Tag: Kansas

Davids, Moran taking part in U.S. supply-chain, domestic manufacturing reform negotiations

Weaknesses exposed by COVID-19 pandemic focus of bipartisan innovation bill

by Tim Carpenter, Kansas Reflector

Topeka — U.S. Sen. Jerry Moran and U.S. Rep. Sharice Davids offered input Thursday into development of a compromise bill designed to improve domestic manufacturing and the nation’s supply chain that were exposed as competitively deficient during the COVID-19 pandemic.

Sen. Moran, a Republican, and Rep. Davids, a Democrat, were appointed to the Senate and House negotiating committee working on a combined version of the Bipartisan Innovation Act. An agreement resolving differences in the House and Senate versions of the bill, if approved by both chambers, would be forwarded to President Joe Biden.

The legislation’s objective has been to come to terms with shortcomings in U.S. supply-chain resiliency and domestic manufacturing limitations — semiconductors, for example. One aim of Congress would be lowing costs in the wake of record-setting inflation. In addition, lawmakers feel pressure to grapple with growth in China’s economic and technological power, fuel U.S. research and development and reinforcement U.S. workforce programs.

In Sen. Moran’s remarks to the conference committee in Washington, D.C., the senator said the package ought to feature improved support of so-called STEM fields of science, technology, engineering and math. It should to be designed to promote entrepreneurial business activity, he said.

“This committee is tasked with making certain our country is out-competing adversarial nations, including China, which we can do,” he said.

Sen. Moran recommended the final version of the bill include provisions to solidify federal funding of NASA. He said Congress had pieced together financial backing of NASA missions for several years without passage of formal authorization legislation.

“When you can present a bipartisan authorization followed up with the funding of programs, it sends a strong signal to the agency, industry and our global partners that we remain committed in accomplishing our stated missions. This is especially critical as our adversaries continue to advance within the space domain,” Sen. Moran said.

Rep. Davids, in remarks to colleagues on the Senate-House conference committee, said she’d spoken with dozens of Kansas business owners, workers, students and entrepreneurs about the federal manufacturing and supply chain legislation.

“I’ve been on the factory floor with welders who make the railroads that get goods from ship to shelf across our country,” the 3rd District representative said. “I’ve seen firsthand how a Kansas battery manufacturer recycles their materials through the production process to reduce waste and improve efficiency. I’ve met with union autoworkers who were off the line for seven months last year because the chip shortage idled a GM plant in my district.”

“I’ve been out in the community because I want to make sure that during this negotiation, I’m fighting for what our businesses and workers really need,” Rep. Davids said.

She said the COVID-19 pandemic caused global disruption in the international supply chain that escalated prices paid by large and small businesses and consumers.

“But I have to tell you: This isn’t new,” Rep. Davids said. “The reality is we’ve been reliant on goods made in other countries for far too long, and Kansans are paying the price. When we focus on domestic manufacturing, it will not only bring jobs back and boost our economy, it will help lower costs across the board and reduce inflation.”

She said the United States possessed the “innovation, the grit and the talent” to compete with countries like China, but the United States had relied on goods made in other countries for too long. She said focus of the House-Senate agreement had to be investment in American manufacturing and workers, especially those engaged in small businesses.

Kansas Reflector stories, www.kansasreflector.com, may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0.
See more at https://kansasreflector.com/2022/05/13/davids-moran-taking-part-in-u-s-supply-chain-domestic-manufacturing-reform-negotiations/

Kansas governor signs law legalizing sports betting

by Noah Taborda, Kansas Reflector

Topeka — After years of waiting, Kansans will soon be able to legally wager on sporting events under a new law signed Thursday by Gov. Laura Kelly.

Senate Bill 84 allows for the four state-owned casinos to use digital or in-person avenues to engage in the business of sports betting. The casinos, established under the control of the Kansas Lottery, can create and operate sportsbooks or partner with up to three online betting operators each to launch mobile platforms.

Native American tribes can negotiate a new or updated gaming compact regarding sports wagering.

“Legalizing sports betting will bring more revenue to our state and grow our economy,” Gov. Kelly said. “This is another mechanism that casinos, restaurants, and other entertainment venues can now utilize to attract Kansans to their establishments.”

The long-sought law gained approval 73 to 49 in the House, and, in the waning hours of the veto session, the Senate followed suit 21 to 13.

The Kansas Lottery and the Kansas Racing and Gaming Commission will share oversight of sports wagering. Betters on the casinos’ platforms will have to be physically located in Kansas to bet and must be 21 years or older.

There is some hope the system could be set up in time for the NFL and college football seasons, but its more likely to be place in January 2023.

Opponents of legalizing this form of gambling when the industry has contributed to 65,000 problem gamblers in Kansas. They argued the 10% state tax on sports gambling generating $1 million to $5 million in annual revenue was not enough financial incentive to legalize the activity and risk more trouble with this potential addiction.

The state-affiliated casinos stand to make $9 million to $45 million annually on sportsbooks.

“I was excited to pass sports wagering in Kansas, it’s something that Kansans are already doing, and it will bring additional tax revenue to our state to help with our needs,” said Sen. Rob Olson, an Olathe Republican and chairman of the Senate Federal and State Affairs Committee. “My constituents have pushed for this legislation for years, and now, the next time we have a significant sporting event in our state, Kansans will be able to bet on their hometown team.”

Eighty percent of state revenue from legal gambling on sports will go into a Kansas Department of Commerce fund to be used to support the establishment of a professional sports facility in Kansas, to lure a team such as the Kansas City Chiefs across state lines.

Casinos can enter agreements with professional sports franchises and place kiosks at a team’s facility to allow fans to place bets. They can also partner with 50 businesses and entities, one-fifth of which must be nonprofit organizations.

“We have heard from our constituents for years about the need for a sports wagering program here in Kansas, both for the value it will bring to their lives and for the revenues it will generate for our state,” said Sen. Oletha Faust-Goudeau, a Wichita Democrat and ranking member of the Senate Federal and State Affairs Committee. “I’m proud to have contributed to this package that will do just that and revitalize my community by creating jobs in Wichita.”

Kansas Reflector stories, www.kansasreflector.com, may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0.
See more at https://kansasreflector.com/2022/05/12/kansas-governor-signs-law-legalizes-sports-betting/

Kelly goes shopping for sweet food sales tax repeal, settles for gradual reduction

Bill to be signed by governor ends 6.5% state tax on groceries in 2025

by Tim Carpenter, Kansas Reflector

Olathe — Gov. Laura Kelly planned a trip to a Hy-Vee store in Olathe to sign a bipartisan bill Wednesday phasing out over three years the state’s 6.5% sales tax on groceries, but would prefer the Legislature reconsider her proposal to promptly wipe out the state tax on groceries.

The Republican-led Legislature is sitting on a large budget surplus, but has been wary of wholesale deletion of the state’s tax on food on July 1 because it would be a political victory for the Democratic governor and the lost state revenue could haunt lawmakers in a recession. The governor has campaigned to “Axe the Food Tax,” which would be popular among consumers grappling with the highest inflation rate in decades.

Instead, the House and Senate overwhelmingly approved a bill that would culminate with repeal of the state’s food sales tax in 2025. The reform wouldn’t alter local sales tax on grocery purchases.

Under House Bill 2106, the state would lower the state’s sales tax on groceries to 4% on Jan. 1, 2023. It would slide to 2% by Jan. 1, 2024. The tax would be eliminated Jan. 1, 2025. The first phase of the rollback would cost the state $77 million. The second year revenue reduction would be an estimated $252 million, followed by $411 million in 2025.

Gov. Kelly referred to the Legislature’s alternative to her plan as a “good first step,” because it would deliver savings for every Kansan. She said strong state tax revenue collections in April demonstrated the Legislature could take up the issue May 23 when legislators return to Topeka.

House Majority Leader Dan Hawkins, R-Wichita, said an extreme downturn in the state’s economy had to be anticipated. The stair-step process of lowering the sales tax on groceries would allow the Legislature to remain nimble, he said.

The bill to be signed by Gov. Kelly defined food as standard groceries as well as bottled water, candy, dietary supplements, soft drinks and food sold through vending machines. It excluded alcoholic beverages, tobacco and prepared food offered by restaurants.

The unusually high statewide sales tax on groceries was raised to 6.5% in 2015. It was bumped up to help balance the budget because former Gov. Sam Brownback’s strategy of aggressively lowering the state’s income tax — his goal was to eliminate that tax in Kansas to create job growth — depleted the state treasury to an extent it was difficult state government to fulfill basic duties.

In 2019, Republicans in the Legislature passed two tax-cut bills vetoed by Gov. Kelly. GOP lawmakers attempted to induce Gov. Kelly to approve of the cuts by inserting a reduction in the state food sales tax. Gov. Kelly rejected the legislation, saying it would have been irresponsible to add financial instability to the budget.

Derek Schmidt, the attorney general and a candidate for governor in 2022, said the latest phased approach to the sales tax on groceries was Gov. Kelly’s “second chance to get it right.”

Kansas Reflector stories, www.kansasreflector.com, may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0.
See more at https://kansasreflector.com/2022/05/11/kelly-goes-shopping-for-sweet-food-sales-tax-repeal-settles-for-gradual-reduction/