Updates and Alerts

STATE LEGISLATIVE UPDATE (FEB. 23-27)
Week Seven Starts Session Second Half

Legislators returned to the Capitol on Tuesday, following a short break after the Turnaround deadline.

Many significant issues remain to be considered in the second half of the session, among them finalizing tax policy changes, the state budget, and education funding. Committees only have a couple weeks left to consider and advance bills before the next major session deadline on March 20 — when non-exempt bills must be acted on by the opposite chamber of origin to continue to advance (House bills out of the Senate, Senate bills out of the House) — and at this stage the mood in the Capitol is one of focus and urgency.

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

Taxation
Discouraging Property Tax Growth. The House amended and passed (76-45) HB 2745, authorizing voter protest petitions if a local government seeks 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 not less than 5% of voters who cast a ballot in the last secretary of state election to sign, would veto the local government budget beyond the maximum 3% increase allowed. The House amended 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. The legislation would not apply to the State or to schools. Read a summary of the bill.
       The bill now moves to the Senate, where the Senate Taxation Committee will hold hearings on the bill on Tuesday and Wednesday.

Limiting Property Valuation Increases. The Senate passed (30-10) SCR 1616, putting forth a proposed state constitutional amendment limiting real property valuation increases to no more than 3% annually with some exceptions. Proposed state constitutional amendments require 2/3 approval in both the House and the Senate to advance to a statewide vote, which under the bill would take place this August. The limit would not apply when the property includes new construction or when improvements have been made (normal maintenance and repair would not be considered “improvements” for purposes of the limitation), the property class changes, the property becomes disqualified from exemption, the property is first listed for taxation or first listed as escaped or omitted property, or the legal description of the parcel changes. The benefits of the valuation limitation would remain in place when title to the property is transferred, changed, or conveyed to another person. 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. Read a summary of the bill. The bill now moves to the House.

Requiring Certain Valuation Adjustments and Reviews. The House Taxation Committee amended, approved, and forwarded to the full House for consideration HB 2644, requiring a county appraiser to adjust the value of residential and commercial real property and residential personal property upon a final determination of valuation appeal or obtain an independent fee simple appraisal if the appraised value exceeds a 5% increase each year for five years. The House committee amended the bill to include residential personal property. Read a summary of the bill. The bill has been scheduled for consideration and debate by the full House on Monday.

Repealing Sales Tax on Remodeling Services. The House Taxation Committee held a hearing on HB 2162, excluding from sales taxation the service of installing or applying personal property for the reconstruction, restoration, remodeling, renovation, repair or replacement of a building or facility. Under current law, no sales tax is imposed for the service of installing or applying personal property in connection with original construction of a building or a facility that becomes part of real estate. This bill would extend this sales tax exemption to include reconstruction, restoration, remodeling, and similar non-original construction services. This bill was held over from the 2025 session, where it received a committee hearing but did not advance. Read a summary of the bill.
       The Senate Taxation Committee will hold a hearing on a mirror Senate bill, SB 148, on Thursday.

Permitting Appraisers to Request Lease Agreements. The House Taxation Committee held a hearing on HB 2782, permitting county appraisers to request lease agreements from taxpayers when valuing property for property tax purposes. Read a summary of the bill.

Economic/Workforce Development
Extending and Expanding the STAR Bonds Incentive Program. The House amended and passed (82-38) SB 197, extending the sunset for the state’s STAR bonds incentive program. Provisions in the bill also impose new eligibility, reporting, and enforcement measures. In 2026 a House committee amended the bill to remove provisions relating to the program’s use for mall facilities or vertical construction and creation of a Wyandotte County Port Authority, and to add additional reporting requirements. 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 . Read a summary of the bill.
       The Senate previously passed the bill (32-8) in 2025. It will go back to the Senate to concur with the changes or send the measure to a conference committee for negotiation.

Repealing Underutilized Income Tax Credit Incentives and Expanding HPIP. The House Taxation Committee held a hearing on HB 2757, discontinuing certain income tax credit incentives that are unused, underutilized, or have previously been repealed. The bill also includes provisions extending the income tax credits for angel investors and for aviation-related employment, both set to expire in 2026 if they are not extended, and providing expanded options in the High-Performance Incentive Program (HPIP) for tax credit transfers and wage requirements for rural businesses. This bill is being sought by a working group of business, economic development, and CPA organizations, who spent the legislative interim reviewing incentive programs and tax credits to determine what changes, if any, could improve and clean up the state’s incentive toolbox. The Department of Revenue projected the aviation ($8.2M), angel investor ($8M), and HPIP ($153.9M) provisions in the bill together would reduce state revenues by an estimated $170 million in FY 2028. Changes to the bill are expected in order to address its high fiscal impact. Read a summary of the bill.
       Credits suggested for repeal include abandoned well plugging credit, agritourism liability insurance credit, alternative fuel tax credit, assistive technology contribution credit, biomass-to-energy plant tax credit and deduction, carbon dioxide capture and sequestration tax deduction, disabled access credit, electric cogeneration facility credit and deduction, employer health insurance contribution credit, environmental compliance credit, friends of cedar crest association credit, petroleum refinery credit, regional foundation credit, storage and blending equipment credit and deduction, and swine facility improvement credit.
       HPIP changes include providing alternatives to existing wage requirements, including alternate wage requirements in rural areas (intended to replace the current Rural Opportunity Zone program), revising annual certification requirements, and expanding transferability options. The HPIP program provides an income tax credit equal to 10% of qualifying capital investment by an eligible company.

Cultivating Aviation/Aerospace Workforce. The Senate Taxation Committee held 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 industry in Kansas, including a meaningful cluster in Lenexa and Johnson County, is set to expire in 2026 and would be extended until 2036. Read a summary of the bill.
       The House previously passed the bill (81-39).

Extending Alcohol Sales During the World Cup. The Senate Commerce Committee held a hearing on SB 393, authorizing the sale of alcoholic beverages 23 hours a day, seven days a week for the duration of the FIFA 2026 World Cup. Counties would have the option to opt out of the extended hours. Read a summary of the bill.

Legal
Revising Public Construction Contract Requirements. The House Commerce Committee held a hearing on SB 335, requiring public construction contracts to include a mutual waiver of consequential damages. Read a summary of the bill.
       The Senate previously passed the bill (37-2).

Unemployment Compensation
Continuing to Modernize and Reform UI Law. The House Commerce Committee amended, approved, and forwarded to the full House for consideration HB 2764 (now amended into Senate bill, SB 229) making clarifying revisions to unemployment security law, following up on the comprehensive UI legislation passed in recent sessions aimed at compensating injured workers while protecting the integrity of the employer-funded Employment Security Trust Fund.  The House committee further amended the bill to narrow its scope, focusing on an updated framework for temporary lay-offs and guidelines for supplemental unemployment benefit plans. Originally the bill included provisions clarifying UI oversight, payment of benefits, extended benefits, benefit eligibility, filing and appeal procedures, KDOL reporting and notice requirements, and employer classification, contribution, and rate assignments. An online summary of the amended bill is not yet available.

Education
Expanding School Choice. The Senate Education Committee held a hearing on HB 2468, electing to have Kansas participate in a federal tax credit program for individual contributions to scholarship granting organizations and increasing the aggregate tax credit limit on the state’s existing Low Income Students Scholarship (LISS) granting 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. Read a summary of the bill.
       The full House previously passed the bill (70-49). A House committee amended the bill to say Kansas can’t impose rules or regulations more stringent than federal law and to require annual reporting.

Utilities
Addressing Natural Gas Infrastructure Investment. The Senate 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. This bill is similar to comprehensive legislation enacted addressing the electric utility industry, aimed at promoting infrastructure investment while protecting ratepayers. Read a summary of the bill.
       The House previously passed the bill (115-7).

THE COMING WEEK

Taxation
Requiring Certain Valuation Adjustments and Reviews. On Monday the House has scheduled for consideration and debate HB 2644, requiring a county appraiser to adjust the value of residential and commercial real property and residential personal property upon a final determination of valuation appeal or obtain an independent fee simple appraisal if the appraised value exceeds a 5% increase each year for five years. The House committee amended the bill to include residential personal property. Read a summary of the bill.

Discouraging Property Tax Growth. On Tuesday and Wednesday the Senate Taxation Committee will hold hearings on HB 2745, authorizing voter protest petitions if a local government seeks 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 not less than 5% of voters who cast a ballot in the last secretary of state election to sign, would veto the local government budget beyond the maximum 3% increase allowed. The legislation would not apply to the State or to schools. Read a summary of the bill.
       The House previously passed the bill (76-45). The House amended 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.

Repealing Sales Tax on Remodeling Services. On Thursday the House Taxation Committee will hold a hearing on SB 148, excluding from sales taxation the service of installing or applying personal property for the reconstruction, restoration, remodeling, renovation, repair or replacement of a building or facility. Under current law, no sales tax is imposed for the service of installing or applying personal property in connection with original construction of a building or a facility that becomes part of real estate. This bill would extend this sales tax exemption to include reconstruction, restoration, remodeling, and similar non-original construction services. This bill was held over from the 2025 session; it did not receive a committee hearing. Read a summary of the bill.
       The House Taxation Committee held a hearing on a mirror House bill, HB 2162.

Economic/Workforce Development
Enacting “By-Right” Housing Development.” On Wednesday the House Commerce Committee will hold a hearing on SB 418, enacting a by-right housing development act providing a streamlined permit approval process for by-right housing developments, allowing 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. While most bills are introduced as committee bills, this bill was introduced by Sen. TJ Rose, R-Olathe, and Senate President Ty Masterson, R-Andover. Read a summary of the bill.
       The Senate previously passed the bill (35-5).

Legal
Creating New Requirements for Certain Expert Witness Testimony. On Tuesday the House Judiciary Committee will hold a hearing on 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 is a tort reform measure backed by the Kansas Chamber that codifies changes to federal evidentiary standards (Daubert standard.) Read a summary of the bill.
       The Senate previously passed the bill (40-0).

Enacting the Right to Repair Act. On Thursday the Senate Commerce Committee will hold a hearing on HB 2700, enacting the Kansas right-to-repair act establishing a narrowly-tailored right for persons who purchase or lease 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 available for sale on or after July 1, 2026. This bill is being sought by Garmin. Read a summary of the bill.
      The House previously passed the bill (122-2).

Regulating Apps With Respect to Minors. On Tuesday and Wednesday the House Federal & State Affairs Committee will hold hearings on SB 372, enacting the app store accountability act regulating app store and app developer operations with respect to minors and providing for enforcement under the Kansas consumer protection act. Businesses have concerns with some of the bill’s provisions as well as it scope and proposed amendments are expected. Read a summary of the bill.
       The Senate previously passed the bill (34-6). A Senate committee removed a provision authorizing a private cause of action, which had raised concerns among the business community, and revised certain enactment timelines. The full Senate further amended the bill with a definition clarification.

Limiting Local Regulation of Home-Based Businesses. On Tuesday the Senate Commerce Committee will hold a hearing on HB 2343, creating the “no-impact home-based business fairness act” limiting the regulatory power of municipalities over “no impact” home-based businesses. The permitted use of a home-based business under the bill would not supersede certain restrictions in homeowner association bylaws. Proponents argue there is an 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 short-term rentals, in-home daycares, etc. This bill was held over from the 2025 session. Read a summary of the bill.
       The House previously passed the bill (74-49) in 2025.

Insurance
Creating Portable Benefit Plans for Independent Contractors. On Thursday the Senate Commerce Committee will hold a hearing 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.) Read a summary of the bill.
       The House previously passed the bill (103-21).

Health Care
Regulating Pharmacy Benefits Managers. On Monday the House Insurance Committee will hold a hearing on SB 360, enacting the Kansas consumer prescription protection and accountability act providing for new regulation and registration of pharmacy benefits managers (PBMs). 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 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 bill.
       The Senate previously passed the bill (32-8). The full Senate amended the bill to limit or remove certain reporting requirements.

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.