HB 2282 will have a public hearing in the House Commerce, Labor and Economic Development Committee next Monday and Tuesday.  Proponents will testify Monday, February 13 and Opponents will testify Tuesday, February 14.  The legislation would allow Big Box and Convenience Stores to sell strong beer and wine under a newly created Wine and Beer Retailers License.  Read the bill here. Please plan to come to Topeka to show your opposition!  Hearings will most likely start at 1:30 p.m. and end around 3:00 p.m.  We are hoping to provide lunch in the Capitol on Tuesday if we can secure the space. KABR will send more detailed information and an RSVP email very soon. *********************************************** Long time members of KABR know – the key to winning this issue is one on one relationships with your legislators.  It takes more than a 2 minute conversation to explain the complex concerns of retail liquor store owners.  As they get to know you and learn about your business, they are better able to understand the harmful effects of Uncork legislation.  As you develop an honest supportive relationship with your representative and senator, you are also more likely to receive information from them about the happenings at the Legislature.  If you do not know them already, reach out now to introduce yourself and to begin a conversation about why you hope they will support Kansas small businesses and oppose Uncork.  If they are local, request a meeting. Reach out to the members of the House Commerce Committee and your legislators now (see information below if you need help).  Face to face meetings are extremely valuable – either at the Statehouse in Topeka or while they are home on the weekends.  Emails and phone calls are also effective.  It is very important that our members get active now on this issue, or we will find ourselves behind the ball once a public hearing is finally scheduled.    Find your state senator and state representative at https://openstates.org/find_your_legislator/ by entering your address information.  Contact information for all legislators is available at wwwkslegislature.org.   Information for the House Commerce Committee is below: Office Fullname Party Office# OfficePhone Email HomeCity Chair Les Mason Republican 521-E 785-296-7640 les.mason@house.ks.gov McPherson Vice Chair Ken Corbet Democrat 179-N 785 296-7679 ken.corbet@house.ks.gov Topeka Ranking Minority Brandon Whipple Republican 452-S 785 296-7366 brandon.whipple@house.ks.gov Wichita Representative Dave Baker Republican 167-W 785 296-6997 dave.baker@house.ks.gov Council Grove Representative John Carmichael Republican 451-S 785-296-7650 john.carmichael@house.ks.gov Wichita Representative J. R.  Claeys Republican 274-W 785 296-7670 jrclaeys@house.ks.gov Salina Representative Stephanie Clayton Republican 512-N 785 296-7548 stephanie.clayton@house.ks.gov Overland Park Representative Erin Davis Republican 151-S 785-296-7658 erin.davis@house.ks.gov Olathe Representative Roger Elliott Republican 168-W 785 296-7476 Roger.Elliott@house.ks.gov Wichita Representative Jan Kessinger Republican 268-W 785 296-7436 Jan.Kessinger@house.ks.gov Overland Park Representative Tom Phillips Republican 512-N 785 296-7402 tom.phillips@house.ks.gov Manhattan Representative Bradley Ralph Democrat 512-N 785 296-7501 Brad.Ralph@houseks.gov Dodge City Representative Louis Ruiz Republican 47-S 785 296-7885 louis.ruiz@house.ks.gov Kansas City Representative Joe Seiwert Democrat 481-W 785 296-7647 joe.seiwert@house.ks.gov Pretty Prairie Representative Jerry Stogsdill Democrat 452-S 785 296-7692 Jerry.Stogsdill@house.ks.gov Prairie Village Representative Sean Tarwater Party 268-W 785 296-7685 Sean.Tarwater@house.ks.gov Stilwell Representative Patsy Terrell Republican 174-W 785 296-7645 Patsy.Terrell@house.ks.gov Hutchinson                                                         Contacts:   Brian Davis, President - 316-990-1425   Email President            Amy Campbell, lobbyist – 785-969-1617   Email Lobbyist

HB 2282 Would Allow Beer and Wine in Big Box and Convenience Stores  The beer and wine legislation introduced on January 12 in the House Commerce Committee has finally been published.  The bill would allow Big Box and Convenience Stores to sell strong beer and wine under a newly created Wine and Beer Retailers License  Read the bill here. A Wine and Beer Retailer could sell any other goods and services on the licensed premises.  A Liquor Retailer could sell other goods or services on the licensed premises, exceptthat the gross sales of other goods and services shall not exceed 20% of theretailer's total gross sales. The bill includes provisions to transfer 3% of enforcement taxes to a local cereal malt beverage sales tax fund.  Those funds would be distributed to cities and counties based on a population weighting formula to theoretically make up for sales tax revenues that cities and counties would lose when there are fewer sales of cereal malt beverage products. There are no provisions for an extended transition period or purchasing existing retailer licenses.  There are no limitations on the number or location of new licenses. Long time members of KABR know – the key to winning this issue is one on one relationships with your legislators.  It takes more than a 2 minute conversation to explain the complex concerns of retail liquor store owners.  As they get to know you and learn about your business, they are better able to understand the harmful effects of Uncork legislation.  As you develop an honest supportive relationship with your representative and senator, you are also more likely to receive information from them about the happenings at the Legislature.  If you do not know them already, reach out now to introduce yourself and to begin a conversation about why you hope they will support Kansas small businesses and oppose Uncork.  If they are local, request a meeting. Reach out to the members of the House Commerce Committee and your legislators now (see information below if you need help).  Face to face meetings are extremely valuable – either at the Statehouse in Topeka or while they are home on the weekends.  Emails and phone calls are also effective.  It is very important that our members get active now on this issue, or we will find ourselves behind the ball once a public hearing is finally scheduled.    Find your state senator and state representative at https://openstates.org/find_your_legislator/ by entering your address information.  Contact information for all legislators is available at www.kslegislature.org.   Information for the House Commerce Committee is below: Office Fullname Party Office# OfficePhone Email HomeCity Chair Les Mason Republican 521-E 785-296-7640 les.mason@house.ks.gov McPherson Vice Chair Ken Corbet Democrat 179-N 785 296-7679 ken.corbet@house.ks.gov Topeka Ranking Minority Brandon Whipple Republican 452-S 785 296-7366 brandon.whipple@house.ks.gov Wichita Representative Dave Baker Republican 167-W 785 296-6997 dave.baker@house.ks.gov Council Grove Representative John Carmichael Republican 451-S 785-296-7650 john.carmichael@house.ks.gov Wichita Representative J. R.  Claeys Republican 274-W 785 296-7670 jrclaeys@house.ks.gov Salina Representative Stephanie Clayton Republican 512-N 785 296-7548 stephanie.clayton@house.ks.gov Overland Park Representative Erin Davis Republican 151-S 785-296-7658 erin.davis@house.ks.gov Olathe Representative Roger Elliott Republican 168-W 785 296-7476 Roger.Elliott@house.ks.gov Wichita Representative Jan Kessinger Republican 268-W 785 296-7436 Jan.Kessinger@house.ks.gov Overland Park Representative Tom Phillips Republican 512-N 785 296-7402 tom.phillips@house.ks.gov Manhattan Representative Bradley Ralph Democrat 512-N 785 296-7501 BradRalph@house.ks.gov Dodge City Representative Louis Ruiz Republican 47-S 785 296-7885 louis.ruiz@house.ks.gov Kansas City Representative Joe Seiwert Democrat 481-W 785 296-7647 joe.seiwert@house.ks.gov Pretty Prairie Representative Jerry Stogsdill Democrat 452-S 785 296-7692 Jerry.Stogsdill@house.ks.gov Prairie Village Representative Sean Tarwater Party 268-W 785 296-7685 Sean.Tarwater@house.ks.gov Stilwell Representative Patsy Terrell Republican 174-W 785 296-7645 Patsy.Terrell@house.ks.gov Hutchinson                                                         Contacts:   Brian Davis, President - 316-990-1425   Email President            Amy Campbell, lobbyist – 785-969-1617   Email Lobbyist

Uncork Introduces Bill in Senate Commerce Committee 

While the beer and wine legislation introduced on January 12 in the House Commerce Committee has still not been published, an Uncork bill was introduced in the Senate Commerce Committee Thursday, February 2nd.  Perhaps we should not be surprised that the Senate Bill has not yet been published either. Interestingly, there were two "no" votes to the request for introduction.  While bill introductions are typically unanimously adopted, Senator Rob Olson and Senator Molly Baumgardner were heard to say "no" to the introduction in the Senate Commerce meeting. We still don't know anything about the bill's contents, although media reports seem to indicate that these are strong beer and wine bills - with none of the license purchasing provisions or limitations on numbers or locations of licenses.  With the Senate introduction, we will be facing both a Senate Uncork Bill and a House Uncork Bill. Legislators are asking about CMB, and whether or not the product will be going away.  Manufacturers, including Anheuser-Busch and Coors-Miller have stated that CMB is not going away, but grocery and convenience stores are complaining that they will lose their variety once Oklahoma and Colorado implement planned changes in 2018.  See members of the Senate Commerce Committee at the bottom of this message. ******************************************** House Taxation Committee Holds Informational Hearings on Liquor Tax, Tobacco Tax and Motor Fuels Tax Increases After two days of informational hearings on the Governor's proposals to raise tobacco taxes, liquor enforcement tax, and motor fuels tax, it seems the House Taxation Committee will be moving forward with a different plan.  The hearing was very well attended and committee members seemed interested in the multiple layers of taxation paid on liquor products.  They were receptive to the concerns about competition across the Missouri border, where liquor taxes only include a gallonage and a sales tax.  Rep. Ken Corbet (R-Topeka) commented, We seem to forget that money has legs, and that business can just walk across the border to avoid these taxes - and that kills our small businesses. Next week, the House Taxation Committee will hold a public hearing on a proposal to expand the income tax categories to 3 - adding a higher income category with a higher rate to the state income tax, close some exemptions, add a small increase to motor fuels tax, and reduce the state sales tax on food to 5%.  The bill has a lot of moving parts.  There is also a proposal to eliminate the LLC income tax exemption, reinstate tax on passive income (such as rents) and increase the income tax rate on the two current income tax categories.  It will take many more weeks of hearings for these options to be narrowed down.  Meanwhile, tax receipts for January did come in slightly above projections, which is whittling away at the projected deficit a bit.  There is no doubt that liquor taxes are very likely to be tossed into the mix - perhaps more than once before the session is over. Read KABR Testimony Here Read notes here:   Notes from Jan 31 Tobacco and Liquor Tax Increases  Notes from Feb 1 Liquor and Motor Fuels HAVE YOU PAID YOUR DUES FOR 2017?  PRINT DUES FORM HERE. Office Fullname Officenum Offph Email Party District Hmphyscity Chair Julia Lynn 445-S 785-296-7382 Julia.Lynn@senate.ks.gov Republican 9 Olathe Vice Chair Gene Suellentrop 224-E 785-296-7385 Gene.Suellentrop@senate.ks.gov Republican 27 Wichita Ranking Minority Tom Holland 134-E 785-296-7372 Tom.Holland@senate.ks.gov Democrat 3 Baldwin City Senator Larry Alley 541-E 785-296-7381 Larry.Alley@senate.ks.gov Republican 32 Winfield Senator Molly Baumgardner 224-E 785-296-7368 Molly.Baumgardner@senate.ks.gov Republican 37 Louisburg Senator Barbara Bollier 237-E 785-296-7390 Barbara.Bollier@senate.ks.gov Republican 7 Mission Hills Senator Oletha Faust-Goudeau 135-E 785-296-7387 Oletha.Faust-Goudeau@senate.ks.gov Democrat 29 Wichita Senator Bruce Givens 225-E 785-296-7678 Bruce.Givens@senate.ks.gov Republican 14 El Dorado Senator Robert Olson 236-E 785-296-7358 Rob.Olson@senate.ks.gov Republican 23 Olathe Senator Mary Pilcher-Cook 234-E 785-296-7362 Mary.PilcherCook@senate.ks.gov Republican 10 Shawnee Senator Dinah Sykes 237-E 785-296-7367 Dinah.Sykes@senate.ks.gov Republican 21 Lenexa

Contacts:   Brian Davis, President - 316-990-1425   Email President            Amy Campbell, lobbyist – 785-969-1617   Email Lobbyist

The beer and wine legislation introduced on January 12 in the House Commerce Committee has not yet been published.  It is very unusual for a bill to be introduced in committee and not be available for review weeks later.  However, the Commerce Committee Chair is planning to hold a hearing once the bill is published – assuming there is still time within the legislative deadlines. Yesterday, Dillon’s/Kroger employees came to the State Capitol and met with legislators throughout the building.   Without a bill, we can only rely on the various newspaper and television stories from the past week.  Within those stories, Jessica Lucas, Uncork lobbyist, says the bill will allow big box and convenience stores to sell beer and wine.  "With only three states selling 3.2 beer, you limit the ability to have products to put on the shelf," said Jessica Lucas, a lobbyist with Uncork Kansas. "We need the government to allow us to sell beer without the definition that it must be 3.2 beer." Lucas says the bill would also benefit liquor stores by allowing them to sell things like chips, corkscrews, mixers, and other non-alcoholic products.”   From the KFDI Wichita story.   From this description – the bill likely does NOT include any requirements that corporate chains buy out current liquor store licensees nor a significant transition period as proposed in some of the previous Uncork bills.  The “buy out’ concept has only been included in bills that would put strong beer, wine and spirits into the big box stores. Long time members of KABR know – the key to winning this issue is one on one relationships with your legislators  It takes more than a 2 minute conversation to explain the complex concerns of retail liquor store owners.  As they get to know you and learn about your business, they are better able to understand the harmful effects of Uncork legislation.  As you develop an honest supportive relationship with your representative and senator, you are also more likely to receive information from them about the happenings at the Legislature.  If you do not know them already, reach out now to introduce yourself and to begin a conversation about why you hope they will support Kansas small businesses and oppose Uncork.  If they are local, request a meeting. Reach out to the members of the House Commerce Committee and your legislators now (see information below if you need help).  Face to face meetings are extremely valuable – either at the Statehouse in Topeka or while they are home on the weekends.  Emails and phone calls are also effective.  It is very important that our members get active now on this issue, or we will find ourselves behind the ball once a public hearing is finally scheduled.    Find your state senator and state representative at https://openstates.org/find_your_legislator/ by entering your address information.  Contact information for all legislators is available at www.kslegislature.org.   Information for the House Commerce Committee is below: Office Fullname Party Office# OfficePhone Email HomeCity Chair Les Mason Republican 521-E 785-296-7640 les.mason@house.ks.gov McPherson Vice Chair Ken Corbet Democrat 179-N 785 296-7679 ken.corbet@house.ks.gov Topeka Ranking Minority Brandon Whipple Republican 452-S 785 296-7366 brandon.whipple@house.ks.gov Wichita Representative Dave Baker Republican 167-W 785 296-6997 dave.baker@house.ks.gov Council Grove Representative John Carmichael Republican 451-S 785-296-7650 john.carmichael@house.ks.gov Wichita Representative J. R.  Claeys Republican 274-W 785 296-7670 jrclaeys@house.ks.gov Salina Representative Stephanie Clayton Republican 512-N 785 296-7548 stephanie.clayton@house.ks.gov Overland Park Representative Erin Davis Republican 151-S 785-296-7658 erin.davis@house.ks.gov Olathe Representative Roger Elliott Republican 168-W 785 296-7476 Roger.Elliott@house.ks.gov Wichita Representative Jan Kessinger Republican 268-W 785 296-7436 Jan.Kessinger@house.ks.gov Overland Park Representative Tom Phillips Republican 512-N 785 296-7402 tom.phillips@house.ks.gov Manhattan Representative Bradley Ralph Democrat 512-N 785 296-7501 Brad.Ralph@house.ks.gov Dodge City Representative Louis Ruiz Republican 47-S 785 296-7885 louis.ruiz@house.ks.gov Kansas City Representative Joe Seiwert Democrat 481-W 785 296-7647 joe.seiwert@house.ks.gov Pretty Prairie Representative Jerry Stogsdill Democrat 452-S 785 296-7692 Jerry.Stogsdill@house.ks.gov Prairie Village Representative Sean Tarwater Party 268-W 785 296-7685 Sean.Tarwater@house.ks.gov Stilwell Representative Patsy Terrell Republican 174-W 785 296-7645 Patsy.Terrell@house.ks.gov Hutchinson                                                         Contacts:   Brian Davis, President - 316-990-1425   Email President            Amy Campbell, lobbyist – 785-969-1617   Email Lobbyist

According to the Department of Revenue budget proposal, raising the enforcement tax from 8% to 16% would generate an additional $52.3M in 2018. Current enforcement tax at 8% generated $67.8M in 2016.

It appears the Department of Revenue expects some slowing of sales due to the tax increase as revenue is not doubled from current collections. Instead of forecasting $67.8M in revenue doubles to $135.6M, they have forecast increased revenues of $120.1M ($67.8M current plus $52.3M forecast). To get $120.1M of revenue from a 16% tax would require gross sales of $750.6M.

	Sales	Tax Rate	SGF
2016	$847.5M	8%	67.8
2018	750.6M	16%	120.1 (67.8+52.3 additional)
	-94.9		+52.3

This forecast indicates a $94.9M reduction or (11.2%) in total alcohol sales. To get that extra $52.3M, Kansas retailers are being asked to absorb an 11.1% loss. Those retailers near the Missouri border the loss will be much greater. This is not a responsible fiscal policy.

This is a terrible proposal. Here are some of the key arguments to oppose it.

1. The Department of Revenue’s own numbers indicate Kansas would lose $95M in alcohol sales. This will hurt retailers, especially those near the Missouri border.

2. This will also have a negative impact on wholesalers of spirits, wine and beer who sell to those retailers.

3. It effectively raises the cost of goods sold to bars and restaurants by 8%. Raising drink prices will drive business to Missouri. This will also cause a reduction in the 10% drink tax.

4. It is a regressive tax hitting lower and middle class consumers particularly hard. A $6.99 six pack will have a tax of $1.12 or a tax of $4.48 for a case.

House Taxation Committee – Contact Amy at 785-969-1617 to submit testimony.  We will help facilitate.  Individuals who intend to testify must contact Lea Gerard, Committee Assistant–785-296-4830 and provide copies of testimony 24 hours in advance.

Meeting each day at 3:30 p.m. in room 346-S of the Kansas Statehouse  (Click here for list of committee members.)   Chair is Steven Johnson, Vice Chair Tom Phillips, and Ranking Minority Member Tom Sawyer.

Monday, January 30:   Informational hearing:  Sales Tax Exemptions Statutes: 3603(b), 3603(p), 3606(ee), 3606(t), 3606(hhhh), 3606(nn), 3603(s), 3606(i)    (Includes Lottery tickets and advertising)

Tuesday, January 31:   Public Input on Governor's proposals regarding raising cigarette tax, alcohol tax and potential motor fuel tax

Wednesday, February 1:   Informational briefing:  Taxation on Retirement Benefits

Thursday, February 2:  Discussion on: Changes to Income Tax Rates and Glide Path to Zero

KABR is closely tracking two major legislative issues at the Kansas Legislature:  The Governor’s Revenue Proposal to double the liquor enforcement tax from 8% to 16%, and the Uncork Legislation to put Strong Beer and Wine Sales in Big Box and Convenience Stores.  At this point, neither bill has been published.  We do expect the House Commerce Committee to hold hearings on the Uncork bill (maybe in February), assuming that bill is referred to the Commerce Committee.

PUBLIC INFORMATIONAL HEARING ON LIQUOR TAX AND TOBACCO TAX NEXT TUESDAY

The House Taxation Committee will host an informational hearing on Tuesday, January 31 at 3:30 p.m. on the Liquor Tax and Tobacco Tax Increases.  See Tax Committee information at the bottom of this message.  If you are interested in providing testimony, please contact Amy at 785-969-1617 as soon as possible.  If you are from Johnson or Wyandotte County, this tax increase will significantly impact your business.  Groups that support the increase cite the fact that cereal malt beverages at the convenience store pay sales tax as high as 9.5% in some cities, while liquor store beer is charged 8%.  This position ignores the multiple levels of taxation that apply to liquor store products: manufacturer, gallonage, enforcement and drink tax.  Our customers pay a tax on a tax on a tax.  Retailers will soon see anti-tax public information materials delivered by the distributors.

The tobacco tax increase is also substantial, adding $1.00 to every pack of cigarettes and doubling the tobacco products tax from 10% to 20%. 

House Taxation Committee – Contact Amy at 785-969-1617 to submit testimony.  We will help facilitate.  Individuals who intend to testify must contact Lea Gerard, Committee Assistant–785-296-4830 and provide copies of testimony 24 hours in advance.

Meeting each day at 3:30 p.m. in room 346-S of the Kansas Statehouse  (Click here for list of committee members.)   Chair is Steven Johnson, Vice Chair Tom Phillips, and Ranking Minority Member Tom Sawyer.

Monday, January 30:   Informational hearing:  Sales Tax Exemptions Statutes: 3603(b), 3603(p), 3606(ee), 3606(t), 3606(hhhh), 3606(nn), 3603(s), 3606(i)    (Includes Lottery tickets and advertising)

Tuesday, January 31:   Public Input on Governor's proposals regarding raising cigarette tax, alcohol tax and potential motor fuel tax

Wednesday, February 1:   Informational briefing:  Taxation on Retirement Benefits

Thursday, February 2:  Discussion on: Changes to Income Tax Rates and Glide Path to Zero

RSVP at  KABR Board Meeting and GOLD Meeting

Upcoming event information:
KABR Board Meeting and GOLD Meeting Clubhouse Inn and Suites, 924 SW Henderson Rd, Topeka, KS 66615
Date: 11 Feb 2017 3:00 PM EST

KABR BOARD MEETING AND GOLD MEETING

ALL MEMBERS ARE ENCOURAGED TO ATTEND.

Please make your reservations at Clubhouse Inn and Suites, 924 SW Henderson Rd, Topeka, KS    785-273-8888   Ask for the KABR rate of $91.00 plus tax.

Saturday GOLD Committee - 3:00 p.m. - 5:30 p.m. - Goals of Liquor Dealers committee is open to all members and develops action proposals regarding legislative advocacy, policy development, and member services for consideration by the Board of Directors.  Please contact Brian Davis, President (davisliquor2@cox.net) regarding agenda items.  

Saturday evening dinner - Meet in the hotel lobby at 6:30 to go to dinner at the Blue Moose.  We will invite local legislators to join us.  Please RSVP so we can reserve tables.

Sunday Board of Directors Meeting - 9:30 a.m. - 12 noon

9:30 a.m.         Meeting Call to Order                                                Brian Davis, President

            Roll Call                                                         

            Introductions

            Minutes of the Previous Meeting  

            Financial Statement

           

9:50 a.m.         Regional Vice Presidents Reports                  

Janet Wise, Dave Dvorak, Monica Tieben

                                   

10:15 a.m.       Reports

                        Membership Report – Nomination of New Members

                        Member Credit Processing Program update

                        Retailer Education Program 

                              GOLD Committee –    

10:45 a.m.       Legislative Report      Amy Campbell   

HB 2282 - Uncork House Bill - House Commerce, Labor and Economic Development Committee

       Public Hearings February 13-14

SB 163 - Uncork Senate Bill - Senate Federal and State Affairs Committee

Wine Clubs Request

SB 164 - Drinking Establishments - Entertainment District Ordinances - Senate Federal and State Affairs Committee

HB 2277- Alcoholic Liquor, Consumption Areas, Cities and Counties - House Committee on Local Government - Hearing Thursday February 9

Governor's Proposal to double liquor enforcement tax from 8% to 16%

Various proposals to change income tax policy and increase tobacco tax rates        

www.kslegislature.org        Legislative information, bills and calendars.

www.votesmart.org            Non-profit website where you can look up your legislative districts if you do not already know them.  Can also call your local election office.

 

11:30 a.m.       Old Business

  

11:45 a.m.       New Business         

12:00 noon      Adjourn

More information and online registration: KABR Board Meeting and GOLD Meeting

Tuesday evening, Governor Brownback presented the State of the State address, and promised that his proposed budget would be balanced, including a combination of revenues and spending cuts.  The Governor’s proposal to raise revenues includes doubling the liquor enforcement tax rate from 8% to 16%.  This is the tax paid at the liquor store register.

The revenue proposal recommends adding another $1.00 tax per pack of cigarettes and increases the tobacco products tax from 10% to 20%.

The revenue proposal would also increase the annual business filing fee for for-profit entities from $40 to $200.  That annual fee is paid to the Secretary of State’s office.  Most liquor stores pay this fee for their LLC filing.

Additionally, the Governor’s plan will freeze the bottom category income tax rate at 2.7%.  The rate is supposed to step down to 2.6% this year.  The tax changes will also impose income tax on passive income such as rents and royalties.

The entire package raises $179 million for fiscal year 2018.  That is far short of the projected deficit, and the budget plan includes multiple proposals for shifting funds, borrowing from State investments and selling other assets.  It also combines a couple of agencies and regulatory boards.

Meanwhile the House Taxation committee has already introduced several income tax bills designed to roll back the LLC income tax exemption and otherwise rewrite our income tax statutes. The Governor says the LLC Exemption is growing Kansas small business and should be preserved.

Some rumors suggest there is another revenue plan circulating behind the scenes that the Governor might prefer or at least wouldn’t mind signing if the Legislature passes it.  We have also heard that a Senate GOP plan will be announced soon.

                          

UNCORK BILL INCLUDES STRONG BEER AND WINE FOR BIG BOX AND CONVENIENCE STORES On Thursday, January 12, Rep. J.R. Claeys, R-Salina, requested introduction of a “bill expanding consumer options for beer and wine purchases” in the House Commerce, Labor and Industry Committee.  The introduction was seconded by Rep. Stephanie Clayton, R-Overland Park.  We will forward the language to our members as soon as it becomes available. This is very early compared to Uncork introductions in the past.

The Kansas Legislature convened for the 2017 Legislative Session today, January 9, in Topeka.

The Governor’s State of the State speech will be 5:00 p.m. Tuesday, January 10, and the House and Senate budget committees will receive the Governor’s Budget Proposal Wednesday morning.  We have been told that the Governor will be proposing revenues from the liquor industry.  We do not know if it will be in the form of increased gallonage and/or liquor enforcement taxes, or if it will include the Uncork proposal to raise state general funds by allowing grocery and big box stores to buy into the retail liquor system with large up-front licensing fees.  Shawn Sullivan, Budget Director, will present the report to the House Appropriations and Taxation Committees at 9:00 a.m. and Senate Ways and Means Committee at 10:30 a.m. Wednesday.  That report will be posted at the Governor's Budget website at 9:00 a.m. Wednesday - http://budget.ks.gov . 

We do expect to see hearings this session on Uncork proposals.  It is also possible that the convenience stores will be pursuing a separate bill for Strong Beer.  Beer and wine are likely to be the focus of the Big Box Stores' efforts this year.  They are touting the Oklahoma constitutional change adopted by a public vote in November.  

Click to see the 2017 Session Planner here. This calendar shows the days the Legislature will be in session and the deadlines for bill introductions and passage.  It is subject to change.  Legislative leaders expect to have a longer legislative session this year, and will face issues such as major tax changes, Medicaid expansion, and a new school finance formula.  The task will be challenging, with revenues $340 million short for the fiscal year ending in June.  Most of the newly elected legislators ran on the promise to reform the income tax reductions for business owners that were passed in 2012 and 2013 – but the Governor is opposed.  

KABR will be tracking public hearings of interest and will share committee schedules with members regularly.  If you are interested, you can check yourself each Friday by looking at the House and Senate calendars posted for the following week at www.kslegislature.org to see what public hearings and meetings are scheduled for the following week.  This is especially important if you are watching specific issues of interest.  A better way to be prepared to act is to contact the committee secretary (listed below each committee name in the calendar) and ask IF and WHEN a bill or issue is to be discussed.  Typically, if you wish to testify or submit written comments for a public hearing on a bill, you will need to sign up with the secretary and turn in your testimony or comments at least 24 hours in advance.  Each committee’s rules are different and secretaries may have different requirements.  Unfortunately, there will also be hearings that pop up in the middle of the week with very little advance notice.  Committee schedules are also posted on the walls outside the House and Senate chambers and updated when changes occur.