SPECIAL SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2001
As Recommended by House Committee of the
Whole

Brief*
HB 2001 would amend the STAR Bond program to
authorize projects involving major professional sports
complexes and provide said projects with additional sources
of revenue for bond repayment. The bill would also provide
enhanced approval authority for the Secretary of Commerce
(Secretary) and the Legislative Coordinating Council (LCC),
to approve no more than two such STAR Bond projects and
allow the Kansas Development Finance Authority (KDFA) to
issue special obligation bonds in FY 2025 and FY 2026 for
purposes of funding said projects.

STAR Bonds Financing Act
The bill would authorize agreements with one or two
major professional sports franchises for the purpose of
establishing major professional sports franchise STAR Bond
project districts for a major professional sports complex. The
bill would require these projects to have a minimum capital
investment of $1.0 billion. The authority to establish such
projects would sunset on June 30, 2025, with the option of a
one-year extension if approved by the LCC.
All provisions of the bill would pertain exclusively to
STAR Bond projects for a major professional sports complex
and would not be applicable to other potential STAR Bond
projects described in statute.
____________________
*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
Definitions
The bill would establish the following definitions within
the STAR Bonds Financing Act (Act):
● “Major professional sports complex” would mean a
project in the state that includes a stadium of no
fewer than 30,000 seats for the purpose of hosting
National Football League (NFL) or Major League
Baseball (MLB) games and other events or a
practice or training facility utilized by a major
professional sports franchise. The bill would
authorize such projects to include all buildings,
improvements, facilities, or attractions located
within the STAR Bond project district; and
● “Major professional sports franchise” would mean
any corporation, partnership, or other entity that
owns a team or franchise that is a member of the
NFL or MLB and that is located in any state
adjacent to Kansas.
The bill also would amend the definition of “project
costs” to include the cost of a major professional sports
complex that would include all costs necessary to implement
a STAR Bond project for the development of a major
professional sports complex including, but not limited to,
costs incurred for the following:
● Construction or renovation of a stadium and other
buildings;
● Improvements;
● Structures;
● Facilities;
● Infrastructure improvements;

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 ● Utilities; and
● Related expenses to develop and finance such
complex.
Exemptions
The bill would allow major professional sports complex
STAR Bond projects to include real property that is or has
been part of another STAR Bond project district. Any
outstanding STAR Bonds issued for such other district would
have priority for repayment. For these projects, the bill would
not require developed areas to contain contiguous parcels of
real estate..
The bill also would exempt these STAR Bond projects
from the requirement barring relocation from another area of
the state.
Alternate Procedure for Approval
The bill would allow a major professional sports complex
STAR Bond project to be approved by the Secretary without
approval by the city or county in which the project would be
located.
In lieu of the city or county approval method contained in
the Act, the bill would authorize the Secretary to assume the
powers of a city or county, as provided in the Act, that would
be necessary to establish and undertake the project. Such
powers would include changes to the project district, except
no public hearing would be required prior to action. Special
obligation bonds would be issued by the KDFA and no
revenue from local sales, use, or transient guest tax would be
pledged as sources of repayment. The bill would also state
that any special obligation bonds issued by the KDFA under
the Secretary’s authority would not constitute a debt of the
State of Kansas.

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 The bill would require the Secretary to present any
proposed agreement for a major professional sports complex
STAR Bond project to the LCC for review and approval of the
potential agreement. If the LCC does not approve said
proposed agreement, the bill would authorize the Secretary to
continue negotiations with the major professional sports
franchise and submit another proposed agreement for LCC
review and approval.
The bill would also require that the LCC review and
approval process apply to the local government approval
method in statute if used for a major professional sports
complex project, as well as any additional bonds issued
following initial approval of the project.
STAR Bond Financing
The bill would allow a STAR Bond project involving a
major professional sports complex to finance up to 70.0
percent of the total costs of the project. [Note: All other STAR
Bond projects are limited to 50.0 percent of total costs.] The
Secretary would be authorized, with approval of the LCC, to
request additional special obligation bonds to be issued in an
amount exceeding the amount previously approved by the
Secretary, limited to not more than 70 percent of the
additional costs or expansion of the project. The bill would
prohibit the terms of all special obligation bonds for these
projects from exceeding 30 years.
[Note: Any special obligation bonds issued by the KDFA
for projects approved solely by the Secretary would pledge
only state revenues from the above-mentioned revenue
sources from within the confines of the district for purposes of
bond repayment.]
Payment of the special obligation bonds issued by the
city, county, or KDFA would be payable from a pledge of the
following:

4- 2001
 ● Any method or combination of methods currently in
statute except that tax increment revenue would
include all retail sales tax collected from any
business within the STAR Bond district [Note:
STAR Bond repayment currently excludes sales tax
collected from retail automobile sales and caps the
amount of increment state sales tax at 90.0
percent.];
● Up to 100.0 percent of revenues derived from the
sale of alcoholic liquor collected from consumers
purchasing alcoholic liquor within the STAR Bond
district [Note: This would capture the privilege and
drink taxes but would exclude the gallonage tax
charged to producers.]; and
● With approval of the Secretary, moneys from the
Attracting Professional Sports to Kansas Fund.
The bill would also provide both the Secretary and the
participating local unit of government with discretion on
determining the base year amount of tax revenue from which
the increment tax revenue is calculated. [Note: Current law
requires a STAR Bond district to calculate its base year of
revenue by aggregating the 12 months of sales tax revenue
for the district prior to establishment of the district.]
The bill would state that if the major professional sports
complex STAR Bond project was unilaterally approved by the
Secretary without city or county approval, only the State
portions of the aforementioned taxes could be pledged to
repayment of the bonds. Should the city or county wish to
participate in a Secretary-initiated project, the bill would
require the local unit of government to hold a public hearing
and pass a resolution or ordinance that pledges the
applicable local revenues to the project within 60 days of LCC
approval of the project.
The bill would also require any revenues that have been
previously pledged to pay one or more STAR bonds to be
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used to first satisfy the remaining obligations of the previous
bonds. The bill would also authorize the Secretary to approve
KDFA’s refunding of all or part of any special obligation bonds
issued for a project.

Kansas Open Meetings Act and Kansas Open Records
Act
The bill would grant the LCC chairperson the discretion
to determine when any review, testimony, or discussion
regarding proposed agreements for a professional sports
complex project could be held in executive session. The bill
would also require the vote on the proposed agreement to be
made in open session and be limited to an up-or-down vote.
The bill would deem a proposed agreement and any
associated documentation or testimony to be confidential and
not subject to the Kansas Open Records Act until the
agreement has been approved and executed. Such
confidentiality would expire on July 1, 2029, unless reenacted
by the Legislature.

State Gaming Revenues Fund
The bill would require that the Director of the Budget and
the Director of Legislative Research, on June 25, 2025, and
every June 25 thereafter, certify the aggregate of all amounts
that have been transferred from the Lottery Operating Fund to
the State Gaming Revenues Fund (SGRF). Any moneys in
excess of $71.49 million would be transferred on June 30,
2025, and each fiscal year thereafter to the Attracting
Professional Sports to Kansas Fund. If the SGRF is found to
have equal to or less than $71.49 million, no transfer would
occur. [Note: Currently all money with the SGRF in excess of
$50.0 million is transferred to the State General Fund.]


6- 2001
Background
Joint Meeting of the House Committee on Commerce, Labor,
and Economic Development and the Senate Committee
on Commerce
A joint meeting of the House Committee on Commerce,
Labor and Economic Development and Senate Committee on
Commerce was held on June 17, 2024. The Committees
received an overview from staff from the Office of the Revisor
of Statutes on a bill draft regarding STAR Bond projects and
major professional sports complexes. The Committees also
heard testimony from stakeholders on the draft bill.
During the informational hearing, proponent testimony
was provided by representatives of the Kansas Chamber,
Polsinelli Law Firm on behalf of the Kansas City Chiefs,
Scoop and Score, Stinson Law Firm on behalf of the Kansas
City Royals, and the Unified Government of Wyandotte
County and Kansas City, Kansas. The proponents generally
stated the bill could attract the Kansas City Chiefs and
Kansas City Royals to relocate to Kansas, the complexes
would generate sales tax and revenue that otherwise would
not be generated, and that STAR Bonds would not transfer
stadium construction costs to Kansas taxpayers.
Written-only proponent testimony was provided by
former Kansas Governor Jeff Colyer and representatives of
the Greater Topeka Chamber; Kansas Beer Wholesalers
Association; Kansas City Kansas Chamber of Commerce;
Kansas Economic Development Alliance; Lawrence Chamber
of Commerce and EDC Lawrence – Douglas County;
Manhattan, Emporia, Topeka, and Lawrence Coalition of
Chambers of Commerce; Olathe Chamber of Commerce;
Overland Park Chamber of Commerce; Shawnee Chamber of
Commerce; Travel Industry Association of Kansas; Unified
Government of Wyandotte County and Kansas City, Kansas;
and Wichita Regional Chamber of Commerce.

7- 2001
 Opponent testimony was provided by representatives of
Americans For Prosperity – Kansas and the Kansas Policy
Institute. The testimony generally stated the bill was rushed
and the process lacked transparency, STAR bonds only shift
economic activity, and small businesses in the project area
would be negatively affected.
Neutral testimony was provided by a representative of
the Office of the Governor. The testimony generally stated the
Governor does not have any current concerns with the bill
warranting a veto. While not providing testimony, a
representative of the Department of Commerce was available
and answered questions from Committee members.
Written-only neutral testimony was provided by a
representative of the Office of the Governor and former state
Senator Chris Steineger.

Fiscal Information
No fiscal note was available at the time of the
informational hearing.
During the hearing, the Committees received information
from the Kansas Legislative Research Department on the
distribution of traditional lottery proceeds for FY 2023, FY
2024, and FY 2025. As seen in the table below, had the
transfer provisions of the law been enacted by FY 2023, there
would have been a transfer of approximately $3.3 million to
the Attracting Professional Sports to Kansas Fund for FY
2023 and $4.0 million for FY 2024. For FY 2025, the
estimated amount does not exceed the $71.49 million
threshold and so no transfer would occur.


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 Distribution of Traditional Lottery Proceeds
Spring 2024 CRE Estimate
FY 2023 FY 2024 FY 2025
Actual Estimate Estimate
Total Traditional Lottery Revenue $ 85,076,074 $ 85,750,000$ 82,750,000

Transfers from Lottery Operating Fund:
Veterans Benefit Lottery Game Fund 1,260,000 1,260,000 1,260,000
Community Crisis Stabilization
6,750,000 6,750,000 7,500,000
Centers Fund
Clubhouse Model Program Fund 2,250,000 2,250,000 2,500,000
Total Other Transfers $ 10,260,000 $ 10,260,000 $ 11,260,000
Transfer to SGRF $ 74,816,074 $ 75,490,000$ 71,490,000
Transfers from SGF:
Economic Development Initiatives
$ 42,415,000 $ 42,415,000$ 42,415,000
Fund
Juvenile Alternatives to Detention
4,990,000 4,990,000 4,990,000
Fund
Correctional Institutions Building
2,495,000 2,495,000 2,495,000
Fund
Problem Gambling and Addictions
100,000 100,000 100,000
Grant Fund
$ 50,000,00
Total Transfers from SGRF $ 50,000,000 $ 50,000,000
0
Transfer to State General Fund $ 24,816,074 $ 25,490,000$ 21,490,000
Balance After SGRF & SGF Transfers $ - $ -$ -


Commerce; STAR Bonds Financing Act; Secretary of Commerce; major professional
sports complex; sports; State Gaming Revenues Fund; Attracting Professional
Sports to Kansas Fund; economic development


9- 2001


Statutes affected:
As introduced: 12-17, 79-3201, 79-4108, 79-41a03, 79-4801
Enrolled - Law effective July 1, 2024: 12-17, 79-3201, 79-4108, 79-41a03, 79-4801