Division of the Budget Landon State Office Building Phone: (785) 296-2436 900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov Topeka, KS 66612 http://budget.kansas.gov Adam Proffitt, Director Laura Kelly, Governor Division of the Budget March 1, 2023 The Honorable Will Carpenter, Chairperson House Committee on Federal and State Affairs 300 SW 10th Avenue, Room 346-S Topeka, Kansas 66612 Dear Representative Carpenter: SUBJECT: Fiscal Note for HB 2431 by House Committee on Federal and State Affairs In accordance with KSA 75-3715a, the following fiscal note concerning HB 2431 is respectfully submitted to your committee. HB 2431 would allow alcohol to be consumed on public property on the waters of Perry Reservoir. The term “drinking establishment” would include a vessel. The bill would allow a vessel that operates on the waters of Perry Reservoir to be licensed as a club or drinking establishment, notwithstanding laws, rules, or regulations adopted by the Secretary of Wildlife and Parks or any other zoning regulation, ordinance, or resolution by a city, township, or county. The Department of Wildlife and Parks states that Perry Reservoir is on federal land and that no individual or entity can sell goods or products to the public without first having a concession approved by the United States Secretary of the Army. Therefore, the bill would not have a fiscal effect on the Department. If a concession were approved by the Secretary of the Army, then there would be an increased need for law enforcement patrols. However, the increase in expenditures cannot be estimated at this time. The Department of Revenue states that it would have to revise its club and drinking establishment handbook, but that any additional expenditures could be absorbed within its existing budget. Any fiscal effect associated with HB 2431 is not reflected in The FY 2024 Governor’s Budget Report. The Honorable Will Carpenter, Chairperson Page 2—HB 2431 The Kansas Association of Counites states that the bill could have a fiscal effect on counties since the bill circumvents county zoning regulations. However, a fiscal effect cannot be estimated. The League of Kansas Municipalities states that the bill would have an effect on cities if a vessel were licensed in a city and if the vessel collects sales taxes. However, a fiscal effect on cites cannot be estimated. Sincerely, Adam Proffitt Director of the Budget cc: Terry Bruce, Department of Wildlife & Parks Wendi Stark, League of Kansas Municipalities Jay Hall, Kansas Association of Counties