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Minutes for HB2757 - Committee on Taxation
Short Title
Enacting the adoption savings account act, allowing individuals to establish adoption savings accounts with certain financial institutions, providing eligible expenses, requirements and restrictions for such accounts and establishing addition and subtraction modifications for contributions to such accounts under the Kansas income tax act.
Minutes Content for Tue, Feb 20, 2024
Chairperson Smith opened the hearing for HB2757.
Mr. Siebers provided an overview on HB2757 that provides the Adoption Savings Account Act. Starting July 1, 2025, individuals can open an account with a financial institution and designate the account as an Adoption Savings Account to be used to pay or reimburse a designated beneficiary's eligible expenses for the adoption of a child in this state. (Attachment 15) Mr. Siebers stood for questions from the Committee.
Ms. Smith provided an overview on the fiscal note for HB2757 estimating it would decrease State Revenues by $200,000 in FY2026 and $300,000 in FY2027. The Kansas Department of Revenue reviewed data on adoptions from the National Council for Adoption and the Department for Children and Families and the average number of adoptions per year is approximately 1,000 from 2019 to 2022. Data suggests that approximately 28.0 percent of adoptions would be made by single parents. If each single and married individual planning to adopt established accounts in advance for themselves, the total contributions in the first year would be approximately $5.2 million. Ms. Smith stood for questions from Committee members.
Senator Blasi, 27th District, testified as a proponent for HB2757 stating he and his wife have adopted two boys and this bill is a tool that can help many Kansas families adopt a loving child. Every child that has an opportunity to be provided a loving home by parents is the best thing for that child and if Kansans can be enticed to adopt and welcome children into their home who are in need of stability and love it is good for Kansas and our country. Senator Blasi shared his experienced when adopting their two boys and the average total cost before claiming the Adoption Tax Credit. (Attachment 16) Senator Blasi stood for questions from Committee members.
Representative Estes, 87th District, testified as a proponent for HB2757. She provided a chart of costs to adopt a child noting when describing eligible expenses were borrowed from other State statutes so it would function in harmony and not two different definitions of what is eligible. Representative Estes has received positive feedback regarding HB2757. Families who are trying to save can put their money into CD's and technically a CD counts as a separate account. Representative Estes provided an amendment for HB2757 that will make this possible because of the benefits of compounding earned interest can help families reach their goal sooner. Also, included in the amendment to define eligible adoption as those occurring in the United States and its territories, not just Kansas.(Attachment 17)
John and Sonja Schibi, Private Citizens, testified as a proponents for HB2757 by providing their experience in adopting their three children. He noted the Federal and State Adoption tax credits have been helpful but feel that at at the state level, Kansas has the opportunity to become a national leader in promoting adoption and building strong families that will contribute to future productive citizens of Kansas. (Attachment 18)
Steven Johnson, Kansas State Treasurer, testified as a proponent for HB2757 noting this bill would add to the suite of products to support families and saving for important milestones in life. The authors of the bill wrote in line with other programs to make it easy to implement. The funds deposited could earn interest free from state income tax, provided that funds are used for qualified expenses related to adoption. (Attachment 19)
Michael Murray, Executive Director, Kansas Credit Union Association, testified as a proponent for HB2757 noting this bill would provide for the creation of adoption savings accounts to assist with the often financially burdensome process of adopting a child. Adoption savings accounts can be an effective way for Kansas families to overcome one of the greatest hurdles in adopting a child which is the financial burden. (Attachment 20)
Alex Orel, Senior Vice President - Government Relations, Kansas Bankers Association, testified as a proponent for HB2757 that presents an opportunity to foster financial inclusiveness and support adoption initiatives across Kansas. The bill would enable any individual to establish an adoption savings account within a financial institution specifically to cover eligible expenses with adoption. (Attachment 21)
The proponent conferees stood for questions from Committee members.
Written only testimony was submitted as a proponent for HB2757 by Lucrecia Nold, Kansas Catholic Conference, (Attachment 22)
There was no testimony submitted as neutral or in opposition to HB2757.
Chairperson Smith closed the hearing for HB2757.
