State General Fund (SGF) Receipts
January marks the third month revised consensus revenue estimates have been used to determine the severity of the state’s current fiscal situation. Through January, total receipts are $57.1 million below November’s revised estimates.

For FY 2009, compensating use and liquor enforcement taxes both exceed estimates by $3.2 million and $1.6 million, respectively. However, six tax sources failed to meet projections by a combined total of $71.4 million. The most notable was the corporate income tax shortfall of $44.4 million.

Although, total receipts for FY 2009 are $193 million above FY 2008 figures for the same period, there were two significant transfers out of the State General Fund into the Keeping Education Promises Trust Fund and the Statewide Maintenance and Disaster Relief Fund during the 2008 fiscal year. Compared to the same period in FY 2008, tax only receipts for FY 2009 are behind by $100.3 million or 3 percent.

2009 Rescission Bill Update
The conference committee on SB 23 met throughout the day on Friday, February 6 to work on a compromise for the 2009 rescission bill.

Senate Bill 3- Confirmation Oversight Committee
The bill would increase the membership of the Confirmations Oversight Committee from six to seven members. SB 3 has a fiscal note of $943 for the travel expenses and per diem of the additional member but some committee members do not turn in the required voucher for reimbursement.

On Tuesday, February 3 the bill was under the consideration of the Senate. During this time no amendments were added to the bill. SB 3 was approved 38 to 2 on Tuesday, February 3.

Senate Bill 5- 1011th Quartermaster Co. U.S. Army Reserve Memorial Highway
SB 5 designates a part of U.S. Highway 160 as the 1011th Quartermaster Co. U.S. Army Reserve Memorial Highway. The renamed portion of U.S. 160 stems from the east city limits of Independence to the U.S. 160 and U.S. 169 junction. SB 5 was approved 40 to 0 on Tuesday, February 3.

Senate Bill 6- Charitable Organizations and Solicitations Act
The measure amends the Charitable Organizations and Solicitations Act by requiring that professional or paid solicitors disclose their name; that he/she is a professional of paid solicitor; the registered name of the company they work for; and if requested, the amount of the contribution going to the professional fund raising company when soliciting funds from the public.

If compensation for the solicitation is contingent on the number or amount of contributions received, the professional or paid solicitor must disclose the fixed percentage of the gross revenue when asked. If solicitation compensation from the charity is not reliant on a number or specific revenue figure, the solicitor still must disclose a reasonable estimate of the amount paid to the solicitation company from the total amount raised.

There is no fiscal impact on the State General fund with the bill. SB 6 was approved 37 to 3 on Thursday, February 5.

Senate Bill 11- Community Colleges
SB 11 comes at the request of the Legislative Educational Planning Committee. It requires the State Board of Regents to establish service area boundaries for community colleges and allows them to acquire land and improvements in the community college district and the newly established service area. SB 11 resulted from a situation in which a community college was gifted a federal building but could not accept it because it was outside its district. The bill does not change the procedure for community colleges who acquire buildings in other community college districts.

SB 11 was debated by the full Senate on Tuesday, February 3. Senator Schodorf proposed an amendment from the community colleges that would clarify the definition of service area. The definition has been used for 30 years but has never been in state statute. SB 11 was approved 40 to 0 on Tuesday, February 3.

Senate Bill 29- Licensure of technical professions
The measure amends existing law by expanding the issuance of an authorization certificate by the Board of Technical Professions to include limited liability companies and partnerships and corporate partnerships or other legal entities created by law. Currently, corporations are the only entity issued a certificate and the additions would expand opportunities for Kansas business.

In addition, SB 29 allows for geologists, engineers, and land surveyors to be issued intern certificates and clarifies the definition of the practice of land. Finally, the bill alters the two-year cycle for the issuance of renewal certificates to where renewals are staggered. SB 29 was approved 37 to 3 on Tuesday, February 3.

Senate Bill 35- Interest Rates on Municipal Bonds
The bill would temporarily suspend the interest rate cap placed on municipality issued bonds and other local taxing subdivisions of the state until June 30, 2010. Interest rates on tax exempt bonds would increase to five percent from three percent and the rate of taxable bonds would increase from four percent to six percent.

SB 35 was requested by Kansas communities who are struggling with issuing bonds during this time of economic uncertainty.

No amendments were added during the Senate debate. SB 35 was approved 35 to 5 on Tuesday, February 3.

Senate Bill 38- Linn County Hospital District
This bill provides two options for establishing a hospital district in Linn County. Option one provides that if 10 percent of the Mound City and Paris townships qualified electors sign a petition requesting the creation of a hospital district the Linn County Commission would be required to call for an election. The second option would allow the Linn County Commission to submit a proposition to the voters of the Mound City and Paris townships to approve the County Commission’s plan.

If the hospital district is approved in either scenario, the Linn County Commission can establish a hospital district and hospital board. The hospital board is permitted to levy an annual tax, not exceeding two mills to fund operating, equipment, maintenance, and improvements to the hospital.

SB 39 was approved 40 to 0 on Thursday, February 5.

Senate Bill 40- At-Risk Education Council
SB 40 would do away with the At-Risk Education Council. In October of 2006, the Council fulfilled the requirements set out in state statute. The bill has no fiscal note. SB 40 was approved 40 to 0 on Tuesday, February 3.

Senate Bill 41- School districts
The bill would repeal six statutes that which authorized numerous school district transfers and fund transfers between 1965 and 1980 which are obsolete and no longer useful. SB 41 was approved 40 to 0 on Tuesday, February 3.

Senate Bill 43- Campaign Finance
SB 43 increases the campaign contribution limit for State Board of Education candidates. The current limit for political committees or individuals is $500 for each primary and general election and SB 43 would increase the limit to $1,000. The districts of those who serve on the State Board of Education are four times larger than State Senate districts and the increase of campaign contribution limits would allow candidates to run a more effective campaign. SB 43 was approved 40 to 0 on Tuesday, February 3.

Senate Bill 50- Risk-based capital requirements
This measure would amend existing law for risk based capital requirements (RBC) and require the establishment of a RBE trend test calculation that would take into account the following: total adjusted capital, company action level RBC, and the authorized level RBC. If a predetermined ratio of 120 percent is not met, the RBC would have to be submitted to the Insurance Commissioner for review.

SB 50 was requested by the Insurance Department. The trend test is intended to be an additional tool for the department to determine a company’s solvency and to identify potential trends of insolvency. There is no fiscal note to this bill as the Insurance Department can handle the additional duties with existing resources and staff.

SB 50 was approved 40 to 0 on Tuesday, February 3.

Senate Bill 51- Clothing requirements for hunting deer or elk
SB 51 amends existing clothing requirements when hunting deer or elk by removing language which combines the clothing requirements for the two, so that clothing requirements for deer and elk are listed separately. The Department of Wildlife and Parks requested the bill and it has no fiscal note. SB 51 was approved 40 to 0 on Tuesday, February 3.

Senate Bill 77- State Use Law Committee
This bill would extend the sunset for the State Use Law Committee by five years to July 1, 2014. Originally, the Committee was set to expire on July 1, 2009. SB 77 was approved 40 to 0 on Tuesday, February 3.

Senate Bill 78- Transportation Development Districts
The measure allows transportation development districts to pay for projects from funds resulting from development district sales taxes as an alternative to issuing bonds. If bonds are issued, the bill allows assessments to be reduced or removed after sufficient funds have been generated from either the development district sales tax, appropriations from the municipality, or both. Once enough revenue is raised for a project, the sales tax levy would cease to exist.

Proponents of SB 78 believe the bill provides greater financial flexibility for cities and counties for transportation related projects as bond issuance is often cost prohibitive due to the small size of many projects.

The bill does not have an effect on state revenue or expenditures or county expenditures. SB 78 was approved 40 to 0 on Thursday, February 5.

Senate Bill 80- City Elections
SB 80 reduces the number of favorable votes needed to approve the sale of certain utility properties in cities with populations 2,000 or below. Currently, law states a majority of qualified electors must approve the sale and the bill changes language to where a majority of qualified electors who vote in the election must approve before a sale of a utility property can take place. This bill has no fiscal note. SB 80 was approved 40 to 0 on Thursday, February 5.

Senate Bill 82- Residential Childhood Lead Poisoning Prevention Act
The bill repeals the sunset date of July 1, 2010 for the Residential Childhood Lead Poisoning Prevention Act. SB 82 was approved 40 to 0 on Wednesday, February 4.

Senate Bill 85- Corporation and Limited Partnership filings
This measure amends four business entity statutes and requires the Kansas Secretary of State to return a copy, instead of the original document, to those who file for a corporation or limited partnership. The purpose of SB 85 is to accommodate filing procedure changes in the Secretary of State’s office that will be implemented in 2010. There is no fiscal note to the bill. SB 85 was approved 40 to 0 on Thursday, February 5.

Senate Bill 86- Letters of Good Standing
SB 86 amends existing law by deleting the requirement that the Secretary of State charge a corporation fee for letters of good standing starting January 1, 2010. The office of the Secretary of State reported the bill would cause a reduction of $68,490 in fee fund revenue, beginning in FY 2011. However, it should be noted the fiscal impact of SB 86 is not accounted for in the Governor’s Budget Report for FY 2010. SB 86 was approved 40 to 0 on Thursday, February 5.

Senate Bill 102- Automated External Defibrillators
The bill deletes the definition and requirement that only a “qualified person” may use an automated external defibrillator. SB 102 would hold individuals who use the defibrillator in good faith and entities who provide the defibrillator harmless if it was used in good faith.

The purpose of the bill is to extend protection to “lay responders” as recent technology for automated external defibrillators has improved to where non-medical personnel can easily operate them.

SB 102 was approved 40 to 0 on Wednesday, February 4.

Senate Bill 132- Business Entity Transaction Act
SB 132 enacts the Business Entity Transactions Act (BETA) which provides business entities with the authority to perform mergers, conversions, interest exchanges, and domestications with other business entities. The bill excludes insurance companies, banks, trust companies, credit unions, professional corporations, and limited liability companies from participating in BETA.

Authorized transactions in SB 132 goes as follows:

• When two or more entities are merged into one entity
• When a single entity converts itself into a different type of entity (example: a limited liability company converts to a partnership)
• When one entity acquires the stock of another entity through an interest exchange
• When a foreign entity becomes a domestic entity who’s internal affairs are governed by Kansas law

There is no fiscal note to SB 132 because costs can be absorbed by existing resources in the Secretary of State’s office. SB 132 was approved 40 to 0 on Thursday, February 5.

Senate Concurrent Resolution 1604- Kansas Sesquicentennial
SCR 1604 expresses the support of the Kansas Legislature to the Kansas State Historical Society so they begin fundraising and preparing for the Kansas Sesquicentennial celebration. SCR 1604 was approved 40 to 0 on Thursday, February 5.

Senate Concurrent Resolution 1606
The Resolution strongly expresses the Legislature’s opposition to the relocation of Guantanamo Bay detainees to Fort Leavenworth and other potential sites in Kansas. It encourages President Obama and other members of the federal government to remove Kansas from consideration as a relocation site due to the substantial negative impact it would have on the economy, safety, and security of Fort Leavenworth and the State. SCR 1606 was approved 38 to 0 on Monday, February 2.

Commerce
On Monday the Senate Commerce committee held a joint meeting with the House Economic Development and Tourism Committee to hear an evaluation of the Kansas BioScience Authority by Jerry Paytas of CSP Consulting. The report focused on whether or not the BioScience Authority is creating jobs, generating revenue, and fulfilling statutory requirements. According to Paytas, the Authority has created 935 positions; provided $95 million to the state’s economy, a return of approximately $5.80 for every $1 invested; and is adequately implementing requirements set forth in statute.

The report included four recommendations regarding the BioScience Authority. The first, was to preserve the funding for the Authority. Second, to do a better job of nominating bioscience entrepreneurs to the Authority’s Board of Directors. Recommendation three was to better educate staff on the goals of the BioScience Authority so that research and development of voucher activity can increase. The final recommendation is for the Kansas BioScience Authority to ensure that 20 new bioscience related jobs are created in Kansas annually.

Additional committee activity included a presentation from Secretary of Agriculture, Adrian Polansky on Agriculture and the State’s economy and from Department of Labor Secretary Jim Garner who gave an overview of the Department.

Natural Resources
The Senate Natural Resources Committee met on Thursday, February 5 to continue reviewing a report on Air Quality Improvement. The specific topic discussed was on Mercury, Nitrogen Oxide, and Sulfur Oxides. Darrel Doresey, Manager of Electric Supply, Board of Public Utilities for Kansas City, Kansas; Wayne Penrod, Executive Manager of Environment for Sunflower Electric; and Wood Moses with the Kansas Cement Council all testified before the committee. In addition, the Natural Resources committee discussed Senate Bill 64 regarding water appropriation act amendments and Senate Bill 65 dealing with eminent domain and water rights.

On Friday, February 6 the committee met again to hold hearings on SB 182 regarding diesel emissions, SB 183 concerning solid waste management, SB 184 relating to the surface owner notice act, and SB 189 creating an outfitter license.

Transportation
Much of the discussion in the Senate Transportation Committee centered around the 10 year comprehensive transportation plan and the T-Link Report. On Tuesday, legislative staff and KDOT representatives gave an overview of previous comprehensive transportation plans. As part of the review the committee received summaries of previous transportation legislation and the process leading up to the adoption of those bills. In addition, the funding sources of those bills were examined and the committee was able to go over specific revenue streams for previous transportation plans; fuel tax, sales tax, and special city county highway funds.

The committee spent Wednesday, February 4 reviewing the recommendations of the Governor’s T-Link Task Force. The principles of T-Link were to preserve the existing transportation system, support state economic priorities, implement new transportation business models, increase transportation funding, and to provide transportation through a variety of funding sources. Although the task force did not present a specific funding recommendation to the committee they did propose increasing fees, debt financing, implementing a vehicle miles traveled tax and a motor fuels sales tax, reducing or removing the aviation fuel sales tax exemption, and utilizing gaming revenues. Additional local revenue streams could result by making transportation development districts resemble STAR bonds and by enhancing the funding capacity of the Transportation Revolving Fund.

Ethics and Elections
The committee met on Wednesday, February 4 and Thursday, February 5 to hold hearings on SB 55 regarding ballots by uniformed overseas citizens and federal service voters, SB 56 concerning the security of advance ballots, SB 57 requiring electronic filing of reports, SB 117 relating to political advertisement disclosure, and SB 118 regarding electronic filing requirements for state-wide offices. The committee also sent SB 38 and SB 80 to the Senate for consideration.

Financial Institutions and Insurance
The Financial Institutions and Insurance committee met this week to conduct hearings on SB 49 concerning mental health and alcoholism insurance benefits. The bill has support from the Kansas Association of Addiction Professionals and the Association of Community Mental Health Centers. Proponents believe SB 49 provides needed access for the growing number of individuals with mental health and alcoholism issues.

Other hearings held during the week included SB 72 regarding credit union membership, SB 126 which would enact the controlled insurance programs act, and SB 137 concerning the Viatical Act.

Judiciary
The Senate Judiciary committee had another busy week, conducting 13 bill hearings. In addition, the committee passed out Senate Bill 6 regarding the charitable organizations and solicitations act, Senate Bill 26 concerning possession of a firearm while committing a drug offense, Senate Bill 132 relating to the business entity transaction act, and SB 85 and SB 86 involving procedures in the office of the Secretary of State,

The committee was set to vote on Senate Bills 61, 66, 68, and 134 on Friday, February 6.

Local Government
On Tuesday, February 3, the Local Government Committee met to hold hearings on Senate Bill 91 involving the vesting of development rights and SB 129 regarding the Medicaid program and county jail inmates.

Assessment and Taxation
The Senate Assessment and Taxation Committee met on Wednesday, February 4 to vote on two bills the committee had previously conducted hearing’s on. The first bill, SB 97, prescribes penalties for retailers who violate the liquor enforcement tax act. The bill passed out of committee and is under Senate consideration. The second, SB 100 would provide a sales tax exemption on proceeds for guided and non-guided hunts and fishing outings. The bill also extends the exemption for the sale of hunting game birds. SB 100 passed out of the committee and is under consideration in the Senate.

Federal and State Affairs
On Tuesday, February 3, the Federal and State Affairs Committee heard an overview of the Department of Corrections by Secretary Roger Werholtz. According to the Secretary, the prison population has significantly declined to 8,514 persons, 500 to 600 below the average. In his presentation, Secretary Werholtz mentioned that budget cuts have forced the Department of Corrections to cut staff which increases the potential risk at state facilities.

The committee also held hearings on Senate Bill 76 regarding the regulations imposed on retailers authorized to sell cereal malt beverages. Proponents were allowed to give testimony on Wednesday, February 4 and opponents gave testimony on Thursday, February 5.

Ways and Means
This week the Ways and Means Committee held hearings on Senate Bills 93, 109, 125, and 128. Presentations were also given on the State Employee Health Insurance Moratorium and on the Debt Restructuring Plan for FY 2009 and FY 2010 by Duane Goossen, Secretary of the Department of Administration and on the State Employee Pay Plan Moratorium by Carol Foreman, Deputy Secretary of the Department of Administration.

The House of Representatives debated their version of the 2009 rescission bill on Wednesday, February 4. The House passed SB 23 on Thursday, February 5 and the conference committee began meeting later in the afternoon to being working on a compromised version of the rescission bill.

Education
On Monday, February 2, the Education Committee held a hearing on SB 9 regarding capital improvements financed solely from non-state moneys. The bill would allow for all bureaucratic procedures to be removed from state university building projects which are funded by non-state moneys.

Additional hearings on SB 73 relating to local option budgets for school districts; SB 131 concerning changes in name or designation to technical colleges; and SCR 1604 which encourages the Kansas State Historical Society to commemorate the upcoming Kansas Sesquicentennial were held during the week. All three, SB 73, SB 131, and SCR 1604, passed out of the Education Committee and advanced to the Senate for consideration. SCR 1604 passed in the full Senate.

Public Health and Welfare
On Monday, February 2, Justin Cessna appeared before the Senate Public Health and Welfare Committee to provide follow up testimony from 2008 on the need for health care providers to provide coverage for bariatric surgical procedures. Since his testimony in 2008 Mr. Cessna has lost 125 pounds due to the bariatric surgical procedure and he continues to advocate for the need for health care provider coverage on bariatric surgical procedures.

In addition, the committee held hearings on SB 82, SB 102, SB 31, SB 63, SB 33, and SB 16. After two days of hearings from proponents and opponents of Senate Bill 25, the state-wide smoking ban in indoor public areas the committee passed SB 25 and it now heads to the Senate for consideration.