The Advocate - A Weekly Newsletter during the legislative session.Wichita Metro Chamber of Commerce Logo
Estimated Reading Time: 5 minutes
 April 8, 2014

The Chamber is your voice for business in
Wichita, Topeka and Washington, DC
 

First Adjournment

Contentious is probably the word that best describes the final week of the Kansas legislative session. It started with controversy and ended with heated exchanges and accusations between both Republicans and Democrats.

 

Monday kicked off with House Appropriations Members seeing the committee's Vice-Chair, Rep. Gene Suellentrop (R-Wichita), chairing the meeting and overseeing the hearing on the House education plan with no explanation. Shortly after that meeting was called to order, House Speaker Ray Merrick (R-Stillwell) released a statement to the media announcing that Appropriations Chair Marc Rhoades (R-Newton) had resigned as Chair as of Appropriations. The Rhoades resignation was based on disagreements between he and the Speaker over the House education-funding plan.

 

Resignations of chairmanships are rare during session. In fact, no one could really recall it ever happening and it's worth noting that the Appropriations Chairmanship is not your average chairmanship. The job comes with a chief of staff and an extra $12K in annual pay. No other chair receives these perks. Former House Speaker, now Secretary of Wildlife, Parks and Tourism, Robin Jennison (R-Healy) fired his Appropriations Chair between sessions, but that's about as close to this extreme of a move that anyone can recall.

 

The regular session was scheduled to end on Friday, but with an agreement between the House and Senate on school finance proving to be elusive, the legislature continued its business through the weekend. Agreement finally came on the school finance plan late Sunday night with the Senate invoking a rarely used procedure when Senator Pat Apple (R-Louisburg) made a motion to call the question. The motion, which is always in order, ends debate and forces an immediate vote. The move infuriated Senate Democrats.

 

Apple, by the way, was just recently appointed to the Kansas Corporation Commission - an appointment that requires Senate confirmation. Senate President Susan Wagle had held off that confirmation vote knowing that Apple's vote would be needed on the school finance package. It's customary for the Senate to unanimously confirm 40-0 a fellow colleague who has received an appointment. However, the Senate's eight Democrats, still stinging from the "call the question" motion, initially all voted 'no' or passed on the Apple confirmation. That sent an already stressed Kansas Senate into full meltdown mode. It was a tense and emotional several minutes while Apple and Senate Minority Leader Anthony Hensley (D-Topeka) met privately in the Senator's only lounge off the Senate floor. When they returned, all 40 Members, including the eight Democrats, voted to confirm Sen. Apple.

       

School Finance Plan 

It took a week and then the weekend, but the legislature did finally pass a school finance plan that most believe will satisfy the court. The plan appropriates nearly $130M to address the court's equalization concerns, but it too was not without controversy. While the money (much of it new spending on K-12) is probably appreciated by school funding advocates, the package also contained policy provisions that irritated several interest groups. Chief among the disturbed is the Kansas National Education Association (KNEA), which saw the nearly 60-year-old statute requiring due process, commonly known as tenure, repealed. Gone from state law is a requirement that teachers with more than three years experience cannot be considered 'at will' employees. School districts and teacher's unions may still include this in contracts, but it will be done on a district-to-district basis.

 

School districts will also be allowed to increase their local option budgets from 30% to 33%. That provision was necessary to get the large number of votes from the Johnson County delegation, but is not popular with other districts including Wichita. There are areas of the state that tend to like to raise their property taxes for schools and others that don't.

 

A section that would have allowed for tax credits for families sending their children to private school was deleted, but a provision allowing tax credits for corporations donating money to scholarship funds to send children to private school was passed.

  


SB 311 - Damage Caps

The bill increasing non-economic damage caps over time from $250 to $350 was passed by both Chambers and is now awaiting the Governor's signature. The House removed the provision eliminating the state's "collateral source" rule and with time running out, the Senate concurred.

    
 

HB 2463 - Machinery and Equipment Real vs. Personal Property Tax 

The long-awaited fix to the issue of M&E property tax valuations will just have to wait a little bit longer. HB 2463 contains language that most agree will address the problem of appraisers designating business personal property, which is exempt from taxes, as real property. The Senate amended into the bill a property tax exemption for private health clubs. The House doesn't like that provision so the bill will go to Conference Committee.

  

SB 311 - Court of Tax Appeals Overhaul   

The bill addressing concerns with the Court of Tax Appeals that passed the House 123-0 did receive a hearing in the Senate this week. The Senate has yet to act on the legislation. Look for this bill to find its way into a Conference Committee report during the Veto Session.


Spring Break   

The Kansas Legislature is now on Spring Break. They will return April 30 for the Veto Session which should last approximately one week. An omnibus budget must be passed, as well as various Conference Committee reports.  

 

2014 Washington Fly-In          



 
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Government Relations Investors

Cox Communications
Koch Industries, Inc.
Spirit AeroSystems
Bombardier Learjet
Emprise Bank
BKD, LLP
Professional Engineering Consultants
Meritrust Credit Union

Government Relations Staff

Barby Jobe, Vice President, Government Relations, [email protected]

Jason Watkins, Director, Government Relations, [email protected]

Pat Gallagher, Manager, Government Relations, [email protected]

 The Wichita Metro Chamber of Commerce is the private sector's focal point for actively enrolling and empowering leaders dedicated to increasing the wealth and well-being of all South Central Kansas. The Chamber's bold and ambitious purpose is to position each business member for optimal growth in today's dynamic and competitive global economy. www.wichitachamber.org

 





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