Summary of Governor's major Budget Recommendations for FY 2010

January Employment Figures
This week the Department of Labor released employment numbers from January 2009. For the month, Kansas lost 3,900 jobs and the unemployment rate increased from 4.9 percent to 6.4 percent. There were 26,744 initial unemployment claims in January 2009, down from 37,482 claims in the previous month, and up from 13,542 in January of 2008.

The greatest employment losses over the past year occurred in the manufacturing, construction, and information industries. Despite overall losses, the government added 8,200 jobs over the past year, the education and health services sector gained 2,300 jobs, and the leisure and hospitality sector added 1,600 jobs.

As a result of the federal stimulus the Department of Labor has began distributing an additional $25 a week in unemployment benefits. Also, unemployed Kansans are eligible to receive up to 20 weeks of extended unemployment benefits as the previous March 30 deadline to apply for extended benefits has been moved to the end of the year.

Governor’s Budget Recommendations
Attached to Trunk Report is a Legislative Research memo highlighting the expenditure and revenue adjustments incorporated in the FY 2010 Governor’s Budget Recommendations. To date, none of the legislative measures required to make certain adjustments have made it out of committee. If the Legislature does not pass the measures, there will be at least $64.5 million that will have to be made up in further expenditure reductions. The Governor’s expenditure and revenue adjustments total $744.7 million.

A second Legislative Research memo highlights the impact that the Federal Stimulus legislation has to the state’s tax revenues. A total of $86.5 million will be reduced from the state’s coffers.

Senate Bill 54- State Capitol Mural
SB 54 requires the Kansas State Historical Society and the Department of Administration to develop plans for a mural commemorating the U.S. Supreme Court decision of Brown v. Board of Education in the State Capitol. The plans must be submitted to the Joint Committee on Arts and Cultural Resources on or before January 1, 2011. Public funds are not to be used to pay for the creation or installation of the mural. SB 54 was approved 40 to 0 on Thursday, March 12.

Senate Bill 204- Food Safety and Lodging
SB 204 establishes the Food Safety and Lodging Fee Fund at the Department of Agriculture. All fees collected through food safety and lodging inspections are to be deposited into the fund. The bill authorizes the Department of Agriculture to reimburse 80 percent of the money collected for inspections to be reimbursed to local entities that conduct food safety and lodging inspections for the Department.

Effective July 1, 2009, the Food Safety Fee Fund and Food Service Inspection Reimbursement Fund will be abolished and all funds and responsibilities associated with the two will be transferred to the Food Safety and Lodging Fee Fund.

In 2008, food safety and lodging inspections were transferred to the Department of Agriculture from the Kansas Department of Health and Environment and statute adjustments were needed so the Department could fulfill food safety requirements. SB 204 was approved 40 to 0 on Thursday, March 12.

Senate Bill 212- Shipment of Wines
SB 212 permits in-state and out-of-state wineries to directly ship wine to Kansas consumers once a special order shipping license and $50 fee to the Department of Revenue is submitted. The bill requires the purchaser to pay the purchase price, liquor enforcement tax, and all shipping costs. Wineries are prohibited in the bill from shipping more than 12 cases of wine to any consumer or address in a year and must require the purchaser to prove they are 21 years old or older. Carriers who deliver the wine are responsible for ensuring the individual who accepts and signs for the shipment is at least 21 years old.

SB 212 was approved 39 to 1 on Wednesday, March 11.

Senate Bill 213- Consumption of Alcohol in Public Places
SB 213 amends the Liquor Control Act by allowing for the consumption of alcohol at certain public events held on a public streets, alleys, roads, sidewalks, or highways that are temporarily closed to traffic. Events authorized in this bill include picnics, bazaars, festivals, or similar community gatherings approved by resolution or ordinance from the municipality where the event is being held. These events must also have a temporary liquor license issued by the Director of the Alcohol Beverage Control.

The bill prohibits individuals from removing alcohol from inside the designated boundaries of the event area or from possessing or consuming alcohol inside the event area that was not sold by the licensee holding the permit to sell alcohol.

SB 213 was approved 37 to 3 on Wednesday, March 11.

Senate Bill 223- EMS Board Subpoena Authority
SB 223 gives the Investigative Committee of the EMS board the authority to issue subpoenas. Currently, the board does not have subpoena power. However, the bill requires patient records, clinical records, medical reports, and other similar information that could reveal private information to be kept confidential.

There is no fiscal note to SB 223 as additional expenditures resulting from passage of the bill will be absorbed by existing board resources. SB 223 was approved 33 to 7 on Wednesday, March 11.

Senate Bill 224- Kansas Board of Emergency Medical Services
SB 224 authorizes the Kansas Board of Emergency Services to charge a civil fine not exceeding $1,000 against any person granted a license or certificate to practice emergency medical services by the board. The fine can be assessed in addition to other penalties.

The fiscal note states that all civil fines collected go to the State General Fund. SB 224 was approved 39 to 1 on Thursday, March 12.

Senate Bill 241- Property Consulting Services
SB 241 amends the statutes regulating loan brokers and transfers the regulations to the Office of the State Bank Commissioner. The bill requires loan brokers to pay a nonrefundable $250 registration fee and file a financial statement to the State Bank Commissioner. In the bill, renewal fees for loan brokers are increased from $100 to $250 and applicants and registrants must file a surety bond of $50,000 in the Office of the State Bank Commissioner. In addition, the bill increases civil penalties for violations from $5,000 to $10,000.

The bill also requires to individuals who provide distressed property consulting services to register and abide by requirements applied to credit service organizations. Distressed property consultants help owners of distressed property at risk of being foreclosed on or lost secure funding to prevent the loss and take the funds intended for the property or take the property itself. SB 241 prohibits distressed property consultants from requesting that an owner transfer any portion of ownership to a trust and bans the consultants from implying that an improved credit rating will result from entering into a distressed property consulting agreement.

SB 241 was approved 36 to 4 on Thursday, March 12.

Senate Bill 248- Methamphetamine Precursor Statewide Logging System
SB 248 creates a real-time statewide electronic logging system for the sale of methamphetamine precursors. The logging system is to be maintained by the Board of Pharmacy. If funding for the program is unavailable on a statewide basis, the program may be implemented at a regional or non-statewide level. In instances where funding for the establishment and maintenance of the program are unavailable, pharmacies do not have to comply with the program as established in SB 248 but still must maintain logs already required by law.

The bill protects pharmacies from bearing the costs associated with establishing and maintaining the logging system and prohibits fee charges to pharmacies for transmitting and receiving information from the logging system. In addition, pharmacies and their employees cannot be held liable for civil actions resulting from the logging of methamphetamine precursors.

The initial cost of creating the logging system is approximately $400,000 and funding from the federal stimulus provision for health information technology is available to pay for the program startup. Additional annual costs will be needed for maintenance.

SB 248 was approved 37 to 3 on Thursday, March 12.

Senate Bill 254- Urban Areas
SB 254 addresses modifying zoning regulations in unincorporated areas in Johnson County. The bill exempts rezoning for mining operations, subject to the Surface-Mining Land Conservation and Reclamation Act, from the supermajority vote required by the Board of County Commissioners.

There is no fiscal impact to state revenues. SB 254 was approved on Thursday, March 12.

Senate Bill 257- Public Improvements
SB 257 provides two additional conditions that would allow a city to make improvements to unincorporated areas residing within three miles of their corporate limits. Currently, improvements can be made only if the city has adopted regulations governing the subdivision of land in unincorporated areas.

The new conditions allow improvements to be made if the city has obtained the county’s consent for making the improvements or if 100 percent of property owners who will benefit from the improvements have signed a petition requesting that the improvements be made. Of the three conditions, only two must be met.

SB 257 was approved 31 to 7 on Thursday, March 12.

Senate Bill 260- Uninsured Motorists
SB 260, if enacted, would prohibit individuals who do not have auto insurance and who are involved in an auto accident, from suing for pain and suffering. In addition, individuals who are convicted or who plead guilty to an alcohol or drug-related violation connected with an auto accident are banned from suing for pain and suffering damages.

Benefits required in the bill to be provided by motor vehicle insurance include disability, funeral, medical, rehabilitation, substitution, and survivor’s benefits. Economic damages are also to be covered in the bill, these damages include the cost of past and future medical care, lost wages, loss of earning capacity, and other similar losses.

Proponents believe this legislation allows uninsured drivers to receive economic damages but exclude non-economic damages, a practice which occurs in five other states. The bill has no fiscal impact.

During the Senate debate an amendment was attached to the bill by Senator Abrams. The amendment is intended to prevent unintended consequences by excluding individuals who have failed to maintain insurance coverage for less than 30 days and who have maintained consistent insurance coverage for a minimum of one year from provisions in the bill.

SB 260 was approved 37 to 3 on Thursday, March 12.

Senate Bill 262- Scope of Practice for EMS Attendants
SB 262 amends existing Emergency Medical Services (EMS) statutes by changing the title of EMS attendants to Advanced Emergency Medical Technician, Emergency Medical Responder, and Paramedic from Emergency Medical Technician-Intermediate, First Responder, and Mobile Intensive Care Technician.

By changing the titles of EMS attendants in Kansas, the titles are conformed to the National EMS scope of practice. There is no fiscal note to the bill. SB 262 was approved 40 to 0 on Wednesday, March 11.

Senate Bill 290- Teacher Contracts
SB 290 amends the professional contract negotiations law to include the Kansas State School for the Blind and the Kansas School for the Deaf. Currently, teachers at the schools are not part of the law. SB 290 was approved 34 to 5 on Thursday, March 12.

House Bill 2003- Postsecondary Technical Education
HB 2003 makes a variety of technical amendments to statutes governing postsecondary technical education. The bill codifies provisions included in appropriation bill provisos regarding developing a technical model for postsecondary technical education, updates federal law references, and replaces outdated or unnecessary terminology. HB 2003 was approved 40 to 0 on Thursday, March 12.

House Bill 2004- State Board of Regents Employees
HB 2004 amends current law by prohibiting retirement plan participants of the State Board of Regents from filing a one-time, permanent decision to continue participating in the retirement plan if the participant takes a leave of absence to work in the executive branch of state government. HB 2004 was approved 40 to 0 on Thursday, March 12.

House Bill 2007- Fees and Tuitions at State Educational Institutions
HB 2008 amends existing law by permitting the State Board of Regents to award fellowships, scholarships, and tuition and fee waivers to undergraduate and graduate students.

Currently, graduate students are only allowed to receive fellowships or scholarships. Proponents of the bill believe it would serve as an additional tool for promoting the education mission of the State, encourage workforce development, help manage enrollment, and support diversity at state universities. The intention of the bill is to help attract students who already have family ties to state universities and the state.

According to the Division of the Budget, passage of the bill and its associated costs will be absorbed by the universities. HB 2007 was approved 40 to 0 on Thursday, March 12.

House Bill 2023- KCC Order Enforcement
HB 2023 allows the Director of Vehicles in the Department of Revenue to revoke, suspend, refuse, or retrieve a license plate or to issue or renew a license or registration certificate if the intrastate motor carrier’s operating authority has been terminated or denied by the State Corporation Commission.

The bill was requested by the Division of Vehicles to correct a loophole in existing law that allows a trucker, whose trunk has been put out of service for violating federal or state safety regulations to register at the county treasurer’s office. Currently, county treasurers are unable to deny registration of a vehicle which allows the violator to continue operating a trunk. Proponents believe the bill will help keep unsafe vehicles off of state highways by encouraging communication between federal, state, and county regulatory authorities.

There is no fiscal note to this measure. HB 2023 was approved 40 to 0 on Wednesday, March 11.

House Bill 2045- Veterans Memorial Bridge
HB 2045 designates bridge 85 on U.S. Highway 166 in Labette County as the Veterans Memorial Bridge. HB 2045 was approved 40 to 0 on Wednesday, March 11.

House Bill 2068- Licensure of Real Estate Brokers and Salespersons
HB 2068 amends the Kansas Real Estate Brokers’ and Salespersons’ License Act by revising the definition of office, authorizing the Kansas Real Estate Commission to designate specific education requirements, allowing the Commission to seek disciplinary action for violating the Act, expanding the list of persons subject to threats, physical abuse, or harassment from a licensee, and permitting a broker to act as a supervisor or branch broker when a license of an existing broker or supervising broker is voluntarily or involuntarily deactivated.

The Kansas Real Estate Commission estimates the fiscal impact of the bill to be approximately $5,000 a year starting in 2010. HB 2068 was approved 40 to 0 on Wednesday, March 11.

House Bill 2091- Modular Homes
HB 2091 clarifies that the provisions of the Kansas Manufactured Housing Act do not apply to modular homes. The bill was requested to provide statutory clarification regarding the Kansas Manufactured Housing Act. HB 2091 was approved 40 to 0 on Wednesday, March 11.

House Bill 2092- Transfer Fee Covenants
HB 2092 makes transfer fee covenants documented on or after July 1, 2009 non-binding and unenforceable against any successive owner, purchaser, or mortgage holder of real property. The bill declares transfer fee covenants to be void and unenforceable.

The Kansas Association of Realtors requested this bill as a result of a handful of cases involving transfer fee covenant problems. Transfer fee covenants are sophisticated pyramid schemes which steal property equity from the owner by holding property titles hostage. In states where this practice is more frequent, mortgage lenders and title insurance agencies are unwilling to participate in transactions where the title involves a transfer fee covenant.

HB 2092 was approved 40 to 0 on Thursday, March 12.

House Bill 2121- Pesticide and Fertilizer Program
HB 2121 upgrades Kansas pesticide and fertilizer statutes. The bill requires applicants for commercial applicator certificates to pay $75 per fee unless otherwise specified and extends most current fee amounts dealing with pesticides and fertilizers until July 1, 2015 when they would return to 2002 levels. HB 2121 was approved 38 to 2 on Thursday, March 12.

House Bill 2142- Continuing Education Requirements for Certain Trades
HB 2142 concerns the licensure and continuing education requirements for certain trades and crafts which include; plumbers, electricians, mechanical heating contractors, and ventilation and air conditioning contractors.

Individuals licensed to perform these trades must have no less than six hours of code education on a biennial basis or three hours on an annual basis. Continuing education courses can be provided by community colleges, technical schools, technical colleges, or other approved educational providers.

HB 2142 was approved 40 to 0 on Wednesday, March 11.

House Bill 2157- Topeka/Shawnee County Riverfront Authority
HB 2157 amends existing law to allow the Topeka/Shawnee County Riverfront Authority to meet quarterly, or more frequently if called by the chairperson, rather than monthly. Authority members do not believe monthly meetings are necessary to accomplish the remaining work of the Authority.

HB 2157 was approved 40 to 0 on Thursday, March 12.

House Bill 2158- Kansas Highway Patrol Officers
HB 2158 allows members of the Kansas Highway Patrol to serve on governing boards of municipalities if the position is nonpartisan, appointed or elected. The bill also allows Patrol members to serve on an appointed task force if it is deemed necessary to the member’s duties by the Patrol superintendent.

HB 2158 was approved 40 to 0 on Thursday, March 12.

House Bill 2188- Vehicle Dealers and Manufacturers Licensing Act
HB 2188 allows a dealer-hauler full privilege license plate to be used by a trailer manufacturer or trailer plate dealer instead of a regular trailer registration and license plate. The bill raises and sets the full-privilege license plate fee from $350 to $350.50; limits the use of dealer-hauler full-privilege license plates to trailers; allows for the transfer of a plate from one trailer to another if owned by the same person; permits the license plate to be used by a trailer manufacturer or dealer for non-highway equipment if the weight of the equipment and trailer does not exceed 85,500 pounds; clarifies that a dealer has until the last day of February in each year to apply for renewal of the appropriate full-privilege license plate; and explains that dealer-hauler full-privilege trailer license plates must be renewed by the dealer before the first day of March.

When companies purchase new equipment most also purchase a new trailer to haul the purchase. Currently, a company is required by law to license and register every trailer it owns, even if the trailer is up for resale. The bill would allow the manufacturer to license as a trailer dealer and use the dealer-hauler privilege trailer license plate to keep the trailer as a new unit.

HB 2188 was approved 40 to 0 on Thursday, March 12.

House Bill 2197- Admissions to State Educational Institutions
HB 2197 authorizes the Kansas Board of Regents to adopt rules and regulations for admissions to state educational institutions that are different from the current admission requirements. Any rules and regulations which are more rigorous than the existing admission standards cannot go into effect before the 2014-2015 academic year.

Kansas residents and non-residents who graduate from non-accredited private secondary schools could be admitted to a state educational institution if they have an ACT score of at least 21. In addition, residents who graduate from non-accredited school qualify for admission if they are at least 21 years of age.

The bill limits each state educational institution from admitting more than 10 percent of the total number of transfer students and 10 percent of the total number of non-resident transfer students who do not meet the minimum admission standards. The Board of Regents are required to report by January 31, each year, of the percentage of transfer student admissions exceptions permitted during the previous academic year.

During the Senate floor debate and amendment was attached by Senator Lee that strikes the 2014-2015 school year timeline from the bill and inserts the first day of the fourth academic year after rules and regulations are established. If the Board of Regents adopt new rules and regulations a student will know of the changes and requirements for admission to state universities for the duration of their time in high school.

HB 2197 was approved 34 to 6 on Thursday, March 12.

House Bill 2207- Supervision Fees
HB 2207 increases the maximum amount that could be charged for supervision fees against a person charged with a crime and released on supervision. The charge increases from $10 per week to $15 per week. HB 2207 was approved 40 to 0 on Thursday, March 12.

House Bill 2232- Corrections Advisory Board
HB 2232 increases the limit of the membership of the Corrections Advisory Board to at least 12 but not to exceed 15 members. Currently, the total membership of the board is limited to 12. HB 2232 was approved 40 to 0 on Thursday, March 12.

House Bill 2339- Licensure of Certified Public Accountants
HB 2339 concerns certified public accountants (CPAs) and the powers of the Board of Accountancy and the mobility of practice for out-of-state CPAs who practice in Kansas without individual licenses. The bill gives the Board of Accountancy subpoena powers, allows for costs to be recovered when on the prevailing side, and permits for a fee increase.

The bill has the potential to increase litigation in the courts but no precise fiscal note can be determined. HB 2339 was approved 34 to 6 on Wednesday, March 11.

House Bill 2265- State Treasurer and Pooled Money Investment Board
HB 2265 amends the Legislative Post Audit Act by requiring audit reports to be prepared every three years on the financial management practices of the State Treasurer’s Office and the Pooled Money Investment Board. The bill also requires a transition audit be performed within two weeks of the date that a new person becomes State Treasurer so office assets can be reviewed for discrepancies during the transition.

Currently, no frequency is required for the audits of the State Treasurer’s Office or Pooled Money Investment Board. HB 2265 was approved 40 to 0 on Thursday, March 12.

Agriculture
On Tuesday, March 13, the Senate Agriculture Committee held a hearing on HB 2121 concerning the Fertilizer and Pesticide Programs in the Department of Agriculture. The bill passed favorably out of the committee and was approved by the Senate by a vote of 38 to 2.

Assessment and Taxation
The Senate Assessment and Taxation Committee met on Wednesday, March 11 and Thursday, March 12, to hold hearings on HB 2321 and SB 244. House bill 2321 proposes including the horsethief reservoir benefit district to the Kansas Retailers Sales Tax Act. The bill passed out of committee and is up for consideration by the Senate. SB 244 concerns businesses eligible for funds from the federal stimulus.

Commerce
This week the Senate Commerce committee held hearings on HB 2260, the Kansas Home Inspectors Professional Competence and Finance Responsibility Act. In addition, a hearing was held on HB 2270 regarding the apportionment of business incomes.

Education
The Senate Education Committee met on Monday, March 9 and Tuesday, March 10, to hold hearings on HB 2004 pertaining to mandatory requirement plan conditions for regents institutions and HB 2001 concerning the number of pupils at USD No. 209, Atchison.

The committee also passed out SB 290, HB 2003, HB 2197, and HB 2001.

Ethics and Elections
On Wednesday, March 11, the Senate Ethics and Elections committee held a hearing on SB 267 regarding voter identification changes.

Federal and State Affairs
The Federal and State Affairs Committee held hearings this week on SB 247 on revoking or suspending the license of a club or drinking establishment, SB 246 concerning allowing special permits for alcoholic beverage tastings, SB 218 regarding for the issuance of farmers’ market sales permits for farm wineries, SB 273 pertaining to the Kansas Expanded Lottery Act which would allow electronic gaming machines in Sedgwick County, and SB 201 on displaying the U.S. flag at half-staff in honor of Veteran killed.

The committee also received an update on driver’s licenses and identification cards by the Division of Vehicles.

Financial Institutions and Insurance
This week the Senate Financial Institutions and Insurance Committee conducted hearings on HB 2052 pertaining to the Life and Health Insurance Guaranty Association, HB 2214 on risk-based capital requirements, HB 2292 concerning security requests for freezes on consumer reports, and HB 2054 regarding annual audits on title insurance.

The committee passed out SB 241 and HB 2185. SB 241 passed in the Senate by a vote of 36 to 4 and HB 2185 is up for consideration by the Senate.

Judiciary
The Senate Judiciary Committee continued to conduct hearings on several bills this week. Among those that received hearings were; HB 2060 on battery on a law enforcement officer, HB 2096 regarding the electronic solicitation of children 14 to 16 years of age, HB 2098 adding aggravated trafficking and electronic solicitation to the Kansas Rape Shield Law, SB 279 concerning DUIs and mandatory minimum sentences for involuntary manslaughter, and SB 280 on suspending or restricting driving privileges for people under the age of 21 who fail a drug or alcohol test.

Local Government
On Monday, March 9, the Senate Local Government Committee met to hold hearings on HB 2155 regarding the City of Topeka land bank. The committee also met on Tuesday, March 10, to continue work on SB 271 which proposes to increase the bidding threshold for counties and to conduct hearings on HB 2157 pertaining to the Topeka/Shawnee County Riverfront Authority and SB 245 concerning summary publications of city ordinances.

HB 2157 passed out of the committee and was approved by the Senate on Thursday, March 12 by a vote of 40 to 0.

Natural Resources
The Senate Natural Resources committee met on Thursday, March 12, to conduct a hearing on SCR 1610 which encourages the Environmental Protection Agency to authorize the use of higher blends of ethanol for non-flex fuel vehicles. The bill passed out of the committee and is up for consideration by the Senate.

Public Health and Welfare
On Tuesday, March 10, the Senate Public Health and Welfare committee had an informational briefing on the currents and future situation of public health in Kansas. The committee met again on Wednesday, March 11, to continue discussion on Medical Debt and on the impact of Health Information Technology and Exchange.

Transportation
The Senate Transportation Committee continued to work on plans for a new comprehensive transportation plan. On Tuesday, March 12, Secretary Deb Miller with the Department of Transportation appeared before the committee to go over the Department’s plans for stimulus funding, transportation projects, and to discuss toll roads. Also on Tuesday, the committee held hearings on HB 2188 regarding dealer-hauler full-privilege trailer license plates and HB 2258 on the licensing of vehicle crushers, recyclers, and re-builders of scrap metal. Other hearings that took place in the Transportation committee this week include, HB 2279 on drivers license restrictions, SB 300 about increasing fees for special overweight or oversize permits, SB 302 pertaining to financing intermodal transportation projects with the Kansas Intermodal Transportation Revolving Fund, and SB 293 concerning the definition of an all-terrain vehicle.

Utilities
On Wednesday, March 11, the Senate Utilities committee met to hold hearings on SB 299 and SB 284. SB 299 concerns regulating underground hydrocarbon storage well and SB 284 pertains to third party administrators for certain utility energy efficiency and conservation programs.

The committee met again on Thursday, March 12, to hold hearings on HB 2115 proposing to repeal criminal penalties for refusing telephone line access for emergency purposes and HB 2126 on requiring telecommunications providers to provide call location information in emergency situations.

Ways and Means
The Ways and Means Committee continued receiving subcommittee reports for the fiscal year 2010 budget this week. In addition, the committee held hearings on HB 2265 regarding financial audits, new state treasurer transition audits, and audits of the Pooled Money Investment Board and the State Treasurer’s Office, SB 296 on the review and evaluation of the federal stimulus, HB 2219 concerning the sunset extension of the Kansas Performance Measurement Commission, SB 294 proposing to amend the Kansas Whistleblowers Act, and SB 310 on prohibiting SRS from putting more than six sexually violent predators in one county on transitional or conditional release.