SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2667
As Amended by House Committee on Federal
and State Affairs

Brief*
HB 2667, as amended, would amend law regarding
transfers made from the Lottery Operating Fund for certain
programs administered by the Kansas Department for Aging
and Disability Services (KDADS).
Under current law, 75.0 percent of the net profits from
lottery vending machine sales are transferred each month to
the KDADS Community Crisis Stabilization Centers (CCSC)
Fund and 25.0 percent of the net profits to the Clubhouse
Model Program (CMP) Fund, with limitations on such
transfers of $9.0 million for FY 2024 in the aggregate and
$8.0 million for FY 2025.
The bill would require, during FY 2025 and FY 2026,
$750,000 be transferred to the CCSC Fund and $250,000 be
transferred to the CMP Fund by the 15th of each month. The
aggregate limit for FY 2025 would be removed and a limit of
$8.0 million would be added for FY 2027 and each
subsequent fiscal year.
The bill would also make technical amendments to
remove outdated language regarding the current fiscal year
and references to prior fiscal years.


____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
Background
The bill was introduced by the House Committee on
Appropriations at the request of Representative Helgerson.

House Committee on Federal and State Affairs
In the House Committee hearing on the bill, proponent
testimony was provided by representatives of the Association
of Community Mental Health Centers of Kansas, Bert Nash
Community Health Center, Breakthrough Episcopal Social
Services, KDADS, Milestone Clubhouse, and Wyandotte
Behavioral Health Network, and by two representatives of
Lotus House. Four of the above-named proponents also
indicated their testimony was on behalf of the Kansas
Clubhouse Coalition. The proponents discussed the benefits
of the programs currently receiving funding. The proponents
further indicated the bill proposes an increased cap on
transfers of lottery vending machine net profits to the CCSC
Fund and the CMP Fund from $8.0 million to $12.0 million,
which represents a significant opportunity to address and
further support efforts to address the pressing needs of
individuals experiencing mental health crises in Kansas.
Written proponent testimony was provided by a
representative of the Johnson County Mental Health Center.
Written neutral testimony was provided by a
representative of the Kansas Lottery.
The House Committee amended the bill to:
● Remove an aggregate limit for FY 2025;
● Set an aggregate transfer limit of $8.0 million in FY
2027 and each following year; and
● Set specific monthly transfers to the CCSC Fund
and the CMP Fund.

2- 2667
Fiscal Note
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Kansas Lottery
indicates, depending upon actual net profits from lottery ticket
vending machines, the bill would likely increase annual
transfers to the CCSC Fund by $3.0 million and the CMP
Fund by $1.0 million. Additionally, because the amounts
above the vending machine net profit transfer cap are
ultimately transferred to the State General Fund at the
conclusion of the fiscal year, the bill would likely reduce State
General Fund revenues by $4.0 million in FY 2025 and in
future fiscal years. The Kansas Lottery indicates the bill would
have no fiscal effect on its operations.
KDADS indicates the bill would increase funding for
mental health programs as noted above.
Any fiscal effect associated with enactment of the bill is
not reflected in The FY 2025 Governor’s Budget Report.
Kansas lottery; Kansas Department for Aging and Disability Services; Kansas
Department for Aging and Disability Services Clubhouse Model Program Fund;
community crisis stabilization centers fund; lottery vending machine revenue


3- 2667


Statutes affected:
As introduced: 74-8711, 74-8793
As Amended by House Committee: 74-8711, 74-8793