Chairperson Smith opened the hearing for HB2388.

Adam Siebers provided an overview for HB2388 that provides a sales tax exemption for all sales of tangible personal property purchased by the Friends of Cedar Crest Association for preservation of Cedar Crest. (Attachment 1)

Mr. Siebers stood for questions from Committee members.

Mr. Siebers noted HB2388 is a 2025 bill and the underlying statute would need to be reinserted for the current version technical amendment.

Kathleen Smith, Kansas Department of Revenue, provided an overview on the fiscal note for HB2388.  The Department of Revenue estimates that HB2388 would reduce state revenues by $3,500 in FY2026.  Of this amount, State General Fund revenues are estimated to decrease by $2,900, and the State Highway Fund revenues are estimated to decrease by $600. Ms. Smith noted the organization had another project for FY2027 and the estimate went to $14,000, including $11,500 from the State General Fund and $2,500 from the State Highway Fund.  The higher estimate for FY2027 is due to large-scale renovations that the organization plans to make FY2027.

 Ms. Smith stood for questions from Committee members.

Jessica Lucas, President, Friends of Cedar Crest Association, testified as a proponent for HB2388 noting the association is a 501c3 organization that provides preservation and enhancements to the Governor's residence. (Attachment 2)

Ms. Lucas stood for questions from Committee members.

No opponent or neutral testimony was provided for HB2388.

Chairperson Smith asked if anyone wanted to speak to the bill.

Chairperson Smith closed the hearing for HB2388.