27 Feb 2026 Kansas Statehouse Insider – Week Seven
Listen to this week’s report:
Following the Turnaround, the Kansas Legislature’s seventh week quickly shifted to major policy and budget debates. While committees in both chambers began hearing bills from the opposite chamber, the House took up two of the session’s most closely watched issues: the state budget and property tax relief. With the Legislature now in the second half of the session, committees will work through bills that survived Turnaround, and negotiations will intensify on other high-profile measures.
After several hours of debate, the House passed its version of the state budget for fiscal years 2026, 2027, and 2028. The measure passed with just 68 of the required 63 votes. The Senate has yet to run its version of the budget on the floor, but is expected to do so early next week. Budget discussions remain central to the remainder of the session, particularly as lawmakers weigh spending priorities alongside revenue projections and long-term fiscal stability.
In addition, the House advanced a property tax bill that was significantly amended on the floor. The proposal includes changes aimed at limiting future valuation growth and adjusting certain levy and rate calculations, part of a broader effort to respond to concerns about rising property tax burdens on homeowners, businesses, and agricultural producers. The Senate passed SCR 1616, its proposed constitutional amendment, with the required two-thirds majority. The bill would amend the Kansas Constitution to place additional parameters around how property tax valuations are determined and limited, with the intent of providing longer-term structural guardrails.
Grain Theft
HB 2422 would increase the presumptive criminal penalty for theft of at least 400 bushels of grain to a severity level 6, non-person felony. This is a “border-box” penalty allowing either presumptive probation or imprisonment based on the defendant’s criminal history. The House passed the bill on a vote of 123-0. The Senate Judiciary Committee held a hearing on the bill on February 25.
Food Additives in School Food
SB 390 would prohibit the following additives in food provided by schools as part of certain food service programs and requiring schools to certify that school facilities do not serve food that contains Butylated hydroxyanisole (BHA) or various other food additives, including Brominated vegetable oil, BVO; potassium bromate; Propylparaben; Azodicarbonamide; titanium dioxide; FD&C blue No. 1; FD&C blue no. 2; FD&C green no. 3; FD&C red no. 3, FD&C red no. 40; FD&C yellow no. 5; or FD&C yellow no. 6. The Senate Committee on Agriculture amended the bill to remove reference to BHA. The Senate passed the bill 40-0, and the bill has been referred to the House Committee on Agriculture.
Triple-Trailers on Highways
SB 411 would authorize the use of triple trailers on highways, increasing the allowable gross weight for such vehicle combinations and allowing the use of trailers with dealer license plates. Following a February 10 hearing in the Senate Transportation Committee, the bill received no further action and is no longer a live bill.
Gross Vehicle Weight Definitions
HB 2604 was introduced at the request of the Kansas Dept. of Revenue to amend statutory definitions regarding commercial motor vehicles by: adding gross vehicle weight to the definitions of class A, B, and C commercial vehicles in vehicle registration statutes; align definitions of commercial motor vehicles in the Kansas Uniform Commercial Drivers’ License Act (CDL Act) and the registration statute [Note: These definitions would be the same as definitions in federal law establishing standards for commercial drivers licenses, in 49 CFR Part 383.]; add a definition of “air mile” to the CDL Act [Note: Farm CDL exemptions apply within 150 air miles of the farm]; and add definitions of “gross vehicle weight” to registration statutes and the CDL Act, to mean the weight of the vehicle or power unit plus the weight of the load or the towed unit or units. The House passed the bill 122-2, and it has been referred to the Senate Committee on Transportation.
English Proficiency for Commercial Drivers
HB 2583 would require commercial motor vehicle drivers to possess certain identification documents and proficiency in the English language while operating a commercial motor vehicle. Following a hearing in the House Transportation Committee, the bill received no further action and is no longer a live bill for this session.
Citizenship Status on Driver’s License
HB 2448 would require a person’s citizenship status to be listed on their driver’s license. After passing the House on a vote of 77-41, the bill was referred to the Senate Committee on Federal and State Affairs.
Short Line Income Tax Credit
HB 2469 expands the transferability of the existing income tax credit for qualified shortline railroad track maintenance expenditures. The House Tax Committee held a hearing on the bill on February 4, but no further action has been taken.
Lower Electric Utility Rates
HB 2483 was introduced at the request of a broad stakeholder coalition that seeks to lower electric utility rates for all rate payers. Referred to as the “TRUE” act, the bill seeks “transparency & Reform of Utility Expenditures.” Following a hearing in the House Committee on Energy, Utilities, and Telecommunications, no further action was taken and the bill is no longer a live bill this session.
Corporate Income Tax – Single Sales Factor Apportionment
HB 2442 would provide for the apportionment of business income by a manufacturer of alcoholic liquor by the single sales factor. The bill was referred to the House Tax Committee but has not received a hearing.
Senate Property Tax Relief Proposal
The Senate advanced its property tax bill SCR 1616 this week on a bipartisan vote of 30-10. The bill proposes amending the Kansas Constitution to limit annual increases to the assessed valueof residential and commercial property (for tax purposes) to no more than 3 percent. The bill, which is on the Senate calendar pending further action, appears to have strong Senate support. As a constitutional question, the bill requires passage by a supermajority of the legislature but does not require the Governor’s signature. If passed by the legislature, the measure would appear as a ballot question on the next statewide ballot and become effective in 2027.
House Property Tax Relief Proposal
HB 2745, as amended and passed by the House on a vote of 76-45, would create a property tax funding limit and repeal the existing revenue neutral rate notice and hearing requirements for taxing jurisdictions. In cases of a successful protest petition of 5 percent of the voters, the bill would limit the amount of ad valorem property tax revenue used to fund a taxing jurisdiction’s budget to no more than 103 percent of the amount from the prior year, with certain exclusions. If qualified voters totaling at least 5 percent of the votes cast for the office of Secretary of State in the most recent general election in the taxing district sign the protest petition, the taxing jurisdiction would be limited to a budget with property taxes from the prior year. The House amended the bill to remove a $60M property tax relief fund that would have allowed transfers to counties. The bill now goes to the Senate Tax Committee for consideration.
School Mill Levy Reduction
HB 2011 would decrease the rate of ad valorem tax imposed by school districts from 20 (currently) to 18.5 in school years 2025 and 2026, and would increase the value of the residential homestead property tax exemption. The House Tax Committee passed the bill out of committee on February 12.
M&E Property Tax Exemption
SB 320 would remove the 2006 cut-off date for the commercial and industrial machinery and equipment property tax exemption. The Senate Tax Committee held a hearing on the bill, but due to a large economic impact report, has not taken further action. The House Tax Committee heard a similar bill in HB 2406 and passed it out of committee favorably.
Earnings Tax
HB 2385 would authorize cities and counties to propose an earnings tax for ballot question and to levy such tax if approved by the electors of a city or county. Following a hearing in the House Tax Committee, no further action was taken.
Global Intangible Low-Taxed Income (GILTI)
HB 2642 would decouple the state from specific portions of the federal code regarding GILTI and NCTI following passage of the federal OBBB. GILTI is a US tax provision aimed at ensuring that US taxpayers pay a minimum level of tax on foreign earnings, particularly those derived from intangible assets. The bill removes an obsolete reference to global intangible low-taxed income provided for under the federal Internal Revenue Code in determining Kansas adjusted gross income. After passing from the House on a unanimous vote, the bill was referred to the Senate Committee on Taxation.
HPIP Reform – Tax Credit Repeal
The House Tax Committee held a hearing on HB 2757, a bill that would discontinue certain income tax credit incentives, extend the income tax credit for angel investors, and provide expanded options in the high-performance incentive program (HPIP) tax credit for tax credit transfers and wage requirements for rural businesses. The bill proposes the repeal of various tax credits, including 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. During the hearing, the KS Dept. of Revenue indicated that the HPIP provision would cost the state around $150M annually. For that reason, the bill will not move forward unless that provision is removed.
Rural Business Growth Act
HB 2541 would create the Kansas Rural Business Growth Program Act to provide a tax credit to incentivize capital investment in rural areas and a program administered by the Secretary of Commerce. The rural area is defined as not located in a municipality with a population of more than 50,000 inhabitants or in an urbanized area contiguous and adjacent to a city that has a population of more than 50,000 inhabitants. Eligible businesses are those with fewer than 250 employees with primary operations in the rural area, not in the rural area but engaged in certain industry sectors, or if the business is determined by the Department of Commerce that the investment would be beneficial to the rural area and economic growth of the state. The Department of Commerce would begin accepting applications on October 1, 2026, for a rural fund that seeks to have an equity investment certified as a capital investment eligible for tax credits. The application would include the amount of the capital investment requested, a copy of the applicant’s or an affiliate of the applicant’s licenses as a rural business investment company, evidence that the applicant or affiliates of the applicant have invested at least $100.0 million in nonpublic companies located in counties within the United States with a population of less than 75,000 people, a business plan, and a nonrefundable application fee of $5,000 to be deposited in the State General Fund. The Department of Commerce would certify capital investment authority under provisions of the bill and could authorize tax credits of up to $7.5 million per tax year. The bill includes deadlines, benchmarks, obligations, and reporting requirements for qualified capital investments and procedures to recapture tax credits under certain conditions. The House Tax Committee held a hearing on the bill on February 9, where proponents stated that the program is intended to replace the rural opportunity zone program.
New Conservation Funds
HB 2063, as amended, would have created the State Conservation Fund, Working Lands Conservation Fund, Wildlife Conservation Fund, and Kansas Outdoors Fund in the State Treasury, and authorized a $16 million transfer from the State Gaming Revenues Fund to the State Conservation Fund. The bill was removed from the House Calendar and is no longer a live bill.
Utility Railroad Crossings
SB 439 would create the Utility Railroad Crossing Act to establish a consistent process for the altering of facilities crossing or parallel to a railroad right-of-way. The bill would require a utility to provide written notice of request to the railroad 30 days prior to action and include certain components, including a one-time standard fee, and minimum insurance requirements. The bill would stipulate instances where notice is not required and parameters for emergency maintenance or repair and expense reimbursement. The bill would establish notification procedures in the event of objection and processes in the event of disagreement to include filing a complaint with the Kansas Corporation Commission (KCC). Following a hearing, the Senate Utilities Committee advanced the bill favorably.
House Budget Bill Advances
While the Senate is scheduled to debate its budget bill, SB 315, early next week, the House advanced its annual budget HB 2434 on a narrow vote of 68-53. The bill contains funding for fiscal years 2026 and 2027 and adjustments for fiscal years 2028 and 2029. The bill increases total FY 2026 state expenditures to $27.8 billion, including $10.9 billion in state general funds (SGF). This is an all-funds increase of $1.7 billion (6.4 percent), but an SGF decrease of $215.4 million (1.9 percent) from the previously approved FY 2026 budget.
The bill contains an all-funds increase of $358.3 million (1.3 percent) and a SGF increase of $326.8 million (3.1 percent), more than when it was initially introduced. The bill would leave a FY 2026 ending SGF balance of $2.22 billion. The bill adds $279 million in SGF reappropriations that were lapsed by the Special Committee on the State Budget recommendation; adds about $40 million SGF for Larned State Hospital and Osawatomie State Hospital; and grants KC 2026 authority to allocate $28 million (ARPA funds) for the 2026 World Cup.
For FY 2027, the bill increases total state expenditures to $26.8 billion, including $10.8 billion SGF. This is an all-funds increase of $1.2 billion (4.6 percent), and an SGF increase of $91.1 million (0.9 percent) above the FY 2026 revised estimate. Further, this is an all-funds increase of $496.3 million (1.9 percent), and an SGF increase of $300.4 million (2.9 percent), above the budget as it was initially introduced. The budget bill would leave a remaining balance in the SGF of $1.67 billion at the end of FY 2027. Find more details here.
For FY 2026, the KS Water Office requested $53.643M all funds and $1.414M SGF. The budget provides $50.957M all funds and $1.414M SGF. For FY 2027, the KS Water Office requested a SWPF enhancement of $3.77M, and the budget bill provides an enhancement of $3.27M. The KS Water Office requested total FY 2027 funding of $47.877M (including $1.426M SGF), and the budget provides $47.377M (including $1.426M SGF).
Pump Installer License
HB 2424 would establish a new license requirement for any pump installation contractor and require such pump installation contractor to pass qualification examinations. The bill was removed from the House Calendar and is no longer a live bill this session.
County Authority over Water Transfers
Introduced by Rep. Wasinger (R-Hays), HB 2433 clarifies county authority over the transfer or appropriation of water by placing such authority, except for domestic use, with the chief engineer and water transfer hearing panel. The bill would prohibit a county from enacting or enforcing any resolution or other action regulating the transfer or appropriation of water that conflicts with, interferes with, is more stringent than, or would duplicate the control, regulation, enforcement, or oversight of the Chief Engineer or the Water Transfer Hearing Panel regarding the transfer or appropriation of water per continuing law. The bill would prohibit a county from: requiring any license, permit, or conditional use permit to transfer or appropriate water; or imposing any condition, restriction, limitation, requirement, fee, or charge related to transfer or appropriation of water. The bill would retroactively and prospectively apply to all existing and future county resolutions that affect past, present, or future transfer or appropriations of water. After passing the House 116-6 on February 9, the bill was referred to the Senate Committee on Local Government, which held a hearing on February 26.
Water Structures
HB 2114 was introduced at the request of KDA to amend the Stream Obstruction Act. As amended, the bill would allow the state to provide inspections on a cost-for-service basis and provide for the certification of non-state entities to perform inspections for the state. The legislation would create application fees based on hazard class for new construction or modifications. The bill would require any licensed professional engineer who conducts inspections required by the act to be approved by the chief engineer and would add a civil penalty of not more than $1,000 for each intentional violation of the act. Find more information here. After passing the House 103-13, the bill was referred to the Senate Committee on Agriculture and Natural Resources.
State Water Plan Funding
Introduced by House Water Committee Chairman Minnix, HB 2558 would have increased the statutory transfer from the state general fund to the state water plan fund to $60M per year (currently $35M), on July 1, 2026, through July 1, 2030. The bill did not survive turnaround week, and was removed from the House Calendar.
Local Sales Tax Authority
HB 2712 would increase the authority for a countywide retailers’ sales tax and provide for the dedicated apportionment of special purpose tax revenues up to 2 percent. It would limit the special purpose city and countywide retailers’ sales taxes to 10 years. The House Tax Committee held a hearing on the bill on February 25.
Seed Retailer/Wholesaler Registration Fees
SB 425 would increase maximum annual registration fees for seed wholesalers and retailers. The maximum seed wholesaler fee would be increased from $300 to $400, and the maximum seed retailer fee would be increased from $30 to $50. The bill would also institute a $25 fee for failing to timely renew your license. The fees had not been increased for many years. The proposed fees would cover the cost of the seed program. The Senate amended the bill to include a grace period before the late fee and then passed the bill 37-3. The bill is scheduled for a hearing in the House Committee on Agriculture.
Pesticide Product Labeling Protections
Kansas Agribusiness Retailers Association requested the introduction of HB 2476, a bill that would amend Kansas law to clarify that label language on any US EPA-registered pesticide products satisfies any state statutory or common law duty to warn of potential hazards. The House passed the bill out 81-36. The bill has been referred to the Senate Committee on Agriculture and Natural Resources and will receive a hearing soon.
PFAS Regulations
Introduced by Rep. Bohi (R-Johnson County), HB 2674 is intended to prohibit certain products that contain intentionally added PFAS and require disclosure of information and the testing of products that contain intentionally added PFAS and are sold, offered for sale, distributed or distributed for sale in this state. The bill exempts FIFRA-regulated products. As of February 20, the bill had not received a hearing and is no longer a live bill.
Theft of Livestock and Implements of Husbandry
Introduced by Rep.Steele, HB 2413 would increase the presumptive criminal penalty for the theft of livestock or implements of husbandry to a severity level 5, non-person felony, which is presumptive imprisonment. The bill defines “livestock” as meaning “cattle and horses”. The House passed the bill on a vote of 120-3. The Senate Judiciary Committee held a hearing on the bill on February 25.
EV Equity Road Repair Tax
HB 2414 was introduced to establish the EV energy equity road repair tax act and provide for a road repair tax on electricity distributed from a public charging station for electric vehicles. The bill was referred to the House Transportation Committee but did not receive a hearing and is no longer a live bill.
Mobile Phone Use in Construction Zones
SB 324 would prohibit any person from using a mobile telephone while operating a motor vehicle in a school zone at a time when a reduced speed limit is enforced, and prohibit any person from using a mobile telephone while operating a motor vehicle in a road construction zone while workers are present. These provisions would not apply to a person operating a motor vehicle that is halted at a location where the vehicle can safely and lawfully remain stationary, or to a person who is using a mobile telephone that is hands-free. This week, the bill was referred to a committee that is exempt from the “Turnaround” deadline to ensure it remains a live bill this session.
Occupational Licensing
CCR SB 30 requires adoption of new occupational licenses, and material changes to existing licenses, be approved by the Legislature. The bill also requires agencies to annually report certain information of such occupational licensing to the Joint Committee on Administrative Rules and Regulations (JCARR). An “occupational license” is defined as an exclusive authorization in law establishing the personal qualifications necessary to engage in an occupation or profession and any associated rules and regulations. Various industries were exempted from the bill. On February 16, the House adopted conference committee report on SB 30, which now goes to the Senate for final consideration.
Critical Infrastructure Protection – Countries of Concern
SB 453 would enact the Kansas critical infrastructure protection act to prohibit access to state critical infrastructure by countries of concern and the acquisition of critical software and other technology used in state infrastructure from countries of concern. After referral to the Senate Committee of Federal and State Affairs, the bill has not received a hearing.
Wind, Solar, Battery Decommissioning
SB 417 would establish requirements for the development, construction, modification, maintenance, operation and decommissioning of certain industrial energy facilities and providing jurisdiction to the state corporation commission to control and permit such development, construction, modification, operation, maintenance and decommissioning of such facilities. The bill was brought at the request of the Kansas Farm Bureau and Kansas Livestock Association. The bill was “blessed” to survive the “Turnaround” deadline and has been referred back to the Senate Utilities Committee.
Statewide Fiber Optic Conduit
HB 2647 would establish the Statewide Conduit System for fiber optic transmissions of broadband connections, establish the Kansas Broadband Revolving Fund in the State Treasury to create and maintain the system, and establish a schedule of fees to be charged to entities installing or using the system. After passing the House on a vote of 116-5, the bill was referred to the Senate Committee on Transportation.
Natural Gas Infrastructure
HB 2435 was introduced to enact the natural gas infrastructure availability act to authorize natural gas public utilities to defer to a regulatory asset all depreciation expense and carrying cost for any new plant, facilities, or equipment that such utility has put into service, and authorize recovery of such regulatory asset via an interim rate adjustment mechanism. After passing the House 115-7, the bill has been referred to the Senate Utilities Committee.
Temporary Unemployment Insurance
The House Commerce Committee placed the contents HB 2764 into SB 229, and then passed the bill out favorably. As amended, the bill would clarify Legislative intent, guidance, and public policy regarding the Kansas Employment Security Law, including the addition of reference to applicable federal laws and guidance. The bill would prohibit certain employment security law measures, from being amended without Legislative review. This would specifically prohibit such amendments from being made through budget provisos, appropriations bills, or temporary fiscal measures. Employer-sponsored supplemental unemployment benefit plans would be allowed if all requirements outlined in the bill were met and such plans were authorized by the Secretary of Labor. The Secretary would be required to maintain and publish a registry of authorized supplemental unemployment benefit plans submitted by employers on the Department of Labor website. In addition, the Secretary would be required to monitor the interaction between supplemental unemployment benefit plans and state unemployment insurance claims to ensure continued solvency of the Employment Security Trust Fund.
Paid Sick Leave
HB 2597 would require paid sick leave for all employees working in Kansas. The bill did not receive a hearing and is no longer a live bill this session.
Portable Benefit Plans for Independent Contractors
HB 2602 would establish requirements for a portable benefit plan for independent contractors, determining types of contributions to such plans and providing a subtraction modification for Kansas income tax purposes. After passing the House on a vote of 103-21, the bill was referred to the Senate Committee on Commerce which has scheduled a hearing for March 5.
Tort Reform – Prohibiting Practice of Jury Anchoring
SB 413 was introduced to prohibit the practice, known as “jury anchoring,” where legal counsel suggest a large damage amount for noneconomic loss in civil action for the purpose of increasing the negotiated damage award. The bill was supported by various business stakeholder groups. After passing the Senate on a vote of 29-11, the bill was referred to the House Judiciary Committee but is not yet scheduled for a hearing.
Tort Reform – Adopting Certain Federal Expert Witness Rules of Evidence
SB 398 was introduced to require 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 witnesses may testify. After passing the Senate on a vote of 40-0, the bill was referred to the House Judiciary Committee and is scheduled for a hearing on March 3.
Tort Reform – Prohibiting Recovery in Certain Civil Actions
SB 463 would prohibit certain persons from recovering damages in certain civil actions. The bill would prohibit persons who engaged or participated in wrongful conduct from bringing an action for negligence, or collecting damages for negligent conduct, related to such wrongful conduct. After passing the Senate on a vote of 30-10, the bill was referred to the House Judiciary Committee.
Public Nuisance Claims
SB 462 would prohibit certain public nuisance claims, require the attorney general to bring nuisance actions that are not wholly contained in one political subdivision, require special injury for certain public nuisance actions, and provide an accrual period for the statute of limitations in public nuisance actions. After passing the Senate on a vote of 29-11, the bill was referred to the House Judiciary Committee and a hearing is scheduled for March 4.
Attorney General Litigation Review
HB 2593, requested by the Kansas Attorney General, would require any political subdivision of the state to hold an open meeting to discuss a contingency fee contract for legal services and require the attorney general to approve such contracts. After passing the House on a vote of 77-45, the bill was referred to the Senate Judiciary Committee, and a hearing is scheduled for March 5.
Judicial Deference to Regulatory Agencies
Governor Laura Kelly signed HB 2183 into law. The bill prohibits a state court or an administrative hearing officer from deferring to a regulatory agency’s interpretation of certain statutes, rules or regulations. While the court or officer could consider the agency’s interpretation, they would be required to interpret the meaning and effect of such statute, rules and regulation, or document, de novo using their own reasoning independent of the agency’s interpretation.
Additional Bills:
- HB 2456 Authorizing cities / counties 0 percent sales tax authority on food and food ingredients
- HB 2458 Requiring the approval of property tax levies and bond issuances by elected bodies or electors
- HB 2463 creating the rural health transformation fund
- HB 2491 requiring quarterly reports from state agencies about noncitizens receiving public benefits
- HB 2516 allowing for the appointment of county appraisers
- HB 2517 Leavenworth County Sales Tax
- HB 2641 property rights protection act to require just compensation to landowners for government actions
- HB 2644 requiring new appraisal if value received from final appeal is 5 percent above previous county appraisal
- HB 2678 medical cannabis
- HB 2679 adult use of cannabis
- HB 2701 Permitting nonuniform zoning regulations within a zoning district
- SB 329 Requiring county appraiser to submit a single property appraisal report at the BOTA valuation appeal
- SB 348 exempting public utilities owned by Electric Coop from KCC oversight – passed Senate 38-0
- SB 365 authorizing the election of county appraisers
- SB 437 tech college task force
- SB 449 clean air preservation act to prohibit solar radiation modification, geoengineering, weather modification
- SB 454 crush transnational repression in Kansas act