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Minutes for HB2660 - Committee on General Government Budget

Short Title

Fee agencies, moneys transferred to the state general fund or special revenue fund; notification to persons paying fees that moneys have been transferred.

Minutes Content for Wed, Feb 17, 2016


Jill Wolters, Revisor, appeared before the Committee to offer an explanation of HB2660.

Ms. Wolters stated HB2660 strikes the "except as provided by law" provision from K.S.A. 75-3036 and requires the Department of Administration to notify persons or business entities if moneys received for a specific purpose by a fee agency are transferred to the state general fund or a special revenue fund to be expended for general government services and purposes. The notification shall be in writing and within 60 days of the transfer. If enacted, the bill would take effect on July 1, 2016.

Representative Blaine Finch offered testimony as a proponent. Rep. Finch stated that HB2660 would make the practice of sweeping fees more difficult and would send a clear signal that fees are to be used for the purpose for which they are raised (Attachment 2) .

Mike O'Neal, CEO of the Kansas Chamber, a proponent of HB2660 stated, "The Kansas Chamber encourages government reform aimed at lowering the overall cost of state government so it is more affordable to Kansas businesses and residents through policies that: oppose state or local government diversion of taxes or fees away from their statutory purpose to fund general government," (Attachment 3).

Doug Wareham, Kansas Bankers Association, a proponent, testified that HB2660 would help end the practice of fee sweeps. The practice of  sweeping fees from those agencies whose responsibility it is to maintain a viable and thriving industry, and using them for state general fund purposes potentially subjects regulated entities such as banks, to increase fees, which is effectively then, a back-door tax to these entities (Attachment 4).

Written only testimony was offered by proponent, Luke Bell, General Cunsel/VP of Governmental Affairs (Attachment 5).

Additional written testimony was offered by proponent, Thomas M. Palace, Executive Directotor PMCA of Kansas (Attachment 6).

After discussion, Chairman Waymaster closed the hearing on HB2660.

Chairman Waymaster explained the need for emergency action on HB2640 and HB2524. All were in favor.

Rep. Hineman moved, Rep. Wolfe Moore seconded, HB2640 favorable for passage. Rep. Wolfe-Moore seconded.  The motion carried.

Rep. McPherson moved, Rep. Sutton seconded, to table HB2524 indefinitely. Motion carried.


Chairman Waymaster explained that HB2660 would be discussed and worked tomorrow, February 18th, 2016, as well as HB2487  and HB2624.

The meeting was adjourned at 2:55 p.m.