BOARD APPROVES 2026 STATE LEGISLATIVE AGENDA

The Lenexa Chamber Board of Directors has approved a legislative platform to guide our advocacy in the upcoming 2026 state legislative session.  The platform addresses a spectrum of issues important to the business community including tax policy, key business costs and regulations, K-12 and higher education, health care, transportation, economic development, and others.

Click here to view the Chamber’s 2026 State Legislative Agenda.

Questions or feedback?  Call Ashley Sherard, CEO, at 913-888-1414 or email asherard@lenexa.org.