Topeka Buzz: Wednesday, February 12

Topeka is closed today due to winter weather, but not before passing 3 bills in the House and 7 in the Senate. The legislature looks likely to reject Medicaid expansion, but also create a blank-check general bond mechanism...

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-Jason

The 🐝 Rating System

Each bill is evaluated based on four key factors: Scope of Impact, Financial Impact, Urgency, and Controversy. These factors are weighted to reflect their influence on the bill's overall importance. Here's how the ratings break down:

  • 🐝 Minimal Impact: Legislation with limited reach or lower urgency and controversy.

  • 🐝🐝 Moderate Impact: Proposals with a broader or more notable influence, addressing issues of medium urgency or financial significance.

  • 🐝🐝🐝 High Impact: Bills with widespread consequences, urgent needs, or significant public and political attention.

Daily Legislative Update 🐝
Wednesday, February 12, 2025

Below is today’s morning update on published activities in the Kansas Legislature.

Table of Contents

Top Stories of the Day

Medicaid Expansion is back on the docket

The Governor’s office introduced HB 2375 and SB 257β€”the Healthcare Access for Working Kansans (HAWK) Actβ€”in another attempt to add Kansas to the list of 41 states that have expanded Medicaid under the Affordable Care Act. Medicaid expansion has been a well-known priority for Governor Kelly for many years, and with only two years remaining in her final term there is a shrinking window of opportunity.

If enacted, the law would provide healthcare access to roughly 150,000 Kansans currently without. Kansas Republicans have argued for years that the cost is too high.

Proposed amendment to authorize selling bonds?

Currently, Kansas avoids taking on direct state debt due to constitutional restrictions, relying on alternative financing methods like revenue bonds and lease obligations. SCR 1612, a proposed constitutional amendment, would significantly change this approach by allowing the Legislature to issue general obligation (GO) bonds directly, making it easier for the state to borrow…but also increasing potential liabilities.

An abridged summary on government bonds

All 50 states are allowed to sell public debt, but the rules vary based on each state's constitution and statutes. States typically issue debt in the form of bonds to fund infrastructure, education, transportation, and other public projects.

There are five broad types of state debt:

  • General Obligation (GO) Bonds – Backed by the state's taxing power. In Kansas, GO bonds must be approved on a statewide ballot.

  • Revenue Bonds – Repaid through specific revenue sources (e.g., toll roads, utility fees). These are widely used in Kansas.

  • Lease Revenue Bonds – Paid through lease agreements, often used for public buildings. Frequently used as part of construction projects.

  • Appropriation Bonds – Subject to annual legislative approval. These are allowed in Kansas, but because the legislature must authorize funds in the annual budget they suffer higher interest rates.

  • Pension Obligation Bonds – Used to fund pension liabilities.

Kansas has a moderate debt load compared to other states because of its restrictions. The state’s credit rating is generally stable, but debt issued by agencies (like KPERS pension bonds) has contributed to long-term liabilities.

The current bond restrictions have been in place since the adoption of the original Kansas Constitution in 1861. From a fiscal conservatism perspective, this proposed amendment is one of the largest and least aligned policy positions you could envision for state debt.

[Speculation: the Republican supermajority wants this capability to fund initiatives without needing to ask voters for tax increases or otherwise broadly disclose the new debt. Chiefs Stadium, anyone?]

Bills and Resolutions

UPDATE: Summaries of these bills are now published on BillBee. The links below go directly to each bill’s writeup.

Bills Under Consideration

House Bills on the Floor for Consideration

  • Final Action on Bills and Concurrent Resolutions:

    • HB2027 (PASSED) – Public Assistance: Reorganizing subsections of the public assistance statute and updating cross-references. Continues to not expand Medicaid and tightens criteria to qualify for TANF.

    • HB2085 (PASSED) – Livestock: Extending the expiration of permits issued under the water pollution control permit system from five to ten years; allowing the secretary to issue permits for terms less than ten years if valid cause exists.

    • HB2092 (PASSED) – Labor and Employment: Regulating professional employer organizations; setting registration expirations; establishing matching surety provisions; eliminating the market value measure of bond sufficiency.

  • General Orders (Bills Under Consideration):

    • HB2375 – Health and Healthcare: Enacting the Healthcare Access for Working Kansans (HAWK) Act, which would expand Medicaid; expanding medical assistance eligibility; mandating the study of Medicaid expansion topics.

    • HB2376 – Alcoholic Liquor: Transferring licensure of off-premise and on-premise cereal malt beverage retailers from cities and counties to the Alcohol Beverage Control Division; allowing local licensure by cities or counties.

    • HB2377 – Sales and Use Tax: Apportioning countywide retailers' sales tax based on total assessed valuations of property taxes rather than property taxes levied.

    • HB2378 – Removal of Squatters Act: Requiring owners or agents of dwelling units to provide affidavits regarding persons identified as squatters; establishing criminal penalties for false affidavits; defining duties for county sheriffs.

    • HB2379 – Firearms: Enacting the Kansas Voluntary Do-Not-Sell Firearms List Act; permitting individuals to add themselves to the list via healthcare providers; establishing fines or community service for violations.

Senate Bills on the Floor for Consideration

  • Final Action on Bills and Concurrent Resolutions:

    • SB5 (PASSED) – Elections: Transparency in revenues underwriting elections act; prohibiting the use of funds provided by the U.S. government for election-related activities unless approved by the legislature.

    • SB7 (PASSED) – Townships: Relating to bonding authority; increasing statutory limits based on township population; increasing limits for township fire department improvements.

    • SB36 (PASSED) – Conservation Districts: Financing operating conservation districts; increasing the cap on funds disbursed by the Division of Conservation; enhancing state matching funds based on county allocations.

    • SB84 (PASSED) – Crimes: Modifying criminal use of financial cards to include certain conduct involving gift cards; addressing property-related crimes.

  • Consent Calendar (Bills Eligible for Fast-Track Approval):

    • SB32 (PASSED) – Insurance: Reducing insurance company premium tax rates; discontinuing remittance and crediting a portion of the premium tax to the Insurance Department Service Regulation Fund.

    • SB125 (PASSED) – Claims Against the State: Authorizes $6,480 to be spend tor reimburse various parties on specific claims against the state.

    • SB135 (PASSED) – Protection Orders: Relating to the Protection from Abuse Act; providing precedence for child-related orders.

  • General Orders (Bills Under Consideration):

    • SB258 – Elections: Defining the election crime of false representation of an election official.

    • SB259 – Taxation: Relating to income tax; making future tax rate decreases contingent on exceeding revenue estimates.

    • SB260 – Parimutuel Wagering: Modifying the Kansas Parimutuel Racing Act; changing qualifications for organization licenses; redefining horsemen's associations and nonprofit organizations; altering the distribution of certain tax revenues.

    • SB261 – Alcoholic Beverages: Authorizing the Director of Alcoholic Beverage Control to issue licenses to individuals with certain felony convictions older than ten years; establishing penalties for violations.

    • SB262 – Eminent Domain: Eliminating the legislature's power to take private property for economic development; narrowing the definition of public use; requiring a good faith offer of compensation prior to filing an eminent domain action; setting appeal conditions.

    • SB263 – Schools: Establishing standards and requirements for active shooter drills conducted by public and accredited nonpublic elementary and secondary schools.

    • SB264 – Public Assistance: Removing noncooperation with child support from disqualifications for child care subsidies.

    • SCR1612 – Constitutional Amendment: Proposing an amendment to Article 11 of the Kansas Constitution to grant the legislature the power to contract public debt.

New Bills Introduced

House Bills:

  • Miscellaneous / Commemorative and Cultural Acts:

    • 🐝 HB 2372: Designate and fund Kansas Fallen Firefighters Memorial.

  • Immigration:

    • 🐝🐝🐝 HB 2373: Restricts public benefits for unlawfully present aliens.

  • Healthcare and Public Health:

    • 🐝🐝 HB 2374: Establishes a specialty medical student loan program.

    • 🐝🐝 HB 2375: Expand Medicaid under HAWK Act for working Kansans.

  • Taxes, Fiscal Policy, and Economic Development:

    • 🐝🐝 HB 2376: Transfers cereal malt beverage licensure to state level.

    • 🐝🐝 HB 2377: Changes county sales tax apportionment method.

  • Criminal Justice, Public Safety, and Corrections:

    • 🐝🐝 HB 2378: Establishes removal process and penalties for squatters.

    • 🐝🐝 HB 2379: Establishes voluntary firearms do-not-sell list in Kansas.

Senate Bills:

  • Government Organization, Elections, and Public Administration:

    • 🐝 SB 258: Criminalizes false representation as election official.

    • 🐝🐝 SB 262: Eliminates eminent domain for economic development.

  • Taxes, Fiscal Policy, and Economic Development:

    • 🐝🐝 SB 259: Tax decreases depend on exceeding revenue targets.

    • 🐝🐝 SB 260: Modifies Kansas parimutuel wagering laws and tax revenue distribution.

  • Criminal Justice, Public Safety, and Corrections:

    • 🐝 SB 261: Allows rehabilitated felons liquor license eligibility.

  • Education:

    • 🐝🐝 SB 263: Establishes standards for active shooter drills in schools.

  • Child Welfare, Family Services, and Social Assistance:

    • 🐝🐝 SB 264: Removes child support noncooperation from child care disqualifications.

Senate Concurrent Resolutions:

  • 🐝🐝🐝 SCR 1612: Amend Kansas Constitution for public debt legislation.

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