Topeka, Kan. – Applications are now being accepted for companies seeking investment through the Kansas Angel Investor Tax Credit (KAITC) program for 2019. The program offers Kansas income tax credits to qualified individuals who provide seed-capital financing for emerging Kansas businesses engaged in development, implementation and commercialization of innovative technologies, products and services.

The KAITC Program is administered by the Kansas Department of Commerce and designed to bring together accredited angel investors with qualified Kansas companies seeking seed and early stage investment. The purpose of the Kansas Angel Investor Tax Credit act is to facilitate:

o   The availability of equity investment in businesses in the early stages of commercial development.

o   Assist in the creation and expansion of Kansas businesses, which are job and wealth creating enterprises.

Applications for certification will be accepted only for Kansas businesses in the seed and early stage rounds of financing.

 

Companies must meet the following criteria to be certified as a Qualified Kansas Business:

o   The business has a reasonable chance of success and potential to create measurable employment within Kansas.

o   In the most recent tax year of the business, annual gross revenue was less than $5,000,000.

o   Businesses that are not Bioscience businesses must have been in operation for less than five years; bioscience businesses must have been in operation for less than 10 years.

o   The business has an innovative and proprietary technology, product, or service.

o   The existing owners of the business have made a substantial financial and time commitment to the business.

o   The securities to be issued and purchased are qualified securities.

o   The company agrees to adequate reporting of business information to the Kansas Department of Commerce.

o   The ability of investors in the business to receive tax credits for cash investments in qualified securities of the business is beneficial, because funding otherwise available for the business is not available on commercially reasonable terms.

o   Each applicant must sign a Qualified Company Agreement with the Kansas Department of Commerce.

Certification of companies must meet mandates established by Kansas statute to allow accredited Angel Investors to receive the Kansas Angel Investor Tax Credit. This year, the application fee has been reduced from $750 to $500.

 

Applications for companies seeking investment are accepted from February 1st, 2019 through August 31st, 2019.

Public encouraged to take a survey on statewide drone usage

The Kansas Department of Transportation’s (KDOT) Division of Aviation is seeking public opinion on the use of unmanned aerial systems (UAS) or drones in Kansas airspace.

 

Individuals of all ages, occupations and backgrounds are encouraged to participate in the 10-question online survey available at https://www.ippkansas.org/ks-uas-ipp-survey until Feb. 28.

 

Through the survey, KDOT hopes to gain a better understanding of the public’s familiarity and opinion on UAS use scenarios to drive operations for the Kansas UAS Integration Pilot Program (IPP).

 

This federally-initiated program will help tackle the most significant challenges to integrating drones into the national airspace and will reduce risks to public safety and security. The Kansas team is focused on efforts in Long Line Linear Infrastructure Inspection (i.e. highways, railroads, energy distribution lines, etc.) and Precision Agriculture. IPP partners include state universities, Kansas UAS joint task force members and industry leaders. For a full list visit: www.ippkansas.org/partners.

 

KDOT is currently conducting UAS test flights in the airspace north of Gypsum and over partner right-of-way infrastructure and partner-owned land. These operations will support a Phase II safety case that will include Beyond Visual Line of Sight (BVLOS) operations.

 

About Kansas UAS IPP
KDOT is one of only 10 national leaders conducting advanced UAS operations to guide future rule-making that will result in access to new technologies for the nation. The IPP is the result of a 2017 Presidential Memorandum issued to the U.S. Department of Transportation.

www.ippkansas.org.

State senator Richard Hilderbrand 13^th district

communications from the state capitol

January 25, 2019∙ Week Two

HARD FACTS:

• Aviation in Kansas has a $20.6 billion economic impact and is responsible for 91,300 jobs (Topeka Capital-Journal).
• Governor Kelly’s plan to re-amortize KPERS would free up $160 million for spending now, but would cost taxpayers more than $7 billion over the next 30 years (Topeka Capital-Journal).
• According to the Kansas Department of Labor, Kansas’ December unemployment rate was 3.3% compared to the 3.9% national rate (Department of Labor).

Kansas Day – January 29               

On January 29, 1861, Kansas became the 34^th state.  Explore the state’s early history with the Kansas History database from the State Library, which covers the Territorial period through the Civil War.  Find a wide variety of personal narratives, letters, maps, speeches, and photos. Use Browse to scroll through the topics, Search, or click on one of five broad categories for an overview of the early Kansas years.  Educators: each of the five categories includes an essay with corresponding primary source documents.

https://kslib.info/kshistory

If the page above asks for a Kansas Library eCard number, you may get one at any library in Kansas.  Most people will be automatically recognized as being in Kansas and will not need this step.   Questions: [email protected] or 785-296-3296.

$115 MILLION KPERS TRANSFER

On Tuesday, the Senate Ways & Means Committee heard testimony on Senate Bill 9, which would transfer $115 million from the state general fund (SGF) to the Kansas public employee retirement system (KPERS). One hundred percent of the payment would be applied to the public-school group, a group that carries the largest unfunded liability. Ways & Means heard from Executive Director of KPERS, Alan Conroy, who explained to the committee that not making the payment, would cause an increase of $630,000 to the unfunded liability/interest expense monthly. Making the payment would result in meeting the actuarial required payment for the first time in 25 years.

In 2018, the Legislature opted to postpone the payment, to see what future revenues produced. Kansas revenues ended FY18 with $317 million more than expected. This left the approved ending balance at $905 million. I am proud to be one of eighteen Republican senators who have signed on to sponsor SB 9.

KANSAS MARCH FOR LIFE

Despite the freezing rain, hundreds of people gathered at the Statehouse Tuesday to participate in the annual Kansas March for Life. Many gathered due to the anticipated ruling by the Kansas Supreme Court that would say the constitution provides a right to an abortion.

Following the march there was a rally on the first floor of the Statehouse that was attended by marchers, activists, and pro-life legislators. Senate President Susan Wagle (R-Wichita) spoke at Tuesday’s rally. “We have a strong pro-life majority in both the House and the Senate,” Wagle said. “We do have an activist Supreme Court. They are highly likely to come down with a decision that is anti-life.”

Tuesday’s march and rally took place on the 46^th anniversary of the Roe V. Wade decision.

NEXT WEEK

Monday –

• Update on: Transportation Task Force – [Senate Ways sand Means Committee; January 28 at 10:30 am]
• Presentation on: Education by the Numbers, Kansas Board of Regents, Kansas Technical Colleges, Kansas Independent College Association, Kansas Association of Community College Trustees – [Senate Education Committee; January 28 at 1:30 pm]

Tuesday –

• Presentation on: “The Kansas Outlook” by Jeremy Hill, Director, Center for Economic Development and Business Research, Wichita State University – [Senate Commerce Committee; January 29 at 8:30 am]
• Hearing on: SB 17 – Requiring class M driver’s license when operating a motorcycle registered under a temporary permit – [Senate Transportation Committee; January 29 at 8:30 am]
• Briefing on: 2018 Elections by the Kansas Secretary of State’s Office – [Senate Ethics, Elections, and Local Government Committee; January 29 at 9:30 am]
• Hearing on: SB 22 – Kansas itemized deductions, election, providing for deferred foreign income, global intangible low-taxed income, business interest, capital contributions and FDIC premiums income tax modifications.

Wednesday –

• Hearing on: SB 29 – Providing for fully-insured association health plans – [Senate Financial Institutions and Insurance Committee; January 30 at 9:30 am]
• Hearing on: SB 19 – Authorizing certain entities to access a criminal defendant’s presentence investigation report – [Senate Judiciary Committee; January 30 at 10:30 am]

Thursday –

• Hearing on: SB 26 – Income tax credit for certain purchases of goods and services by a taxpayer from qualified vendors that provide employment to individuals who are blind or disabled – [Senate Commerce Committee; January 30 at 8:30 am]

Thank You for Engaging

Thank you for all your calls, emails, and letters regarding your thoughts and concerns about happenings in Kansas. Constituent correspondence helps inform my decision-making process and is taken into great consideration when I cast my vote in the Kansas Senate. I hope you’ll continue to engage with me on the issues that matter most to you, your family, and our community. If you are on Twitter or Facebook, I encourage you to follow along with the #ksleg hashtag for real-time updates on legislative happenings in Topeka.

Please know that I am fully committed to addressing the current issues in our state, and I am proud to be your voice in the Kansas Senate.

State Treasurer Jake LaTurner Adds New Transparency to Statewide Debt Report

 

Topeka—Kansas State Treasurer Jake LaTurner today released the statewide indebtedness report in a new, more transparent, user-friendly web format for Kansans to access. The report shows Kansas carrying a debt of $1,554 per capita, placing it 18th in the nation for highest debt per capita compared to all fifty states and higher than the debt per capita of Missouri ($532), Oklahoma ($303), Iowa ($219), and Nebraska ($20) combined. This data is compiled as part of the 2018 Moody’s Investor Service’s Public Finance Report, published annually.

 

“It is important that we do not turn a blind eye to this endless cycle of mortgaging our children’s future,” said Laturner. “Adding more debt to our state must come to an end, and it starts with shining a light on where we are doing well and where we need to improve.”

 

The website, which can be found at https://kansasstatetreasurer.com/indebtedness.html, includes a series of interactive graphs that detail the sources and amounts of debt carried by the state as well as individual counties.

 

“I strongly encourage the Governor, Legislators and others to use these tools to help develop a plan that aggressively attacks this liability,” said LaTurner, “Debt is a dangerous cycle that does not end without action on our part. Kansans work hard every day to balance their budgets at home, and government should do the same.”

 

 

Program has funds through third week of March

 

TOPEKA – The Kansas Department of Health and Environment (KDHE) has received additional federal funds from the U.S. Department of Agriculture (USDA) to keep the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) operational into March, during the Federal Government shutdown. Today, KDHE received an additional $1,603,809 in food funds and $602,897 in administrative funds. These funds now allow Kansas to purchase foods until March 20, 2019 and keep staff operational until March 26.

 

“We are pleased to receive these additional funds,” said David Thomason, Director of the Nutrition and WIC Services Section in the KDHE Bureau of Family Health. “There is an average daily food cost in Kansas of $92,134 under this program, and we continue to work with the USDA to see that WIC funding in Kansas continues through the shutdown.”

 

The USDA monitors state WIC programs and is working to ensure that programs remain operational. States were instructed to contact the USDA prior to implementing any changes to the program that would curtail operations or in any way limit or restrict access to the program and its benefits.

 

The following is a synopsis of Kansas Governor Laura Kelly’s first State of the State address on Jan. 14, 2019 provided by Senator Richard Hilderbrand in his weekly newsletter.

STATE OF THE STATE ADDRESS

On Wednesday, Governor Laura Kelly delivered her first State of the State address. The governor laid out her agenda as she began her first term as governor. Some of her main agenda items include, more money to public education, increased funding to hire more social workers for DCF, and Medicaid expansion.

During her address, Kelly explained she would be proposing a one-year budget with a separate proposal for a two-year education plan.

GOVERNOR’S BUDGET PROPOSAL

Thursday morning, Governor Kelly presented her one-year budget proposal. The $18.4 billion spending plan would be the largest budget in Kansas history, with total spending rising $1.2 billion, or 7.2%.

Kelly’s proposal includes increased spending for areas such as K-12 education, DCF, and Medicaid expansion. Many lawmakers question the number Kelly presented for the cost of expanding Medicaid as many predict it to be well over the budget proposal’s estimate.

Below are some highlights from the governor’s budget proposal:

Kansas K-12 Education Finance

Governor Kelly recommended a $92 million inflation adjustment to state aid for K-12 public schools. This would be a phase in of $364 million over four years. With this increase, the state’s education funding would increase 5.5 percent during the next budget year, to nearly $4.4 billion.

Department for Children and Families

The budget proposed a 14 percent increase in spending on foster care programs. Governor Kelly’s agenda includes the hiring of 55 additional social workers. This would increase the department’s budget 8.7 percent, to $727 million.

Medicaid Expansion

Kelly’s budget included $14 million to initiate Medicaid expansion in Kansas. She explained that an expansion plan would be submitted to the Legislature by the end of the month.

State Employee Salary Increase

The budget provided $22 million for a 2.5 percent salary increase for state employees, excluding the judicial system and legislative branch. An additional $3 million was earmarked to increase wages for officers of the Kansas Department of Corrections.

Kansas Board of Regents

The budget proposal would complete restoration of a 4 percent, or $30 million, cut in 2017 from the Board of Regents. Most of the money was previously restored to universities, but Kelly offered the final $8.9 million to be recovered. This restoration does not include previous cuts from 2008.

Re-amortization of KPERS

Kelly’s budget was built around the re-amortization of the Kansas Public Employees Retirement System which essentially refinances the remaining $8.9 billion debt over 30 years. This is meant to provide $160 million in “short-term savings” but will extend the system’s debt until the year 2049. Larry Campbell, Governor Kelly’s budget director, said the debt would become an additional cost of about $7 billion.

State senator Richard Hilderbrand 13^th district

communications from the state capitol

January 18, 2019∙ Week One

HARD FACTS:

• According to the Kansas Department of Commerce, in 2018 Kansas added over 11,000 new jobs and $1.7 billion in capital investment (Kansas Department of Commerce).
• GEICO announced a new service center in Lenexa, adding 500 new jobs (Kansas Department of Commerce).
• Spirit AeroSystems announced another major expansion with plans to add over 1,400 new jobs in the Wichita area (Kansas Department of Commerce).
• Since December 2017, Kansas gained 20,100 seasonally adjusted total nonfarm jobs and 17,200 private sector jobs (Kansas Department of Labor).

The Kansas Constitution, including the Ordinance, Preamble, and Bill of Rights, is available to print in a pocket-sized version from the State Library’s website https://kslib.info/constitution. Just click on the link and follow the instructions. A helpful diagram shows how to fold and where to cut to assemble your pocket-sized constitution. Tip: print double sided and check “flip on the long edge”. A long reach stapler is helpful, but not necessary. There is also a larger sized booklet version. Need help? https://kslib.info/Ask

FLOOR ACTION

Thursday the Senate voted to confirm 17 governor nominated appointments and 2 attorney general nominated appointments.

NEW APPOINTMENTS:

Bowser, Steven – Member, Pool Money Investment Board

Confirmed on a vote of 40-0

Fertig, Sarah– Medicaid Inspector General

Confirmed on a vote of 40-0

Hutton, Mark – Regent, State Board of Regents

Confirmed on a vote of 39-0

Schmidt, Allen – Regent, State Board of Regents

Confirmed on a vote of 40-0

Samaniego, Richard– Crime Victims Compensation Board

Confirmed on a vote of 40-0

Norris, Eric– State Librarian

Confirmed on a vote of 40-0

Thomas, Donna Dr. – Member, University of Kansas Hospital Authority

Confirmed on a vote of 40-0

Copeland, Michael – Member, University of Kansas Hospital Authority

Confirmed on a vote of 40-0

REAPPOINTMENTS:

Dillon, David– Member, University of Kansas Hospital Authority

Confirmed on a vote of 40-0

Feurborn, William– Regent, State Board of Regents

Confirmed on a vote of 40-0

Graves, Gregory– Member, University of Kansas Hospital Authority

Confirmed on a vote of 40-0

Lair, Casey– Member, Kansas State Banking Board

Confirmed on a vote of 40-0

Macke, Carroll– Member, State Civil Service Board

Confirmed on a vote of 40-0

Melugin, Raymond– Member, State Civil Service Board,

Confirmed on a vote of 40-0

Neuman, Jack– Member, University of Kansas Hospital Authority

Confirmed on a vote of 40-0

Schorn, Harold – Member, Kansas Human Rights Commission

Confirmed on a vote of 40-0

Waller Ryan– Member, Employment Security Board of Review

Confirmed on a vote of 40-0

Wright, Jerel– Administrator, Department of Credit Unions

Confirmed on a vote of 40-0

Wynn, Deryl– Member, University of Kansas Hospital Authority

Confirmed on a vote of 40-0

GOVERNOR KELLY’S INAUGURATION

On Monday, January 14^th, Laura Kelly was sworn in as the 48^th Governor of the State of Kansas. Governor Kelly enters the Governor’s office after serving 14 years in the Kansas Senate, representing Topeka.

The following state officials were also sworn into office on Monday:

Lynn Rogers, Lieutenant Governor

Derek Schmidt, Attorney General

Scott Schwab, Secretary of State

Vicki Schmidt, Insurance Commissioner

Jake LaTurner, State Treasurer

NEW SENATORS

The Kansas Senate had four new faces Monday. Kevin Braun (R-Kansas City) replaces Steve Fitzgerald after he resigned from the Senate in September. Vic Miller (D-Topeka) took Laura Kelly’s seat in the Senate. Eric Rucker (R-Topeka) took Vicki Schmidt’s seat in the Senate as she is now Insurance Commissioner. Mary Ware (D-Wichita) was chosen to replace Lynn Rogers in the Senate.

Richard Hilderbrand (R-Galena) was also sworn in after winning his special election in November.

STATE OF THE STATE ADDRESS

On Wednesday, Governor Laura Kelly delivered her first State of the State address. The governor laid out her agenda as she began her first term as governor. Some of her main agenda items include, more money to public education, increased funding to hire more social workers for DCF, and Medicaid expansion.

During her address, Kelly explained she would be proposing a one-year budget with a separate proposal for a two-year education plan.

GOVERNOR’S BUDGET PROPOSAL

Thursday morning, Governor Kelly presented her one-year budget proposal. The $18.4 billion spending plan would be the largest budget in Kansas history, with total spending rising $1.2 billion, or 7.2%.

Kelly’s proposal includes increased spending for areas such as K-12 education, DCF, and Medicaid expansion. Many lawmakers question the number Kelly presented for the cost of expanding Medicaid as many predict it to be well over the budget proposal’s estimate.

Below are some highlights from the governor’s budget proposal:

Kansas K-12 Education Finance

Governor Kelly recommended a $92 million inflation adjustment to state aid for K-12 public schools. This would be a phase in of $364 million over four years. With this increase, the state’s education funding would increase 5.5 percent during the next budget year, to nearly $4.4 billion.

Department for Children and Families

The budget proposed a 14 percent increase in spending on foster care programs. Governor Kelly’s agenda includes the hiring of 55 additional social workers. This would increase the department’s budget 8.7 percent, to $727 million.

Medicaid Expansion

Kelly’s budget included $14 million to initiate Medicaid expansion in Kansas. She explained that an expansion plan would be submitted to the Legislature by the end of the month.

State Employee Salary Increase

The budget provided $22 million for a 2.5 percent salary increase for state employees, excluding the judicial system and legislative branch. An additional $3 million was earmarked to increase wages for officers of the Kansas Department of Corrections.

Kansas Board of Regents

The budget proposal would complete restoration of a 4 percent, or $30 million, cut in 2017 from the Board of Regents. Most of the money was previously restored to universities, but Kelly offered the final $8.9 million to be recovered. This restoration does not include previous cuts from 2008.

Re-amortization of KPERS

Kelly’s budget was built around the re-amortization of the Kansas Public Employees Retirement System which essentially refinances the remaining $8.9 billion debt over 30 years. This is meant to provide $160 million in “short-term savings” but will extend the system’s debt until the year 2049. Larry Campbell, Governor Kelly’s budget director, said the debt would become an additional cost of about $7 billion.

Senate Leadership including, President Wagle, Vice President Longbine, Majority Leader Denning, Assistant Majority Leader Petersen, and Majority Whip Bowers, issued the following statement in response:

“Governor Kelly’s budget is simply taking a different path that inevitably spends us right back into the red. She is willing to fund her irresponsible spending agenda at the expense of our Kansas retirees while placing an additional $7 billion burden on our future generations.”

Transfers of Kansas Department of Transportation

$238 million would continue to be drawn annually from KDOT to finance basic government.

NEXT WEEK

Monday –

• The Legislature will be closed on Monday, January 21^st to observe Dr. Martin Luther King Jr. Day

Tuesday –

• Hearing on: SB 9, authorizing the transfer of $115,000,000 from the state general fund to the Kansas public employees retirement fund during fiscal year 2019 – [Senate Ways and Means Committee; January 22 at 10:30 am]

Wednesday –

• Presentation on: Kansas Department of Revenue, David N. Harper, Director – [Senate Transportation Committee; January 23^rd at 8:30 am]
• Briefing on: Mental Health Task Force Report and Psychiatric Residential Treatment Facilities – [Senate Ways and Means Committee; January 23^rd at 10:30 am]
• Presentation on: Cost of Special Education Funding, LPA – [Senate Education Committee; January 23^rd at 1:30 pm]
• Response to KCC Rate Study, Chuck Caisley, SVP, Marketing and Public Affairs for Evergy – [Senate Utilities Committee; January 23^rd at 1:30 pm]

Thursday –

• Presentation on: Kansas State University programs by Interim Dean/Director Ernie Milton – [Senate Agriculture and Natural Resources Committee; January 24^th at 8:30 am]
• Presentation on: Kansas Highway Patrol, Colonel Mark Bruce, Superintendent – [Senate Transportation Committee; January 24^th at 8:30 am]
• Informational briefing: Local Impact of Federal Farm Bill, Department of Agriculture – [Senate Ways and Means Committee; January 24^th at 10:30 am]
• Presentation on: Mental Health Awareness: KS School Counselor Association, KS School Psychologist Association, KS School Social Worker Association – [Senate Education Committee; January 24^th at 1:30 pm]

2019 SESSION DATES AND DEADLINES

Please be aware of the following dates and deadlines for the 2019 legislative session. As always, each is subject to modification and leadership will keep you updated on any changes which might occur.

Monday, January 21	Martin Luther King Day – No Session
Monday, February 4	Last day for members to request bill drafts
Monday, February 11	Last day for non-exempt committees to request bill drafts
Wednesday, February 13	Last day for bill introductions by members
Friday, February 15	Last day for non-exempt committee bill introduction
Monday, February 25	Last day for AM/PM committees to meet
Tuesday, February 26	On floor all day
Wednesday, February 27	On floor all day
Thursday, February 28	Turnaround Day, last day for non-exempt bills in house of origin
March 1-5	No session
Friday, March 22	Last day for non-exempt committee consideration
March 25-26	On floor all day
Wednesday, March 27	On floor all day; Last day to consider non-exempt bills not in originating chamber
March 28-31	No Session
Friday, April 5	Drop dead day; first adjournment
Wednesday, May 1	Veto Session begins
Friday, May 17	Day 90

Thank You for Engaging

Thank you for all your calls, emails, and letters regarding your thoughts and concerns about happenings in Kansas. Constituent correspondence helps inform my decision-making process and is taken into great consideration when I cast my vote in the Kansas Senate. I hope you’ll continue to engage with me on the issues that matter most to you, your family, and our community. If you are on Twitter or Facebook, I encourage you to follow along with the #ksleg hashtag for real-time updates on legislative happenings in Topeka.

Please know that I am fully committed to addressing the current issues in our state, and I am proud to be your voice in the Kansas Senate.