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Dear Friend:

I’m writing from Week Three of the Veto Session. Rumor has it we may be here quite a while – many are guessing into June, which would be far beyond normal and even farther beyond what we have budgeted to pay for legislators and staff to be here.

Many of the controversial issues of the session have been held until now, so the next few newsletters will be jam-packed with issues very important to each of our daily lives. 

Around the District

Please note the following traffic alert for 23rd District residents from the City of Lenexa and the Kansas Department of Transportation:

Due to significant traffic backing up onto I-35 as a result of the 95th Street lane closure utility work, the Kansas Department of Transportation and the City of Lenexa would like to recommend that I-35 to 95th Street interchange traffic use alternate routes, especially during peak morning and evening commute times, to help ease congestion in the interchange area until work is completed sometime during the week of May 25-28, weather permitting.

BIG NEWS for the 23rd! Heart to Heart International is now headquartered in the district. HHI is a health and humanitarian aid organization started by Army physician Gary Morsch (also last year’s Johnson Countian of the Year) to serve human needs in crisis situations around the world, including Haiti, Liberia, and now Nepal.

I was humbled to receive the Alpha Phi Woman of the Year award at the Annual Meeting of the Alumnae Panhellenic Association of Greater Kansas City.

A number of legislative KU alums attended the Rock Chalk Ball – Mike and I were photobombed by Baby Jay and spent some time with Tim Caboni, the University’s Vice-Chancellor of Public Affairs.

Among the other legislative events:

  • I attended a retirement reception for former Rep. Bill Reardon of KCK. He served in the house with my dad 40 years ago and lobbied for the KCK School District in recent years.
  • Legislative coffee with the Johnson County Commission, Commission Chair Ed Eilert, and various county officials
  • Kansans for a Healthy Future rally on the tobacco tax
  • Department for Children and Families’ National Foster Care Month event

On the House Floor 

School Finance Adequacy Hearing

The 3-judge panel tasked with determining educational adequacy in Kansas began hearings on May 7. Plaintiffs in the case (Gannon et. al.) seek to block implementation of the new block grant bill and by declaring it unconstitutional.

  • While I wasn’t able to attend the hearings, the Topeka Capital-Journal did an excellent job of describing the play-by-play on May 7 and May 8.
  • Click here for a fascinating KCUR piece which provides history and context to the importance of high quality education in Kansas.

Taxes

As I’ve studied the budget, the revenue estimates, and the fiscal outlook for our state, one thing remains clear – the 2012 tax cuts were disastrous and should be reversed in part, if not in full. Until this happens, no other “fix” makes any fiscal or common sense. These cuts are the source, the virus if you will, and anything else we try to do is simply a Band-Aid that will need to be replaced every year. Those discussions finally began last week in the House and Senate Tax Committees, but with very little forward momentum.

The House Tax Committee considered sales and gas tax increases in HB 2429 and changes to the LLC income tax exemption in HB 2430:

  1. HB 2429 would raise the state sales tax from 6.15 to 6.5%. A 3-year gas tax increase of $0.05/gallon was also part of this discussion. Historically, revenue from gas taxes has been used for roads, but this would go straight to the State General Fund for operating costs.
  2. HB 2430 would narrow the income tax exemption for companies classified as LLCs, S-Corporations, and sole proprietorships. The 2012 law completely exempted these organizations from any and all state income taxes. The exemptions were passed with the intent to provide small businesses extra income to grow their companies and create jobs. When sweeping changes like this are made with no other state to model or follow best practices, loopholes are inevitable. For example, I could form an LLC, buy a bunch of rental properties and my income from those properties would be tax-exempt. This doesn’t pass the smell test of fair taxation.
  3. The irony here is that when you don’t pay state income taxes, you don’t get credit for them on your federal taxes, which raises your Adjusted Gross Income (AGI) and therefore your taxable income, so you send more money to Washington.

Uber

The legislature passed a bill to provide protection for users of Transportation Network Companies (TNC) such as Uber and Lyft. The bill (House Substitute for SB 117) required drivers carry insurance to cover riders and to have a background check. Governor Brownback vetoed the bill, and the legislature brought the bill up for discussion to override the veto on Monday, May 4. The veto override passed the House 96-25 and the Senate 34-5 in quick succession. Overriding a gubernatorial veto is no easy task, and it was not a vote anyone made lightly. Uber turned off Kansas service to its app on that Monday – BEFORE either chamber debated or voted on the bill.

This may not have been a popular vote, but it was the right one to fulfill my duty to protect Kansans. If this were any other business seeking to limit its customer liability, most would be up in arms. There will likely be a follow-up bill to address some problems with the “Uber bill,” and It is my hope that Uber will work with the legislature to resolve this matter reasonably so as to address the legislature’s concerns for public safety and to allow Uber to see its way clear to continue operating in Kansas.

Marijuana in Kansas

Our neighbors to the west are beginning to have an influence in Kansas. In April, Wichita voters overwhelmingly supported significantly reduced penalties for first-time marijuana possession offenses. In a similar way, HB 2049 would reduce first and second offenses to misdemeanors, with a third or subsequent offense classified as a felony. Current law issues a felony on a second and subsequent offense. Long before the state’s budget issue began, we faced a constant need for space in our corrections facilities. Reducing penalties for these non-violent offenders is a simple way to reduce those expenses as well.

The bill was amended to include two major provisions for medical care and agriculture in Kansas.

  1. “Otis’ Law” would allow for tightly controlled use of medical hemp oil for treatment of seizure disorders, and
  2. The Alternative Crop Research Act would allow the state to grow and research industrial hemp through one of the state universities – likely the agricultural research center at K-State.

It passed the House 81-36 and is headed to the Senate for consideration. I voted YES.

I spoke at the well in support of the hemp oil amendment as a result of a conversation with a constituent whose daughter has multiple seizures a day, noting that hemp oil has proven to be an effective deterrent for the seizure activity.

RPS

The constant attempts to repeal the state’s Renewable Portfolio Standards (RPS) – which require 20% of energy companies’ production to be from renewable sources by 2020 – has impacted the state’s ability to attract new alternative energy companies. A compromise was struck to end the battle by allowing the requirement (which most energy companies have already achieved) to be a voluntary goal, in exchange for a 10-year property tax exemption for new facilities and tax assessment at the commercial rate of 25% versus the public utility rate of 33% after the 10 years. This was a reasonable compromise supported by the wind industry and a number of alternative energy companies, as well as other utilities. This editorial from the Topeka Capital-Journal provides an excellent overview.

Coming This Week

SB 34 would give the Secretary of State power to prosecute election crimes. This is a significant departure from the Secretary’s scope of responsibility as the election and business filings commissioner for the state, and dilutes the authority of the Attorney General, who is tasked with prosecution of crimes against the state. The only proponent of the bill was Kansas Secretary of State Kris Kobach. The Kansas County and District Attorneys’ Association testified against the bill even though it expands their ability to prosecute election crimes at the local level.

Please do not hesitate to contact me with questions or comments. I am grateful for the opportunity to represent your voice in Topeka.

At your service,



Representative Linda Gallagher 
Kansas House of Representatives, District 23
Serving Shawnee, Lenexa, and Overland Park

Kansas Quote: 
“When it's all over, it's not who you were . . . it's whether you made a difference.”

– Former U.S. Senator Bob Dole (R-KS)

About Linda

7-term Republican Precinct Committeewoman
5th Generation Kansan
32-year Lenexa resident
913-631-3512
Email Linda
Visit LindaGallagher.org

Linda Gallagher | 913-631-3512 | Paid for by Gallagher for Kansas, Joyce Thompson, Treasurer
7804 Monrovia, Lenexa 66216
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