Updates and Alerts

STATE LEGISLATIVE UPDATE (JAN. 19-23)
Property Tax Action in Week Two

State lawmakers had the day off on Monday for the Martin Luther King holiday, returning to the Capitol on Tuesday.

Week Two of the session mostly saw ongoing bill introductions and a handful of committee hearings. Committee action has mostly focused on receiving briefings and reports, as committee chairs ensure their committee members are fully up to speed and prepared to consider proposed legislation that will come before them this year, but hearings and action on some issues have already gotten underway with more scheduled in the upcoming week.

Notably, this week the Senate Taxation Committee held hearings, amended, approved, and forwarded to the full Senate for consideration a proposal aimed at controlling property taxes. The bill, SCR 1616, puts forth a proposed state constitutional amendment that would limit annual property valuation growth to no more than 3% except in certain circumstances. Proposed state constitutional amendments require 2/3 approval in both the House and the Senate to advance to a statewide vote. The committee amended the bill to specify that normal maintenance and repair may not be considered “improvements” to the property for purposes of the exceptions to the valuation limitation.
     The Department of Revenue estimates adoption of the resolution would reduce revenues of the statewide school finance mill levy by $218.6 million in FY 2028, $244.2 million in FY 2029, $271.6 million in FY 2030, $301.0 million in FY 2031, and $332.4 million in FY 2032, which under the current school finance formula would be offset from the state income/sales tax-funded State General Fund.
     After the Senate Taxation Committee advanced a similar bill last year, House leaders at that time expressed concern about this approach to property tax reductions, noting mill levies more than valuation drive property tax bills and the measure could shift tax burden among property classes.

Read other highlights and action from Week Two below, as well as a look at the week ahead:

Taxation
Providing for Property Tax Rebates. The Senate Taxation Committee held a hearing on SB 319, providing for a property tax rebate for certain real property used for residential or commercial/industrial purposes when such property sells in a qualifying sale for less than 97% of the county appraised value. The Department of Revenue estimates that SB 319 would impact property taxpayers and state/local property tax revenues by unknown amounts. The bill’s “fiscal note” says to the extent property tax revenues were rebated, it would affect state expenditures for aid to school districts — to the extent less property tax revenue would be available from the state’s uniform mill levy to fund expenditures for school districts, the state would be required to provide additional state aid from the sales/income tax-funded State General Fund. Read a summary of the bill.

Education
Expanding School Choice. The House Education Committee held a hearing on HB 2468, electing to participate in a federal tax credit program for individual contributions to scholarship granting organizations and increasing the aggregate tax credit limit on the existing Low Income Students Scholarship (LISS) program. The LISS program provides up to $8,000 per school year to eligible students for costs including tuition, fees, and expenses to attend an eligible nonpublic school. Contributors to the LISS program receive a state income tax credit currently equal to 75% of their contribution. The program has a $10 million cap that would be increased to $20 million under this bill, with possible additional increases tied to the amount of credits claimed up to a maximum of $30 million. An online summary of the bill is not yet available.

Economic/Workforce Development
Providing Legislative Review of New Occupational Licensing Requirements. The Senate Commerce Committee held an informational hearing on SB 30, requiring that adoption of new occupational licensing requirements and material changes to existing occupational licenses by a state agency be approved by joint resolution of the legislature unless otherwise ratified by the legislature and establishing a procedure for legislative review of such occupational licensing requirements.

This bill was considered during the 2025 legislative session, House and Senate negotiators agreed to a compromise Conference Committee Report (read the brief), the CCR passed the House (86-38) but has not been voted on in the Senate at this time.

Energy
Addressing Natural Gas Infrastructure Investment. On Thursday the House Utilities Committee held a hearing on HB 2435, enacting the natural gas infrastructure availability act outlining mechanisms a natural gas public utility would be allowed to use to establish rates to recover costs associated with new infrastructure investments. Read a summary of the bill.

Elections
Changing Local Election Years. On Tuesday the House Elections Committee held a hearing on HB 2452, changing local elections to even-years beginning in 2028 and requiring municipal official terms of either 2 or 4 years. Currently local elections for cities, school boards, community colleges, and other municipal offices occur in odd-years. This bill would move them to even-years alongside federal, state, and county elections. Supporters say the bill is intended to increase voter participation in local elections and that it will save county staffing and resources by consolidating elections. The measure was introduced by Rep. Pat Proctor, R-Leavenworth, Chairman of the House Elections Committee and a candidate for Kansas Secretary of State in 2026. Read a summary of the bill.

COMING THIS WEEK:

Taxation
Establishing Property/Casualty Insurance Savings Accounts. On Monday the House Taxation Committee will hold a hearing on HB 2430, enacting the insurance savings account act allowing individuals and corporations to establish insurance savings accounts with certain financial institutions to pay or reimburse insurance premiums and deductibles for property and casualty insurance. The measure provides for eligible expenses, requirements and restrictions for such accounts, and establishes state income tax deductions. Read a summary of the bill.

Expanding the Machinery and Equipment Property Tax Exemption. On Tuesday the House Taxation Committee will hold a hearing on HB 2406, expanding the current personal property tax exemption for commercial and industrial machinery and equipment acquired or transported into this state after June 30, 2006, to also include commercial and industrial M&E put into service on or before that date. The measure would have an estimated fiscal impact of about $10 million a year. Read a summary of the bill.

Education
Cultivating Career Readiness. On Monday the House Education Committee will hold a hearing on HB 2530, enacting the Career Readiness Education Development Innovation Transferability (CREDIT) act to require high schools to administer career readiness assessments to students and provide for the transferability of credentials earned through such assessments toward a degree. An online summary of the bill is not yet available.

Economic/Workforce Development
Cultivating Aviation/Aerospace Workforce. On Tuesday the House Commerce Committee will hold a hearing on HB 2464, extending a program that provides tax credits for contributions to graduates of aerospace and aviation-related educational programs and employers of program graduates. The program, which attracts and cultivates workforce serving an important Kansas industry, is set to expire in 2026 and would be extended until 2036. An online summary of the bill is not yet available.

Legal/Insurance
Invalidating Mandatory Arbitration Provisions in Insurance Contracts. On Thursday the House Judiciary Committee will hold a hearing on HB 2351, amending the uniform arbitration act of 2000 to make after July 1, 2025, certain mandatory agreements to appraise or arbitrate in contracts of insurance invalid and creating exceptions therefor. Read a summary of the bill.

Regulating Pharmacy Benefits Managers. On Wednesday the Senate Financial Institutions & Insurance Committee will hold a hearing on SB 360, enacting the Kansas consumer prescription protection and accountability act providing for regulation and registration of pharmacy benefits managers (PBMs). The role of PBMs and their impact on health care costs has been a matter of national debate. An online summary of the bill is not yet available.

Energy
Creating Requirements for Electric Transmission Projects. On Tuesday and Thursday the House Energy, Utilities & Telecom Committee will hold hearings on HB 2483, enacting the transparency and reform of utility expenditures act. The legislation appears primarily aimed at creating requirements and prohibitions related to electric transmission line projects. An online summary of the bill is not yet available.

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.