LEGISLATIVE MATTERS
2020 LEGISLATIVE UPDATE
A report on the most significant activities impacting independent agents
by: Dan Murray, KAIA Lobbyist
In year two of Governor Kelly’s term, her administration
to hit the ground running. Unlike last year, the Governor
has filled her cabinet and has in-place a staff that has
a year of governing under their belt. However, both the
House and the Senate maintain strong enough republican
majorities to override gubernatorial vetoes should the
party stay united on issues. So, the republican-controlled
legislature has ample firepower to push back against many
of the Governor’s policy pursuits. Bipartisan votes will be a
virtual requirement to get anything of controversy, such as
Medicaid expansion, passed. And, in addition to Medicaid
expansion, there are several challenging pieces of
legislation, including budget adjustments, tax reform, and
resolutions to amend the Kansas Constitution on matters
related to abortion and judicial selection.
Tax revenue continues to outpace the Consensus Revenue
Estimating Group’s projections. Revenues have been
above monthly estimates by over $12 million in November
and are nearly $124 million above estimates Fiscal Year
to date. This higher than anticipated revenue pads the
current ending balance of about $550 million. However,
those same projections show that the state budget will be
in the red in the next couple of years at current spending
and taxation levels. Recent court-ordered increases in
K-12 funding, a re-payment to KPERS, general increases
in state government spending, and a resistance to transfer
money from highway funds portend a dicey budget
scenario when Governor Kelly is up for reelection. Kelly
has indicated that more money is needed for foster care,
education, transportation, Medicaid expansion, and other
key issues. But, given the budget projections, many of
these programs may not receive the boost despite the
current healthy ending balance. Here’s the take-away:
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additional spending and changes to tax law that reduce
revenue will face stiff scrutiny. In addition to the budget,
here are a few of the headline issues of the 2020 Session:
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Medicaid Expansion // We expect this issue to
dominate the Statehouse and certainly impact
decisions on the budget, given them at least $40
million price tag.
Tax Reform // There will once again be efforts to
decouple the Kansas tax code from the Federal code,
following the passage of the Federal Tax Cuts and
Jobs Act. Legislative efforts to achieve this was vetoed
twice in the last session. Additionally, we expect to
see legislation related to internet sales tax collection,
sales tax on food, and property taxes.
Constitutional Amendments // There have been a
couple of resolutions allowing a vote by the people
of Kansas on constitutional amendments. One would
address a Supreme Court ruling on abortion, and
the other would allow for a federal-style confirmation
process by the Kansas Senate of Supreme Court
judges.
INSURANCE ISSUES IN 2020
We anticipate this session will be an active one for
independent agents. In addition to pursuing a legislative
fix to a Supreme Court decision on the non-economic
damages cap, the Kansas Insurance Department (KID) has
presented several potential pieces of legislation to the KAIA
dealing with agent licensure, reporting, and fees. KAIA’s
legislative team and their Government Affairs Committie
has been working with KID to help realize the efficiencies
wihtout placing a financial burden on agents. Here are
some of the items they have been working on: