Chairperson opened the hearing for HB2457.

Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2457 that restricts homestead taxes to not more than the established base year amount of property taxes owed for individuals 65 years of age and older and provides for the elimination of property tax exemptions for certain properties used for healthcare when in competition with comparable uses by non-exempt properties. (Attachment 1)

Mr. Siebers stood for questions from Committee members.

In response to a question regarding the fiscal note for HB2457, Kathleen Smith, Kansas Department of Revenue will provide information to the Committee regarding the impact the bill  would have with school district finance.

Proponents:

Representative Helwig, District 1, testified as a proponent for HB2457 with an amendment for an exemption for hospitals. Hospitals are non-profit and do not compete with for-profit hospitals which will avoid unintended concerns.(Attachment 2) (Attachment 3)  

Leslie Anderson, Kansas Association Area Agencies on Aging and Disabilities, testified as a proponent for HB2457. Restricting homestead taxes to not more than the established base year amount of property taxes owed for individuals 65 years of age and older will make it less difficult to manage a fixed income budget.  Ms. Anderson suggested an amendment to take into consideration reasonable accommodations to support mobility and egress ingress of an older adult who needs those accommodations to remain in their home. (Attachment 4)

David Adams, LCSW, Christian Counselor, testified as a proponent for HB2457 which would hold nonprofit organizations responsible for paying property taxes. (Attachment 5)

Jeff Sigler, Medical Arts, Inc.testified as a proponent for HB2457 requested to level the playing field between Federally Qualified Health Centers (FQHC) and private businesses.  Mr. Sigler  is a proponent of Section 1 of the bill to freeze property taxes for seniors but addressed Section 2 noting if a business has to pay property taxes on their building, a FQHC business should also have to pay property tax.  (Attachment 6)

Michael Burns, AuBurn Pharmacy, testified as a proponent for HB2457 addressing Section 2 of the bill.  The Federally Qualified Health Centers are directly competing with the local pharmacies causing some to close.  The FQHC's clinics and pharmacies are highly profitable due to many advantages such as property tax exemption, millions of dollars in grants and paid more for the same services as other for profit providers. (Attachment 7) 

Representative Roth, District 79, testified as a proponent for HB2457, addressing Section 1 to freeze property taxes for seniors. No written testimony submitted.

Conferee proponents stood for questions from Committee members.

Written only proponents testimony for HB2457 was submitted by the following:

Sarah Werner, Winfield Area Chamber of Commerce (Attachment 8)

Lorie Johnson, Kansas Citizen, (Attachment 9)

Jason Hulvey, Evan's Drug, Inc., (Attachment 10)

Nicholas Galemore, Neosho County Commissioner,  (Attachment 11)

Opponents:

Pamela Julia Lanier, testified on behalf of Freeman Oak-Hill Health System, as an opponent for HB2457 and submitted proposed language for Section 2 of the bill. (Attachment 12)

Aaron Dunkel, Community Care Network of Kansas, testified as an opponent for HB2457 that would irrevocably harm health centers and other community based clinics and the communities they serve. (Attachment 13)

Tara Mays. Kansas Hospital Association, testified with the inclusion of an amendment with her testimony for Section 2 of HB2457 exempting hospitals and related medical care facilities from the provisions of the bill.  The bill reflects legislative intent and avoids unintended impacts on Kansas health care infrastructure. (Attachment 14)

Conferee opponents stood for questions from Committee members.

Kylee Childs, Leading Age Kansas, submitted written opponent testimony for HB2457. (Attachment 15)

Jason Wesco, Community Health Center of SE Kansas, submitted written opponent testimony for HB2457. (Attachment 16)

Neutral: (Written Only)

Dave Trabert, Kansas Policy Institute, (Attachment 17)

Spencer Duncan, League of Kansas Municipalities, (Attachment 18)

Chairperson Smith closed the hearing for HB2457.