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Matt Grange, Treasurer
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LEGISLATIVE UPDATE #7 -- February 18, 2010

Today started the long process of preparing for the “turn around” period, which begins on Saturday, and runs for a couple of days. The turnaround means all bills that have been debated on the floor and approved will be sent from one chamber to the other.

This long weekend is used so the staff can prepare the briefs and consolidate all the pending legislation so that the proper committee will have plenty to do. We are on the floor working and debating all sorts of bills.

HB 2596 addresses the proposed KDHE regulations that address the lead-based paint issue of license issuance, company and employee certification and sets the standard for a variety of conditions that directly affects those contractors that work in houses that were constructed prior to 1978.

1978 was the year the federal government banned the use of lead in paint. Supposedly there is a health risk for those that may come into contact with chipping, flaking paint or the dust that could result from remodel operations.

Specifically an environment that a 6 year old child or woman of child bearing years may enter to include a residence, daycare, kindergarten or public building, will be subject to the conditions included in the proposed rules and regulation.

All workers that do remodel or repair work in that environment must have specific training, the supervisors must have additional training and the business must have additional responsibilities for filing reports with KDHE. This includes EVERYONE, the school maintenance workers, employees, technicians etc.

We currently are working with the agency to try and reach an agreement that will lessen the impact and still comply with the EPA mandates for compliance. Bad things have a tendency to happen when people do not talk to each other until the 11th hour. I am confident as of this writing that we will come to a mutually acceptable document.

HB 2238 is the 2010 rendition of the contractor retainage bill. Retainage is the portion of a construction contract (normally 10%) that is withheld from a regular pay request to insure satisfactorily completion of a given project.

In my Post Audit Committee we heard briefings on the possibility of eliminating some tax exemptions and tax credits. The possibility of this happening has created quite a stir and brought forward many opportunities and possibilities.

According to the Legislative Post Audit Report 10PA03.1, accepted February 17, 2010. Kansas currently has 99 sales tax exemptions costing the state an estimated $4.2 billion in fiscal year 2009. Sales tax exemptions in several areas aren’t in line with good tax policy because they provide unequal treatment for similar types of taxpayers.

For example: There are 44 specifically named non-profit organizations or associations, costing about $2.2 million annually; exemptions for non-profits such as hospitals and nursing homes but not their for-profit counterparts; an exemption for coin-operated laundries, but no other laundry or coin operated businesses.

Some of the costliest sales tax exemptions enacted as a matter of public policy relate to machinery and equipment ($231 million), educational/youth activities ($58.5 million), labor services ($182 million), utilities ($136 million), and health care ($70 million). Although there may be good policy reasons for having such exemptions, they significantly erode the State’s tax base.

On Wednesday evening I attended a reception was sponsored by the American Legion organizations of Kansas. I met with the El Dorado Delegation and discussed the issues that do or could directly affect their operations. We talked on the ramifications of removing sales tax exemptions, smoking ban, and non-profit status.

These receptions provide us with an opportunity to meet with local constituents and get first hand information and opinions in a relaxed atmosphere. On Thursday the Association of Community College Trustees were in the Capitol. The legislators that have an interest in or have districts that include a Community College were invited to meet with the College officials.

The Kansas National Guard armories in Garden city and Kingman will be closed in the next few days. The closings were announced Dec. 11th as part of the budget reduction measures precipitated by state budget shortfalls. Eighteen armories across the state will be closed over the next few months.

I consider it an honor and privilege to be your representative in Topeka. I want to know what you think. Thank-you, John

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