LEGISLATIVE UPDATE

 

All of the bills being tracked by your Association are logged on the Bill Tracker page of our website. You can read a brief summary of the bill, the actual text of the bill, the history of the bill and upcoming actions by following the link. If you have any problems using the Bill Tracker, please contact Ron Seeber at ron@kansasag.org.

 

 

January 30, 2012

 

Governors Tax Plan Details in Print
The much anticipated statutory details of the Governor’s Tax plan were formally introduced this week in committee as HB 2560 and SB 339 . These identical measures will be heard sometime within the next few weeks. As reported previously, the Governor's tax plan proposes to decrease personal income rates from a maximum of 6.45% to 4.9% and establishes two income tax brackets rather than three. It eliminates most itemized deductions and credits for personal income tax, but keeps in place deductions and credits for corporate income tax. The plan exempts non wage business income from individual income tax and doubles the standard head of household deduction to $9000. It also includes provisions that if the states revenue grows beyond 2% in future years, additional rate reductions could be instituted. There is a tax increase in the program in that it eliminates two-year severance tax exemptions on new pool oil and gas well producing less than 50 barrels per day. It also reverses next year’s scheduled decrease in the state's retaining sales tax and use tax at current levels. It retains the corporate income tax rate at its current rate.

Immigration Hearings Soon
Chairman of the House Federal and State Affairs Committee Steve Brunk (R-Wichita) and Chairman of the House Commerce Committee Anthony Brown (R-Eudora) have announced that they plan to hold separate hearings on immigration legislation within the next two or three weeks. Brunk plans to hear components of last year’s immigration legislation that is similar to Arizona’s laws empowering local law enforcement units of that of federal agents and making it a felony to harbor undocumented immigrants. Brown plans to hear component of the last year’s bill that deals with mandating everify on Kansas’s businesses. KAEP is supportive of finding alternatives to these proposals.

KBA Audit Released, Reviewed by Committees
The Kansas Bioscience Authority released its forensic audit this week and then was reviewed by the Senate Ways and Means Committee, the Senate Commerce Committee and the House Commerce Committee. Secretary of Agriculture also briefed the both Commerce committees on his role in the development of the audit, his concerns with its findings, and his desire to make changes within the Authority. Citing many unanswered questions regarding the audit and the KBA, Senate Commerce Committee Chair Susan Wagle and House Commerce Committee Chair Anthony Brown, announced that they plan to hold more hearings regarding the KBA this legislative session. A copy and executive summary of the audit can be reviewed at www.kansasbioauthority.org.

Bioscience Day at the Statehouse
On January 25th, the trade association for the bioscience industry, Kansas Bio, held a day at the statehouse where over 30 companies shared their message of bioscience success one on one with legislators and their concerns about proposed tax policy changes. ICM and Western Plains Energy are members of Kansas Bio. Members briefed legislators on the success of the Angel Investor Tax Credit and how the elimination of it as called for in the Governor’s tax plan would hurt the industry and give other states a defined edge in attracting bioscience investments over Kansas. Kansas Bio members communicated evidence of the cost effectiveness of the program by citing the Kansas Department of Commerce 2010 Angel Tax Credit Annual Report. They also noted that there has been a $208 million return on investment from 2005 to 2010, spoke of the 591 jobs created, and the $206 million worth of investments made.

Senate Panel Discusses Tax Plan
The Senate President’s Tax Policy Study Group continued its deliberations and discussed their recommendations to the standing Senate Tax Committee. The group was established to give input to the anticipated tax reform this legislative session and many of the components of the Governor’s proposal. Committee members voiced concerns about the elimination of certain tax deductions and credits slated for eradication in the Governor’s tax plan. Many supported a income tax reduction, but were more inclined to implement changes only when the state has more revenue to support it. Once the report is received by the Senate Tax Committee, members will then decide whether to draft legislation supporting the group’s recommendations.

Corporate Swine Bill
The House Agriculture and Natural Resources Committee met to work HB 2502, which amends the current corporate swine facility law in Kansas. The intent of HB 2502 is to allow greater latitude for the introduction of swine production facilities into Kansas counties. The bill amends current law by allowing County Commissioners the ability to pass a resolution allowing corporate swine production facilities in their county. County residents could then force a public vote on that Board’s resolution by submitting a protest petition with 10% of the registered voters in the county. The issue would then be settled by a popular majority vote by the county residents. Committee member Rep. Brookens offered an amendment to the bill which would, in addition to the process above, allow the public to initiate a public vote to allow or prohibit corporate swine production facilities without a County Commission resolution, and would also allow County Commissioners to basically punt the issue to the county voters by passing a non-binding resolution that would then go to a public majority vote following submission of a 10% protest petition. The basic idea would be to allow County Commissioners political cover from any backlash for their vote. Committee member comments seem generally in favor of passing some form of a bill to encourage growth of corporate swine production facilities in Kansas. The Committee did not take action on the bill but will this week.