Legislative Highlights 2025

Highlights is a summary of major legislation passed during the Session. This edition contains summaries from more than 20 major topics, and includes briefs on Year-round Fireworks Sales, Advance Ballot Return Deadline, Real-time Vehicle Insurance Verification, Supreme Court Elections, and Property Tax Reductions.

Agriculture & Natural Resources

Caps on Conservation Districts

‌SB 36 amends law regarding conservation districts by increasing the cap on the amount of state funding allocated to conservation districts from‌

$25,000 to $50,000 per district and by increasing the State’s current matching funding from $1 to $2 in state funding for each $1 of county funding.

Amendments to the Poultry Disease Control Act

SB  89 amends the Poultry Disease Control Act (Act) and establishes fees related to the Act and the National Poultry Improvement Plan (NPIP).

Fees. The bill authorizes the Animal Health Commissioner (Commissioner) to establish an annual NPIP participation fee of up to $50; an annual certification fee up to $50 for individuals providing testing or diagnostic services; and a testing and diagnostic services fee up to$100 per location.

Testing and Reporting. Each person performing poultry disease diagnostic services (testing) must report within 48 hours the source of each poultry specimen from which Salmonella Pullorum or Salmonella Gallinarum is a reactor or is isolated. Testing must be conducted by an authorized agent of the Commissioner or an individual certified pursuant to the Act.

Out-of-state Poultry and Public Exhibitions. The bill prohibits poultry from being shipped into Kansas or from being taken to a public exhibition unless certain conditions are met.

Water Task Force and Work Group

Senate Sub. for HB  2172 creates a 16-member Water Program Task Force and a 5-member Water Planning Work Group to study and make recommendations to the Legislature on current and future water supply and steps to ensure future water supply, evaluate current funding for water, and determine future funding needs. The Task Force and Work Group will sunset on July 1, 2027.

Alcohol & Gaming

Live Horse Racing Licensure

SB 21 amends the Kansas Parimutuel Racing Act to change certain licensing requirements regarding live horse racing and alter the distribution of moneys from certain funds.

Licenses. The bill permits horsemen’s associations and horsemen’s nonprofit organizations to obtain licenses for racetrack facilities located anywhere in Kansas. The bill removes the requirement that race meets are held in the county where the applicant for licensure is located. An organization applying for a facility owner or facility manager license is prohibited from operating historical horse race machinesat the racetrack facility for which it is seeking licensure.

Funds. For moneys in the State Racing Fund in excess of the required operating expenditures for the Kansas Racing and Gaming Commission, 30.0 percent of the tax revenues from wagers on historical horse races will be transferred to the Kansas Horse Breeding Development Fund, and 70.0 percent will be transferred

‌to the Horse Fair Racing Benefit (HFRB) Fund. Of moneys credited to the HFRB Fund, 15.0 percent may be used to promote the parimutuel racing industry in Kansas.‌

Tribal Gaming Compact Amendment

SR 1716 and HR 6017 approve an amendment to the gaming compact between the Sac and Fox Nation of Missouri in Kansas and Nebraska and the State of Kansas to allow for sports wagering operations on the Nation’s reservation lands.

Children & Youth

Office of Early Childhood

‌HB 2045 establishes the Kansas Office of Early Childhood (Office) and updates law regulating child care centers and child care homes.

‌The bill centralizes state oversight of most funds, programs, and policies related to early childhood services within the Office. The Director of Early Childhood will be appointed by the Governor, subject to Senate confirmation.‌

The Office includes the Division of Home Visitation, the Kansas Children’s Cabinet, the Division of Child Care Licensure and Finance, and the Child Care Ombudsman.

The bill amends Lexie’s Law provisions related to summer instructional camps, fire safety inspections at certain facilities, and immunization exemptions, and transfers the law from the Kansas Department of Health and Environment to the Office.

Child Support and Tax Exemption for Unborn Children

HB 2062 requires child support to be calculated from the date of conception, requires the court to consider the value of a qualified retirement account in the determination of child support,

and eliminates the exemption of such accounts from claims to collect child support. The bill also allows a personal exemption for any unborn child for the purposes of state income taxation.

Law Enforcement Response to Suspected Child Abuse or Neglect

HB  2075, among other provisions, requires a law enforcement officer who responds to suspected child abuse or neglect to explore options to separate the child from the source of serious harm before a child is removed from the home. The Secretary for Children and Families (Secretary) is required to provide an electronic means of communication for a responding officer to refer a child who may be a victim of abuse or neglect to the Secretary, and such investigations must be initiated within 24 hours of the referral.

Prohibited Placement Policies in Kansas CINC Code

HB  2311 prohibits the Secretary for Children and Families from adopting, implementing, or enforcing policies that conflict with a person’s sincerely held religious or moral beliefs regarding sexual orientation or gender identity for the purpose of considering who may be selected as an out-of-home placement, adoptive resource, or custodian for a child in need of care (CINC).

Commerce & Labor

Year-round Fireworks Sales

SB  199, among other things, permits year-round fireworks sales to the public for personal use by permanent retailers registered with the State Fire Marshal. Seasonal retailers are not required to register with the State Fire Marshal, but are limited to making sales during the period of June 20 through July 7 of the calendar year.

Restrictive Covenants

SB  241 prohibits certain restrictive covenants from being considered a restraint of trade and requires the court to modify covenants that are overly broad, establishing a presumption of enforceability when certain conditions are met. The bill also permits the parties to assert applicable defenses in a written covenant dispute.

Regulatory Relief; General Regulatory Sandbox Program

HB 2291 creates the Regulatory Relief Division (Division) within the Office of the Attorney General to administer the General Regulatory Sandbox Program (Program) created by the bill. The Program allows businesses to apply for temporary waivers from certain state laws and regulations in order to demonstrate an innovative product or service without obtaining a certification or registration that might otherwise be required by state law. Approved applications provide limited access to the market in Kansas for 24 months, with a possible extension of up to 12 months.

Program applications are to be reviewed by the Division, any applicable state agency, and an 11-member Program Advisory Committee, and can be denied for any reason, including if it is determined that a waiver would cause a significant risk of harm to consumers or residents of the state.

Applications related to liquor and cereal malt beverages cannot be considered, and the Division is not authorized to waive any licensing requirement for purposes of federal or state law nor any related tax, fee, or charge.

Notice of approval of an application for Program participation is required to be published on the Division’s website, and Program participants will be required to make quarterly reports of certain information to the Division, including

information about any consumer complaints.

Revised Limited Liability Corporation Act

‌HB 2371, among other changes, updates the Revised Limited Liability Company Act (LLC Act) to allow for the use of electronic documents and signatures and specifies how a void act or transaction may be cured.‌

‌For series LCCs, the bill also clarifies terms of operating agreements and consolidation of tax filings in the LLC Act. Furthermore, the bill specifies that the statute of frauds will apply to a wrongful transfer of property between a series LLC and entities related to the series or its parent LLC.‌‌

Countries of Concern

Kansas Land and Military Installation Protection Act and Drone Procurement

House Sub. for SB 9 creates the Kansas Land and Military Installation Protection Act and prohibits government agencies from purchasing or acquiring certain drones.

Real Property Acquisition. The bill generally requires foreign principals from countries of concern that own or acquire an interest in non-residential real property located within 100 miles of any military installation located in Kansas, or an adjacent state, to register that interest with the Attorney General (AG). Beginning July 1, 2025, foreign principals will generally be prohibited from acquiring such interests.

Notice and Divestiture. The bill requires the AG to send a warning to any foreign principal that owns any property requiring registration on July 1, 2025, and fails to register such property. The foreign principal must divest such property if registration does not occur within 30 days of receiving the warning.

Data Reporting. The bill requires the AG to prepare and submit various reports to the Governor, Adjutant General, and the Legislature. The bill requires Kansas State University to use available data and resources to prepare and submit a report detailing the status and trends of all foreign land holdings of real property within Kansas.

Drone Procurement and Usage. The bill prohibits government agencies from purchasing and acquiring drones, or any related services or equipment, whose critical components were produced in a country of concern, or whose critical components were produced or owned by any foreign principal. The prohibition does not apply to purchases, or any contract or agreement entered into, prior to July 1, 2025.

Component Replacement. When a government agency must replace a critical component of a drone, the bill allows the agency to use any replacement component acquired prior to July 1, 2027, but prohibits acquiring new replacement components from any foreign principal unless certain conditions exist.

AI and Genetic Sequencers

Senate Sub. for HB 2313 prohibits state agencies from allowing employees to access artificial intelligence (AI) platforms of concern on state-owned or state-issued electronic devices and prohibits all medical and research facilities in the state from using genetic sequencers or software used for genetic analysis produced in or by a foreign adversary or affiliated entity.

Education

Advance Enrollment for Military Students

Sub. for HB 2102 requires school districts to permit the advance enrollment of any military student if the student provides evidence that their parent or guardian will be stationed at a military installation in Kansas during the current

or immediately succeeding school year. The bill applies to kindergarten through grade 12, as well as school districts with pre-existing pre-kindergarten programs.

Expanding National Guard Scholarship Programs

HB  2185 expands two postsecondary financial aid programs for members of the Kansas National Guard.

Kansas National Guard Educational Assistance Program. The bill expands the program to include eligible dependents of Kansas National Guard members. Eligible National Guard members may either directly participate or sponsor a dependent’s participation in the program.

EMERGE Program. The bill expands the Kansas National Guard Educational Master’s for Enhanced Readiness and Global Excellence (EMERGE) Program to include enrollment in professional and doctoral degree programs in addition to master’s degree programs at Kansas educational institutions.

Fetal Development Videos and State Board of Education Compensation

Senate Sub. for HB 2382 requires school districts that offer courses or other instruction in human growth, human development, or human sexuality to include a human fetal development presentation.

The bill also allows the State Board of Education to establish its own rate of compensation for board members.

Elections & Ethics

Return of Advance Voting Ballots

SB 4, on and after January 1, 2026, changes the deadline for the receipt by mail of advance voting ballots from the third day following the date of the election to 7 p.m. on the date of the election.

Legislative Approval of Federal Election Funds

SB 5 amends the Transparency in Revenues Underwriting Elections Act to prohibit government agencies and election officials from accepting or expending federal funds for any election-related expenditures, including voter registration and assistance, unless the funds are appropriated by the Legislature or otherwise provided by state law.

Process for Filling Vacancies; Joint Committee on Vacancy Appointments

SB 105 creates and amends law governing the process for filling vacancies in the offices of U.S. Senator, State Treasurer, and Commissioner of Insurance. The bill establishes the Joint Committee on Vacancy Appointments (Committee), and when a vacancy in one of these offices occurs, the bill directs the Committee to convene within 30 calendar days to review nominations of candidates to fill the office. If the vacancy occurs during a regular session of the Legislature or if a special session is called within five days of the vacancy occurring, the Committee must submit a concurrent resolution to the Senate and House of Representatives identifying three candidates for further consideration before submission to the Governor. Otherwise, the Committee must submit three candidates to the Governor, who must, within three calendar days of receipt, appoint one of the candidates to serve the unexpired term.

Non-citizens’ Driver’s Licenses Report

HB 2020 directs the Director of Vehicles (Director) of the Department of Revenue to quarterly provide the Secretary of State (Secretary) a list of all permanent and temporary driver’s licenses issued to non-citizens. The Secretary is directed to compare the list provided by the Director with the voter registration rolls, investigate, and direct county election officers to remove the

names of any non-citizens that appear on the voter registration rolls within five days. County election officers must notify any person removed from the voter registration rolls that they may be reinstated by providing proof of citizenship.

Special Election Date Requirements

HB 2022 amends the definition of “special election” in election law to mean any election held on the Tuesday following the first Monday in March of any year or on the same day as a general or primary election.

Campaign Contribution Limits

Senate Sub. for HB 2054 amends provisions in the Campaign Finance Act to increase limits on contributions made by certain persons to candidates and party committees, including cash contributions; eliminate limits on contributions made by party committees to candidates for each general election; and clarify that no expenditure made by a party committee in support of a candidate, with or without a candidate’s cooperation or consent, would constitute a contribution.

False Representation of an Election Official; Political Party Nominations

Senate Sub. for HB 2056 amends election law concerning the crime of false representation of an election official and nominations by political parties.

False Representation of an Election Official. The bill amends the conduct included under the crime of false representation of an election official to add the intent to cause a person to believe that the person is an election official.

Political Party Nominations. The bill amends law regarding nominations for elected office to require that any person nominated for an elected office accept such nomination and to restrict the number of nominations a person may accept to one nomination.

Prohibition on Foreign Money in Constitutional Amendment Advocacy

HB 2106 amends the Campaign Finance Act to require reporting and certification for persons promoting or opposing changes to the Kansas Constitution. The bill prohibits accepting contributions or expenditures from foreign nationals for such activities and defines “foreign national” for the purpose of the bill.

Renaming the Governmental Ethics Commission; Changes to Campaign Finance Act Definitions

HB 2206 changes the name of the Kansas Governmental Ethics Commission to the Kansas Public Disclosure Commission.

The bill also adds a new definition for the phrase “cooperation or consent,” to mean express advocacy that is created, produced, or distributed at the request, recommendation, or with the assent of a candidate, candidate committee, or party committee. Additionally, the bill specifies items that are not “cooperation or consent.”

Only Citizens Vote—Proposed Constitutional Amendment

HCR 5004 will submit a ballot question to voters at the general election on November 3, 2026, proposing an amendment to the Kansas Constitution regarding citizenship of voters. Currently, Section 1 of Article 5 of the Kansas Constitution states that every citizen of the United States who has attained the age of 18 and who resides in the voting area he or she seeks to vote shall be a qualified elector. The resolution proposes an amendment to clarify that no person shall be deemed a qualified elector unless the person is a citizen of the United States, has attained the age of 18, and, unless a residency exception applies, resides in the voting area in which the person seeks to vote.

Financial Institutions & Insurance

Real-time Motor Vehicle Insurance Verification

SB 42, among other insurance provisions, enacts the Kansas Real Time Motor Vehicle Insurance Verification Act, which requires the Commissioner of Insurance to establish, implement, and maintain a web-based system for online verification of motor vehicle insurance, to be fully operational no later than July 1, 2026. The system may be used for verification of motor vehicle liability insurance and as proof of insurance for vehicle registration purposes, but the bill specifies that establishing compliance through the system shall not be a primary cause for law enforcement to stop a vehicle.

Public Moneys Pooled Method of Investing

Sub. for HB 2152 establishes the public moneys pooled method and makes changes related to the deposit and investment of public moneys.

The bill requires banks, savings and loan associations, or savings banks (financial institutions) to secure government deposits above Federal Deposit Insurance Corporation limits by maintaining a pool of securities equal to at least 102.0 percent of uninsured public funds. Procedures are established by the bill to address defaulting financial institutions and complaints when governmental entities are believed to be in non-compliance. Investment advisers executing bids for investment of public moneys are prohibited from directly managing money from such bids. The bill also amends law regarding the investment of local and state public moneys, the Municipal Investment Pool Fund, and governmental units’ investment policies.

Health

Public Health

Sub. for SB 29, among other things, requires the Secretary of Health and Environment (Secretary) to have probable cause before taking action regarding the spread of infectious or contagious disease and provides for the right to file a civil action against an order made by the Secretary or a local health officer. The bill also replaces the authority of a county or joint board of health or a local health officer to prohibit public gatherings with the ability to issue a recommendation against such gatherings when necessary for the control of infectious or contagious diseases.

Help Not Harm Act

SB 63 enacts the Help Not Harm Act, which establishes parameters for health care providers to follow regarding treatment for a child who has a perceived gender or perceived sex that is different than the child’s biological sex.

The bill, among other things, prohibits the use of state funds and state property for treatment or promotion of social transitioning, medication, or surgery; as well as state employees, while in their official capacity, from promoting or advocating social transitioning, medication, or surgery.

Advance Universal Newborn Screening Program; Hospital Provider Annual Assessment

House Sub. for SB 126 renames the current newborn screening program as the Advance Universal Newborn Screening Program (Program). The Program includes educational programming, screening tests, a follow-up program, and, within the limits of appropriations, medically necessary treatment products for all conditions determined and identified by the Secretary of Health and Environment (Secretary), which may include conditions in the recommended federal uniform screening panel. The

bill requires physicians and mid-level practitioners to report cases of the designated conditions to the Secretary. The bill also increases the hospital provider annual assessment rate and extends the assessment to include critical access and rural emergency hospitals with revenues above a certain threshold.

Right to Try for Individualized Treatments Act

SB  250 creates the Right to Try for Individualized Treatments Act, which authorizes manufacturers to make and provide individualized investigative drug treatments, biologic products, or devices requested by individuals with life-threatening or severely debilitating illnesses. The bill also establishes procedures for the use of a patient’s biospecimen, requires informed consent to the treatment or use of the device, establishes the criteria for manufacturer eligibility, exempts a patient’s heirs from liability for outstanding debt related to the treatment, and does not expand mandatory health insurance coverage.

Emergency Medical Services

HB 2039, among other things, exempts ambulance services providing only non-emergency transportation from the requirement that ambulance services be offered 24 hours per day, every day of the year.

For operators required to have a permit, the bill requires at least one person to be in the patient compartment during patient transport who is emergency medical services (EMS) certified or authorized, a physician, a physician assistant, an advanced practice registered nurse, a professional nurse, or a registered nurse holding a multistate license.

The bill allows for any county with a population of 30,000 persons or less to operate a ground vehicle providing EMS with one person who is a qualified health care provider if the driver of the vehicle is certified in cardiopulmonary resuscitation (CPR). Any EMS adopting

‌this policy must notify the Emergency Medical Services Board (Board) within 30 days of adoption.‌

The bill also requires Automated External Defibrillators (AEDs) that are made available in a public place be registered with the Board.

Judiciary

Third-party Litigation Funding

‌Sub. for SB 54 amends the Kansas Code of Civil Procedure to require the disclosure of third-party litigation funding agreements.‌‌

‌A sworn statement disclosing facts of the agreement must be submitted by the party who entered into the agreement. The agreement itself must be provided to the court for in camera review.

Child Sex Crimes—AI-generated Materials

SB 186, among other changes, revises the Kansas Criminal Code definitions of sexual exploitation of a child, unlawful transmission of a visual depiction of a child, and breach of privacy to include conduct related to artificially generated visual depictions. The bill generally expands statutory definitions to include depictions of children under age 18 that have been created, altered, or modified by artificial intelligence, regardless of whether an actual child was involved in the creation of the material.

Direct Election of Supreme Court Justices—Proposed Constitutional Amendment

SCR 1611 proposes amendments to Sections 5, 8, and 15 of Article 3 of the Kansas Constitution for consideration at a special election on August 4, 2026, in conjunction with the primary election. The amendment, if approved by voters, would abolish the current method of appointing justices to the Kansas Supreme Court, including the Supreme Court Nominating Commission, and replace it with direct election of such justices, whose elections would be staggered every two years, depending on seat number.

The resolution proposes removing the prohibition against sitting Kansas Supreme Court justices contributing to or holding any office in a political party or organization or taking part in political campaigns. The resolution also proposes adding a similar exception for district court judges who are a candidate for election to a position on an appellate court.

Guardianship, Conservatorship, and Other Protective Arrangements

HB 2359 enacts the Uniform Adult Guardianship and Protective Proceedings Jurisdiction Act and the Kansas Uniform Guardianship, Conservatorship, and Other Protective Arrangements Act, replacing existing statutes governing guardianship and conservatorship throughout the Kansas Statutes Annotated, effective January 1, 2026. The bill, among other things, provides a jurisdictional basis for a court to appoint a guardian or conservator, issue a protective order, or authorize a protective arrangement for adults and minors. The bill also establishes provisions specific to each arrangement.

Local Government

Fast-track Permitting

HB 2088 creates the Fast-track Permits Act (Act) for single-family residential developments with the stated purpose of enhancing economic growth in local communities and streamlining the building permit review process.

The bill generally requires a local government or authority to approve or deny a building permit for improvement of a single-family residential property within its jurisdiction within 60 days of receiving a completed application. If the authority fails to provide written notice of an application’s approval or denial, the application is deemed approved by the authority.

Municipal Employee Whistleblower Act

HB 2160, the Municipal Employee Whistleblower Act, prohibits a supervisor or appointing authority of a county, city, or unified school district, or any unit of those entities, from prohibiting or taking disciplinary action against an employee for actions including discussing municipal matters of public concern, such as public health, safety, or welfare, with any member of the municipal governing body or an auditing agency; reporting a violation of state or federal law, municipal resolution, or adopted rules and regulations, resolution, or ordinance; and disclosing misappropriation of moneys held by a municipality. The protections do not apply if the employee discloses information that is confidential, disclosed due to a corrupt motive, or known by the employee to be false.

Open Government

Fees for Public Records; Livestreaming Public Meetings

HB 2134 amends law regarding public agency records and meetings.

Open Records. Among other provisions, the bill clarifies public agency fees for providing requested records must include the actual cost to review and redact the requested records. If the agency incurs costs for staff time to provide the requested records, the agency must base these costs on the lowest-cost employee who may reasonably provide access or copies. The bill also requires an agency to make reasonable efforts to contact the requester about mitigating the cost of a request in certain circumstances.

Open Meetings. The bill requires any public body or agency that voluntarily elects to livestream a meeting to ensure that all aspects of the meeting are available for the public to observe.

Public Safety

Sale of Forfeited Firearms

SB 137 creates a new option for disposal of forfeited firearms under the Kansas Standard Asset Seizure and Forfeiture Act, to permit such firearms to be sold or transferred to a properly licensed federal firearms dealer.

Statewide Opioid Antagonist Protocol

Sub. for SB 193 exempts law enforcement agencies from the Statewide Opioid Antagonist Protocol requirement to utilize a physician medical director or licensed pharmacist unless the agency elects to use an emergency opioid antagonist that requires a prescription. Currently, the most widely available opioid antagonist, naloxone and its nasal spray version (Narcan), are available without a prescription.

Social Services

Inspector General Expansion of Scope

HB 2217, among other things, expands the scope of the Inspector General within the Office of the Attorney General to include the audit, investigation, and performance reviews of all state cash, food, and health assistance programs. “Health assistance” means the Medicaid program and the Children’s Health Insurance Program.

Legislative Approval for Public Assistance and I/DD Programs

Senate Sub. for HB 2240 prohibits state agencies, on or after July 1, 2025, from seeking or implementing any public assistance program waiver or authorization from the federal government that would expand public assistance eligibility or that would increase state spending or any changes to funding structures, day services, or targeted case management services for persons with intellectual or developmental disabilities (I/DD) without the express consent or approval of the Legislature or the Legislative Coordinating Council.

State Finances

Continuous State Budget

SB 14 establishes a system of continuing appropriations by which appropriations from the previous fiscal year would carry forward into the subsequent fiscal year unless the Legislature adjusts them. The Secretary of Administration may change appropriations as necessary, including lapsing Executive Branch continuing appropriations, adjusting appropriations to match federal funding availability, and borrowing between appropriated funds and special revenue funds when the balance of a fund is determined to be insufficient to meet its obligations. State General Fund (SGF) borrowing is limited to 9.0 percent of total SGF expenditures in that fiscal year, and non- SGF borrowing is limited to no more than $400.0 million. The bill sunsets on July 1, 2030.

State Budget

Included in the FY 2025 Budget

SB 125 adjusts total state expenditures to $27.08 billion, including $10.85 billion from the SGF, in FY 2025. This is an all funds increase of $2.77 billion, or 11.4 percent, and an SGF increase of $1.48 billion, or 15.8 percent, above FY 2024 actuals.

Significant SGF Adjustments—FY 2025

Human Services. Contract Nursing. Adds $38.0 million SGF for contract nursing staff at Larned and Osawatomie state hospitals.

Caseloads. Adds $10.0 million SGF to adopt spring human services caseload estimates upon certification of the State Finance Council for FY 2025.

Medicaid Contract. Adds $16.2 million, including $4.8 million SGF, for the Kansas Department of Health and Environment (KDHE) contract with Gainwell Technologies.

Public Safety. Firearm Detection. Adds $10.0 million SGF to hire a private vendor for firearm detection software to be used only in public school buildings and for no more than two years.

Aircraft Project. Adds $5.8 million SGF for the Bombardier Defense Project.

Significant SGF deletions made to the FY 2025 approved budget in SB 125 include the following:

Human Services. Caseloads. Deletes $101.3 million, including $21.7 million SGF, to adopt the fall human services caseloads estimate.

CHIP. Deletes $19.7 million SGF in unused funds for the Children’s Health Insurance Program (CHIP).

Reappropriations. Deletes $150.5 million SGF for KanCare Non-caseloads (Home and Community Based Services waiver) funds that were reappropriated due to a higher-than-anticipated federal match.

Education. Deletes $171.1 million, including $121.4 million SGF, to adopt fall education consensus numbers.

Unused Funds. Deletes $6.9 million SGF for unused funds for the state employee pay plan in 2024 SB 28. Further, deletes

$5.0 million SGF in unused funds appropriated to the Board of Indigents’ Defense Services for general operating expenditures.

Policy Changes—FY 2025

General Government. Budget Stabilization. Adds language to suspend budget stabilization fund transfers in FY 2025 and allow the State Treasurer to invest funds.

Judicial Surcharge. Adds language providing that the sunset date for the surcharge of certain Judicial Branch fees that are transferred to the SGF is extended until June 30, 2027.

Lottery Contract. Adds language providing that the Kansas Lottery shall not expend moneys to negotiate or to enter into any contract or any extension or renewal of an existing contract for the management of sports wagering with any lottery gaming facility manager. This proviso also applies to FY 2026.

Human Services. EBT Requirements. Appropriates $3.7 million, including $1.8 million SGF, to the State Finance Council and adds language requiring the funds be released to the Department for Children and Families upon certification by the Secretary for Children and Families that a waiver has been submitted to exempt candy and soda from EBT purchases.

Included in the FY 2026 Budget

SB 125 adjusts total state expenditures to $25.60 billion, including $10.64 billion SGF, for FY 2026. This is an all funds decrease of $1.47 billion, or 5.4 percent, and an SGF decrease of $210.5 million, or 1.9 percent, below the FY 2025 recommended expenditures.

Significant SGF Adjustments—FY 2026

General Government. State Employee Pay. Adds $106.3 million, including

$40.0 million SGF, to provide salary adjustments to state employees based on the 2024 Department of Administration Market Survey.

Human Services. Nursing Facilities. Adds $75.5 million, including $29.3 million SGF, for an add-on payment to nursing facilities of $20 per day based on the number of Medicaid residents.

Hospital Funding. Adds $10.0 million SGF for hospitals providing inpatient behavioral health services for adults.

Medicaid Contract. Adds $16.7 million, including $5.0 million SGF, for the KDHE contract with Gainwell Technologies.

Nursing Facility Reimbursement. Adds $12.4 million, including $4.8 million SGF, to fully rebase nursing facility reimbursement rates.

Education. Two-year College Apprenticeships. Adds $14.3 million SGF and language to allocate the funding to designated schools.

University Initiative. Adds $12.0 million SGF for the Regional Growth and Development Initiative, including $3.8 million for Pittsburg State University,

$3.8 million for Emporia State University, and $4.4 million for Fort Hays State University.

Two-Year College Initiative. Adds $10.5 million SGF for Two-Year Colleges Student Success Initiatives for FY 2026 and adds language to distribute funds to designated schools.

Kansas Campus Restoration. Adds $30.2 million, including $13.2 million transferred from Attracting Powerful Economic Expansion (APEX) funds,

$5.0 million transferred from American Rescue Plan Act (ARPA) interest funds,

$5.0 million from the State Water Plan Fund (SWPF), and $7.0 million SGF for the Kansas Campus Restoration Fund.

Special Education. Adds $10.0 million SGF for additional Special Education State Aid funding, for a total of $611.0 million for Special Education State Aid. This is also included for FY 2027 as maintenance of effort funding.

Technical Colleges. Adds $7.0 million SGF to the Technical Colleges Operating Grant Fund.

NISS Playbook. Adds $5.8 million SGF for National Institute for Student Success (NISS) Playbooks at state institutions and Washburn University.

Career and Technical Education. Adds $5.0 million SGF for Career and Technical Education capital outlay aid and adds language allocating those funds to designated schools.

Aviation Research. Adds $5.0 million SGF for aviation research at Wichita State University.

KSU 105. Deletes $5.0 million SGF from the cooperative extension operating account for the Kansas State University (KSU) 105 project.

Public Safety. Correctional Officer Pay. Adds $4.1 million SGF to adopt Governor’s Budget Amendment No.1, Item 2 to be released to the Kansas Department of Corrections (KDOC) upon certification by the Secretary of Corrections that an increase to entry- level correctional officer pay differentials at Lansing Correctional Facility is necessary.

Debt Service. Adds $10.3 million SGF to consolidate debt payments for three projects approved by the 2024 Legislature: the Kansas Bureau of Investigation (KBI) Forensic Lab in Pittsburg, the KDOC Topeka Central Health and Behavioral Health Support Building, and the KSU Pure Imagination Facility.

Significant SGF deletions made to the FY 2026 budget in SB 125 include the following:

Education. Blueprint for Literacy. Deletes $10.0 million SGF for the Kansas Blueprint for Literacy.

Lapsed Funds. Deletes $11.6 million, including $7.3 million SGF, to lapse 1.5 percent of state operations funded from the SGF and State Highway Fund. The following entities are exempt from this provision: judicial and legislative branch agencies, KDOC, KBI, Kansas Sentencing Commission, veterans homes, the Office of the Attorney General, state hospitals, the Kansas

Highway Patrol, and State Board of Regents institutions.

Non-SGF Adjustments—FY 2026

Public Safety. Airport Grant. Adds $4.0 million from ARPA interest to provide a grant to an airport for technology, tower upgrades, vertiport, heliport, and office space to attract e-aviation unmanned aircraft systems testing or manufacturing to Kansas and adds language to transfer the funds.

KBI Headquarters. Adds language authorizing the KBI to issue up to $80.0 million in bonds for a new headquarters in downtown Topeka.

Education. KSU Veterinary Diagnostic Lab. Adds language authorizing KSU to issue up to $128.0 million in bonds for the construction of a veterinary diagnostic laboratory on the Manhattan campus. Adds language requiring an additional$2.0 million from private funds.

State Water Plan Fund. From the SWPF, adds $2.0 million for streambank stabilization projects, $2.6 million for irrigation technology, $5.3 million for conservation district aid, $3.1 million for contamination remediation, and $2.0 million for high plains aquifer partnerships.

‌Adds language allowing the Secretary of Agriculture to transfer funding between lines of appropriation of the SWPF.‌

Policy Changes—FY 2026

General Government. DEI Prohibition. Adds language directing the Department of Administration to certify that state agencies have eliminated Diversity, Equity, and Inclusion (DEI) positions, policies, programs, and related grants or contracts.

STAR Bonds. Adds language to authorize the Kansas Developmental Finance Authority to issue Sales and Tax Revenue (STAR) Bonds for any STAR Bond project.

Employment Law. Adds language to update the definition of “temporarily unemployed” to include individuals covered by a collective bargaining agreement who have been laid off from full-time work and reasonably expect to resume full-time work within six months.

Budget Stabilization. Adds language to allow the State Treasurer to invest Budget Stabilization Funds.

Vacant Positions. Adds language to lapse funding associated with the salaries and wages of vacant positions at the end of the fiscal year.

Education. Caseloads. Adds language directing the Legislative Research Department and the Office of Revisor of Statutes to identify money for services to K-12 students at public schools and include this information in the review of education caseload estimates.

K-12 American History. Adds language directing Kansas State Department of Education to expend $2.0 million, all from existing resources, to issue a request for proposal for a supplemental American history online curriculum.

Human Services. HCAIP. Adds language to require that Critical Access Hospitals and Rural Emergency Hospitals pay the provider assessment in the Health Care Access Improvement Program (HCAIP) as long as they have annual revenues that are above the threshold established by the Health Care Access Improvement Panel.

Contract Nursing. Adds language to prohibit Larned State Hospital from using contract agency nursing staff for FY 2027.

State Government

Antisemitism

SB  44 declares that antisemitism and antisemitic acts are against the public policy of the state, including,

but not limited to, the purposes of public educational institutions and law enforcement agencies.

Competitive Career Opportunities Act

‌SB 166 enacts the Fostering Competitive Career Opportunities Act, which, among other things, prohibits state employers from making hiring decisions based solely on an applicant’s lack of a postsecondary degree. The prohibition does not apply to positions for which a postsecondary degree is justifiably necessary.

Illegal Immigration

‌SCR 1602 makes findings regarding illegal immigration and directs the Governor of Kansas to fully cooperate with and assist in federal actions to enforce immigration law.‌

Background Checks of State Employees

HB  2342 authorizes the Secretary of Commerce to request the KBI to conduct a state and national criminal history record check on any final applicant for, or an employee currently holding, a sensitive position within the Department of Commerce; and requires the Secretary of Labor to conduct state and national criminal history record checks on employees who have access to federal tax information received directly from the Internal Revenue Service.

Taxation

Discontinuing State Building Fund Mill Levies

SB 35 eliminates, beginning in tax year 2026, the statewide mill levies of 1.0 mills for state educational buildings and 0.5 mills for state institutions buildings. In fiscal year 2027, the bill transfers $56.0 million from the SGF to the Kansas Educational Building Fund and $25.0 million from the SGF to the State Institutions Building Fund, with formulaic increases to each transfer in subsequent years.

Data Center Sales Tax Exemption

SB 98 provides a sales tax exemption to certain firms making eligible investments in a qualified data center.

Exempted purchases. The bill exempts sales tax for 20 years on purchases for the development, acquisition, construction, and operation of a qualified data center made by a qualified firm, including, but not limited to, costs of data center equipment and other items.

Eligibility. To be eligible, a qualified firm must be approved by the Kansas Fusion Center Oversight Board and enter into an agreement with the Department of Commerce that includes, among other things, committing to an investment of at least $250 million; adhering to practices that will conserve, reuse, and replace water; and purchasing electricity from the public utility providing retail electric service.

Tax Credits for Preservation of Historic Structures

SB 227 makes changes to tax credits allowed for preservation of historic structures with at least $5,000 of qualified expenditures. In cities with a population of more than 50,000, the credit amount is now 25.0 percent for projects with expenditures up to $50,000 and 40.0 percent for projects with expenditures in excess of $50,000. For cities, townships, or unincorporated areas with a population of 50,000 or less, the credit amount is now 40.0 percent for projects, including those in which the structure is not income producing and is exempt from federal income tax pursuant to section 501(c)(3) of the Internal Revenue Code.

The bill also authorizes the Department of Revenue, before issuance of credits, to reduce credits by any amount of outstanding tax liability owed to the State.

Income and Privilege Tax Rate Reductions

SB 269 reduces state income and privilege tax rates contingent on growth in the SGF receipts from income and privilege taxes in excess of the FY 2024 amount, adjusted for inflation.

Income tax rates have a floor of 4.0 percent and rate reductions will not occur if the Budget Stabilization Fund balance is below 15.0 percent of the prior-year SGF tax receipts.

Miscellaneous Tax Provisions

Senate Sub. for HB 2125, among other provisions, prohibits the State Board of Tax Appeals from charging a filing fee to a taxpayer with a pending appeal in regard to the same parcel of property, changes the required mailing date for property tax statements from December 15 to December 1, sets October 1 as the deadline for taxing entities to certify to the county clerk the amount of property tax to be levied, and requires county clerks to use the previous year’s budget information and property tax levy amount for any taxing entity that does not file its budget information by 5 p.m. on October 1.

Corporation Income Tax Apportionment and Personal Property Exemption

HB 2231, among other provisions, generally changes apportionment of multistate corporation income for tax purposes from a three-factor formula based on sales, payroll, and property, to a single-factor formula based on the location of the business’s sales, beginning in 2027. The bill also creates a formula to provide for a possible rate reduction to corporation income tax rates in tax year 2029 and a deferred tax deduction to limit the impact of the change for certain publicly traded corporations.

The bill also creates a property tax exemption for certain off-road vehicles, electric bicycles, watercraft, and trailers.

Changes to Housing Credit Programs

HB  2289 discontinues the Kansas Affordable Housing Tax Credit match for qualified developments receiving

‌a 4.0 percent federal low-income housing credit beginning in 2026. The bill also limits the match for qualified developments receiving a 9.0 percent federal credit to $8.8 million annually beginning in 2026 and discontinues the match beginning in 2029. Any awarded credit continues to apply through the credit period and any applicable carry- forward period.‌‌‌

The bill also provides, retroactive to tax year 2022, that tax credits under the Kansas Housing Investor Tax Credit Act may be claimed by transferees of the credit beginning in the year in which the qualifying investment for the credit was made.

Transportation

Move Over for Stopped Vehicle

SB 8 requires the driver of any vehicle approaching a stopped vehicle that displays warning lights, road flares, or caution signals to proceed with due caution and move into a lane away from the stopped vehicle when possible. The fine for unlawful passing of a stationary vehicle is $75. Continuing law requires moving over when possible and proceeding with caution for emergency, waste collection, and utility vehicles displaying warning signals.

Electric and Hybrid Vehicle and Truck Registration Fees

HB 2122 increases registration fees for electric hybrid vehicles to $70, plug- in electric vehicles to $100, and all- electric vehicles to $165. It also creates categories and associated fees for all- electric motorcycles, $30; electric hybrid or plug-in electric hybrid trucks or truck tractors with a gross weight of 12,000 pounds or less, $125; and all-electric trucks or truck tractors with a gross weight of 12,000 pounds or less, $200. The bill directs these fees to be divided between the State Highway Fund and Special City and County Highway Fund as fuel taxes are. Also, the bill increases the threshold for which truck or truck tractor owners may make registration fee payments in quarterly installments to $300 and establishes an installment payment as delinquent ten days, rather than two quarters, after payment is due.

Utilities & Telecommunications

“Critical Infrastructure Facility” Definition

HB 2061 expands the definition of a “critical infrastructure facility” to include any aboveground or belowground line, cable, or wire used for communication when the term is applied to the crimes of trespassing on a critical infrastructure facility and criminal damage to a critical infrastructure facility.

Fire Claims Against Utilities

HB 2107 establishes a two-year statute of limitations for wildfire-related claims against an electric public utility, authorizes the recovery of economic and non-economic damages, limits the recovery of punitive damages to $5.0 million, requires the Kansas Corporation Commission (KCC) to convene a workshop on wildfire risks and utility mitigation efforts, and authorizes the KCC to open a general investigation or convene additional workshops to further assess wildfire risk and mitigation.

Law Enforcement Equipment on Utility Poles

HB 2109 exempts a public utility from civil liability relating to the attachment, access, operation, maintenance, or removal of law enforcement equipment on any utility pole or other structure that is owned or operated by the public utility.

Distributed Energy and Parallel Generation

Sub. for HB 2149 establishes consumer protections for distributed energy customers, such as customers with residential solar energy systems, and amends law related to parallel generation service contracts and net metering, including removing renewable generator capacity limits, permitting the use of locational marginal pricing, establishing a formula for determining the appropriate size for electrical loads, and establishing the customer’s right to repair.

Workforce

Athletic Trainer Licensure Act Changes

SB  175 amends the Athletic Trainers Licensure Act to expand the definition of ”athletic training” to include a broader range of athletic activities, risk assessment, and services, and to grant discretion on the necessity of consultations or referrals. Athletic trainers who accompany athletic teams from another state or jurisdiction, provide services in Kansas, and meet certain criteria are exempt from the Act.

Cosmetology, Dietitian, Physician Assistant, and School Psychologist Licensure Compacts

HB 2069 enacts four multistate licensure compacts: the Cosmetologist Licensure Compact, the Dietitian Compact, the Physician Assistant Licensure Compact (PA Compact), and the School Psychologist Compact (SP Compact).

Multistate licensure compacts allow professionals in licensed occupations to practice in member states, generally increasing access to care and services from those licensed professionals while maintaining state authority and oversight.

Generally, compacts must be enacted by a minimum of seven states to become active. The Cosmetologist Compact, Dietitian Compact, and PA Compact have been enacted by seven or more states and are in the process of being implemented, though compact privileges are not yet being issued. As of April 2025, the SP Compact has been enacted by four states.