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.

Governor Laura Kelly Relocates Tourism
to the Kansas Department of Commerce
to Spur Economic Growth

TOPEKA – Governor Laura Kelly announced the Kansas Tourism Division will officially be part of the Kansas Department of Commerce, in accordance with the Executive Reorganization Order (ERO) Governor Kelly submitted to the Kansas Legislature on Jan. 25 of this year. The 60 calendar day period has expired without action by either the Kansas House or Kansas Senate chamber, therefore the reorganization will occur starting July 1, 2021.

“Moving the Tourism division into the Department of Commerce sends a clear message to our industry partners and prospective companies that my administration will use every tool at our disposal to spur new economic growth,” Governor Kelly said. “This realignment will support our businesses, our tourism industry, and will play a significant role in our COVID-19 recovery efforts.”

The Department of Commerce features several tools designed to increase tourism into the state, including the Kansas Athletic Commission and the STAR Bonds program. Through this reorganization, Kansas Tourism will be its own independent division within Commerce, with the Director reporting to Lieutenant Governor and Commerce Secretary David Toland.

“Tourism is ultimately about economic development, so it makes perfect sense to have tourism housed within the state’s economic development agency,” Lt. Governor/Commerce Secretary Toland said. “I’m excited to welcome the Kansas Tourism team to the Department of Commerce as we work to achieve Governor Kelly’s vision for faster growth and stronger local economies across the state.”

“I am thrilled to be part of this transition for the Kansas Tourism team,” Bridgette Jobe, Director of Kansas Tourism, said. “The entire team is a dedicated, passionate group of individuals who understand the value in marketing Kansas to visitors. Being a key part of the Department of Commerce increases our opportunities for growth and greater economic impact to Kansas.”

The ERO came as the result of input from businesses, destination marketing organizations and other key industry partners, including the Travel Industry Association of Kansas (TIAK), the Kansas Restaurant & Hospitality Association (KRHA), and the Kansas Economic Development Alliance (KEDA), which all agreed it is best to consolidate Kansas’ tourism efforts and economic development initiatives.

“This move will significantly improve our state’s tourism efforts,” TIAK President Jim Zaleski, Labette County CVB, said. “TIAK is grateful to Governor Kelly, the administration, and the Legislature for responding to industry suggestions, and TIAK looks forward to working with Kansas Tourism in its new home at the Department of Commerce.”

“The tourism sector, as a tool for economic development, can be such a powerful difference maker for our state’s hospitality industry,” Kansas Restaurant and Hospitality Association President Adam Mills said. “Bringing more people to Kansas means more dollars exchanged between tourists and Kansas businesses. Coming off of weakened economic conditions from the effects of COVID-19, I am excited to see the State of Kansas is making this move. We are confident this move strengthens our state’s tourism efforts, which will in turn strengthen our hospitality industry and our state’s economy.”

“Governor Kelly has made the right decision in placing tourism with Commerce, and I’m pleased to see this move become official,” President of the Kansas Economic Development Alliance Steve Jack said. “More money brought to our state from elsewhere means an injection of fresh capital into our economy. Commerce has proven their efficiency, and I know that they will excel with this new responsibility.”

As a result of the ERO, the Kansas Department of Wildlife, Parks and Tourism (KDWPT) will be designated the Kansas Department of Wildlife and Parks (KDWP) beginning July 1, 2021.

“We believe realigning Kansas Tourism with Commerce will benefit both,” KDWPT Secretary Brad Loveless said. “Kansas Tourism has been a wonderful asset to our agency and will continue to be a valuable partner as we collaborate to market our state’s wonderful outdoor activities and state parks.”

KDA to Host Webinar on H–2A Agricultural Worker Program

MANHATTAN, Kansas — The Kansas Department of Agriculture will host a free informational webinar focused on updates to the H–2A guest worker program including CDL requirements for custom harvesting and farm employees. The webinar will take place virtually on April 7, 2021, at 7:00 p.m.

This educational webinar will information on current legislation concerning the U.S. Department of Labor’s H–2A program for temporary agricultural employment of foreign workers via the Farm Worker Modernization Act. The webinar also will provide insight on the process and necessary documentation needed for obtaining a Commercial Driver’s License (CDL) and the differences between a CDL and farm vehicle operations. The final piece of the webinar will feature a facilitated discussion allowing participants to ask questions and provide comments on issues concerning the H–2A program.

Many custom operations and grain producers struggle to find local skilled labor to fill temporary planting, harvesting and transportation jobs. The H–2A program offers a solution to finding those employees from outside the United States who are willing to fill those temporary positions.

Highlights will include updates from industry experts on these topics.

• Representatives from the National Council of Agricultural Employers will be on hand to provide updates related to the Farm Worker Modernization Act and the impacts it could have on H–2A program users.
• Mandi Sieren, Operations Manager with U.S. Custom Harvesters, will brief participants on the services offered through the organization.
• Dixie Cravens, Foreign Labor Certification Manager, and Wendy Inzunza, State Monitor Advocate with the Kansas Department of Commerce, will provide a brief overview of the programs and services offered through Kansas Workforce Centers.
• Kent Selk, Drivers Services Director, and Brian Brunt, Kansas state CDL Coordinator, with the Kansas Department of Revenue will provide information related to requirements for CDL and farm vehicle operations.

To participate in the webinar, please click the registration link here: www.agriculture.ks.gov/Workforce.

The Kansas Ag Growth Strategy project has identified federal immigration reform, specifically visas for agricultural workers, as a high priority outcome for several critical ag sectors. Developing a strong agricultural workforce is key to furthering KDA’s mission to providing an environment that enhances and encourages economic growth of the agriculture industry and the Kansas economy. For more information contact Russell Plaschka, KDA ag business development and workforce program manager, at [email protected] or 785-564-7466.