FY 2010 Budget
On Tuesday, May 5, the Senate passed Senate Sub. for HB 2373 by a vote of 21 to 17. HB 2373 is the omnibus budget bill for fiscal years 2010 through 2014. On Thursday, May 6, the House concurred with the Senate on HB 2373. The bill now heads to Governor Parkinson for his consideration.

Veto Overrides
On Thursday, May 7, the Senate failed to override, by a vote of 25 to 13, Governor Sebelius’s veto of SB 218 concerning late term abortions.

Senate Bill 33- State Board of Pharmacy
SB 33 requires all pharmacy technicians to display a registration card in the place of business where they engage in pharmacy technician activities. As a result, pharmacies are no longer required to post the names of pharmacy technicians on duty.

The bill increases the number of board members on the Board of Pharmacy from six to seven, six must be licensed pharmacists. Effective July 1, 2009, the term for each member of the Board of Pharmacy is extended by one year. Members appointed on or after July 1, 2009, will serve a four year term.

The conference committee report for SB 33 was approved by the Senate 33 to 4 on Friday, May 8. The House approved the conference committee report for SB 33, 98 to 31, on Friday, May 8. The bill now heads to Governor Parkinson for his consideration.

Senate Bill 41- School District Consolidation and Disorganization
SB 41 amends state law concerning school district consolidation and disorganization. In situations where a school district disorganizes and the territory of the district is attached to more than one district, the state financial aid of the disorganized district will be allocated to the remaining districts in the territory. State financial aid would be allocated on the same proportional basis of the assessed valuation of the entire disorganized district.

The conference committee report for SB 41 was approved by the Senate 34 to 0 on Friday, May 8. The House approved the conference committee report for SB 41, 119 to 5, on Thursday, April 2. The bill now heads to Governor Parkinson for his consideration.

Senate Bill 51- Annexation
SB 51 revises several existing annexation statutes. The bill directs a city proposing to unilaterally annex land to submit a copy of their plan to the Board of County Commissioners at least 10 days before the required public hearing on the annexation. The city’s plan must detail the service expansion of the area in question.

The bill modifies the current review process used to determine whether municipal services were provided as stated in the annexation plan by reducing the elapsed time before deannexation procedure could begin. Specifically, the bill reduces from five years to four, the time required to elapse after the land annexation before the Board of County Commissioners can hold the required hearing to review whether the city has provided the services proposed in the annexation plan and timetable. If the Board refuses to hold the hearing, a landowner is permitted, in the bill, to bring court action. The bill also reduces from two and a half years to two years the time that must pass following the review hearing. By then, if a city has not provided the services included in the annexation plan, a landowner may petition the Board to deannex the land. If the Board refuses to hold the required deannexation hearing, court action may ensue.

The bill prohibits annexing any portion of unplatted agricultural land exceeding 65 acres without the written consent of the landowner. The bill requires cities who annex land through the unilateral and consent annexation statute or the county commissioner approval statute to spend all proceeds from property taxes levied against the land to provide municipal infrastructure and services to the annexed area for one year from the annexation date.

The bill prohibits cities from utilizing the unilateral and consent annexation statute for annexing a narrow corridor of land to gain access to noncontiguous land beginning July 1, 2009. Any corridor of annexed land must have a tangible value and purpose other than enhancing future annexations.

The conference committee report for SB 51 was approved by the Senate 23 to 11 on Friday, May 8. The House approved the conference committee report for SB 51, 81 to 31, on Friday, May 8. The bill now heads to Governor Parkinson for his consideration.

Senate Bill 84- Cash Basis Exception for Schools
SB 84 amends existing cash-basis law by creating an exception for school districts when expenditures exceed revenues because of a delay in the payment of general or supplemental state aid. The bill allows the state to make the remainder of the FY 2008-2009 state aid payment to school districts after June 30 and prevents schools from violating the current cash-basis law.

The bill creates an alternative formula for calculating the local option budget for a school district. Districts can authorize local option budget calculations that use a base state aid per pupil (BSAPP) amount of $4,433 in any school year that has a BSAPP lower than that amount. School districts also have the option of calculating their local option budget using the amount appropriated from state aid for special education and related services for the 2008-2009 school year. The provisions in SB 84 expire on June 30, 2012.

The conference committee report for SB 84 was approved by the Senate 35 to 0 on Friday, May 8. The House approved the conference committee report for SB 84, 112 to 6, on Friday, May 8. The bill now heads to Governor Parkinson for his consideration.

Senate Bill 168- Salary Expenditures
SB 168 requires all funds budgeted for salaries, wages, compensation, and employer benefit contributions for full-time equivalent positions to be spent on those expenditures. The bill requires agencies to give priority to paying employee salaries over other expenditures when funds come out of the state treasury.

The conference committee report for SB 168 was approved by the Senate 27 to 3 on Friday, May 8. The House approved the conference committee report for SB 168, 118 to 0, on Friday, May 8. The bill now heads to Governor Parkinson for his consideration.

Senate Bill 171- Advance Voting, Military and Federal Service Voters
SB 171 expands ballot options for federal service voters by eliminating exclusions and requiring ballots to include all officers and propositions where the voter is entitled to vote. Current law excludes overseas absentee ballots from including local questions, state constitutional amendments, and political party precinct committee positions.

The bill allows a person to transmit a voter’s advance ballot if the voter has designated approval with their written signature and date on the ballot envelope. Current law allows another individual to transmit an advance ballot at the request of the voter. The bill prohibits any individual, other than the voter, to sign an application for an advance voting ballot, except when allowed by law. Voters must return an advance ballot in person or by mail. If another individual is designated in writing by the voter to deliver the ballot, that person must mail or deliver the ballot in the signed ballot envelope within two business days and no later than the close of polls on election day.

The bill moves up the filing deadline nine days for national, state, county, and township office candidates. Exceptions remain for instances where the designated deadline falls on a Saturday, Sunday, or holiday.

The bill allows certain federal service voters to apply for registration and an absentee ballot by electronic mail. Under specific circumstances, the voter may return the ballot by electronic mail.

The conference committee report for SB 171 was approved by the Senate 32 to 7 on Thursday, May 7. The House approved the conference committee report for SB 171, 68 to 53, on Wednesday, May 6. The bill now heads to Governor Parkinson for his consideration.

Senate Bill 311- State General Fund and Special Revenue Fund Expenditures
SB 311 amends existing law for reducing the approved state budget by modifying the current allotment process used by the Governor to reduce the approved State General Fund Budget when the projected ending balance is less than zero. The bill prohibits the Governor from approving an allotment on the State General Fund (SGF).

If the projected ending balance of the State General Fund is deemed insufficient to cover the authorized expenditures and demand transfers by the Director of the Budget and the Director of Legislative Research, the Governor may seek State Finance Council approval for across the board reductions in all SGF accounts with the exception of debt service payments, KPERS school employer contributions, and School District Capital Improvement Fund payments.

If the Governor determines the projected SGF ending balance will be above zero but less than 3.5 percent of total authorized expenditures and demand transfers, an executive order could be issued that makes specific reductions to the authorized SGF expenditures and demand transfers. Again, the reductions could not be made against debt service payments, KPERS school employer contributions, and School District Capital Improvement Fund payment.

SB 311 was approved by the Senate 24 to 16 on Friday, May 1. The House did not consider SB 311 before adjournment.

Senate Bill 336- Legislation Reconciliation
SB 336 allows technical changes to be made by the Revisor’s Office to bills previously passed by the Legislature during the 2009 session. The conference committee report for SB 336 was approved by the Senate 34 to 0 on Friday, May 8. The House approved SB 336, 115 to 0, on Friday, May 8. The bill now heads to Governor Parkinson for his consideration.

Senate Concurrent Resolution 1616- School District’s Use of Federal Stimulus Funds
SCR 1616 urges Kansas school districts to carefully utilize federal stimulus funds received from the American Recovery and Reinvestment Act of 2009. The resolution encourages school districts not to use these funds to finance ongoing programs and instead encourages the use of funds to establish or increase balances in contingency reserve funds and other funds in order to prepare for the anticipated funding shortfall for FY 2012. SCR 1616 was approved by the Senate 35 to 2 on Friday, May 8. The House did not consider SCR 1616 before adjournment.

Senate Concurrent Resolution 1618- Transportation Plan for 2010
SCR 1618 urges the Kansas Legislature to formulate and implement a comprehensive transportation plan for the 2010 legislative session. The resolution encourages the development of a comprehensive transportation plan during the 2009 interim that proposes funds for a new, multi-year transportation plan which focuses on the needs of rural and urban Kansas, supports the economic values of the state, and uses a variety of transportation modes to help stimulate the economic recovery of Kansas. SCR 1618 was approved by the Senate 37 to 0 on Friday, May 8. The House did not consider SCR 1618 before adjournment.

House Bill 2060- Omnibus Crime Bill
HB 2060 is the Omnibus Crime bill making several changes to existing law. Included, but not limited to the changes, is a special sentencing rule for battery on a law enforcement officer resulting in bodily injury; enhanced sentences for drug manufacturing, trafficking, and possession crimes if the offender discharges a firearm; amendments to the crimes of cockfighting, dog fighting, and attendance at a dog fight; and alters the law of fleeing or eluding a law enforcement officer.

The bill creates the Joint Committee on Parole Board Oversight and requires the Kansas Parole Board to make documents, records, and reports of 30 cases selected by the Secretary of Corrections available to the Joint Committee. In addition, the Kansas Parole Board is required to provide the Joint Committee a summary statement listing the factors and rationale used to grant or deny parole in each of the 30 selected cases. The Joint Committee would consist of the Chair, ranking minority, and an additional member appointed by the Chair of the Senate Judiciary Committee and the Chair, ranking minority, and an additional member of the House Committee on Corrections and Juvenile Justice. The Joint Committee must submit a report and recommendations to the Legislature by January 1, 2010.

The conference committee report for HB 2060 was approved by the Senate 37 to 2 on Thursday, May 7. The House approved the conference committee report for HB 2060, 100 to 17, on Friday, May 8. The bill now heads to Governor Parkinson for his consideration.

House Bill 2072- Kansas Police and Firemen’s Retirement System & KPERS
HB 2072 amends statutes for the Kansas Police and Firemen’s (KP&F) Retirement System and the Kansas Public Employees Retirement System (KPERS) by removing the current statutory earnings limitation of $10,000 for tier II KP&F members who qualify for disability benefits but who are able to work part-time at a nonpublic safety job while drawing KP&F disability payments. The bill clarifies that KPERS retirees who return to work as contracted employees after retiring are subject to the same policies as other KPERS retirees who return to work as individuals.

The bill increases from 30 days to 60 days, the break-in-service requirement for all KPERS retirees before they can return to work for any KPERS participating employer, beginning July 1, 2009. The bill eliminates, for three years, the $20,000 statutory earnings limitation for licensed public school employees of the KPERS school group who return to work for the same KPERS participating employer they retired from and requires, until June 30, 2012, payments by all public school employers who employ KPERS school group retirees to include the actuarial employer rate plus an additional eight percent. For FY 2010, the total contribution rate amounts to 20.07 percent.

The bill requires the special employer rate to apply to all school employers who hire licensed KPERS school group retirees who return to work for the same school district or a different school district until June 20, 2010.

The bill requires the KPERS employer contribution rate for the state and school groups to be equal to the statutory rate in FY 2010 and forsubsequent fiscal years. Additional KPERS state contributions exceeding those required by the actuarial rate will be remitted to KPERS and credited to the school group.

The conference committee report for HB 2072 was approved 37 to 1 on Friday, May 8. The House approved the conference committee report for HB 2072, 116 to 0, on Friday, May 8. The bill now heads to Governor Parkinson for his consideration.

House Bill 2099- Kansas Open Records Act
HB 2099 adds to an existing exception in the Kansas Open Records Act that a public agency is not required to disclose the name, address, or other contact information of an alleged victim of stalking, domestic violence, or sexual assault. HB 2099 was approved by the Senate 40 to 0 on Friday, May 1. The House approved HB 2099, 117 to 0, on Monday, May 4. The bill now heads to Governor Parkinson for his consideration.

House Bill 2158- Elections and Ethics
HB 2158 allows members of the Kansas Highway Patrol to serve on the governing body of a municipality if the position is appointed or non-partisan. In addition, patrol members can serve on an appointed task for if deemed necessary as part of the member’s duties by the Patrol superintendent.

The bill adds to the crime of corrupt political advertising by prohibiting the creation of a website, e-mail, or other internet communication that clearly advocates for the nomination, election, or defeat of a clearly identified candidate for state or local office and is disseminated to 25 or more individuals by a candidate or committee unless the information contains a statement indicating who paid for or sponsored the communication.

The bill creates a temporary alternative to filing statements of substantial interest (SSI) by faculty members of state educational institutions earning a salary of $50,000 or more, excluding adjunct faculty members. The alternative form contains the same information as the SSI and must be filed annually as part of the educational institution’s appointment or salary notification process.

The bill requires candidates for a statewide office to electronically file campaign finance reports and allows for the at-large election of the Board of County Commissioners of Sherman County if approved by Sherman County voters.

The conference committee report for HB 2158 was approved by the Senate 38 to 1 on Thursday, May 7. The House approved the conference committee report for HB 2158, 115 to 4, on Friday, May 8. The bill now heads to Governor Parkinson for his consideration.

House Bill 2162- Marriage and Family Therapists
HB 2162 amends licensing requirements for marriage and family therapists in Kansas by removing the requirement that therapists finish a program of study consistent with the standards of state universities. The bill increases the maximum charge allowed for psychologist licensure from $150 to $225 and reduces the maximum for original licensure fees from $200 to $150.

The conference committee report for HB 2162 was approved by the Senate 39 to 0 on Thursday, May 7. The House approved the conference committee report for HB 2162, 119 to 0, on Friday, May 8. The bill now heads to Governor Parkinson for his consideration.

House Bill 2195- State Records
HB 2195 directs the State Archivist to prepare and present recommendations to the State Records Board on a process to preserve the authenticity of electronic records. The process must have the same legal effect of the original document, charge reasonable fees for copies, and ensure the preserved electronic records are certified by the electronic signature of the State Archivist. The bill requires the State Archivist to certify by electronic signature that any preserved electronic government record meets national and professional authenticity standards and to prepare and recommend rules and regulations for implementation of the bill to the State Records Board.

In addition, the bill amends several statutes to allow for document transmission by e-mail or other electronic means. Current law requires transmission in written or facsimile form. The conference committee report for HB 2195 was approved by the Senate 34 to 0 on Friday, May 8. The House did not consider the conference committee report for HB 2195 before adjournment.

House Bill 2214- Controlled Insurance Programs Act, Kansas Fairness in Private Construction Contract Act, and Kansas Mental Health Parity Act
HB 2214 establishes the Controlled Insurance Programs Act creating requirements for programs of liability insurance coverage established by an owner or contractor who requires participation of contractors or subcontractors engaged in work required by a construction contract. Controlled insurance programs are established by owners or contractors for liability insurance and workers compensation insurance and include coverage on a construction site, project, or multiple projects.

The bill requires controlled insurance programs to: establish a quarterly reporting method for participant claim and loss information; provide that cancellation of the coverage before the project is complete to require the owner or contractor to replace the insurance or pay the subcontractor’s cost to do so; prohibit sponsors from charging non-sponsoring participants a deductable exceeding $2,500; keep self-insured retention fully funded by the owner or contractor establishing the controlled insurance program; disclose specific safety and equipment requirements before accepting bid from contractors and subcontractors on a construction project; and allow monetary fines for safety violations to be charged solely by government authorities.

The bill amends three statutes in the Kansas Mental Health Parity Act to require health insurance policies, on and after November 1, 2009, to provide the same benefits for the treatment of mental illness, alcoholism, drug abuse or other substance use disorders as are provided for mental illness.

The bill amends the subrogation wavier period in the Kansas Fairness in Private Construction Act to specify an exception waiving the rights of the recovery provision in the Controlled Insurance Program Act. Also amended, are provisions governing the continuation of coverage requirements for sickness and accident health insurance plans and HMO plans by requiring terminated employees to pay the premiums to the insurance carrier and not the employer.

The conference committee report for HB 2214 was approved by the Senate 38 to 0 on Friday, May 8. The House approved the conference committee report for HB 2214, 115 to 4, on Friday, May 8. The bill now heads to Governor Parkinson for his consideration.

House Bill 2267- Non-Gubernatorial Appointees
HB 2267 requires non-gubernatorial appointees to be current in their taxes and to consent the release of a tax certification by the Department of Revenue before being appointed. Current statute does not prohibit appointees from being appointed if they have not consented to the tax certification release.

The bill revises and clarifies provisions for the Kansas Commission on Rural Policy by deleting the requirement that appointees are subject to Senate confirmation and clarifies the term length for newly appointed members to the Commission. In addition, the bill expands the Commission’s review of rural development programs to include new homestead opportunities for individuals and new incentives for business development. The Commission deadline is extended from July 1, 2009, to July 1, 2010 for developing operational plans and the sunset date is moved from July 1, 2011 to July 1, 2012.

The conference committee report for HB 2267 was approved by the Senate 40 to 0 on Friday, May 1. The House approved HB 2267, 121 to 2, on Thursday, May 7. The bill now heads to Governor Parkinson for his consideration.

House Bill 2283- Water Service Transfers
HB 2283 enacts new law for the process of transferring water service when a city annexes property serviced by a rural water district. The bill amends existing law to provide additional factors to be considered by a rural water district’s board of directors before releasing lands from the rural water district. The bill repeals current law on the annexation of lands located within a rural water district and clarifies guidelines for implementing an area of intensive groundwater use in the boundaries of a groundwater management district.

The bill requires a city to notify a rural water district, in writing, at least 60 days before the effective date of any ordinance proposing to annex the land. The city can contract with a rural water district for water service to portions of the annexed area. If the city contracts with a different water supplier, it must purchase the property, facilities, and improvements of the district located in the annexed territory. If not executed in 90 days, the bill requires the city and rural water district to engage in mediation to reach an agreement for purchase.

If a mediation agreement is not reached, a third party appraiser will be appointed to work with appraisers from the city and rural water district for considering all elements of value in determining the value of the annexed area. If the rural water district or city is dissatisfied with the decision, a district court appeal must be made within 30 days. After the fair market value has been sufficiently determined, the rural water district must be paid within 120 days.

Current law allows landowners to petition a rural water district’s board of directors for releasing lands from the district. Once the petition is successfully filed, the district’s board must hold a hearing to consider the landowners’ release request. The board must determine if the lands request for release cannot economically or adequately be serviced and if the release is in the best interest of the landowner and district based on the evidence provided.

The district’s governing body must consider additional factors when determining if the land should be released. Among the factors to be considered are whether the unit or service costs and equipment costs are unreasonable and excessive; whether releasing lands would allow the district to yield adequate compensation; whether release lands would cause a loss of supply to existing and new customers; and whether the district can provide safe and adequate water to district customers.

The bill allows the Chief Engineer of the Division of Water Resources to implement an intensive groundwater use control area (IGUCA) within the boundaries of a groundwater management district (GMD) only when the implementation is recommended by a GMD or whenever a petition is signed by 300 eligible voters or 5 percent of the eligible voters in the district, whichever is less.

HB 2283 was approved by the Senate 39 to 0 on Thursday, May 7. The House did not consider HB 2283 before adjournment.

House Bill 2295- Pesticides and Fertilizers
HB 2295 modifies pesticide and fertilizer statutes and fees and extends the fees for the dairy inspection program. The bill transfers the responsibility of reviewing the swine nutrient utilization plans from the Kansas Department of Agriculture to the Kansas Department of Health and Environment. HB 2295 contains the provisions of HB 2121 with the exception of the dairy labeling provision which was vetoed by Governor Sebelius.

HB 2295 was approved by the Senate 40 to 0 on Monday, May 4. The House approved HB 2295, 120 to 2, on Wednesday, May 6. The bill now heads to Governor Parkinson for his consideration.

House Bill 2365- Tax Package
HB 2365 contains several tax provisions necessary for closing the $70 million hole left by the passage of HB 2373. The bill grants the Secretary of Revenue additional authority to resolve certain audit-related assessments pending in the administrative appeals process, the State Court of Tax Appeals, or in the judicial review process before any state or federal district or appellate court. By taking this action, an additional $35 million in tax collections will be contributed to the State General Fund (SGF).

The bill reinstates vetoed language from HB 2172 by clarifying the deadlines for filing income tax refund claims. Taxpayers have three years from the claims original due date to file a refund claim. After receiving a revenue adjustment report, the Department of Revenue has 180 days to assess additional taxes. The 180 day period will be tolled if a taxpayer has failed to timely report a revenue adjustment to the Department of Revenue. Adopting the language will contribute $3 million to the general fund for FY 2010.

The bill reduces the statute of limitations for sales and use tax refund claims from three years to one beginning June 15, 2009. Taking this action will contribute an additional $13.7 million to the State General Fund.

The bill suspends, for two years, production expenditure tax credits for eligible film production companies, saving the state $1 million. In addition, a ten percent reduction will be assessed to numerous tax credits for the 2009 and 2010 tax years resulting in SGF savings of $9.2 million.

The bill also clarifies the sales tax exemption for purchases made by or on behalf of Goodwill Industries Easter Seals of Kansas, Inc. and Goodwill Industries of Kansas, Inc. for providing education, training, and employment opportunities for those with disabilities and other employment barriers; clarifies that agricultural land is to be use-valued for Kansas estate tax purposes, regardless of whether such land was held directly by decedents or was held in non-publicly traded legal entities, including certain partnerships, corporations, limited liability companies, or limited liability partnerships; and expands the definition of eligible claimants for the Homestead Property Tax Refund Program to include certain disabled veterans and surviving spouses of active-duty military personnel who have died in the line of duty. In addition, a statutory cap is provided in the bill for historic preservation credits equivalent to 90 percent of the current amount claimed.

HB 2365 was approved by the Senate 25 to 14 on Thursday, May 7. The House approved HB 2365, 65 to 56, on Friday, May 8. The bill now heads to Governor Parkinson for his consideration.

House Bill 2366- Program for All-Inclusive Care for the Elderly
HB 2366 exempts the Program for All-Inclusive Care for the Elderly (PACE) which is federally certified to participate in the Medicare or Medicaid Program and only provides services to PACE participants from the provisions of the Homes Health Agency Licensing Act. HB 2366 was approved by the Senate 39 to 0 on Thursday, May 7. The bill now heads to Governor Parkinson for his consideration.

House Bill 2369- Energy Plan
HB 2369 requires public utilities to include in its generation portfolio, renewable energy sources totaling 10 percent by 2011; 15 percent by 2016; and 20 percent after 2020 of the utility’s peak load. The bill allows Kansans to produce electricity through renewable sources like solar, wind, biomass, hydropower and geothermal power and fairly sell the product to their utility company.

The bill directs KDHE to establish emission standards that do not exceed those required by the Federal Clean Air Act and prohibits KDHE from denying or delaying permits that meet state requirements. The bill allows the Secretary of KDHE to issue a temporary order, not exceeding seven days, on air pollution violations that substantially endanger public health and the environment. In order to receive a permanent or temporary restraining order against the violators, the Secretary must pursue District Court action or request the Attorney General or District Attorney action.

The bill requires: