Session of 2024
HOUSE BILL No. 2001
By Representative Hawkins
6-18
AN ACT concerning economic development; relating to the STAR bonds
financing act; authorizing the secretary of commerce to enter into
agreements with major professional sports franchises to establish up to
two STAR bond projects for a major professional sports complex or
approve such projects of a city or county as authorized by the
legislative coordinating council; expanding bond financing revenue
sources and the discretion of the secretary and making other provisions
in the STAR bonds financing act for the purpose of facilitating such
projects; allowing the secretary to undertake or finance such projects
independently or with local revenue when approved by a city or county;
limiting the secretary’s authority to approve such projects to a period of
one year and permitting the legislative coordinating council to extend
such authority for an additional year; authorizing the Kansas
development finance authority to issue STAR bonds for such projects
when approved by the secretary; providing for transfers of certain funds
from the state gaming revenues fund to the attracting professional
sports to Kansas fund for the fiscal year ending June 30, 2025, and each
fiscal year thereafter; amending K.S.A. 12-17,162, 12-17,164, 12-
17,168, 12-17,169, 12-17,170, 12-17,174 and 79-4801 and K.S.A. 2023
Supp. 79-4108 and 79-41a03 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) (1) Subject to paragraph (3) and subsections (b)
and (c), the secretary of commerce is authorized to enter into an agreement
with one or more major professional sports franchises for the purpose of
establishing a major professional sports franchise STAR bond district and
project for a major professional sports complex, as defined in K.S.A. 12-
17,162(o), (p), (aa)(2) and (cc)(2), and amendments thereto, and financing
such project in accordance with the provisions of the STAR bonds
financing act applicable to such a project. Such district and project may be
established and financed independently by the secretary or with the
participation of a city or county pursuant to the provisions of K.S.A. 12-
17,164 and 12-17,169, and amendments thereto, and other applicable
provisions of the STAR bonds financing act.
(2) Subject to paragraph (3) and subsections (b) and (e), the secretary
of commerce is authorized to approve a STAR bond district and project as
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described in paragraph (1) of a city or county.
(3) This authority granted pursuant to paragraphs (1) and (2) shall be
limited to not more than two such districts and projects in total. No such
STAR bond project district shall be approved or such agreement executed
by the secretary after June 30, 2025, unless the secretary's authorization to
enter into such an agreement or approve such a district is extended for an
additional period of one year by the legislative coordinating council as
provided in subsection (b).
(b) The legislative coordinating council may extend the authority of
the secretary of commerce to approve a STAR bond project district or
execute an agreement as provided by subsection (a) for an additional
period of July 1, 2025, through June 30, 2026, at any time on or before
July 1, 2025. The council may take such action when the legislature is in
session or when not in session. If circumstances are such that the council
does not address this matter on or before July 1, 2025, the council may
approve such extension at the next meeting of the council held after July 1,
2025, and if approved, such extension shall be effective retroactively. The
secretary of commerce may make a written request for such extension to
the council and shall provide consultation to the council regarding the
matter by written statement or by appearance by the secretary of
commerce or the secretary's designee at a meeting of the council. The
failure of the secretary to make such request or provide such consultation
shall not limit the authority of the council to act on this matter at a meeting
of the council.
(c) The secretary shall not enter into any agreement unless reviewed
and approved by the affirmative vote of a majority of the members of the
legislative coordinating council prior to the finalization of the agreement
by the secretary. If the legislative coordinating council does not approve a
proposed agreement, the secretary shall not enter into the agreement but
may negotiate further with a major professional sports franchise and
submit another proposed agreement for review and approval by the council
until an agreement approved by the council is finally executed or the
secretary or the major professional sports franchise discontinues
negotiations. The council is granted the authority to act on this matter at
any time, including when the legislature is in session. The secretary of
commerce and any officer or employee of the department of commerce
may appear before the council to provide testimony if requested by the
council. Notwithstanding the provisions of the open meetings act, in the
discretion of the chairperson of the council, any review, testimony or
discussion, or portions thereof, regarding a proposed agreement shall not
be open to the public. A vote by the council on whether a proposed
agreement should be approved shall be made in open session and limited
to an up or down decision on the question of whether the proposed
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agreement should be approved. A proposed agreement and any associated
documentation or testimony shall be confidential and shall not be subject
to the open records act. After execution of an agreement, the executed
agreement and all written documentation provided to the council required
by subsection (d) with respect to the proposed agreement that has been
approved and executed shall be a public record. The provisions of this
paragraph providing for confidentiality of records shall expire on July 1,
2029, unless the legislature acts to reenact such provisions pursuant to
K.S.A. 45-229, and amendments thereto, prior to July 1, 2029.
(d) The secretary or secretary's designee shall present the following
written documentation to the council for the council's consideration in
determining whether to approve a proposed agreement:
(1) The proposed agreement and any attachments thereto;
(2) the STAR bond project plan if not wholly included in or attached
to the agreement; and
(3) any additional information requested by the council if such
information is consistent with public record information provided by a city
or county in the course of meeting the requirements of K.S.A. 12-17,165
and 12-17,166, and amendments thereto, for the establishment of a STAR
bond project district or a STAR bond project.
(e) The secretary shall not approve any STAR bond project district, as
defined in K.S.A. 12-17,162(cc)(2), and amendments thereto, or STAR
bond project, as defined in K.S.A. 12-17,162(aa)(2), and amendments
thereto, as required by the STAR bonds financing act for the establishment
of such district or project by a city or county unless first approved by the
legislative coordinating council. The provisions of subsections (c) and (d)
regarding the authority of the council to act at any time, submission of
written documentation, testimony of the secretary or secretary's designee
and the vote of the council shall be applicable. The exceptions to the open
meetings act and open records act and the provisions regarding
confidentiality and release of written documentation shall be applicable
unless the information has already been made public. At the request of the
council, a representative of the city or county shall appear and provide
testimony.
(f) This section shall be a part of and supplemental to the STAR
bonds financing act.
Sec. 2. K.S.A. 12-17,162 is hereby amended to read as follows: 12-
17,162. As used in the STAR bonds financing act, unless a different
meaning clearly appears from the context:
(a) "Auto race track facility" means: (1) An auto race track facility
and facilities directly related and necessary to the operation of an auto race
track facility, including, but not limited to, grandstands, suites and viewing
areas, concessions, souvenir facilities, catering facilities, visitor and retail
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centers, signage and temporary hospitality facilities, but excluding (2)
hotels, motels, restaurants and retail facilities, not directly related to or
necessary to the operation of such facility.
(b) "Commence work" means the manifest commencement of actual
operations on the development site, such as, erecting a building,
excavating the ground to lay a foundation or a basement or work of like
description according to an approved plan of construction, with the
intention and purpose to continue work until the project is completed.
(c) "De minimis" means an amount less than 15% of the land area
within a STAR bond project district.
(d) "Developer" means any person, firm, corporation, partnership or
limited liability company other than a city and other than an agency,
political subdivision or instrumentality of the state. "Developer" includes
the names of the owners, partners, officers or principals of the developer
for purposes of inclusion of the name of the developer into any
application, document or report pursuant to this act if such application,
document or report is a public record.
(e) "Economic impact study" means a study to project the financial
benefit of the project to the local, regional and state economies.
(f) "Eligible area" means a historic theater, major tourism area, major
motorsports complex, auto race track facility, river walk canal facility,
major multi-sport athletic complex, major business facility or, a major
commercial entertainment and tourism area or a major professional sports
complex as determined by the secretary.
(g) "Feasibility study" means a feasibility study as defined in K.S.A.
12-17,166(b), and amendments thereto.
(h) "Historic theater" means a building constructed prior to 1940 that
was constructed for the purpose of staging entertainment, including motion
pictures, vaudeville shows or operas, that is operated by a nonprofit
corporation and is designated by the state historic preservation officer as
eligible to be on the Kansas register of historic places or is a member of
the Kansas historic theatre association.
(i) "Historic theater sales tax increment" means the amount of state
and local sales tax revenue imposed pursuant to K.S.A. 12-187 et seq., 79-
3601 et seq. and 79-3701 et seq., and amendments thereto, collected from
taxpayers doing business within the historic theater that is in excess of the
amount of such taxes collected prior to the designation of the building as a
historic theater for purposes of this act.
(j) "Major business facility" means a significant business
headquarters or office building development designed to draw a substantial
number of new visitors to Kansas and that has agreed to provide visitor
tracking data to the secretary as requested by the secretary, including, but
not limited to, residence zip code information, to be provided or held by
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the secretary without personally identifiable information. A major business
facility shall meet sales tax increment revenue requirements that shall be
established by the secretary independent of any associated retail businesses
located in the STAR bond project district pursuant to the STAR bond
project plan.
(k) "Major commercial entertainment and tourism area" means an
area that may include, but not be limited to, a major multi-sport athletic
complex.
(l) "Major motorsports complex" means a complex in Shawnee
county that is utilized for the hosting of competitions involving motor
vehicles, including, but not limited to, automobiles, motorcycles or other
self-propelled vehicles other than a motorized bicycle or motorized
wheelchair. Such project may include racetracks, all facilities directly
related and necessary to the operation of a motorsports complex,
including, but not limited to, parking lots, grandstands, suites and viewing
areas, concessions, souvenir facilities, catering facilities, visitor and retail
centers, signage and temporary hospitality facilities, but excluding hotels,
motels, restaurants and retail facilities not directly related to or necessary
to the operation of such facility.
(m) "Major tourism area" means an area for which the secretary has
made a finding the capital improvements costing not less than
$100,000,000 will be built in the state to construct an auto race track
facility.
(n) "Major multi-sport athletic complex" means an athletic complex
that is utilized for the training of athletes, the practice of athletic teams, the
playing of athletic games or the hosting of events. Such project may
include playing fields, parking lots and other developments including
grandstands, suites and viewing areas, concessions, souvenir facilities,
catering facilities, visitor centers, signage and temporary hospitality
facilities, but excluding hotels, motels, restaurants and retail facilities, not
directly related to or necessary to the operation of such facility.
(o) "Major professional sports complex" means a project, approved
or pursuant to an authorized agreement as provided by section 1, and
amendments thereto, located within this state including a stadium of not
less than 30,000 seats for the purpose of the holding of national football
league or major league baseball athletic contests and other events and
gatherings or a practice or training facility utilized by a major
professional sports franchise and all buildings, improvements, facilities or
attractions located within any STAR bond project district as defined in
subsection (cc)(2).
(p) "Major professional sports franchise" means any corporation,
partnership or other entity that owns a team or franchise that is a member
of the national football league or major league baseball that is located in
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any state adjacent to Kansas.
(q) "Market study" means a study to determine the ability of the
project to gain market share locally, regionally and nationally and the
ability of the project to gain sufficient market share to:
(1) Remain profitable past the term of repayment; and
(2) maintain status as a significant factor for travel decisions.
(p)(r) "Market impact study" means a study to measure the impact of
the proposed project on similar businesses in the project's market area.
(q)(s) "Museum facility" means a separate newly-constructed
museum building and facilities directly related and necessary to the
operation thereof, including gift shops and restaurant facilities, but
excluding hotels, motels, restaurants and retail facilities not directly related
to or necessary to the operation of such facility. The museum facility shall
be owned by the state, a city, county, other political subdivision of the state
or a non-profit corporation, shall be managed by the state, a city, county,
other political subdivision of the state or a non-profit corporation and may
not be leased to any developer and shall not be located within any retail or
commercial building.
(r)(t) "Project" means a STAR bond project.
(s)(u) "Project costs" means those costs necessary to implement a
STAR bond project plan, including costs incurred for:
(1) Acquisition of real property within the STAR bond project area;
(2) payment of relocation assistance pursuant to a relocation
assistance plan as provided in K.S.A. 12-17,173, and amendments thereto;
(3) site preparation including utility relocations;
(4) sanitary and storm sewers and lift stations;
(5) drainage conduits, channels, levees and river walk canal facilities;
(6) street grading, paving, graveling, macadamizing, curbing,
guttering and surfacing;
(7) street light fixtures, connection and facilities;
(8) underground gas, water, heating and electrical services and
connections located within the public right-of-way;
(9) sidewalks and pedestrian underpasses or overpasses;
(10) drives and driveway approaches located within the public right-
of-way;
(11) water mains and extensions;
(12) plazas and arcades;
(13) parking facilities and multilevel parking structures devoted to
parking only;
(14) landscaping and plantings, fountains, shelters, benches,
sculptures, lighting, decorations and similar amenities;
(15) auto race track facility;
(16) major multi-sport athletic complex;
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(17) museum facility;
(18) major motorsports complex;
(19) rural redevelopment project, including costs incurred in
connection with the construction or renovation of buildings or other
structures;
(20) major professional sports complex, including all costs necessary
to implement a STAR bond project plan for the development of a major
professional sports complex, including, but not limited to, costs incurred
for construction or renovation of a stadium and other buildings,
improvements, structures, facilities, infrastructure improvements and
utilities or any related expenses to develop and finance such complex;
(21) related expenses to redevelop and finance the project, except that
for a STAR bond project financed with special obligation bonds payable
from the revenues described in K.S.A. 12-17,169(a)(1) or (a)(2)(A) and
(a)(2)(B), and amendments thereto, such expenses shall require prior
approval by the secretary of commerce; and
(21)(22) except as specified in paragraphs (1) through (20) (21)
above, "project costs" does not include:
(A) Costs incurred in connection with the construction of buildings or
other structures;
(B) fees and commissions paid to developers, real estate agents,
financial advisors or any other consultants who represent the developers or
any other businesses considering locating in or located in a STAR bond
project district;
(C) salaries for local government employees;
(D) moving expenses for employees of the businesses locating within
the STAR bond project district;
(E) property taxes for businesses that locate in the STAR bond project
district;
(F) lobbying costs;
(G) any bond origination fee charged by the city or county;
(H) any personal property as defined in K.S.A. 79-102, and
amendments thereto; and
(I) travel, entertainment and hospitality.
(t)(v) "Projected market area" means any area within the state in
which the project is projected to have a substantial fiscal or market impact
upon businesses in such area.
(u)(w) "River walk canal facilities" means a canal and related water
features which flow through a major commercial entertainment and
tourism area and facilities related or contiguous thereto, including, but not
limited to, pedestrian walkways and promenades, landscaping and parking
facilities.
(v)(x) "Rural redevelopment project" means a project that is in an
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area outside of a metropolitan area with a population of more than 50,000,
that is of regional importance, with capital investment of at least
$3,000,000 and that will enhance the quality of life in the community and
region.
(w)(y) "Sales tax and revenue" are those revenues available to finance
the issuance of special obligation bonds as identified in K.S.A. 12-17,168,
and amendments thereto.
(x)(z) "STAR bond" means a sales tax and revenue bond.
(y)(aa) "STAR bond project" means:
(1) An approved project to implement a project plan for the
development of the established STAR bond project district that:
(1) (A) (i) Has at least a $75,000,000 capital investment and
$75,000,000 in projected gross annual sales; or
(B)(ii) for metropolitan areas with a population of between 50,000
and 75,000, has at least a $40,000,000 capital investment and $40,000,000
in projected gross annual sales, if the project is deemed of high value by
the secretary; or
(2)(B) for areas outside of metropolitan areas with a population of
more than 50,000, the secretary finds the project:
(A)(i) Is an eligible area as defined in subsection (f); and
(B)(ii) would be of regional or statewide importance;
(3)(C) is a major tourism area as defined in subsection (m);
(4)(D) is a major motorsports complex, as defined in subsection (l);
or
(5)(E) is a rural redevelopment project as defined in subsection (v)
(x); or
(2) A project approved or pursuant to an authorized agreement as
provided by section 1, and amendments thereto, to implement one or more
project plans for the development of a major professional sports complex
with a combined capital investment of not less than $1,000,000,000.
(z)(bb) "STAR bond project area" means the geographic area within
the STAR bond project district in which there may be one or more
projects.
(aa)(cc) "STAR bond project district" means:
(1) The specific area declared to be an eligible area as determined by
the secretary in which the city or county may develop one or more STAR
bond projects. A "STAR bond project district" includes a redevelopment
district, as defined in K.S.A. 12-1770a, and amendments thereto, created
prior to the effective date of this act for the Wichita Waterwalk project in
Wichita, Kansas, provided, the city creating such redevelopment district
submits an application for approval for STAR bond financing to the
secretary on or before July 31, 2007, and receives a final letter of
determination from the secretary approving or disapproving the request for
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STAR bond financing on or before November 1, 2007. No STAR bond
project district shall include real property which has been part of another
STAR bond project district unless such STAR bond project and STAR
bond project district have been approved by the secretary of commerce
pursuant to K.S.A. 12-17,164 and 12-17,165, and amendments thereto,
prior to March 1, 2016. A STAR bond project district in a metropolitan
area with a population of more than 50,000, shall be a contiguous parcel of
real estate and shall be limited to those areas being developed by the
STAR bond project and any area of real property reasonably anticipated to
directly benefit from the redevelopment project; or
(2) the specific area approved or pursuant to an authorized
agreement as provided by section 1, and amendments thereto, and that is
declared to be an eligible area as determined by the secretary in which the
city or county, or the secretary independently or with the participation of
the city or county, as provided by K.S.A. 12-17,164, and amendments
thereto, may develop one or more STAR bond projects as defined in
subsection (aa)(2). Such area may include real property that is or has
been a part of another STAR bond project district, however, any
outstanding STAR bonds issued for such other STAR bond project district
shall have priority for repayment. Any STAR bond project district as
defined pursuant to this paragraph shall not be required to contain
contiguous parcels of real estate or be limited to those areas being
developed pursuant to any such STAR bond project.
(bb)(dd) "STAR bond project district plan" means the preliminary
plan that identifies all of the proposed STAR bond project areas and
identifies in a general manner all of the buildings, facilities and
improvements in each that are proposed to be constructed or improved in
each STAR bond project area.
(cc)(ee) "STAR bond project plan" means the plan adopted by a city
or county for the development of a STAR bond project or projects in a
STAR bond project district. "STAR bond project plan" includes a plan
adopted by the secretary independently, the secretary with the
participation of a city or county or a city or county as approved by the
secretary, as provided by K.S.A. 12-17,164, and amendments thereto, for
the development of a STAR bond project or projects as defined in
subsection (aa)(2) in a STAR bond project district as defined in subsection
(cc)(2) and approved or pursuant to an authorized agreement as provided
by section 1, and amendments thereto.
(dd)(ff) "Secretary" means the secretary of commerce.
(ee)(gg) "Substantial change" means, as applicable, a change wherein
the proposed plan or plans differ substantially from the intended purpose
for which the STAR bond project district plan was approved.
(ff)(hh) "Tax increment" means:
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(1) Except as provided in paragraph (2), that portion of the revenue
derived from state and local sales, use and transient guest tax imposed
pursuant to K.S.A. 12-187 et seq., 12-1692 et seq., 79-3601 et seq. and 79-
3701 et seq., and amendments thereto, collected from taxpayers doing
business within that portion of a STAR bond project district occupied by a
project that is in excess of the amount of base year revenue. For purposes
of this subsection, the base year shall be the 12-month period immediately
prior to the month in which the STAR bond project district is established.
The department of revenue shall determine base year revenue by reference
to the revenue collected during the base year from taxpayers doing
business within the specific area in which a STAR bond project district is
subsequently established. The base year of a STAR bond project district,
following the addition of area to the STAR bond project district, shall be
the base year for the original area, and with respect to the additional area,
the base year shall be any 12-month period immediately prior to the month
in which additional area is added to the STAR bond project district. For
purposes of this subsection, revenue collected from taxpayers doing
business within a STAR bond project district, or within a specific area in
which a STAR bond project district is subsequently established shall not
include local sales and use tax revenue that is sourced to jurisdictions other
than those in which the project is located. The secretary of revenue and the
secretary of commerce shall certify the appropriate amount of base year
revenue for taxpayers relocating from within the state into a STAR bond
district.
(2) With respect to any STAR bond project district as defined in
subsection (cc)(2), "tax increment" may include all revenue described in
paragraph (1) collected from retail sales from any business within such
STAR bond project district. "Tax increment" shall include all revenue
derived from the sale of alcoholic liquor as defined in K.S.A. 79-41a01,
and amendments thereto, pursuant to K.S.A. 79-4101 and 79-41a02, and
amendments thereto, collected from consumers purchasing alcoholic
liquor within such STAR bond project district that is in excess of the
amount of base year revenue for such taxes. The "tax increment" for any
such STAR bond project district that has been independently established
by the secretary as provided by K.S.A. 12-17,164, and amendments
thereto, shall not include local sales, use or transient guest tax imposed
pursuant to K.S.A. 12-187 et seq. and 12-1692 et seq., and amendments
thereto, unless approved by a participating city or county as provided by
K.S.A. 12-17,164, and amendments thereto. If a STAR bond project district
as defined in subsection (cc)(2) includes real property that is or has been
part of another previously approved STAR bond project district, the "tax
increment" shall also exclude that portion of state and local sales, use or
transient guest tax revenue pledged to repayment of any STAR bonds
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issued for a previously approved STAR bond project within such other
district while such bonds are outstanding. The amount of base year
revenue for any revenue derived from the sale of alcoholic liquor and any
state sales and use taxes shall be set by the secretary in the secretary's
sole discretion upon the establishment of a STAR bond project district as
defined in K.S.A. 12-17,162(cc)(2), and amendments thereto. If local sales,
use or transient guest tax revenue are also pledged by a city or county,
whether such city or county is participating with the secretary, or is itself
establishing such STAR bond project district, as provided by K.S.A. 12-
17,164, and amendments thereto, the amount of base year revenue for
such local tax revenues shall be set by the city or county in the city or
county's discretion and approved by the secretary. Base year revenue
determinations by the secretary or by the city or county as approved by the
secretary shall not be required to be based on the procedure provided in
paragraph (1).
(gg)(ii) "Taxpayer" means a person, corporation, limited liability
company, S corporation, partnership, registered limited liability
partnership, foundation, association, nonprofit entity, sole proprietorship,
business trust, group or other entity that is subject to the Kansas income
tax act, K.S.A. 79-3201 et seq., and amendments thereto.
Sec. 3. K.S.A. 12-17,164 is hereby amended to read as follows: 12-
17,164. (a) (1) (A) (i) The governing body of a city may establish one or
more STAR bond projects in any area within such city or wholly outside
the boundaries of such city. A STAR bond project wholly outside the
boundaries of such city must be approved by the board of county
commissioners by the passage of a county resolution.
(ii) The governing body of a county may establish one or more STAR
bond projects in any unincorporated area of the county.
(iii) No STAR bond project as defined by K.S.A. 12-17,162(aa)(2), and
amendments thereto, shall be established by a city or county unless
approved pursuant to section 1, and amendments thereto.
(B) The governing body of a city or county may elect to participate in
a STAR bond project as defined in K.S.A. 12-17,162(aa)(2), and
amendments thereto, established independently by the secretary pursuant
to an agreement authorized by section 1, and amendments thereto, by
pledging local sales, use and transient guest tax revenues for the
repayment of STAR bonds issued by the Kansas development finance
authority pursuant to this section and K.S.A. 12-17,169, and amendments
thereto. If the governing body of the city or county elects to participate,
the governing body of the city or county shall hold a public hearing and
pass an appropriate ordinance or resolution specifying the city or county's
pledge of such local revenues that meet any requirements of the secretary
and the Kansas development finance authority. Such ordinance or
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resolution shall be passed not later than 60 days after the date of approval
by the legislative coordinating council of the agreement pursuant to
section 1, and amendments thereto, or the secretary may proceed without
the city or county's participation to establish the STAR bond project
district and undertake the STAR bond project plan without further public
notice or hearing, as provided by paragraph (2).
(C) The projects shall be eligible for financing by special obligation
bonds payable from revenues described by K.S.A. 12-17,169(a)(1) and (a)
(2)(A) and (a)(2)(B), and amendments thereto. Upon approval by the
secretary, a STAR bond project as defined in K.S.A. 12-17,162(aa)(2), and
amendments thereto, may be financed by the Kansas development finance
authority as provided by K.S.A. 12-17,169, and amendments thereto.
(2) In lieu of the procedure required for a city or county to establish a
STAR bond project district and a STAR bond project set forth in K.S.A. 12-
17,165 and 12-17,166, and amendments thereto, or to finance a project,
the secretary may independently establish a STAR bond project district as
defined in K.S.A. 12-17,162(cc)(2), and amendments thereto, undertake a
STAR bond project as defined in K.S.A. 12-17,162(aa)(2), and
amendments thereto, or finance such a STAR bond project through special
obligation bonds issued by the Kansas development finance authority as
provided by K.S.A. 12-17,169(a)(2)(B), and amendments thereto, with or
without the participation of the city or county. In such case, except as
otherwise provided, in addition to all powers granted to the secretary, the
secretary shall have the powers of a city or county as provided by the
STAR bonds financing act necessary in the secretary's discretion to
establish, undertake or finance the project through the Kansas
development finance authority. The notice, procedural and hearing
requirements of K.S.A. 12-17,165 and 12-17,166, and amendments thereto,
shall not be applicable to the secretary. Such authority shall include
changes to such district as provided by K.S.A. 12-17,171, and amendments
thereto, except that no public hearings shall be required. Upon the
approval of the secretary, the Kansas development finance authority is
authorized to issue special obligation bonds in one or more series to
finance such project. No revenue from local sales, use or transient guest
taxes imposed pursuant to K.S.A. 12-187 et seq. and 12-1692 et seq., and
amendments thereto, shall be pledged as a source of repayment of such
special obligation bonds unless approved by the city or county as provided
by paragraph (1)(B). Such bonds shall not be a general obligation of the
state. Any such bonds and interest thereon shall be an obligation only of
the Kansas development finance authority and shall not constitute a debt
of the state of Kansas within the meaning of section 6 or 7 of article 11 of
the constitution of the state of Kansas and shall not pledge the full faith
and credit or the taxing power of the state of Kansas. Such bonds shall be
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payable, both as to principal and interest, solely from the revenue sources
as provided by K.S.A. 12-17,169(a)(2)(B), and amendments thereto.
(3) The secretary's authority to approve STAR bond projects as
defined in K.S.A. 12-17,162(aa)(2), and amendments thereto, including
any such project established by a city or county or established
independently by the secretary with or without the participation of the city
or county shall be subject to section 1, and amendments thereto.
(b) (1) Each STAR bond project shall first be approved by the
secretary, if the secretary determines that the proposed project or complex
sufficiently promotes, stimulates and develops the general and economic
welfare of the state as described in K.S.A. 12-17,160, and amendments
thereto. Except as provided in paragraph (2), the secretary, upon
approving the project, may approve such financing in an amount not to
exceed 50% of the total costs including all project costs and any other
costs related to the project. The proceeds of such STAR bond financing
may only be used to pay for incurred project costs.
(2) For a STAR bond project as defined in K.S.A 12-17,162(aa)(2),
and amendments thereto, the secretary may approve such financing issued
by the city or county or by the Kansas development finance authority, as
applicable, in an amount not to exceed 70% of the total costs including all
project costs and any other costs related to the project.
(c) For a city proposing to finance a major motorsports complex
pursuant to K.S.A. 12-17,169(a)(1)(C) or (a)(1)(E), and amendments
thereto, the secretary, upon approving the project, may approve such
financing in an amount not to exceed 50% of the STAR bond project costs.
(d) The secretary may approve a STAR bond project located in a
STAR bond project district established by a city prior to May 1, 2003.
(e) (1) Except as provided in paragraph (2), a project shall not be
granted to any business that proposes to relocate its business from another
area of the state into such city or county, for the purpose of consideration
for a STAR bond project provided by K.S.A. 12-17,160 et seq., and
amendments thereto.
(2) The provisions of paragraph (1) shall not apply to a STAR bond
project as defined in K.S.A. 12-17,162(aa)(2), and amendments thereto.
(f) A project shall not be approved by the secretary if the market
study required by K.S.A. 12-17,166, and amendments thereto, indicates a
substantial negative impact upon businesses in the project or complex
market area or the granting of such project or complex would cause a
default in the payment of any outstanding special obligation bond payable
from revenues authorized pursuant to K.S.A. 12-17,169(a)(1), and
amendments thereto.
(g) (1) Except as provided in paragraph (2), the maximum maturity
of special obligation bonds payable primarily from revenues described by
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K.S.A. 12-17,169(a)(1), and amendments thereto, to finance STAR bond
projects pursuant to this section shall not exceed 20 years.
(2) Special obligation bonds issued by a city or county or, if
applicable, by the Kansas development finance authority to finance a
STAR bond project as defined in K.S.A. 12-17,162(aa)(2), and
amendments thereto, shall not exceed 30 years.
(h) The secretary shall not approve any application for STAR bond
project financing which is submitted by a city or county more than one
year after the STAR bond project district in which the STAR bond project
is located has been established.
(i) For the purpose of recovering the costs of the secretary and the
department arising from fulfilling administrative, review, approval,
oversight and other responsibilities under the STAR bonds financing act
and from providing assistance to cities, counties and private businesses in
relation to STAR bond projects, the secretary may assess an administrative
fee of up to 1%, not to exceed $200,000, of the amount of the special
obligation bonds payable from revenues described by K.S.A. 12-17,169(a)
(1) or (a)(2), and amendments thereto, issued or reissued for STAR bond
projects. The secretary may also recover any actual costs incurred by the
secretary in excess of the fee. The fee, and any actual costs incurred by the
secretary in excess of the fee, shall be paid to the secretary from the
proceeds of such bonds. All such moneys received by the secretary shall be
remitted to the state treasurer in accordance with the provisions of K.S.A.
75-4215, and amendments thereto. Upon receipt of each such remittance,
the state treasurer shall deposit the entire amount in the state treasury to
the credit of the STAR bond administrative fee fund, which is hereby
created in the state treasury. All expenditures from the STAR bond
administrative fee fund shall be made in accordance with appropriation
acts upon warrants of the director of accounts and reports issued pursuant
to vouchers approved by the secretary or a person or persons designated by
the secretary.
Sec. 4. K.S.A. 12-17,168 is hereby amended to read as follows: 12-
17,168. (a) (1) Any city or county which has received approval for a STAR
bond project may request STAR bond issuance authority to issue
additional STAR bonds in an amount in excess of the amount previously
approved by the secretary. Any city or county requesting such additional
STAR bond issuance authority shall make application for approval to the
secretary. Such application shall include all information required to be
submitted to the secretary for initial approval of a STAR bond project,
including, but not limited to, a feasibility study as required by K.S.A. 12-
17,166, and amendments thereto.
(b)(2) Except as provided by paragraph (4), the secretary shall review
all of the information submitted by the city or county in the request for
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additional STAR bond issuance authority and determine whether to
approve a request, and, if approved, issue an approval letter for additional
STAR bond issuance authority based upon the requirements within this act
and rules and regulations developed by the secretary.
(c)(3) Except as provided in paragraph (4), the secretary may
approve such additional STAR bond issuance authority in an amount not to
exceed 50% of the total costs of the addition or expansion to the STAR
bond project for which the additional STAR bond issuance authority is
sought, including all project costs and any other costs related to the project
addition or expansion. The proceeds of such additional STAR bond
financing may only be used to pay for incurred project costs of such
addition or expansion.
(4) The secretary may approve such additional STAR bond issuance
authority in an amount not to exceed 70% of the total costs of the addition
or expansion of a STAR bond project as defined in K.S.A. 12-17,162(aa)
(2), and amendments thereto. The secretary shall not approve additional
STAR bond issuance authority for a STAR bond project as defined in
K.S.A. 12-17,162(aa)(2), and amendments thereto, unless such additional
issuance is first approved by the legislative coordinating council. The
council may consider and act on such matter at any time, including when
the legislature is in session.
(b) Upon the approval of the secretary and the legislative
coordinating council as provided in subsection (a)(4), the Kansas
development finance authority may issue additional special obligation
STAR bonds in an amount in excess of the amount previously approved by
the secretary for a STAR bond project as defined in K.S.A. 12-17,162(aa)
(2), and amendments thereto. Such additional financing for such project
shall be limited to not more than 70% of the total project costs of the
addition or expansion of such project. The proceeds of such additional
STAR bond financing may only be used to pay for incurred project costs of
such addition or expansion of the project.
Sec. 5. K.S.A. 12-17,169 is hereby amended to read as follows: 12-
17,169. (a) (1) Any city or county shall have the power to issue special
obligation bonds in one or more series to finance the undertaking of any
STAR bond project in accordance with the provisions of this act. Rural
redevelopment projects, as defined in K.S.A. 12-17,162, and amendments
thereto, may also be financed without the issuance of special obligation
bonds up to an amount not to exceed $10,000,000 for each project. Such
special obligation bonds or rural redevelopment project costs shall be
made payable, both as to principal and interest:
(A) From revenues of the city or county derived from or held in
connection with the undertaking and carrying out of any STAR bond
project or projects under this act including historic theater sales tax
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increments;
(B) from any private sources, contributions or other financial
assistance from the state or federal government;
(C) from a pledge of 100% of the tax increment revenue received by
the city from any local sales and use taxes, including the city's share of any
county sales tax, which are collected from taxpayers doing business within
that portion of the city's STAR bond project district established pursuant to
K.S.A. 12-17,165, and amendments thereto, occupied by a STAR bond
project, except for amounts committed to other uses by election of voters
or pledged to bond repayment prior to the approval of the STAR bond
project;
(D) at the option of the county in a city STAR bond project district,
from a pledge of all of the tax increment revenues received by the county
from any local sales and use taxes which are collected from taxpayers
doing business within that portion of the city's STAR bond project district
established pursuant to K.S.A. 12-17,165, and amendments thereto, except
for amounts committed to other uses by election of voters or pledged to
bond repayment prior to the approval of a STAR bond project;
(E) in a county STAR bond project district, from a pledge of 100% of
the tax increment revenue received by the county from any county sales
and use tax, but excluding any portions of such taxes that are allocated to
the cities in such county pursuant to K.S.A. 12-192, and amendments
thereto, which are collected from taxpayers doing business within that
portion of the county's STAR bond project district established pursuant to
K.S.A. 12-17,165, and amendments thereto, occupied by a STAR bond
project;
(F) from a pledge of all or a portion of the tax increment revenue
received from any state sales taxes which are collected from taxpayers
doing business within that portion of the city's or county's STAR bond
project district occupied by a STAR bond project, except that for any
STAR bond project district established and approved by the secretary on or
after January 1, 2017, such tax increment shall not include any sales tax
revenue from retail automobile dealers, and except that for any STAR
bond project district established after July 1, 2021, with existing sales tax
revenue at the time the district was established, such pledge shall not
exceed 90% of the new tax increment revenue that is in excess of the base
existing sales tax revenue received from any state sales taxes;
(G) at the option of the city or county and with approval of the
secretary, from all or a portion of the transient guest tax of such city or
county;
(H) at the option of the city or county and with approval of the
secretary: (i) From a pledge of all or a portion of increased revenue
received by the city or county from franchise fees collected from utilities
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and other businesses using public right-of-way within the STAR bond
project district; or (ii) from a pledge of all or a portion of the revenue
received by a city or county from local sales taxes or local transient guest
and local use taxes; or
(I) by any combination of these methods.
The city or county may pledge such revenue to the repayment of such
special obligation bonds prior to, simultaneously with, or subsequent to the
issuance of such special obligation bonds.
(2) (A) Special obligation bonds issued by a city or county to finance
a STAR bond project as defined in K.S.A. 12-17,162(aa)(2), and
amendments thereto, that has been approved by the secretary in
accordance with section 1, and amendments thereto, shall be made
payable, both as to principal and interest, from a pledge of:
(i) Any method or combination of the methods described in
paragraph (1), except that tax increment revenue from sales taxes shall
include sales tax revenue from all retail sales of any business located
within the district and up to 100% of the new state sales tax increment
revenue that is in excess of the base sales tax revenue, as set in the
secretary's discretion, received from any state sales taxes. The city or
county shall have discretion to set the base sales tax revenue for local
sales and use taxes as approved by the secretary;
(ii) tax increment revenue from up to 100% of the taxes imposed on
the sale of alcoholic liquor, as defined in K.S.A. 79-41a01, and
amendments thereto, collected from sales within the district pursuant to
K.S.A. 79-4101 and 79-41a02, and amendments thereto; and
(iii) if approved by the secretary, moneys from the attracting
professional sports to Kansas fund of the department of commerce.
(B) As authorized by the secretary, the Kansas development finance
authority shall have the power to issue special obligation bonds in one or
more series to finance the undertaking of a STAR bond project as defined
in K.S.A. 12-17,162(aa)(2), and amendments thereto, that has been
established by a city or county and approved by the secretary of commerce
pursuant to section 1, and amendments thereto, or undertaken
independently by the secretary pursuant to K.S.A. 12-17,164, and
amendments thereto, with or without the participation of the city or
county. Such special obligation bonds shall not be general obligations of
the state. Any such bonds and interest thereon shall be an obligation only
of the Kansas development finance authority and shall not constitute a
debt of the state of Kansas within the meaning of section 6 or 7 of article
11 of the constitution of the state of Kansas and shall not pledge the full
faith and credit or the taxing power of the state of Kansas. Such special
obligation bonds shall be made payable, both as to principal and interest,
solely from:
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(i) Tax increment revenue as determined in the secretary's discretion,
from up to 100% of state sales taxes, including state sales tax revenue
from all retail sales of any business located within the district;
(ii) tax increment revenue from up to 100% of the taxes imposed on
the sale of alcoholic liquor as defined in K.S.A. 79-41a01, and
amendments thereto, from sales within the district pursuant to K.S.A. 79-
4101 and 79-41a02, and amendments thereto;
(iii) if approved by the city or county, revenue from any of the other
methods or combination of methods as provided in subparagraph (A)(i);
and
(iv) if approved by the secretary, moneys from the attracting
professional sports to Kansas fund of the department of commerce.
(C) For purposes of this paragraph, "district" means the STAR bond
project district as defined in K.S.A. 12-17,162(cc)(2), and amendments
thereto. Revenues may be collected pursuant to this paragraph from
noncontiguous parcels of real estate and areas not being developed by a
STAR bond project as defined in subsection (aa)(2) within such STAR bond
project district.
(D) Any revenues that have been pledged to pay one or more STAR
bonds previously issued pursuant to this act shall be used first to satisfy
any remaining obligations of such bonds.
(2)(3) Bonds issued under subsection (a)(1) or (a)(2)(A) shall not be
general obligations of the city or the county, nor in any event shall they
give rise to a charge against its general credit or taxing powers, or be
payable out of any funds or properties other than any of those set forth in
subsection (a)(1) or (a)(2)(A) and such bonds shall so state on their face.
(3)(4) Bonds issued under the provisions of subsection (a)(1) or (a)
(2)(A) shall be special obligations of the city or county and are declared to
be negotiable instruments. Such bonds shall be executed by the mayor and
clerk of the city or the chairperson of the board of county commissioners
and the county clerk and sealed with the corporate seal of the city or
county. All details pertaining to the issuance of such special obligation
bonds and terms and conditions thereof shall be determined by ordinance
of the city or by resolution of the county.
All special obligation bonds issued pursuant to this act and all income
or interest therefrom shall be exempt from all state taxes. Such special
obligation bonds shall contain none of the recitals set forth in K.S.A. 10-
112, and amendments thereto. Such special obligation bonds shall,
however, contain the following recitals: (i) The authority under which such
special obligation bonds are issued; (ii) such bonds are in conformity with
the provisions, restrictions and limitations thereof; and (iii) that such
special obligation bonds and the interest thereon are to be paid from the
money and revenue received as provided in subsection (a)(1) and (a)(2).
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(4)(5) Any city or county issuing special obligation bonds under the
provisions of this act may refund all or part of such issue pursuant to the
provisions of K.S.A. 10-116a, and amendments thereto. If and as
approved by the secretary of commerce, the Kansas development finance
authority may refund all or part of any issue of special obligation bonds
issued for a project as defined in K.S.A. 12-17,162(aa)(2), and
amendments thereto, by the Kansas development finance authority under
the provisions of this act pursuant to the provisions of K.S.A. 74-8912, and
amendments thereto, and this act.
(b) (1) Subject to the provisions of subsection (b)(2), any city shall
have the power to issue full faith and credit tax increment bonds to finance
the undertaking, establishment or redevelopment of any major motorsports
complex, as defined in K.S.A. 12-17,162, and amendments thereto. Such
full faith and credit tax increment bonds shall be made payable, both as to
principal and interest: (A) From the revenue sources identified in
subsection (a)(1) or by any combination of these sources; and (B) subject
to the provisions of subsection (b)(2), from a pledge of the city's full faith
and credit to use its ad valorem taxing authority for repayment thereof in
the event all other authorized sources of revenue are not sufficient.
(2) Except as provided in subsection (b)(3), before the governing
body of any city proposes to issue full faith and credit tax increment bonds
as authorized by this subsection, the feasibility study required by K.S.A.
12-17,166(b), and amendments thereto, shall demonstrate that the benefits
derived from the project will exceed the cost and that the income
therefrom will be sufficient to pay the costs of the project. No full faith
and credit tax increment bonds shall be issued unless the governing body
states in the resolution required by K.S.A. 12-17,166(e), and amendments
thereto, that it may issue such bonds to finance the proposed STAR bond
project. The governing body may issue the bonds unless within 60 days
following the conclusion of the public hearing on the proposed STAR
bond project plan a protest petition signed by 3% of the qualified voters of
the city is filed with the city clerk in accordance with the provisions of
K.S.A. 25-3601 et seq., and amendments thereto. If a sufficient petition is
filed, no full faith and credit tax increment bonds shall be issued until the
issuance of the bonds is approved by a majority of the voters voting at an
election thereon. Such election shall be called and held in the manner
provided by the general bond law. The failure of the voters to approve the
issuance of full faith and credit tax increment bonds shall not prevent the
city from issuing special obligation bonds in accordance with this section.
No such election shall be held in the event the board of county
commissioners or the board of education determines, as provided in
K.S.A. 12-17,165, and amendments thereto, that the proposed STAR bond
project district will have an adverse effect on the county or school district.
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(3) As an alternative to subsection (b)(2), any city which adopts a
STAR bond project plan for a major motorsports complex, but does not
state its intent to issue full faith and credit tax increment bonds in the
resolution required by K.S.A. 12-17,166(e), and amendments thereto, and
has not acquired property in the STAR bond project area may issue full
faith and credit tax increment bonds if the governing body of the city
adopts a resolution stating its intent to issue the bonds and the issuance of
the bonds is approved by a majority of the voters voting at an election
thereon. Such election shall be called and held in the manner provided by
the general bond law. The failure of the voters to approve the issuance of
full faith and credit tax increment bonds shall not prevent the city from
issuing special obligation bonds pursuant to subsection (a)(1). Any project
plan adopted by a city prior to the effective date of this act in accordance
with K.S.A. 12-1772, and amendments thereto, shall not be invalidated by
any requirements of this act.
(4) During the progress of any major motorsports complex project in
which the project costs will be financed, in whole or in part, with the
proceeds of full faith and credit tax increment bonds, the city may issue
temporary notes in the manner provided in K.S.A. 10-123, and
amendments thereto, to pay the project costs for the major motorsports
complex project. Such temporary notes shall not be issued and the city
shall not acquire property in the STAR bond project area until the
requirements of subsection (b)(2) or (b)(3), whichever is applicable, have
been met.
(5) Full faith and credit tax increment bonds issued under this
subsection shall be general obligations of the city and are declared to be
negotiable instruments. Such bonds shall be issued in accordance with the
general bond law. All such bonds and all income or interest therefrom shall
be exempt from all state taxes. The amount of the full faith and credit tax
increment bonds issued and outstanding which exceeds 3% of the assessed
valuation of the city shall be within the bonded debt limit applicable to
such city.
(6) Any city issuing full faith and credit tax increment bonds under
the provisions of this subsection may refund all or part of such issue
pursuant to the provisions of K.S.A. 10-116a, and amendments thereto.
(c) (1) For each project established by a city or county financed with
special obligation bonds payable from the revenues described in
subsection (a)(1) and (a)(2), the city or county shall prepare and submit to
the secretary by October 1 of each year, a report describing the status of
any projects within such STAR bond project area, any expenditures of the
proceeds of special obligation bonds that have occurred since the last
annual report and any expenditures of the proceeds of such bonds expected
to occur in the future, including the amount of sales tax revenue, how such
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revenue has been spent, the projected amount of such revenue, the
anticipated use of such revenue and the names of the owners, partners,
officers or principals of any developer and of any associated business
partners of any developer that are involved in the STAR bond project. The
department of commerce shall compile this information and submit a
report annually to the governor and the legislature by February 1 of each
year.
(2) (A) In addition to the report referenced in paragraph (1), the
department of commerce, in cooperation with the department of revenue,
shall submit a report to the senate commerce committee and the house
commerce, labor and economic development committee by January 31 of
each session. The report shall include the following information for the last
three calendar years and the most current year-to-date information
available with respect to each STAR bond district:
(i) The gross annual sales, gross annual sales projected pursuant to
the STAR bond project plan and feasibility study, gross annual sales
required to meet bond debt service requirements and other expenses,
amount of sales tax collected and the amount of any "base" sales taxes
being allocated to the district;
(ii) the total amount of bond payments and other expenses incurred;
(iii) the total amount of bonds issued and the balance of the bonds, by
district and by project in the district;
(iv) the remaining cash balance in the project to pay future debt
service and other expenses;
(v) any new income producing properties being brought into a district
and the base revenue going to the state general fund and incremental sales
tax increases going to the district with respect to such properties;
(vi) the amount of bonds issued to repay private investors in the
project with calculations showing the private and state share of
indebtedness;
(vii) the percentage of local effort sales tax actually committed to the
district compared to the state's share of sales tax percentage committed to
the district;
(viii) the number of out-of-state visitors to a project and description
of the data gathered pursuant to the visitor tracking plan, including, but not
limited to, residence zip code data, a discussion of the visitor attraction
properties of projects in the districts, and a comparison of the number of
out-of-state visitors with the number of in-state visitors; and
(ix) if any information or data is not available, an explanation as to
why it is not available.
(B) Either the senate commerce committee or the house committee on
commerce, labor and economic development may amend the information
required in the report with additional requests and clarification on a going
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forward basis.
(3) Cities, counties and developers shall provide all information
requested by the secretary for the secretary's database as provided by
K.S.A. 2023 Supp. 74-50,227, and amendments thereto. If the city or
county has a website, a conspicuous link directly to the information
pertaining to the city or county's STAR bond project on the secretary's
database shall be placed on the city's or county's website. A separate link
shall be provided for each STAR bond project of the city or county.
(d) The reports pursuant to subsection (c)(1) and (2) shall include a
description of all state, federal and local tax incentives that apply within
the STAR bond district or to any business located in the district.
(e) (1) A city or county may use the proceeds of special obligation
bonds or any uncommitted funds derived from sources set forth in this
section to pay the bond project costs as defined in K.S.A. 12-17,162, and
amendments thereto, to implement the STAR bond project plan.
(2) As authorized by the secretary, the Kansas development finance
authority may issue and use the proceeds of special obligation bonds to
pay the bond project costs as defined in K.S.A. 12-17,162, and
amendments thereto, to implement a STAR bond project plan for a project
as defined in K.S.A. 12-17,162(aa)(2), and amendments thereto.
(f) With respect to a STAR bond project district established prior to
January 1, 2003, for which, prior to January 1, 2003, the secretary made a
finding as provided in subsection (a) that a STAR bond project would
create a major tourism area for the state, such special obligation bonds
shall be payable both as to principal and interest, from a pledge of all of
the revenue from any transient guest, state and local sales and use taxes
collected from taxpayers as provided in subsection (a) whether or not
revenues from such taxes are received by the city.
Sec. 6. K.S.A. 12-17,170 is hereby amended to read as follows: 12-
17,170. In the event that the city or, county or Kansas development
finance authority shall default in the payment of any STAR bonds payable
from revenues described in subsection (a)(1) of K.S.A. 12-17,169(a)(1) or
(a)(2), and amendments thereto, no public funds shall be used to pay the
holders thereof except as otherwise specifically authorized in this act.
Sec. 7. K.S.A. 12-17,174 is hereby amended to read as follows: 12-
17,174. (a) Notwithstanding any other provisions of law to the contrary,
copies of all retailers' sales, use and transient guest tax returns and returns
or reports of other revenues, if applicable, filed with the secretary of
revenue in connection with a STAR bond project area or STAR bond
project, for which sales, use and transient guest tax revenues or other
revenues are pledged or otherwise intended to be used in whole or in part
for the payment of bonds issued to finance project costs in such STAR
bond project area, shall be provided by the secretary of revenue to the
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bond trustee, escrow agent or paying agent for such bonds upon the written
request of the city or, county or Kansas development finance authority
within 15 days of receipt by the secretary of revenue. The bond trustee,
escrow agent or paying agent shall keep such retailers' sales, use and
transient guest tax returns or returns or reports of other revenues and the
information contained therein confidential, but may use such information
for purposes of allocating and depositing such sales, use and transient
guest tax revenues or other revenues in connection with the bonds used to
finance project costs in such STAR bond project area. Except as otherwise
provided herein, the sales, use and transient guest tax returns or returns or
reports of other revenues received by the bond trustee, escrow agent or
paying agent shall be subject to the provisions of K.S.A. 75-5133 and 79-
3614, and amendments thereto.
(b) The secretary of revenue shall determine when the amount of
sales tax and other revenues that have been collected and distributed to the
bond debt service or reserve fund is sufficient to satisfy all principal and
interest costs to the maturity date or dates, of any special obligation bonds
issued by a city or, county or Kansas development finance authority to
finance a STAR bond project. Thereafter, all sales tax and other revenues
shall be collected and distributed in accordance with applicable law.
(c) For purposes of this section, "other revenues" includes, but is not
limited to, revenues collected pursuant to K.S.A 79-4108 and 79-41a03,
and amendments thereto, for purposes of payment of STAR bonds issued
for a STAR bond project as defined in K.S.A. 12-17,162(aa)(2), and
amendments thereto.
Sec. 8. K.S.A. 2023 Supp. 79-4108 is hereby amended to read as
follows: 79-4108. (a) Except as provided in subsection (c), all revenue
collected or received by the director of taxation from taxes imposed by
K.S.A. 79-4101 through 79-4105, and amendments thereto, shall be
remitted to the state treasurer in accordance with the provisions of K.S.A.
75-4215, and amendments thereto. Upon receipt of each such remittance,
except as provided for in subsection (b), the state treasurer shall deposit
the entire amount in the state treasury to the credit of the state general
fund. The state treasurer shall transfer any moneys remaining in the county
and city alcoholic liquor control enforcement fund on the effective date of
this act to the state general fund.
(b) For each remittance of the taxes collected upon the gross receipts
derived from the sale of alcoholic liquor to consumers while on the Kansas
state fairgrounds, 30% shall be credited to the state general fund, and the
remainder shall be credited to the state fair capital improvements fund
established pursuant to K.S.A. 2-223, and amendments thereto. The
provisions of this subsection shall expire and have no effect if the state fair
is located outside the city limits of the city of Hutchinson, Kansas.
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(c) The secretary of revenue shall remit up to 100% of the taxes
collected upon the gross receipts derived from the sale of alcoholic liquor
to consumers within a STAR bond project district as defined in K.S.A. 12-
17,162(cc)(2), and amendments thereto, that is included in the tax
increment for such district, as defined in K.S.A. 12-17,162, and
amendments thereto, as set in the discretion of the secretary of commerce,
to the respective bond debt service fund of a city or county that has issued
STAR bonds for the undertaking of a STAR bond project, as defined in
K.S.A. 12-17,162(aa)(2), and amendments thereto, for the purpose of
paying the principal and interest of such bonds, in the same manner as the
secretary of revenue remits the state sales and use tax increment to the city
or county for such project as provided by the STAR bonds financing act. If
the Kansas development finance authority has issued STAR bonds for such
a project as provided by the STAR bonds financing act, the secretary shall
remit up to 100% of such taxes to the designated bond debt service fund of
the Kansas development finance authority for the purpose of paying the
principal and interest of such bonds.
Sec. 9. K.S.A. 2023 Supp. 79-41a03 is hereby amended to read as
follows: 79-41a03. (a) The tax levied and collected pursuant to K.S.A. 79-
41a02, and amendments thereto, shall become due and payable by the
club, caterer, drinking establishment, public venue or temporary permit
holder monthly, or on or before the 25
th
day of the month immediately
succeeding the month in which it is collected, but any club, caterer,
drinking establishment, public venue or temporary permit holder filing an
annual or quarterly return under the Kansas retailers' sales tax act, as
prescribed in K.S.A. 79-3607, and amendments thereto, shall, upon such
conditions as the secretary of revenue may prescribe, pay the tax required
by this act on the same basis and at the same time the club, caterer,
drinking establishment, public venue or temporary permit holder pays such
retailers' sales tax. Each club, caterer, drinking establishment, public venue
or temporary permit holder shall make a true report to the department of
revenue, on a form prescribed by the secretary of revenue, providing such
information as may be necessary to determine the amounts to which any
such tax shall apply for all gross receipts derived from the sale of alcoholic
liquor by the club, caterer, drinking establishment, public venue or
temporary permit holder for the applicable month or months, which report
shall be accompanied by the tax disclosed thereby. Records of gross
receipts derived from the sale of alcoholic liquor shall be kept separate and
apart from the records of other retail sales made by a club, caterer,
drinking establishment, public venue or temporary permit holder in order
to facilitate the examination of books and records as provided herein.
(b) The secretary of revenue or the secretary's authorized
representative shall have the right at all reasonable times during business
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hours to make such examination and inspection of the books and records
of a club, caterer, drinking establishment, public venue or temporary
permit holder as may be necessary to determine the accuracy of such
reports required hereunder.
(c) The secretary of revenue is hereby authorized to administer and
collect the tax imposed hereunder and to adopt such rules and regulations
as may be necessary for the efficient and effective administration and
enforcement of the collection thereof. Whenever any club, caterer,
drinking establishment, public venue or temporary permit holder liable to
pay the tax imposed hereunder refuses or neglects to pay the same, the
amount, including any penalty, shall be collected in the manner prescribed
for the collection of the retailers' sales tax by K.S.A. 79-3617, and
amendments thereto.
(d) (1) (A) Except as provided in paragraph (2), the secretary of
revenue shall remit all revenue collected under the provisions of this act to
the state treasurer in accordance with the provisions of K.S.A. 75-4215,
and amendments thereto. Upon receipt of each such remittance, the state
treasurer shall deposit the entire amount in the state treasury.
(2)(B) Except as provided for in paragraph (3) subparagraph (C) and
subject to the maintenance requirements of the local alcoholic liquor
refund fund created under K.S.A. 79-41a09, and amendments thereto, 25%
of the remittance shall be credited to the state general fund, 5% shall be
credited to the community alcoholism and intoxication programs fund
created by K.S.A. 41-1126, and amendments thereto, and the balance shall
be credited to the local alcoholic liquor fund created by K.S.A. 79-41a04,
and amendments thereto.
(3)(C) For each remittance of the taxes collected upon the gross
receipts derived from the sale of alcoholic liquor by any temporary permit
holder to consumers while on the Kansas state fairgrounds, 30% shall be
credited to the state general fund, and the remainder shall be credited to
the state fair capital improvements fund established pursuant to K.S.A. 2-
223, and amendments thereto. The provisions of this subsection shall
expire and have no effect if the state fair is located outside the city limits
of the city of Hutchinson, Kansas.
(2) The secretary shall remit up to 100% of the taxes collected
pursuant to K.S.A. 79-41a02, and amendments thereto, that are collected
from the gross receipts derived from the sale of alcoholic liquor within a
STAR bond project district as defined in K.S.A. 12-17,162(cc)(2), and
amendments thereto, that is included in the tax increment for such district,
as defined in K.S.A. 12-17,162, and amendments thereto, as set in the
discretion of the secretary of commerce by a club, caterer, drinking
establishment, public venue or temporary permit holder to the respective
bond debt service fund of a city or county that has issued STAR bonds for
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a STAR bond project, as defined in K.S.A. 12-17,162(aa)(2), and
amendments thereto, in the same manner as the secretary of revenue
remits the state sales and use tax increment to such city or county. If the
Kansas development finance authority has issued STAR bonds for such a
project as provided by the STAR bonds financing act, the secretary shall
remit up to 100% of such taxes to the designated bond debt service fund of
the Kansas development finance authority for the purpose of paying the
principal and interest of such bonds.
(e) Whenever, in the judgment of the secretary of revenue, it is
necessary, in order to secure the collection of any tax, penalties or interest
due, or to become due, under the provisions of this act, the secretary may
require any person subject to such tax to file a bond with the director of
taxation under conditions established by and in such form and amount as
prescribed by rules and regulations adopted by the secretary.
(f) The amount of tax imposed by this act shall be assessed within
three years after the return is filed, and no proceedings in court for the
collection of such taxes shall be begun after the expiration of such period
except in the cases of fraud. In the case of a false or fraudulent return with
intent to evade tax, the tax may be assessed or a proceeding in court for
collection of such tax may be begun at any time, within two years from the
discovery of such fraud. No refund or credit shall be allowed by the
director after three years from the date of payment of the tax as provided
in this act unless before the expiration of such period a claim therefor is
filed by the taxpayer, and no suit or action to recover on any claim for
refund shall be commenced until after the expiration of six months from
the date of filing a claim therefor with the director. Before the expiration
of time prescribed in this section for the assessment of additional tax or the
filing of a claim for refund, the director is hereby authorized to enter into
an agreement in writing with the taxpayer consenting to the extension of
the periods of limitations for the assessment of tax or for the filing of a
claim for refund, at any time prior to the expiration of the periods of
limitations. The period so agreed upon may be extended by subsequent
agreements in writing made before the expiration of the period previously
agreed upon.
Sec. 10. K.S.A. 79-4801 is hereby amended to read as follows: 79-
4801. There is hereby created the state gaming revenues fund in the state
treasury. All moneys credited to such fund shall be expended or transferred
only for the purposes and in the manner provided by this act law and all
expenditures from the state gaming revenues fund shall be made in
accordance with appropriation acts. All moneys credited to such fund shall
be allocated and credited monthly to the funds and in the amounts
specified by this act law except that the total of the amounts credited to
such funds in any one fiscal year pursuant to this act K.S.A. 79-4803
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through 79-4806, and amendments thereto, shall not exceed $50,000,000,
except that the total of the amounts credited to such funds for fiscal years
2009 and 2010, pursuant to this act shall not exceed $48,059,846. All
amounts credited to such fund in any one fiscal year which that are in
excess of $50,000,000 shall be transferred and credited to the state general
fund on July 15, 1996, and June 25, 1997, and each year thereafter on June
25, except that:
(a) All amounts credited to the state gaming revenues fund in fiscal
year 2009 which are in excess of $48,059,846 shall be transferred and
credited to the state general fund on July 15, 2009, and shall be recorded
and accounted for as receipts to the state general fund for fiscal year 2009;
(b) all amounts credited to the state gaming revenues fund in fiscal year
2010 which are in excess of $48,059,846 shall be transferred and credited
to the state general fund on June 15, 2010, and shall be recorded and
accounted for as receipts to the state general fund for fiscal year 2010; and
(c) all amounts credited to the state gaming revenues fund in fiscal year
2011 which are in excess of $50,000,000 shall be transferred and credited
to the state general fund on June 15, 2011, and shall be recorded and
accounted for as receipts to the state general fund for fiscal year 2011On
June 25, 2025, and each June 25 thereafter, the director of the budget, in
consultation with the director of legislative research, shall certify, for each
such fiscal year, the aggregate of all amounts certified by the executive
director of the Kansas lottery that have been transferred from the lottery
operating fund to the state gaming revenues fund as provided by law, but
not including sports wagering revenues deposited in the lottery operating
fund, that is in excess of, or is less than, $71,490,000, and shall transmit
such certification to the director of accounts and reports.
(b) Upon receipt of such certification for the fiscal year ending June
30, 2025, and each fiscal year thereafter, or as soon thereafter as moneys
are available, the director of accounts and reports shall transfer the
amount of revenues in excess of $71,490,000 as certified by the director of
the budget for such fiscal year from the state gaming revenues fund to the
attracting professional sports to Kansas fund established in K.S.A. 2023
Supp. 74-8793, and amendments thereto. If the amount certified by the
director of the budget for such fiscal year is less than $71,490,000, then
no transfer to the attracting professional sports to Kansas fund shall be
made.
Sec. 11. K.S.A. 12-17,162, 12-17,164, 12-17,168, 12-17,169, 12-
17,170, 12-17,174 and 79-4801 and K.S.A. 2023 Supp. 79-4108 and 79-
41a03 are hereby repealed.
Sec. 12. This act shall take effect and be in force from and after its
publication in the statute book.
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