By Heather Hollingsworth-Associated Press

Businesses that were ordered to shut down or limit capacity because of the pandemic could receive financial relief under two bills in the state Legislature.

These bills would address pending litigation but have riled up county leaders who could be forced to pay out millions. Both bills provide businesses the chance to apply for property tax reimbursements, although the details vary.

Eric Stafford, a lobbyist for the influential Kansas Chamber of Commerce, said during a hearing Thursday in the Senate Assessment and Taxation Committee that the state’s emergency management law allows people to pursue claims for compensation in court if their property is “commandeered or otherwise used” by state or local officials. A lawsuit is pending.

“The state could be on the hook for a significant amount of money if something isn’t resolved,” he said. “I think these is where these two bills come into play to start the discussion of figuring out what that path forward is not only to help the businesses that were suffering economic impact during the pandemic but also limiting the state’s liability in a manner that helps control what the costs will be.”

Scott Schneider, a lobbyist for restaurant owners, said restaurants have suffered tremendously during the pandemic, with monthly losses at the beginning of the pandemic in the hundreds of millions. He said many restaurants were forced to shut their doors.

“I think that the litigants took a step back asking the Legislature to find a solution and if the Legislature doesn’t find a solution, then the state and the local governments are fully on notice that the next year that plaintiffs could seek redress through the courts,” he said.

Sedgwick County leaders have expressed concern about these proposals, saying if the county had to pay business owners, county services may have to be cut and property taxes may be raised.