The Kansas Legislature adjourned its regular session March 27 and will return April 10 to consider overrides of any gubernatorial vetoes. Many conference committee reports were completed and voted on by the House and Senate in the final week and now await approval by Gov. Laura Kelly.
Property tax - HCR 5011 was a proposed constitutional amendment to cap property tax valuation increases at 4% per year. KLA is opposed to a valuation cap as it would inequitably shift the local property tax burden, which on average comprises about 85% of the mill levy, away from faster-growing subclasses of property like residential to slower-growing subclasses like commercial and agricultural land. The bill initially failed in the Senate 26-14, but later passed on a motion to reconsider, with a vote of 27-13. However, the House rejected the resolution 37-88. A motion to reconsider failed and the resolution no longer is viable.
The conference report for SB 35 passed the House 96-26 and the Senate 40-0. The bill would discontinue the 1.5 mill levy for the Kansas educational building fund and state institutions building fund. KLA supported SB 35 as it would provide broad-based property tax relief and ensure it applies equally across all property classes.
The Legislature’s attempt to slow the budget growth of local property tax authorities stalled in conference committee and the conference report on HB 2125 failed to receive a vote in either chamber. Initial conference negotiations would have required any local governing body to hold an election if that body sought to increase its budget by an amount equal to inflation plus new growth and voter-approved bonds, or 4% plus new construction, whichever was less. If the local tax authority did not exceed that threshold, it would be eligible for an allocation from the $60 million ASTRA fund to supplement local budgets. The conference report never was finalized due to concerns about the cost and logistics of holding a local election on budget authority.
Foreign ownership - H Sub for SB 9 passed the House 98-24 and the Senate 38-1. The bill would prohibit any foreign principal with a place of business in a country of concern (China, Cuba, Iran, North Korea, Russia and Venezuela) from acquiring any interest in real property in the state of Kansas within 100 miles of a military installation or utilizing any economic development program, unless such interest was too minor to merit consideration. An amendment was added in the conference committee that would direct the governor to consult with the attorney general and the Kansas Fusion Center to review any new acquisition of real property by any foreign principal located in the state as of July 1, 2025. KLA successfully negotiated an amendment to avoid potential disruptions in the meat processing supply chain. The legislation now awaits consideration by the governor.
Energy - The House concurred with Senate amendments to HB 2107, a bill to codify current laws in the statute regarding liability for damage caused by wildfires due to the fault of a public utility, on a vote of 109-16. KLA initially opposed the bill due to concerns it would limit the recovery of landowners when their property is damaged or destroyed by a fire. KLA was able to work with the electric utilities that drafted the legislation on an amendment in the House that struck problematic language regarding how economic damages would be calculated. The Senate added an amendment limiting claims to 10 years after a fire event. The bill now awaits action by the governor.
The House voted to concur with Senate amendments to HB 2040 on a vote of 123-2. The KLA-supported bill would extend the timeline from 120 to 180 days in which the Kansas Corporation Commission can make a final order on a transmission line siting application. Extending the timeline could allow additional opportunities for public and landowner input and promote clarity in the process. The bill now awaits action from the governor.
Water - S Sub for HB 2172, which would establish the Water Program Task Force to evaluate the state’s water programs to ensure available resources are being spent efficiently and funding is adequate, passed the Senate 40-0 and the House 116-8. The bill now awaits further consideration by the governor.
Budget - The conference report for SB 125 contained the budget for FY 2026, which reduces overall spending by $210 million from FY 2025. Comprised within it is $46.7 million for the state water plan, including $500,000 in cost-share monies for livestock producers to improve water efficiency. The budget also includes enhancements for meat and poultry inspection programs at the Kansas Department of Agriculture, as well as additional funding for engineering staff for the Kansas Department of Health and Environment-Livestock Waste Management Section. The bill passed the House 89-36 and the Senate 24-16.
With the adjournment of the regular session, KLA staff will engage with the governor, when necessary, to secure signatures on bills supported by the association and monitor the veto session in April.