SESSION OF 2021
SUPPLEMENTAL NOTE ON SENATE BILL NO. 116
As Amended by Senate Committee on
Transportation

Brief*
SB 116, as amended, would modify certain provisions
related to the Eisenhower Legacy Transportation Program
(Eisenhower Program).
The bill would authorize the Secretary of Transportation
(Secretary) to let to construction any modernization or
expansion project under the Eisenhower Program that would
utilize federal stimulus funds regardless of whether at least
one phase of each of the remaining Transportation Works for
Kansas Program (T-Works) modernization and expansion
projects has been let. Current law requires at least one phase
of each modernization or expansion project selected for
construction during T-Works to be let before any Eisenhower
Program modernization or expansion project is let to
construction. The bill would prohibit federal stimulus funds
from being expended for modernization and expansion
projects under the Eisenhower Program without approval by
an appropriation or other act of the Legislature or approval of
the State Finance Council as a matter of legislative
delegation, when the Legislature is not in session.
For purposes of bonding, the bill would remove
adjustments to projected State Highway Fund (SHF)
revenues related to historical average annual increases or
decreases and to transfers. Continuing law prohibits the
maximum annual debt service on all outstanding bonds
issued by the Secretary, which are payable solely from the
SHF, from exceeding 18 percent of projected SHF revenues.
____________________
*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
Continuing law also states projected SHF revenues for any
fiscal year for which actual revenues cannot be determined
are deemed to be the actual revenues for the most recently
completed fiscal year.
The bill would state bonds issued for the purpose of
refunding would not be subject to the maximum debt
limitations on the issuance of bonds by the Secretary under
T-Works or the Eisenhower Program or dollar limits for bonds
issued under previous similar programs.
The bill would reduce the minimum costs for a project for
which alternative delivery procurement methods could be
used from $100.0 million to $10.0 million.
The bill would clarify transfers from the SHF to the
Broadband Infrastructure Construction Grant Fund would
occur each July 1, rather than each July.

Background
The bill was introduced by the Senate Committee on
Transportation at the request of a representative of the
Kansas Department of Transportation (KDOT). [Note: This
bill, as introduced, and HB 2201, as introduced, contained the
same provisions.]

Senate Committee on Transportation
In the Senate Committee hearing, proponent testimony
was provided by the Secretary of Transportation and
representatives of the Kansas Contractors Association and
the Unified Government of Wyandotte County and Kansas
City, Kansas. Written-only proponent testimony was provided
by representatives of Kansas Good Roads, Inc.; the League
of Kansas Municipalities; the South Central Kansas
Transportation Coalition; and the Wichita Regional Chamber
of Commerce. Proponents stated the changes would allow

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more participation by Kansas contractors in alternative
delivery projects and make such projects available to more
communities; allow KDOT to take advantage of all federal
transportation stimulus funds that could become available if
no remaining T-Works project fit the criteria for those funds;
and make the calculation of funds available for bonding
consistent with the bond rating agencies’ debt coverage test.
No other testimony was provided.
The Senate Committee amended the bill to require
legislative approval for use of federal stimulus funds for
modernization or expansion projects of the Eisenhower
Program.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, KDOT states enactment
of the bill would have no fiscal effect on agency operations
and it cannot estimate any future federal stimulus funding.
KDOT further states enactment of the bill would allow the
agency to take advantage of any potential bond refund
opportunities. Any fiscal effect associated with enactment of
the bill is not reflected in The FY 2022 Governor’s Budget
Report.
Transportation program; alternative delivery; bonding


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Statutes affected:
As introduced: 68-2314c, 68-2320, 68-2328, 68-2332, 75-5094
As Amended by Senate Committee: 68-2314c, 68-2320, 68-2328, 68-2332, 75-5094