TOPEKA – Today the Kansas Corporation Commission (KCC) ruled on two petitions for reconsideration related to a February order directing Evergy to put its residential distributed generation (DG) customers back on a two-part standard rate design eliminating a controversial demand charge.

In a two-part petition for reconsideration, Vote Solar, Climate & Energy Project, and the Sierra Club requested the Commission reconsider its earlier decision of not requiring Evergy to refund customers for charges collected under the previous three-part rate. Upon further review, the Commission determined refunds are appropriate and granted the request today.

Secondly, solar advocates sought reconsideration of the Commission’s decision to maintain the separate residential DG classification, stating it would deny DG customers an opportunity to participate in alternative rate offerings.  In response, Evergy agreed to make optional rates, minus the Time of Use pilot, available to DG customers. The Commission found that was an acceptable solution.

A group of Electric Companies (Evergy, Southern Pioneer, Liberty-Empire and the KEC Group) filed their own petition for reconsideration seeking clarification of the previous order. The group asked if they could propose rates to cover the costs of different or additional services provided to DG customers. The Commission clarified that the order does not prevent a utility from identifying other distinct services received by residential DG customers that may justify an added charge to offset any subsidy received by DG customers in a non-discriminatory way.

Today’s order can be viewed at http://estar.kcc.ks.gov/estar/ViewFile.aspx?Id=3fa461ee-5481-4195-8d8c-9a3ff6b37881 .

A recording of today’s Commission Meeting can be viewed on the agency’s YouTube Channel:  https://www.youtube.com/watch?v=10bSVa8nZ48&list=UU-uTcucl0oyHJr-_iOheuuw&index=1

Governor Laura Kelly Announces Next Steps for Unemployment Insurance Technology Modernization

~ KDOL requests proposals for new system ~

TOPEKA – Today, Governor Laura Kelly announced a major step forward in the effort to modernize the state’s Unemployment Insurance (UI) system at the Kansas Department of Labor (KDOL). The agency issued its request for proposal (RFP) for modernizing the over 40-year-old computer system.

“When I learned that the previous Administration abandoned efforts to modernize the state’s unemployment computer system in 2011, I immediately tasked the agency with reviving its modernization plans,” said Governor Laura Kelly. “Unfortunately, the pandemic hit, and the antiquated technology was unable to keep up with the record volume of claims. Today, we are taking a major step in fixing our broken system. We will finish what other Administrations’ failed to do.”

Prior to the pandemic, at Governor Kelly’s direction, KDOL staff traveled to states that had modernized their unemployment systems to learn from them how Kansas could build a system that would more efficiently serve claimants and businesses. In the past year, the agency has dedicated a specialized team to complete and expedite the modernization plan, incorporating the findings and best practices from these states.

“The RFP process is the next major step in our effort to modernize,” said Secretary Amber Shultz. “We plan to expedite this process as much as possible, while taking care to engage the business community, workers, and legislators. Over the past year, we have been able to stabilize our underlying systems which were not equipped to handle the volume of pandemic-related claims or the complexity of the new federal programs. The stabilization efforts worked and will help to speed modernization implementation once a vendor is selected,” said Shultz.

When Governor Kelly took office in 2019, one of her top priorities for the Department of Labor was to modernize the agency’s archaic mainframe UI IT system. However, when the state faced record-high unemployment due to the COVID-19 pandemic, the agency was forced to temporarily suspend its modernization efforts in order to focus on stabilizing the decades old system.

Today, the system has largely been stabilized and is paying out legitimate claimants in the traditional state unemployment program and new federal benefit programs. Since March 15, 2020, KDOL has paid out over 4.2 million weekly claims totaling over $2.8 billion between regular unemployment and the federal pandemic programs.

The Kansas Legislature is considering Governor Kelly’s $37.5 million budget request to replace KDOL’s aging system.

“We are on target to modernize this antiquated system,” said Governor Kelly. “While we navigate the procurement process, we also need the legislature to fund this critical upgrade. It will not be cheap—fixing a system that has been neglected for 40-plus years never is—but failing to act is not an option. I will continue working with the legislature to get this critical project done. We owe it to the people of Kansas.”

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Kansas Department of Revenue Announces a Web-Based Written Driver’s License Exam Option

TOPEKA – On Thursday, April 1, 2021, the Kansas Department of Revenue’s Division of Vehicles launched KnowTo Drive Online, a web-based version of its driver’s testing exam, powered by Intellectual Technology, Inc. (ITI). The introduction of this testing service adds to the Department’s expanding online services it provides. With KnowTo Drive Online, Kansans have the opportunity to take their written test from the comfort of their home.

“The availability of an online written test has been on our list of customer service enhancements and we are happy to finally announce its arrival,” David Harper, Director of the Division of Vehicles, said. “This testing portal, coupled with our other online services, should greatly decrease the number of customers in the office and considerably reduce the duration of customer visits.”

Kansas is the newest state to offer testing through KnowTo Drive Online. ITI also hosts self-service kiosks in 13 states, which help motor vehicle agencies extend services to grocery stores and other places of convenience.

The KnowTo Drive Online testing portal is available 24/7 on the Division of Vehicles’ website at http://ksrevenue.org/vehicles. Fees are $10 for the first test and $8.50 for any re-test.

If preferred, the Kansas Driver’s License written version of the test will still be available to be taken in the office.

Governor Laura Kelly Signs Bill Requiring In-Person Learning Option, Other Legislation

~Governor Kelly signs school bill after all Kansas schools already offer in-person attendance options~

TOPEKA – Serving as a testament to her administration’s efforts to get Kansans back to school, back to work, and back to normal, Governor Laura Kelly signed SB63, and all unified school districts in Kansas will now provide a full-time, in-person attendance option for all students enrolled in kindergarten through grade 12.

“Since the pandemic began, my administration has prioritized keeping Kansans healthy, keeping businesses open, and getting kids back into classrooms,” Governor Kelly said. “Among other efforts, we earmarked vaccines specifically for school staff – and all teachers and staff members who wanted a vaccine have now received at least their first dose.

“As we maintain quick and efficient vaccine distribution, COVID-19 case numbers in Kansas continue to drop – and our schools have taken steps to safely and responsibly re-introduce in-person learning. Currently, every school in Kansas is already offering an in-person attendance option for students.”

View Senate Bill 63 here.

Governor Kelly also signed the following bills into law:

Senate Bill 37

Senate Bill 37 amends provisions governing agent licensing and renewal licensure requirements in the Uniform Agents Licensing Act and in the Public Adjusters Licensing Act, and also amends a statute governing the examination of applicants for agent licensure.

The bill also provides for an exemption and extension in complying with the continuing education requirements of licensed insurance agents serving on active duty in the National Guard or armed services of the United States for a specified period of time. SB 37 further requires certification by pre-need-only insurance agents that no other insurance business was transacted.

Senate Bill 99

Senate Bill 99 amends law regarding vehicle dealer license requirements and vehicle display shows. Specifically, the bill authorizes the Director of Vehicles, the Kansas Department of Revenue, to issue a temporary display show license to a sponsor of a motor vehicle display show.

House Bill 2014

House Bill 2014 defines “military surplus vehicle” in the Uniform Act Regulating Traffic on Highways and in law regarding vehicle registration. It also authorizes the owner of a military surplus vehicle to register it with an annual fee.  

House Bill 2172

House Bill 2172 amends the Kansas Water Appropriation Act by expanding the opportunity for the establishment of multi-year flex accounts for groundwater water rights to water right holders who did not have water use between 2000 and 2009.  

House Bill 2270

House Bill 2270 places a limit of $100,000 on deposits into the State General fund each fiscal year from moneys from a levy placed on each fire insurance company doing business in Kansas for the purpose of maintaining the Office of State Fire Marshal.

April 2, 2021

Property Tax Transparency – GOOD NEWS FOR PROPERTY TAXPAYERS

Senate Bill 13, stopping automatic property tax increases that result from higher valuations, was signed into law.  Local property taxing authorities will have to provide notice of any proposed monetary increase and vote to go forward with the increase only after hearing public comments at an announced meeting.  The new law has initial payments for the required notices and software changes, removing any excuse to raise taxes because of an unfunded mandate.  It will also allow for normal maintenance on your property without increasing valuations, remove the property tax lid that was not working because of all of the exemptions, and allow county treasurers the option to setup property tax payment plans.  It will not stop property tax increases; however, it will allow taxpayers and taxing authorities an opportunity to be heard before increases occur.

I worked diligently for a couple of years on this legislation and other bills to help improve the property tax system.  I had meetings in locations away from Topeka where myself and other legislators heard the concerns of property tax paying Kansans from around the State.  Senate Bill 13 is the results of those concerns.   It’s a victory for Kansas.

Closing Power Plants

Talk about a trojan horse – Senate Substitute for House Bill (S Sub HB) 2072 is definitely one.  On the surface the bill looks like it helps utility customers, however, it will eventually result in much higher utility bills and puts us on a path for a similar disaster that occurred in Texas.  There were two parts to the bill.  First, it allows some natural gas companies to bond the expenses for the extremely high rates during the record-freeze earlier this year and pass the expenses on to customers.  Second, it allows utility companies to bond and pass on the expenses of closing plants to retail customers, including closing nuclear or coal plants.  Think about it, the current debt and expenses to close the plant will be paid by customers “to the benefit of the bondholders, any assignee, and any other financing parties” until they are paid in full.  It literally says that in the bill.  It is a trojan horse that looks good but guarantees higher utility bills long-term.

I did what I could to block it.  What is even more disappointing, the Chairman of the committee put the language in a house bill and the House concurred on the changes.  The bill passed the Senate 33 to 7.  I voted no.

Say No To A Veto of SB 50

The Governor is considering a veto of SB 50.  Members of her tax study group are putting out messages saying if the bill becomes law Kansas would have to pay back federal money because of Biden’s version of the Cares Act.  Twenty-one state Attorney Generals (AG) signed a letter challenging this federal overreach, including our KS AG.  Most of the items in SB 50 have been voted on several times since 2018, predating Biden’s legislation.  SB 50’s major components are: it addresses state income tax increases that resulted from the 2017 federal tax cuts, it increases the state standard deduction by $500, it provides language for collection of online sales tax (which is already the law), it stops any income tax obligation that results from stolen identity, it lines up the Kansas income tax filing deadline with federal dates while extending corporate filings by 30 days.

Too Many Bills

Over 40 pieces of legislation were worked on the Senate floor last week – too many to cover in this update.  All of the legislation is posted online at www.kslegislature.org.

It is an honor and a privilege to serve as your 12^th District State Senator.

Caryn

Governor Laura Kelly Signs Three Bills into Law

TOPEKA – Governor Laura Kelly has signed the following three bills into law:

Senate Bill 118

Senate Bill 118 would establish a procedure by which a city or county may assume the powers, responsibilities, and duties of a special district within the city’s corporate boundary or the county’s boundaries.

Senate Bill 64

Senate Bill 64, as amended, would amend the Kansas Private and Out-of-State Postsecondary Education Institution Act (Act) to clarify the State Board of Regents’ (Board) authority over private and out-of-state institutions.

House Bill 2063

HB 2063, as amended, would revise the benefits for members of the Kansas Police and Firemen’s Retirement System (KP&F) who are Tier II members, meaning those
employees hired since July 1, 1989, who are disabled and ultimately die due to a “service-connected” condition, as that term is defined by law. The bill would apply to deaths that occurred on and after January 1, 2017, and would designate these amendments to law as the Michael Wells Memorial Act.

Kansas’s March Total Tax Collections $66.7 Million Ahead of Previous March

TOPEKA – Kansas outperformed the March estimate by $52.3 million, or 9.7%, with $590.1 million received in total tax collections. That is $66.7 million more than last March.

“While this revenue growth is encouraging, we must continue practicing fiscal responsibility – particularly as we’re getting a clearer picture of how federal and state tax legislation could impact the state’s ending balance,” Governor Kelly said. “We cannot risk passing any tax bill that would put Kansas back into a self-inflicted budget crisis, and jeopardize our COVID-19 recovery efforts.”

With the late start of tax season and refunds going out in March, individual income tax collections were lower than the estimate by $4.8 million, or 1.9%, with $255.2 million collected. Corporate income tax collections were $25.3 million, beating the estimate by 26.7%, or $5.3 million.

Consumer spending has not slowed down as both retail sales tax and compensating use tax collections were more than estimated. Retail sales tax collections were up $19.2 million for the month, with $194.2 million collected. Compensating use sales tax was $2.6 million more than the estimate with $42.6 million collected.

The Consensus Revenue Estimating Group will meet later this month to reassess future estimates and consider the impact COVID-19 related federal legislation has on revenue numbers.

Please find the revenue numbers here.