11:00 p.m. yesterday
The 2026 Legislature adjourned early Saturday morning, passing both a budget and a partial property tax reform bill before they headed home. The Legislature will return for Veto Session on April 9th, taking up Gubernatorial vetoes, line-item vetoes on the budget bill and passing final conference committee reports that were not advanced during regular session. With a veto-proof majority in both chambers and a Gubernatorial election in 2026, the stakes continue to be high for both parties.
Sine Die is the official last day of session and is scheduled for Saturday, April 11th. Once session has officially ended, candidates can begin fundraising from corporation and political action committees. A number of House and Senate members have announced they are running for statewide offices, and this shortened session will help their fundraising and campaign efforts.
Legislators passed their Fiscal Year 2027 budget and made progress on several tax bills, but additional items remain to be acted on during Veto Session. Below is a list of key Conference Committee Reports (CCR) passed last week and advanced to the Governor’s desk for consideration.
FY 2027 Budget
The House and Senate Budget Conference Committee agreed to a $26 billion budget for FY 2027 with more than $10 billion in state general fund spending. After some initial concerns expressed in the Senate, CCR for HB 2513 advanced and adds a 1% state employee pay raise, an increase in special education by 6%, addresses DEI requirements for higher education, appropriates $2.75 million for the Sunflower Summer Program and a cut of $250,000 to the Kansas Arts Council. For a briefing on the budget, click here.
Local Tax Cap Petition
The Senate passed House Bill 2745, which requires a petition when exceeding Midwest CPI or a 3% annual cap, whichever is lower. The cap applies to all local governments, including schools, and there are no exceptions for new growth or bonding. The bill does not remove the current Revenue Neutral Rate (RNR) provisions. Opponents will likely seek a veto from the Governor since the bill did not pass either body with a supermajority.
STAR Bonds Renewal and Kansas Sports Authority
The STAR Bonds program renewal and the establishment of the Kansas Sports Authority were added to the CCR for House Bill 2466. The bill renews the STAR Bonds program for 5 years and adds amusement parks to the STAR Bonds program. The bill also establishes the Chiefs Sports Authority to hold state ownership of the sports assets being built for the Kansas City Chiefs’ Stadium and training facilities.
Transient Guest Tax and World Cup Liquor Sales
CCR for House Bill 2481 preempts local ordinances on prohibitions of short-term rentals for the months of the FIFA World Cup. The Conference Committee added Senate Bill 393, allowing 23-hour liquor sales during the World Cup timeframe, with an opt-in provision for local communities that want to take advantage of the extended hours.
Sports Tourism Grants
CCR for House Bill 2346 creates a Sports Tourism Grant program to retain and attract amateur and youth sporting events in the state. The bill includes a 5-year sunset and allows the Secretary of Commerce to prioritize qualifying new events over recurring events.
By-Right Housing
CCR for Senate Bill 418 enacts the By-Right Housing Development Act that will provide a streamlined permit approval process for by-right housing developments. The Conference Committee amended the bill so that one-acre lots will not need state stormwater discharge permits, the 12-unit maximum will only apply to townhouses, and the permit approval window was extended from 60 days to 90 days.
Fire Safety
CCR for House Bill 2739 exempts certain residential housing from specific fire safety and accessibility requirements, repeals the definition of “apartment house,” and allows for expedited updates to the Kansas Fire Prevention Code using the 2024 International Fire Code, without requiring a full economic impact review, though changes will be subject to legislative approval.
Aviation, Angel Investor and Other Tax Credit Renewal
CCR for House Bill 2464 extends several existing tax credit programs, including the Angel Investor Tax Credit, aerospace and aviation workforce-related credits, and credits for contributions to the Eisenhower Foundation and Friends of Cedar Crest, through 2031. The legislation requires that at least 25% of Angel Investor credits support businesses in smaller counties.
Occupational Licensing
CCR for Senate Bill 30 requires legislative approval for new occupational licensing requirements or significant changes adopted by state agencies. The new provisions do not apply to the judicial branch or medical professionals.
In State Tuition Repeal
CCR for Senate Bill 254 passed the House on a vote of 78 to 46 and the Senate on a vote of 22-18, sending the bill to the Governor. The bill eliminates in-state tuition for undocumented students in Kansas, but the measure fell short of a veto-proof majority in both the House and the Senate, so a legislative override is uncertain.
Citizenship on Driver’s License
CCR for House Bill 2587 requires that citizenship status be listed on driver’s licenses and permits any person whose driver’s license lists such person as a noncitizen to obtain a provisional ballot for voting purposes if the person claims to be a citizen.
Expert Evidence
The Senate concurred with the House changes and advanced Senate Bill 398 to the Governor, which requires an expert witness to demonstrate it is more likely than not that they have specialized knowledge to help the trier before the witnesses may testify.
Speed Limit & Golf Carts on Sidewalks
CCR for House Bill 2124 allows local authorities to reduce residential speed limits from 30 mph to 25 mph without requiring an engineering and traffic study and permits cities to authorize golf cart operation on sidewalks where use on adjacent roads is prohibited, provided drivers are at least 16 and licensed.
Digital Right to Repair
CCR for House Bill 2700 establishes the Kansas Digital Right-to-Repair Act, requiring original equipment manufacturers to provide independent repair providers and consumers with access to parts, tools, and documentation for certain digital electronic equipment, while protecting trade secrets and limiting liability. The Act applies to products sold after July 1, 2027.
Contingency Fees
The House concurred with the Senate's changes to House Bill 2593, which requires political subdivisions to hold an open meeting before approving contingency fee contracts for legal services and to obtain approval from the Attorney General before the contracts take effect. The AG is authorized to review, approve, or deny contracts, report annually on denials, and intervene or seek dismissal in cases of noncompliance.
Data Sharing
CCR for Senate Sub. for HB 2004 requires the Kansas Department for Children and Families (DCF) and the Office of the Inspector General to share information related to public assistance programs to detect and investigate fraud, and mandates that DCF and the Kansas Department of Health and Environment provide relevant state data to federal agencies such as the USDA and HHS.
Born to Invest Act
CCR for Senate Bill 232 establishes the Born to Invest Act, requiring the Office of Vital Statistics to share limited birth record information with the State Treasurer so informational materials about government-administered savings programs, such as education and disability savings accounts, can be distributed to families of children born in Kansas, with data transmitted securely and used solely for outreach and financial literacy purposes.
Portable Benefit Plans
The House concurred with Senate amendments to House Bill 2602, which establishes requirements for a portable benefit plan for independent contractors, allowing for and determining types of employer contributions to such plans and providing a subtraction modification for Kansas income tax purposes.
Data Matching
CCR for House Bill 2731 tightens oversight of Kansas public assistance programs by requiring expanded data-matching and eligibility verification, limiting self-attestation, and increasing reporting requirements. It also directs state agencies to seek federal approval for continuous Medicaid eligibility for individuals with intellectual or developmental disabilities receiving HCBS waiver services, while maintaining current eligibility standards.
Regent University Reform
CCR for House Bill 2560 authorizes state universities to adopt their own policies, subject to Board of Regents approval, for contracts, procurement, and easements, with requirements for competitive bidding, qualifications-based selection for design services, and limits on easements to public entities. The bill aims to increase institutional flexibility by exempting universities from state regulations once policies are approved, while maintaining oversight through reporting requirements, legislative access to contracts, property inventory tracking, and Attorney General review of property transactions.
Education Workforce Reforms
CCR for House Bill 2485 makes changes regarding the authority to negotiate and settle repayment obligations for KBOR service scholarship programs. It also addresses agreements between public school districts and community or technical colleges for the provision of college courses; the Every Child Can Read Act and the Kansas Blueprint for Literacy; workforce training programs for federal Workforce Pell Grants; ACT WorkKeys and other similar career-readiness assessments; and the Kansas Promise Scholarship.
School Choice Tax Credit
Senate Bill 361 authorizes Kansas to participate in a federal tax credit program that incentivizes individual donations to scholarship-granting organizations, which will expand scholarship opportunities and school choice for low-income students.
Assisting Inmates with IDs
The House concurred with the Senate amendments to House Bill 2653, which requires the Kansas Secretary of Corrections, in coordination with other state agencies, to help inmates prepare for reentry by ensuring they obtain key identification documents, such as a birth certificate, Social Security card, and ID, within 9 months of release.
Veto Override - Healthcare Sharing Ministries
The House and Senate both overrode the Governor’s Veto this week on Senate Bill 368. This bill provides a tax deduction for health care sharing ministries, which are faith-based, community-driven organizations where members voluntarily share each other’s medical expenses. The bill allowed members to deduct their qualified sharing expenses while aligning their tax treatment more closely with traditional health-care arrangements.
Legislative Veto Session
Legislators will return on Thursday, April 9th, for a three-day Veto Session. In past years, Governor Kelly has vetoed a significant number of bills and has made significant line-item vetoes in the budget bill. Many tax votes remain outstanding. Below are key issues that can be acted upon during the Veto Session.
Property Tax Constitutional Amendment
Late Friday night, the House failed to pass Senate Concurrent Resolution 1603, a proposed Kansas constitutional amendment to cap annual property valuation increases at 9% starting in 2027, with certain exceptions. The measure would have maintained the cap after ownership changes and set taxable value as the lower of capped or actual value, aiming to stabilize taxes, though critics argued it would shift burdens rather than reduce them. It was slated for an August 2026 vote but was instead sent back to conference committee for further work during the veto session.
Local Tax Cap Election
The Senate Tax Committee also passed out House Bill 2396. The committee added the provisions of HB 2745, but instead of the petition requirement to exceed the 3% annual cap, the bill requires an August election. The bill would also take effect upon publication in the Kansas Register. This may be a vehicle for additional action if the Governor Veto’s HB 2475, tax cap with a petition, and the House and Senate are unable to override the Veto.
Sales Tax Package
CCR for Senate Bill 33 will extend the local sales tax distribution formula freeze for one additional year for the city/county revenue sharing, adding House Bill 2712, which provides for additional sales tax authority for counties without seeking approval from the Kansas Legislature and House Bill 2642, Global Intangibles Low-Taxed Income technical clean-up provisions. The bill will be effective upon publication in the Kansas Register.
Tax Credit and ROZ Package
The CCR for Senate Bill 82 will include the contents of Senate Bill 498, tax credits for ethanol and gun storage, and will remove several unused tax credits. The package also includes changes for the childcare tax credit program, Senate Bill 521, including a three-year carryforward and extending the limited Rural Opportunity Zone Program for two years. Finally, the package includes homestead and SAFTESR provisions from Senate Bill 402.
Unemployment Insurance
Commerce Conference Committee members agreed to limit the provisions in CCR for Senate Bill 229 to discontinuing only the calculated negative debt write-off and forgiveness provision for negatively balanced employers, which passed last session and was to be allowed for only one year. All other provisions were stricken in an agreement to work next year on updates to parameters for temporary layoffs, guidelines for supplemental unemployment benefit plans, and a prohibition on passing UI legislation through a budget proviso. The bill passed the House by a vote of 84-35, but the Senate failed to act on it.
App Store Accountability Act
CCR for SB 157 regulates app store and developer operations regarding minors and establishes requirements for age verification. The initial CCR was sent back to Conference Committee by the House because of concerns over the private right of action and creation of a digital ID. An agree-to-disagree option, which would allow minority members of the conference committee to not sign the conference committee report, was rejected by the House. The issue can potentially be debated again during Veto Session.
Daylight Saving Time
CCR for House Bill 2594 exempts Kansas from daylight saving time, providing for moving to permanent daylight saving time upon an act of Congress requiring such a move.
Agritourism
The Conference Committee is still considering provisions to S Sub for House Bill 2111. The bill prohibits a city or county from enforcing any building code, ordinance, or resolution regulating the use of a non-public registered agritourism location, allowing for agritourism business provisions to be permitted for invitation-only businesses.
No Impact Home-Based Business Fairness Act
CCR for Senate Bill 197 would allow Kansans to operate low-impact businesses from their homes with limited local government restrictions, such as permits or rezoning, unless related to health, safety, or legal compliance. Eligible businesses are those with minimal traffic, no visible disruption, and operations contained within the home, while still prohibiting illegal or adult-oriented activities and preserving homeowners’ association authority. The House passed the bill 75 to 48, but the Senate did not take action before adjourning.
© Copyright 2026 KSCPA | All Rights Reserved