Chairperson Smith opened the hearing for HB2599.

Adam Siebers, Office of Revisor of Statutes, provided an overview for HB2599 that exempts sales tax from the first $10,000 of tangible personal property sold by a minor-owned business each calendar year. (Attachment 1) 

Mr. Siebers stood for questions from Committee members.

Kathleen Smith,Kansas Department of Revenue, provided an overview of the fiscal note for HB2599 that has a potential to decrease state and local sales tax revenues by unknown and negligible amounts beginning in FY2027. The funds would affect the State General Fund and the State Highway Fund.

Ms. Smith stood for questions from Committee members.

In response to a request from the Committee, Ms. Smith provided the definition of isolated or occasional sales.  (Attachment 2)

Proponents:

Representative Bohi, Kansas House District 15, HB2599, the Lemonade Stand Law, is written to help solve problems of red tape for young entrepreneurs.  This bill not only benefits children with a lemonade stand but also students that are members of different clubs in our schools learning about personal finance, entrepreneurship of owning a business. (Attachment 3)

Leah Ellis, Executive Director, The Society of Child Entrepreneurs, testified as a proponent for HB2599 and why it matters as a small business owner, a parent, and the founder of a nonprofit that is completely dedicated to teaching entrepreneurship to kids.  HB2599 removes outdated barriers and allows Kansas families to safely support youth entrepreneurship. (Attachment 4)

Ms. Ellis stood for questions from Committee members.

Tanner Tempel, Deputy State Director, Americans for Prosperity, testified as a proponent for HB2599, known as the Kansas Lemonade Stand Law.  The bill removes unnecessary government barriers for young Kansans who are learning the value of work, responsibility, and entrepreneurship. (Attachment 5)

Mr. Tempel stood for questions from Committee members.

Soraya Thorpe, student and young entrepreneur in training, stated she is currently taking youth entrepreneur classes through the Wichita Learning Lab.  Ms. Ellis has been teaching Soraya and her classmates about building confidence, researching business ideas, and creating a brand. They are also learning how to budget prices and set up displays and storefronts for local markets. No testimony provided.

Melody Ellis, Junior Executive Director of the Society of Child Entrepreneur. She currently is working on her third business.  Starting and running her own business has helped her to grow in ways that school alone could not.  Ms. Ellis noted she can talk to customers, explain her ideas clearly, and handles money in a responsible way.  Young entrepreneurs need more opportunities to grow, sell, and share ideas in a safe and supportive environment.  HB2599 creates those opportunity for kids like me.  (Attachment 6)

Serenity Ellis testifed as a proponent for HB2599 stating she is a face painter, owner of Serenity Rocks and a member of The Society of Child Entrepreneurs.  (Attachment 7)

Written only proponent testimony was submitted by the following:

Amanda Treadwell, Founder of the Goddard Area Welcome & Resource Hub, Goddard, Kansas, (Attachment 8)

Justin Rice, Director of State Government Affairs at Libertas Institute, (Attachment 9)

Jonathan Young, Owner of B's Custom Designs, (Attachment 10)

Janice Wright, Kansas Resident, (Attachment 11)

Jessica Meier, Kansas Resident, (Attachment 12)

Lance Minor, For Director of the Forum for Family Enterprise at Wichita State University's Center for Entrepreneurship, (Attachment 13)

Sari Schrepferman and Kathleen Yeoman, Co Event Owners, (Attachment 14)

Deanne Miller, Kansas Resident, (Attachment 15)

Taryn Freund, Kansas Resident, (Attachment 16)

There being no further conferees, Chairperson Smith closed the hearing for HB2599.