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Legislators Approve Rebuilding Support for Communities affected by Tornado

IMMEDIATE RELEASE                                                                                

May 22, 2007                                                                                                    

 

For Information Contact:       

Sherriene Jones-Sontag   

785/296-2302

 

 

LEGISLATORS APPROVE REBUILDING SUPPORT FOR COMMUNITIES AFFECTED BY EF-5 TORNADO

 

Topeka – Kansas lawmakers approved legislation today in support of rebuilding communities affected by the EF-5 tornado that hit on May 4th.

 

“I am extremely pleased with the focus of House and Senate Members today and their overwhelming bipartisan support to assist their fellow Kansans,” Speaker Melvin Neufeld.  “Our work today is proof positive we can get good public policy in place in a quick and efficient manner.”

 

Senate Substitute for House Bill 2540 increases the State Finance Council’s authority to transfer up to $25 million to assist local government entities with their clean-up and infrastructure rebuilding expenses.

 

The bill also includes a number of financial incentives to assist businesses located in counties affected by the storm.

 

“Some who live through a devastating tornado may not have the wherewithal to rebuild their homes and businesses.  These incentives will encourage those businesses to rebuild and ensure a Kansas community survives total destruction,” Speaker Neufeld said.

 

HB 2540 provides:

  • Businesses in existence in Kiowa County prior to the storm a sales tax exemption for certain purchases incurred in their restoration or reconstruction.
  • Establishes the Business Restoration Assistance grant program for counties with at least 25-percent of their tax base destroyed as a result of a natural disaster on May 4, 2007. Businesses could:

-         qualify for investment grants of up to 10% of qualified investments made to rebuild or        replace buildings, machinery and equipment;

-         qualify for grants of up to $3,500 per FTE job for employees hired back;

-         One-time grant program will have a cap of $5 million and will sunset on June 30, 2008.

 

Lawmakers also approved House Concurrent Resolution 5025 which extends the state of emergency issued by Gov. Kathleen Sebelius the day after the tornado destroyed Greensburg and caused additional damage in other counties.  The declaration will remain in effect until October 31, 2007.

 

“Legislation passed today will provide those Kansas communities with a hand-up, not a handout,” Neufeld said.  “Something Kansans are known to do when they see their neighbors and strangers are in need of help.”

 

The resolution goes into effect immediately.  The bill must be approved by the Governor.