1) Sign Up Now for City Hall Day!

Register today for City Hall Day in Topeka. This annual event will be held on Wednesday, February 1st and is a key opportunity to meet with legislators about issues important to your city and other municipalities. New this year, the LKM policy committees will be meeting to review and discuss pending legislation.

Following the legislative presentations in the afternoon, city officials are invited to join us for a reception from 5:00 - 6:00 p.m. All legislators will be invited to this event, but it is recommended that local city officials contact their legislators and offer a personal invite.

Click here to register online.

Click here for the schedule for the day.

Click here for the registration brochure.

(Click here to go back to the top of the page)

2) Concealed Carry Bill

The House Federal and State Affairs Committee held a hearing on HB 2353, the concealed carry bill that would allow individuals with permits to carry weapons in public buildings that do not have adequate security measures in place. It would further prohibit cities from enforcing any no carry rules against city employees that have a concealed carry permit. There were a number of conferees, and LKM testified against the bill on the basis that cities, not the state, should be able to make the decision of whether to allow weapons in their buildings, and that cities should be able to make appropriate workplace rules for its employees.

It is anticipated that the Committee will work the bill in the near future, and will likely pass the bill out of committee. Again, for those cities that have concerns about this issue, begin discussing HB 2353 with your legislators.

3) Tax Bills

As reported last week, the House Tax Committee conducted hearings on HB 2212 and HB 2287 this week.

HB 2212 was heard on Tuesday, January 24th. The sponsor of the bill states that it is not the intent of HB 2212 to establish a tax lid. However, it is LKM staff's opinion that, as now written, the bill contains tax lid implications. LKM believes that the tax lid implications could be eliminated from the bill with some minor wording changes. LKM appeared in opposition HB 2212. Also testifying or presenting written testimony in opposition to the bill were Unified Government of Wyandotte Co./Kansas City; Wichita; Manhattan; Kansas Association of School Boards (KASB); Kansas Association of Counties (KAC); and, Johnson County.

On Wednesday, January 25th, the Committee took testimony on HB 2287 which would establish a "sales tax holiday." The bill would amend current sales tax exemption law to exempt certain purchases of school supplies, computers and clothing, as defined within the bill for seven days in early August of each year. The intent of such legislation is to permit low income taxpayers to purchase "qualified items" in preparation of returning to school without incurring sales tax. In truth, the sales tax exemption extends to anyone making qualified purchases during the tax holiday without regard to their economic status. The estimated cost to local governments is $1.6 million to $2 million per year. LKM opposed HB 2287 based upon its long standing position to oppose any legislation that narrows the sales tax base (increases sales tax exemptions). The KASB and KAC also opposed HB 2287.

There was no indication by the Committee when, or if, they may work either or both bills. LKM will continue to monitor both bills and report as needed.

Click here to go back to the top of the page)

4) KPERS

KPERS continues to be a hot topic this legislative session. The House Pensions and Benefits Committee and the Senate KPERS Select Committee have conducted two joint meetings to learn more about the plan recommended by the KPERS Study Commission this interim. Here is a recap of what has occurred so far.

Background

In early May 2011, the Legislature passed Senate Sub. for HB 2194. Under this bill, an employer's contribution toward KPERS would increase by 0.9% on January 1, 2014; by 1.0% on January 1, 2015; by 1.1% on January 1, 2016; and by 1.2% on January 1, 2017.

Moreover, subject to IRS approval, KPERS members would be provided two options. Tier 1 members could choose to increase their KPERS contributions from 4% to 6%. In return, their multiplier would increase from 1.75 to 1.85 for those years of increased employee contributions. This option would be the default if a Tier 1 member fails to choose an option. Contributions would increase to 5% on January 1, 2014 and to 6% on January 1, 2015. Or tier 1 members could choose to continue contributing at a 4% rate. Members choosing this option, however, would see a reduction in their multiplier from 1.75 to 1.4 for future years of service. Tier 2 members would continue to contribute 6% of their salary toward KPERS. But they must choose between keeping their 1.75 multiplier and losing their COLA or keeping their COLA and lowering their multiplier to 1.4 for future years of service.

Senate Sub. for HB 2194 also established a 13-member KPERS Study Commission to analyze the benefits of different retirement plans and to make recommendations in a bill to the Legislature based on its research. The commission met for ten days during the interim and issued its final report on December 31, 2011. A copy of the report can be found here.

The Commission's report makes it clear that all KPERS members would see changes to their plan. Vested employees as of January 1, 2014 would fall under the changes established in Senate Sub. for HB 2194, as described above. Unvested employees and new hires as of January 1, 2014 would fall under a new hybrid plan that would go into effect on January 1, 2014. The hybrid plan would be part cash balance plan, part defined contribution plan.

The cash balance part of the plan would contain only employer contributions. The contribution would be based on an employee's years of service. Employees would receive a 1% match of their salary for the first year of service. The match would then increase .5% for every year of employment up to 5% after eight years of service. Employees would not direct the investment of these funds; investments would mirror KPERS funds' investments. A 0% interest rate would be guaranteed. This means an employee would receive the principal balance of the fund (their employer's contributions) even if the investments lost money.

The defined contribution part of the plan would contain employee contributions. Employees would be required to put 6% of their salary into this plan and would direct 100% of the investments.

On Wednesday of this week, the Commission's report was introduced in bill form in the House Pensions and Benefits Committee and the KPERS Select Committee. See HB 2545 and SB 338.

What Happens Next?

Unlike any other legislation, in order for the changes outlined in Senate Sub. for HB 2194 to go into effect, a dual voting trigger must be met this legislative session. First, a Committee of the Whole of one chamber must vote on the bill recommended by the KPERS Study Commission. Second, a committee of another chamber must also vote on the KPERS Study Commission bill. This means that if the House as a chamber votes on the KPERS Study Commission bill and the KPERS Select Senate Committee votes on the KPERS Study Commission bill, the changes in Senate Sub. for HB 2194 will go into effect. Or vice versa, if the Senate as a whole votes on the KPERS Study Commission bill and the House Pensions and Benefits Committee votes on the same bill, Senate Sub. for HB 2194 will be triggered. A positive vote on the KPERS Study Commission bill is not required. The only way for the KPERS Study Commission bill to pass is if both houses pass it and it is approved by the Governor.

Needless to say, it is difficult to predict what will happen with these bills. KPERS meetings are occurring daily. A Pensions and Benefits subcommittee has been formed and is meeting to look at different plan designs. Everything could still change at a moment's notice. We will keep you up-to-date as it does.

(Click here to go back to the top of the page)

5) Reapportionment

The Senate Reapportionment Committee met this week to discuss proposed changes to Kansas's U.S. Congressional Districts. The Legislature must alter the districts every decade to make them as equal in population as possible. Because rural Kansas continues to lose population, the 1st District will have to be expanded into other districts. The debate appears to hinge on whether Manhattan or counties in southeastern Kansas will be taken out of the 2nd District. The next hearing is scheduled for Monday, January 30. LKM will continue to monitor all of the Reapportionment meetings and keep cities updated.

Information about the redistricting process and several proposed maps can be found on the Kansas Legislature's redistricting website, link here.

(Click here to go back to the top of the page)

7) LKM Annual Conference Hotel Information

The League of Kansas Municipalities invites you to participate in our Annual Conference October 6-8, 2012. Conference hotel accomodations and reservations can be made starting February 1, 2012. Click here for more information.

(Click here to go back to the top of the page)

8) Upcoming MLAs

February's MLA, Ethics, will be in Lakin on February 10th, Herington on February 11th, and Gardner on February 24th. This four-credit core course will offer participants an overview of the law as it relates to local government ethics and will offer strategies that your city can follow to encourage ethical behavior. For more information and registration, please click here.

March's MLA, Finance Planning and Policy Concepts, will be the first webinar offered through the MLA program on Friday March 16th and Saturday March 31st. This course will offer particpants a better understanding of municipal finance issues in Kansas. Finance Planning and Policy Concepts has been designed to complement the themes covered in the core MLA municipal finance class. Prior participation in Municipal Finance not required. More information will be coming soon.

(Click here to go back to the top of the page)

For a PDF Version of the League News, Click Here