SESSION OF 2021
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2021
As Amended by Senate Committee on Ways
and Means

Brief*
HB 2021, as amended, would authorize the Kansas
Development Finance Authority (KDFA), on and after July 1,
2021, to issue bonds, not to exceed $10.5 million, for the
purpose of financing the construction of a state veterans
home facility located in northeast Kansas, including, but not
limited to, in Douglas, Jefferson, Leavenworth, Shawnee, and
Wyandotte counties.
The proceeds from the sale of any bonds, other than
refunding bonds, would constitute the State’s required 35.0
percent match for the U.S. Department of Veterans Affairs
State Veterans Home Construction Grant Program.
The maturity date on the bonds could not be later than
20 years from the date of original issuance. The debt service
for the bonds could be paid from the State General Fund or
any appropriate special revenue fund or funds.
The bill would state any obligation of the State or the
Department of Administration for payment of debt service on
bonds issued shall not be considered a debt or obligation of
the State for the purpose of Section 6 of Article 11 of the
Kansas Constitution (state debts).
The bill would require the KDFA and the State Finance
Council to approve the issuance of any bonds for this
purpose. State Finance Council approval would be
____________________
*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
characterized as a matter of legislative delegation and could
be given when the Legislature is in session.
The Secretary of Administration would be required to
enter into pledge agreements with the KDFA to pledge
moneys for the payment of bonds; the pledge would be
subject to appropriations.

Background
The bill was prefiled for introduction on December 31,
2020, at the request of Representatives Proctor, Croft, Ellis,
French, Timothy Johnson, and Neelly.
[Note: HB 2021 contains provisions similar to those of
2021 SB 110, 2020 HB 2610, 2020 SB 478, and 2020 SB
480.]

House Committee on Appropriations
In the House Committee hearing on January 27, 2021,
proponent testimony was provided by Representative
Proctor, Representative Croft, the Director of the Kansas
Commission on Veterans’ Affairs Office, a former State
Commander of the Kansas Veterans of Foreign Wars, a
representative of Point Man Kansas, and a private citizen.
No other testimony was provided.

House Committee of the Whole
The House Committee of the Whole amended the bill to
decrease the bonding limitation for the purpose of financing
the construction of a state veterans home facility from $17.5
million to $10.5 million.


2- 2021
Senate Committee on Ways and Means
In the Senate Committee hearing on March 25, 2021,
proponent testimony was provided by Representative Croft,
Senator Pittman, Representative Proctor, the Director of the
Kansas Commission on Veterans’ Affairs Office, and a
representative from the Enlisted Association of the National
Guard of Kansas. Written-only proponent testimony was
provided by Representative Timothy Johnson, a
representative of the Kaw Valley Chapter of the Military
Officers Association of America, and two private citizens.
No other testimony was provided.
The Senate Committee amended the bill to allow all of
northeast Kansas, including but not limited to the five
counties originally listed in the bill, to be considered for the
location of the proposed veterans home.
The Senate Committee amended the bill to require State
Finance Council approval prior to the issuance of bonds for
the purposes of the bill.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the estimated annual
debt service on the bonds could range from $1.1 million to
$1.2 million. While the bill’s effective date would be the first
day of FY 2022, it is unknown whether the bonds would be
issued, federal funds would be received, and construction
would begin in FY 2022. A new veterans’ home facility would
likely require an obligation from the State General Fund for
operating expenditures.
The Department of Administration (Department)
indicates any professional services, architectural, bidding, or
construction administration costs the Department might incur
from the project would be recouped through internal service
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charges. Any agency costs associated with the issuance of
the bonds could be handled within existing resources.
Any fiscal effect associated with the bill is not reflected
in The FY 2022 Governor’s Budget Report.
Veterans; Kansas Development Finance Authority; bonds; construction


4- 2021


Statutes affected:
Enrolled: 75-4364