Senator Rick Billinger Newsletter
February 14, 2022
TOPEKA - Last week, Governor Kelly vetoed the legislation containing the Ad Astra 2 Congressional Map. The Senate and the House overrode the veto.
The House and Senate both adopted the finalized version of the state’s new Attracting Powerful Economic Expansion (APEX) economic growth plan. The APEX plan includes important oversight components, including oversight by the State Finance Council. The APEX Plan sets the stage for thousands of new jobs and game-changing private sector investments in our state, as well as important corporate tax reductions that benefit all who do business in Kansas. The legislature included several critical oversight provisions to ensure proper fiscal responsibility in the years ahead.
The APEX Plan is an exciting and bold step that has the potential to drive significant economic activity to Kansas, and we look forward to seeing its responsible implementation in the months ahead. As I stated in a prior newsletter the legislature must be careful in providing incentives to bring in industries or businesses. This particular APEX Plan if accepted will cost over $1.0 billion which will considerably reduce our projected ending balances. Should any APEX project come forward, Republicans will expect the Governor to bring forward a balanced tax and budget proposal to the State Finance Council, and we must be cautious against any short-term payouts that would threaten the fiscal health of Kansas. If this offer is accepted it will impact our ability to reduce sales tax, such as taxes on food. To help drive taxes down for all who do business in Kansas, an important provision of the bill would lower the corporate income tax by .5% per project with a cap of two. In the amended legislation, the sunset of the program is on March 31, 2024, to ensure that the full legislature reviews the provisions of the APEX Act in just two years. The bill includes a refundable an investment tax credit of up to 15% of the business’ investment, which the state would refund over the period of a decade. The payroll tax refund would be capped at 7.5% for 10 years, but the State Finance Council could approve a higher refund of up to 10%. The bill includes a 5% refundable investment tax credit to the suppliers up to their first $50 million in capital investment, who would receive another percentage point of tax credits for every $10 million they invest up to the total of $100 million. The bill contains a reimbursement for suppliers for training costs up to $250,000 a year per supplier, with the primary manufacturing company able to receive to $5 million on an annual basis. It also establishes a $10 million matching incentive fund for the company to help with the relocation costs for employees who move from another state and make Kansas their primary residence. The bill also has claw back provisions in case the company relocates outside of the state in the 11th through 15th years following the year the manufacturer entered into the agreement with the state.
New legislation will hopefully help protect Kansans from identity theft by imposing stricter penalties. Sub for SB 300 will add to the definition of “covered person” a person who has engaged in identity theft or identify fraud, and also would add identity theft or identity fraud to the list of crimes for which committing, attempting, or conspiring to commit or soliciting, coercing, or intimidating another person to commit a misdemeanor or felony violation would constitute “racketeering activity.”
Last Thursday Wyandotte County voted to make their county a sanctuary city/county. An ordinance was passed that would give undocumented immigrants and others the opportunity to get a photo municipal ID so they can access government services. The ordinance prohibits local law enforcement agencies from helping federal authorities enforce federal laws. This makes one wonder how many midnight flights with illegals have been authorized to enter Kansas by Governor Kelly. Attorney General and Governor candidate Derek Schmidt has asked the legislature to pass legislation that would ban sanctuary cities/counties in Kansas.
Rick Billingr, R-Goodland, is the 40th district senator which includes:
Cheyenne, Decatur, Ellis, Gove, Graham, Logan, Norton, Rawlins, Sheridan, Sherman, Thomas, Trego and Wallace Counties
Phillips County: Cities: Logan, Long Island, Prairie View, Speed; Townships: Beaver, Belmont, Dayton, Granite, Logan,
Long Island, Mound, Plainview, Prairie View, Solomon(part) and Towanda