February 15, 2021
SENATE HIGHLIGHTS
This week marked the fifth week of session with the first half of the legislative session almost behind us. As we approach “turn-around” which is March 5th, February 22nd will be the last week for committees to hear and work bills before the half-way point of 2021 session.
FLOOR ACTION – February 9th and 11th
The Senate confirmed four appointees nominated by the Governor - State Board of Tax Appeals, Chief Hearing Officer Thomas Browne; University of Kansas Hospital Authority, Member David Dillon; Kansas Human Rights Commission Michael Kane and State Long Term Care Ombudsman Camille Russell. State law in Kansas requires that certain appointments by the Governor or other state officials be confirmed by the Senate prior to the appointee exercising any power, duty, or function of the office.
SB 22 - would enact the Rebuilding Employers and Livelihoods while Investing in Everyone’s Future (RELIEF) Act. A brief run through of the bill which passed off the Senate floor include: Kansans would be able to itemize regardless if the standard deduction is not claimed for federal income (can itemize on Kansas Taxes and not Federal Taxes). The state of Kansas will “decouple” from the federal government which simply means Kansans could itemize on state w/o itemizing on Federal. It would raise Kansas single deduction to $3,000 then $3,600 in 2021 and $4,050 in 2022 and married from $7,500 to $9000 in 2021 and $10,125 in 2022. SB 22 would exempt Social Security benefits (seniors) and allow retirement benefits to be subtracted from Kansas income taxes. It would decouple Kansas from federal government on business provision (GILTI) which is a tax Kansas has never collected until federal changes in 2017. (Only 6 states fully tax GILTI. This tax affects large companies in Kansas who employ thousands of people including Spirit, Cargill, Pfizer, Seaboard to list a few). SB 22 also clarifies that victims of ID theft will not owe Kansas individual income tax on unemployment compensation that was fraudulently obtained by another individual – we can trace the thief with this data on the tax return form.
As this was the first major income tax bill of the session – expect many changes to SB 22 as it moves along the process. It will now be sent to the House where it may be scheduled for a hearing in House Tax committee or they may propose their own bill where through votes of their members may change the direction of income tax measures. The final step would be Conference Committee action where this bill and other versions of income tax bills will be merged together for final votes in each chamber. And lastly be sent to the Governor for a final signature or veto.
SB 61 - would change the definition of “eligible student” and “public school” in the Tax Credit for Low Income Students Scholarship Program (TCLISSP) Act which passed in 2015. The current program provides tax credits to individuals to fund scholarships to students who receive free lunch and only those students in the 100 lowest performing elementary schools. SB 61 would expand the eligibility to children who receive free or reduced lunches in Kansas. It would also be available to children in any public school in Kansas. The bill would add a requirement for qualified schools participating in the program to prominently display a link on their website that directs individuals to statutorily published reports on the Kansas State Department of Education’s website. It would require all qualified schools participating in the TCLISSP to provide a link on the school’s accountability reports webpage to the Kansas Department of Education webpage for school accreditation, performance accountability and achievement. In addition, the Department of Education would be required to prepare a performance accountability and achievement report for each accredited nonpublic school in Kansas. Current law requires these reports for public schools only. Each scholarship is limited to $8,000 and there is a $10 million annual cap on the amount of tax credits available to fund the program. If the amount of credit exceeds the contributor’s tax liability in any one taxable year, the remaining portion of the credit may be carried forward until the total amount of the credit is used.
SB 32 - allows school districts to pay the tuition for a student's dual or concurrent enrollment in a postsecondary educational institution and requiring a tuition waiver for foster children who are dually or concurrently enrolled.
SB 36 - permits employees of salvage vehicle pools to perform vehicle identification number inspections and salvage vehicle pools and dealers to apply for ownership documents for vehicles that are disclaimed by insurance companies.
SB 55 - would clarify the authority of healing arts school clinics to provide healing arts services. The bill would allow schools statutorily exempted from State Board of Regents approval requirements to be exempted from the prohibition on the corporate practice of medicine. The bill would also allow for offsite clinics owned or operated by a school in partnership with other providers to engage in the practice of healing arts.
SB 58 - would add a provision to the Kansas Criminal Code that would prohibit the filing of certain liens or claims against real or personal property and provide for criminal penalties in such instances.
SB 64 - amends the Kansas Private and Out-of-State Postsecondary Education Institution Act
(Act) to clarify the State Board of Regents’ authority over private and out-of-state institutions. The bill would allow an institution currently exempt from the Act to apply to the Board for a certificate of approval if it is required for the institution to be eligible to receive federal Title IV student financial aid.
SB 70 - repeals the sunset on an exclusion of certain motor vehicle manufacturer rebates from the selling price for sales tax purposes. Current law excludes cash rebates granted by manufacturers to purchasers or lessees of new motor vehicles if such rebates are paid directly to retailers, but this provision is scheduled to sunset on June 30, 2021. Additionally, the bill would exclude discounts and coupons that are reimbursed by a third party from the definition of “sales or selling price” for the purpose of Kansas retail sales tax.
SB 4 - would make unlawfully tampering with electronic monitoring equipment a severity level 8, nonperson felony in the case of electronic monitoring equipment and would also make unlawfully tampering with electronic monitoring equipment a class A nonperson misdemeanor.
SB 56 - would amend law related to notices offering help to victims of human trafficking to require a prominent notice of help be posted in any place required to post notices to additional locations and businesses.
SB 68 - would authorize and establish a fee fund for a firefighter distinctive license plate.
SB 69 - would authorize the Love, Chloe Foundation distinctive license plate.
GOOD NEWS FOR SENATE DISTRICT #36
The Department of Commerce 2021 Community Development Block Grant Program has awarded 32 projects across the state totaling $13,864,149 of federal funds received to the state of Kansas. Six cities and counties in Senate District #36 will receive these grants: City of Concordia - $48,975, City of Mankato - $600,000, City of Lincoln - $35,000, City of Vermillion - $250,000, City of Russell – $116,228 and Phillips County $192,514. The CDBG program is administered by the Kansas Department of Commerce and provides federal funds to local government for the development of viable communities by addressing their house, public facilities and development needs. These funds are one of the Department’s primary tools in supporting the state’s small, predominately rural communities.
Governor Kelly announced the Historic Sites Board of Review awarded $1,168,492 for 15 historic preservation
projects across the state as part of the 2021 round of Heritage Trust Fund (HTF) grants. The Lincoln State Bank in Lincoln was awarded a $90,000 grant which was the maximum amount allowed in the program. The HTF reimburses expenses for projects that preserve or restore historic properties. Qualifying expenses include professional fees and construction costs. Properties owned by the state or federal governments are not eligible, but those owned by local governments, private individuals, non-profit, and for-profit entities qualify. Individual grant awards may not exceed $90,000 and must be matched by the grant recipient.
1099’s and Fraud
If you have received a 1099-G form from the Kansas Department of Labor, but have not filed for unemployment insurance benefits or if you or your employer have received this 1099-G form and you are still employed, please visit immediately https://uiassistance.getkansasbenefits.gov/ and fill out a “1099 Protest/Dispute.” Please be sure to upload an additional document known as an Unsworn Declaration which can be found here: https://www.dol.ks.gov/docs/default-source/ui-benefits-forms/1099-g-forms/k-frd-100.pdf.
If you have any reason to believe that your information is being used for fraudulent purposes in relation to unemployment insurance benefits, visit immediately https://www.dol.ks.gov/fraud and click “Click Here to Report Fraudulent Activity.” This year the agency also has a specific phone line for claimants to call with questions concerning 1099s. The number is 785-575-1461.
ORPHAN TRAIN PODCAST – Concordia
One of the true treasures in Senate District #36 is the Orphan Train Museum. This incredible facility and story is something every Kansan should see, understand, and celebrate. Under the leadership of Shaley George and her board of directors; the Museum continues to do an amazing job of collecting, archiving, and sharing the Orphan Train story which is such a critical part of both Kansas and American history. Scott Heidner with Braden Heidner Lowe & Associates in Topeka records podcasts of interesting people and places in Kansas and spent a day in Concordia and recorded a conversation with Shaley and it is now available to the public at https://bhlpodcasting.libsyn.com/bhl-podcast-show-ft-shaley-george-national-orphan-train-complex. Listen in and enjoy the discussion of this historic site.
I always encourage you to stay informed of the issues under consideration by the Kansas Legislature. Committee schedules, bills, and other helpful information can be easily accessed through the legislature’s website at www.kslegislature.org. You are also able to ‘listen in live’ at this website. Please do not hesitate to contact me with your thoughts, concerns, and suggestions. An email is the best at this point in the session.
Thank you for the honor of serving you!
Senator Elaine Bowers
Kansas State Capitol Building
Room 223-E300
SW 10th St.
Topeka, KS 66612
[email protected]
785 296-7389
www.kslegislature.org
Elaine Bowers, R-Concordia, is the 36th Kansas District senator. The 36th District includes Cloud, Jewell, Lincoln, Mitchell, Osborne, Ottawa, Republic, Rooks, Russell, Smith and Washington counties.