23 Jan 2026 Kansas Statehouse Insider – Week Two
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The second week of the 2026 Kansas legislative session began with a shortened schedule due to the Martin Luther King Jr. federal holiday, with committee activity ramping up later in the week.
Lawmakers continued to introduce bills and hold committee hearings across a range of policy areas, including education, taxation, tort reform, public safety, and economic development. The first bill of the session addressing property tax relief – a proposed constitutional amendment to cap annual assessments – was advanced favorably from the Senate Tax Committee. With limited floor action, much of the focus remained on early committee work and setting the stage for more substantive debate in the weeks ahead.
Legislature Focuses on Agriculture
Agriculture took center stage throughout the legislature’s second week as both Kansas Agribusiness Retailers Association (KARA) and Kansas Grain and Feed Association (KGFA) welcomed nearly 80 members to the Capitol for the 2026 Legislative Action Day. The associations also welcomed their 28th class of Tomorrow’s Agribusiness Leaders (TAL) who applied to learn more about their association, the state legislative process and regulatory environment. Members of the 2026 TAL class include: Charles Aufdenkamp (ADM); Libby Clark (Farmers Cooperative Association); Logan Cox (Conestoga Energy Partners); Josh Crosby (MKC); Stephen Floyd (Producer Ag, LLC); Paul Hennings (Irsik & Doll Feed Service); Anthony Holmes (Kanza Cooperative Association); Cooper Lancaster (Morrill Elevator); Levi Lehmkuhl (Ag Partners Cooperative) and J.D. Pruitt (ProValue Insurance). Fittingly, KARA and KGFA coordinated bill hearings on issues pertinent to their members including increased penalties for grain theft (HB 2422) and a bill permitting federal pesticide labeling language to satisfy any state statutory or common law duty to warn of potential hazards (HB 2476).
Grain Theft
Introduced by Rep.Schwertzfeger, 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. This week, the House Judiciary Committee held a hearing on the bill and then advanced the bill out of committee favorably.
Property Tax Relief
Property tax relief is a top priority for Republican legislators in the House and Senate. This week, the Senate Tax Committee advanced SCR 1616 favorably from committee. 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 has broad support from Senate Leadership. 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.
Corporate Income Tax Single Sales Factor Apportionment
Last year, HB 2231 was passed to amend the apportionment methodology forcorporate income tax. Beginning Jan. 1, 2028, all corporations will be required to use a single sales factor apportionment method rather than the current three-factor system. The bill also replaced cost-of-performance requirements with market-based sourcing. This year, HB 2442 was introduced to make additional changes concerning the apportionment of business income by manufacturers of alcoholic liquor. The bill was referred to the House Tax Committee.
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 Agriculture Committee held a hearing on the bill on Wednesday January 21.
Food Ingredient Restrictions
HB 2425, introduced by Rep.KevinSchwertzfeger, would amend the Kansas Food, Drug, and Cosmetic Act (KSA 65-657, et seq) to cause foods containing specific color dyes and additives to be deemed adulterated. The bill increases the maximum civil penalties under the act to $500,000 per violation for the adulteration of a drug or device with any “poisonous or deleterious substance”. The bill also would make adulteration of a drug with a synthetic color additive subject to sentencing as a drug severity level 5 felony. Specifically, House Bill 2425 (page 5, line 6) states that A food shall be deemed to be adulterated if: such food is, bears, or contains: Butylated hydroxyanisole (BHA); Propylparaben; 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. This week, Rep. Schwertzfeger has indicated that he will not pursue a hearing on the bill. A similar bill, introduced in the Senate, would prohibit use of state funds to purchase food for schools that contains certain ingredients.
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. Rep. Adam Smith introduced a similar bill, HB 2406, which is scheduled for a hearing in the House Tax Committee on Tuesday, January 27.
Property Tax Rebate
SB 319 would provide a property tax rebate for certain residential and commercial property when such property sells for less than 97 percent of the county appraised value. The Senate Tax Committee held a hearing on the measure on January 21.
Property Tax Levy Approval
Introduced by Rep. Ken Corbet (R-Topeka) HB 2458 would require certain property tax levies and bond issuances to receive the approval of an elected body or the electorate. No hearing has been scheduled.
Global Intangible Low-Taxed Income (GILTI)
Legislation is likely to be introduced in Kansas this year decouple the state from on 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. KS tax experts are drafting the bill language. NCTI is the new tax on international income, which is the follow-on from its predecessor (GILTI), which Kansas previously decoupled from. NCTI is intended as a minimum tax and uses foreign tax credits to achieve this. NCTI is far more aggressive than GILTI because states don’t offer tax credits for foreign income. Kansas is one of only four states in line to tax NCTI, even if unintentionally. The proposed legislation would avoid state tax on NCTI.
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”. This week, the House Judiciary Committee held a hearing on the bill and then advanced it out of committee favorably.
State Water Plan Fund
Last year, the state budget approved the following appropriations from the state water plan fund: $2.0 million for High Plains Aquifer partnerships, $2.0 million for streambank stabilization projects, $2.6 million for irrigation technology, $5.3 million for conservation district aid, and $3.1 million for contamination remediation. This year, we anticipate the KDA will request increased funding from the state water plan fund for irrigation technology cost-share grants, water structure inspections, dam rehabilitation, and cost-share grants.
State Water Plan Proposed Funding
Funding sources for the state water plan fund include the following: $6M State General Fund, $2M Economic Development Fund, $13.5M from pesticide registration fees, fertilizer tonnage fees, and stockwater fees, municipal water use fees, and various other smaller fees. Governor Kelly says she will seek a comprehensive, long-term, sustainable strategy to fund Kansas water projects. In addition, the Kansas Water Authority has proposed anincrease of $22 million to the state water plan for water projects and programs.
State Water Plan Projects
The House Subcommittee on Ag and Natural Resources received an update on the State Water Plan projects from the Kansas Water Office. The state water plan was last updated in 2022. The water office provided the following five guiding principles of the state water plan: 1) conserve and extend the High Plains Aquifer, 2) secure, protect, and restore Kansas reservoirs, 3) improve the state’s water quality, 4) reduce vulnerability to extreme events, and 5) increase awareness of Kansas water resources.
Notifications for Water Right Changes
KDA introduced HB 2477 to amend notice requirements for change-of-use water applications for stakeholders within a certain distance from the water right. House Water Committee Chairman Minnix has indicated he will hold a hearing on the bill soon after it is introduced. The draft language is not yet available. According to the agency, the legislation is intended to do the following: (1) clarify that the agency will notify all surrounding landowners. The agency seeks to notify all surrounding landowners to ensure that all potentially affected residents and water right holders are notified. The current process involves identifying all surrounding water right holders, including domestic well users, many of whom are unregistered. (2) Post a map of the affected areas on the agency website for applications rather than posting the entire application. This is intended to protect privacy while still providing the relevant information for potentially affected water rights holders. (3) Update and delete statutory references that are no longer accurate or necessary.
Water Structures
Last year, KDA introduced HB 2114 to amend the Stream Obstruction Act in various ways. The bill would have allowed 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 have created application fees based on hazard class for new construction or modifications. It would also have allowed civil enforcement actions to protect the public. KDA indicates it will introduce a new bill this year.
Pump Installation Contractor License
HB 2424, introduced by Rep. Gary White, would establish a new license requirement for any pump installation contractor and require such pump installation contractor to pass qualification examinations. The bill would also create new record-keeping requirements for licensed pump installation contractors and water well contractors. The House Water Committee held a hearing on the bill on Jan. 22, and will take final action on the bill next week.
Hays and R9 Water Legislation
Rep. Barbara Wasinger (R-Hays) introduced HB 2433 to clarify 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 House Committee on Local Government has scheduled a hearing on the bill on Wednesday, January 28, at 9:00 am.
Reuse of Treated Water
HB 2462, introduced by Representative Pickert, would require the Secretary of Health and Environment to adopt rules and regulations that allow for the direct and indirect potable reuse of treated wastewater. The House Water Committee held a hearing on the bill on Jan. 22 and will take final action on the bill next week.
HPIP Reform
Stakeholder groups worked with legislators over the summer break to draft proposed amendments to the state HPIP economic development program. Legislation is still being finalized. A recent Legislative Post Audit report of the program showed that the state Department of Revenue has three data sets tracking the tax credits, but none of them aligned.
Rural Opportunity Zone Income Tax Credit
A Legislative Audit of the state’s Rural Opportunity Zone economic development program demonstrated that while the program had been used successfully in parts of the state, the program’s benefits were limited. For this reason, there will likely be legislation introduced to either repeal or amend the program.
Angel Investor Tax Credit
HB 2466 was introduced extend the 2026 sunset on the Angel Investor Tax Credit to 2031. The bill was referred to the House Committee on Commerce, Labor, and Economic Development.
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.
Shortline Income Tax Credit
HB 2469 was introduced to expand the transferability of the existing income tax credit for qualified shortline railroad track maintenance expenditures. The bill was referred to the House Tax Committee.
Seed Retailer/Wholesaler Registration Fees
KDA has requested the introduction of a bill that 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 be used to cover the cost of the seed program. A bill number will be available soon.
City and County Food Sales Tax
HB 2456 would authorize cities and counties to levy a 0 percent sales tax on food and food ingredients. The bill was referred to the House Tax Committee.
Lower Electric Utility Rates
House Bill 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.” The bill was referred to the House Committee on Energy, Utilities, and Telecommunications, and Chairman Leo Delperdang is likely to schedule a hearing soon.
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.
Human Resources
Legislation is being discussed that would allow for up to six months of “temporary unemployment” under the Kansas Unemployment Insurance program. In addition, there is an organization “Paid Leave for All Kansans” that is seeking possible legislation to require paid leave for all sizes of businesses (co-funded by employers/employees), based on legislation that was passed in Minnesota and other states.
Judicial Deference to Regulatory Agencies
Conference Committee Report on HB 2183 was passed this week by the legislature. 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. The Senate passed the bill with 30 yes votes, and the House passed it with 83 yes votes. The bill now goes to Governor Laura Kelly for consideration. In order to override any potential veto by the Governor, a bill needs to receive 27 votes in the Senate and 84 votes in the House.
Tort Reform
Legislation has been introduced in the Seante Judiciary Committees to ban “jury anchoring” –which isthe practice of placing the idea of a large damage amount in the jury’s mind in order to be able to negotiate a better final amount later. Another bill will seek to adopt recent changes in the federal rules of evidence in tort litigation. Hearings will be held on the bills on February 5.
Additional Bills:
HB 2439 Kansas geoengineering and weather modification prohibition act
HB 2448 requiring citizenship status be listed on driver’s license.
HB 2456 Authorizing cities / counties 0 percent sales tax authority on food and food ingredients
HB 2457 Restricting homestead property taxes for individuals 65 years of age and older – eliminating prop tax exemption for certain commercial healthcare properties
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 2465 professionals’ freedom of expression act to provide protection for professionals and businesses against adverse action as a result of an expression of beliefs
HB 2484 repealing the sunset on the Kansas promise scholarship program
HB 2498 making driving commercial vehicle under the influence a person crime
HB 2516 allowing for the appointment of county appraisers
HB 2517 Leavenworth County Sales Tax
SCR 1616 amending section 1 of article 11 of the Kansas Constitution to limit property tax assessed value increases for real property in any subclass and personal property classified as mobile homes. For tax year 2027, the final taxable assessed value of such property shall not increase by more than 3 percent, or a lesser percentage as provided by law, as compared to the tax year 2022 assessed value of such propertyunless an exception applies since tax year 2022, and in the event such property was not listed for taxation for tax year 2022, the final taxable assessed value of such property shall not increase by 4 more than 3 percent, or a lesser percentage as provided by law, as compared to the tax year 2026 assessed value of such property unless an exception applies.
SB 303 retailers’ sales tax authority for Labette County fire depts.
SB 305 making DUI in a commercial vehicle as person crime
SB 311 eliminating state income tax on qualified overtime compensation
SB 323 defining earnings to include paid compensation for wage garnishment exemption purposes
SB 324 Prohibiting mobile telephone use while operating motor vehicle in school or construction zones
SB 329 Requiring county appraiser to submit a single property appraisal report at the BOTA valuation appeal
SB 322 Excluding buyer’s premiums from the sale price of property purchased at auction for real estate sales validation questionnaire and property tax valuation purposes
SB 348 exempting public utilities owned by Electric Coop from KCC oversight
SB 365 authorizing the election of county appraisers