SESSION OF 2025
SUPPLEMENTAL NOTE ON HOUSE SUBSTITUTE FOR
SENATE BILL NO. 9
As Recommended by House Committee on
Commerce, Labor and Economic Development
Brief*
SB 9, as amended, would create the Kansas Land and
Military Installation Protection Act (Act) and prohibit
government agencies from purchasing or acquiring drones
whose critical components were produced in a country of
concern, or whose critical components were produced or
owned by a foreign principal.
Kansas Land and Military Installation Protection Act
The bill would require foreign principals from countries of
concern that own or acquire any interest in non-residential
real property located within 100 miles of the boundary of any
military installation located in Kansas or an adjacent state to
register such interest with the Attorney General. The Act
would not apply to a de minimis interest in such real property
or residential property.
Real Property Reporting Requirement
The bill would generally require any foreign principal to
report any ownership or acquisition of any interest in real
property located within 100 miles of any military installation’s
boundary in Kansas or any adjacent state. The bill would
require divestiture of the interest in such real property for
failing to register.
____________________
*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
https://klrd.gov/ Any foreign principal that owns or acquires any interest
in such real property would be required to file registration of
ownership with the Attorney General no later than 90 days
after the effective date of the Act, or the date the interest is
acquired, whichever is later. The bill would require the filing of
registration of such property to include the:
●Name of the individual or entity holding such
interest;
●Date of acquisition;
●Address and legal description of the real property;
and
●Number of acres composing the real property.
Property obtained by a foreign principal through devise
or bequest, security interest enforcement, or the collection of
debt would still be subject to the reporting provision of this Act
but the foreign principal would not be required to divest
unless they fail to register.
Divestiture of Property
Any foreign principal that fails to report affected real
property would be required to divest of the property.
The bill would permit a foreign principal who is subject to
the Act to enter into an agreement with the Attorney General
to divest such foreign principal’s interest in real property no
later than 360 days from entering into such agreement.
The bill would require a copy of all documentation
showing the required divestiture to be submitted to the
Attorney General no later than 30 days after the divestiture’s
effective date.
2- 9 Reporting Violations and Enforcement
The bill would require the Attorney General to
investigate any suspected violation of the Act. The Attorney
General would also be authorized to commence an action in
a court of competent jurisdiction to enforce the Act. In any
such action, the bill would authorize the Attorney General to
seek:
●A court order directing the defendant’s divestiture
of the real property;
●Injunctive relief;
●Civil forfeiture of the defendant’s interest in the real
property; and
●Reasonable attorney fees and court costs.
Upon a determination by a court of competent
jurisdiction that the defendant violated the requirements of the
Act, the bill would require the defendant to divest their interest
in the real property within 180 days from the date such court
order is issued.
The bill would also update current civil asset forfeiture
law to allow such property to be eligible for forfeiture.
Reporting on Foreign Investment
The bill would require the Attorney General to establish
policies and procedures for reporting non-notified
transactions and authorize any person to report information
concerning such transactions to the Attorney General. The bill
would define “non-notified transaction” as any transaction
involving foreign investment that is not voluntarily submitted
to the U.S. Committee on Foreign Investment in the United
States (CFIUS) for review.
3- 9 The bill would require the Attorney General to prepare
and submit a report on such transactions to CFIUS. The
Attorney General would be required to retain copies of any
documents that are submitted to CFIUS along with the
required report. The bill would also require the report to be
submitted to the:
●Governor;
●Adjutant General;
●Standing Committee on Federal and State Affairs
of the Senate;
●Standing Committee on Federal and State Affairs
of the House of Representatives; and
●Any successor committee of such standing
committees.
On or before February 1 of each year, the Attorney
General would be required to submit a report detailing the
implementation of the Act and including the Attorney
General’s recommended amendments to the definition of
“country of concern” to the:
●Governor;
●Adjutant General;
●Standing Committee on Commerce, Labor and
Economic Development of the House of
Representatives;
●Standing Committee on Commerce of the Senate;
●Standing Committee on Federal and State Affairs
of the Senate;
●Standing Committee on Federal and State Affairs
of the House of Representatives; and
4- 9 ●Any successor committee of such standing
committees.
On or before January 1, 2026, the Attorney General
would be required to adopt rules and regulations to
implement the reporting requirements listed above.
Report on Foreign Land Holdings of Real Property
On or before March 1 of each year, the bill would require
Kansas State University to use available data and resources
to prepare and submit a report to the Legislature and the
Attorney General detailing the status and trends of all foreign
land holdings of real property within the State of Kansas.
Other Provisions
The bill would authorize the Fusion Center Oversight
Board to adopt rules and regulations to reflect new
designations or removals of foreign terrorist organizations on
the federal terrorist organization list. The bill would prohibit
the Board from adopting any rules or regulations that would
designate an organization as a foreign terrorist organization if
that organization is not on the federal terrorist organization
list.
[Note: The Fusion Center Oversight Board was
established with enactment of 2017 SB 184, codified at KSA
2024 Supp. 48-3705. The Board consists of the Attorney
General, Adjutant General, and an appointee of the Attorney
General with expertise in critical infrastructure protection.]
The bill would prevent any foreign principal from
receiving any direct benefit related to any economic
development program.
5- 9 Severability
The bill would also declare any provision severable from
the other provisions in the event one or more provisions are
held to be unconstitutional or invalid.
Drone Procurement and Usage
The bill would prohibit government agencies from
purchasing and acquiring drones, or any related services,
maintenance agreements, or equipment, whose critical
components were produced in a country of concern, or whose
critical components were produced or owned by any foreign
principal. The prohibition would not apply to any drone,
related services, or equipment acquired, or any contract or
agreement entered into, prior to July 1, 2025.
Component Replacement
When a government agency determines a critical
component must be replaced, the bill would allow the agency
to use any replacement component acquired prior to July 1,
2027, but prohibit acquiring any new replacement component
from any foreign principal unless:
●There is no other reasonable means to acquire
such critical components or of addressing the
needs of the agency necessitating the purchase;
●An agreement for such acquisition is approved by
the Secretary of Administration after consulting with
the Adjutant General; and
●Failing to acquire such components or otherwise
address the agency’s need would pose a greater
threat to state safety and security than the risk
posed by acquiring the component.
6- 9 Definitions
“Country of concern” would mean the following
countries:
●People’s Republic of China, including the Hong
Kong Special Administrative Region;
●Republic of Cuba;
●Islamic Republic of Iran;
●Democratic People’s Republic of Korea (North
Korea);
●Russian Federation; and
●Bolivarian Republic of Venezuela.
The bill would exclude the Republic of China (Taiwan)
from the countries of concern definition.
For purposes of the Act, the definition would also include
any organization designated as a foreign terrorist
organization as of July 1, 2025, under federal law except as
changed by the Fusion Center Oversight Board.
[Note: Excluding terrorist organizations, the list of
countries of concern would not be subject to modification by
the Fusion Center Oversight Board.]
“Foreign principal” for purposes of the Act would mean:
●The government or any official of the government
of a country of concern;
●Any political party or any subdivision thereof, or
any member of a political party of a country of
concern;
7- 9 ●Any corporation, partnership, association,
organization, or other combination of persons
organized under the laws of or having its principal
place of business in a country of concern. The
definition would also include any subsidiary owned
or wholly controlled by any such entity;
●Any agent of or any entity otherwise under the
control of a country of concern;
●Any individual who is a citizen or resident in a
country of concern and who is not a citizen or
lawful permanent resident of the United States; or
●Any individual, entity, or combination described
above that has a controlling interest in any
company formed for the purpose of holding any
interest in real property.
“Foreign principal” for purposes of drone procurement
would mean:
●The government or any official of the government
of a country of concern;
●Any political party, or subdivision, or any member
of a political party of a country of concern;
●Any corporation, partnership, association,
organization, or other combination of persons
organized under the laws of or having its principal
place of business in a country of concern. The
definition would also include any subsidiary owned
or wholly controlled by any such entity;
●Any agent of or any entity otherwise under the
control of a country of concern;
8- 9 ●Any individual whose residence is in a country of
concern and who is not a citizen or lawful
permanent resident of the United States; or
Any individual, entity, or combination described above
that has a controlling interest in any company formed for the
purpose of manufacturing, distributing, transporting, or selling
critical components for drones and related services and
equipment.
“Military installation” would mean any land, buildings, or
other structures owned or controlled by any division of the
U.S. Department of Defense, Kansas National Guard, or any
other federal or state agency that is critical to the safety and
security of Kansas or the United States.
“Real property” would mean any real estate located
within Kansas except real property used exclusively as a
place of residence for human habitation.
An “interest in real property” would mean:
●Ownership interest in any parcel of real property
acquired by purchase, gift, grant, devise, bequest,
or other transfer of such interest;
●Ownership or other interest in any easement or
other right of egress onto or across any parcel of
real property;
●Ownership or other interest in any right to any oil,
gas, minerals, or water located on or under any
parcel of real property; and
●Any interest or right to possess or use any parcel
of real property acquired by the execution of a
lease, lease-purchase, or any other form of rental
agreement.
9- 9 “De minimis interest” would mean any interest in real
property that is:
●The result of ownership of registered securities in a
publicly traded company; and
●Such ownership is:
○Less than 10 percent of any class of
registered securities or less than 10 percent
of the aggregate registered securities of
multiple classes of securities; or
○A non-controlling interest in an entity that is
controlled by a company that is registered
with the U.S. Securities and Exchange
Commission as an investment adviser under
the federal Investment Advisers Act of 1940
and is not a foreign entity.
“Economic development incentive program” would
mean:
●Any economic development incentive program
administered wholly or in part by the Secretary of
Commerce;
●Any tax credit, except for social and domestic tax
credits, regardless of the administering state
agency;
●Property that has been exempted from ad valorem
taxation under the State’s constitution;
●Any economic development fund, including but not
limited to, the Job Creation Program Fund and the
Economic Development Initiatives Fund; and
●Any other economic development incentive
program that provides any form of tax credit,
abatement, or exemption or financial assistance
provided by or authorized by a governmental entity.
10- 9 “Social and domestic tax credits” would mean the
adoption credit, earned income tax credit, food sales tax
credit, child and dependent care tax credit, and the
homestead property tax refund credit.
“Tax credit” would mean any credit allowed against the
tax imposed by the Kansas Income Tax Act, the premium or
privilege fees imposed, or the privilege tax as measured by
net income of financial institutions.
“Critical component” would mean a component or
subcomponent that is a distinct and serviceable article and
the primary component of an identifiable process or
subprocess necessary to the recording, storing, or
transmitting of data or any other form of information. “Critical
component” would also include any software installed in a
drone or in any network device used to operate the drone.
“Drone” would mean an unmanned aircraft that is
controlled remotely by a human operator or that operates
autonomously through computer software or other
programming.
“Company” would mean any non-profit organization or
for-profit corporation, partnership, limited partnership, limited
liability partnership, limited liability company, joint venture,
trust, association, sole proprietorship, or other organization.
The definition would also include any:
●Subsidiary of such company when a majority
ownership interest of the subsidiary is held by the
company;
●Parent company that holds a majority ownership
interest of such company;
●Other affiliate or business association of such
company whose primary purpose is to make a
profit; and
11- 9 ●Representative agent of such company.
“Governmental agency” would mean the State or any
political or taxing subdivision of the State, or any related
office, agency, or instrumentality.
Background
The contents of SB 9, as passed by the Senate, were
replaced with amended versions of HB 2290 and HB 2293.
SB 9, as introduced by the Senate Committee on
Transportation at the request of Senator Bowers and passed
by the Senate, would have extended the time for land
surveyors to file certain public land survey reports with the
Secretary of the State Historical Society from 30 days to 90
days.
Senate Committee on Transportation
In the Senate Committee hearing, representatives of the
Kansas Society of Land Surveyors and Kansas State Board
of Technical Professions provided proponent testimony.
Proponents stated that the bill would allow surveyors to be
more efficient and effective.
Written-only proponent testimony was provided by a
representative of American Council of Engineering
Companies of Kansas. This proponent testimony stated that
the bill would bring the law into alignment with common
practices and changes in the practice of land surveying.
No other testimony was provided.
The Senate Committee recommended the bill be placed
on the Consent Calendar.
12- 9 House Committee on Commerce, Labor, and Economic
Development
In the House Committee hearing, the Committee
amended the provisions of HB 2290 pertaining to land
registration near military installations and the provisions of HB
2293 pertaining to drone procurement. The Committee
removed the contents of SB 9, inserted the contents of HB
2290 and HB 2293 and recommended a substitute bill.
HB 2290
The bill was introduced by the House Committee on
Commerce, Labor, and Economic Development at the
request of Representative Croft.
House Committee on Commerce, Labor, and Economic
Development
In the House Committee hearing, proponent testimony
was provided by Representative Croft and a representative of
State Armor Action. The proponents generally stated the bill
would protect Kansas infrastructure, security, and citizens.
Written-only proponent testimony was provided by a
representative of the Office of the Attorney General, a
representative of State Armor Action, and a private citizen.
Neutral testimony was provided by a representative of
Kansas Livestock Association. The testimony generally stated
the bill may disrupt certain agricultural industries.
Written-only opponent testimony was provided by a
representative of New Frontiers.
No other testimony was provided.
13- 9 HB 2293
The bill was introduced by the House Committee on
Commerce, Labor, and Economic Development at the
request of Representative Croft.
House Committee on Commerce, Labor, and Economic
Development
In the House committee hearing, proponent testimony
was provided by Representative Croft and representatives of
State Armor Action. The proponents generally stated the bill
would protect the State’s critical infrastructure and public
safety from threats posed by China.
Opponent testimony was provided by a representative
of the Lawrence Police Department which generally stated
the bill would limit future drone equipment purchases to
inadequate or more expensive adequate equipment.
Written-only opponent testimony was provided by
representatives of the Pawnee County Sheriff’s Office and
Salina Police Department
No other testimony was provided.
Fiscal Information
The fiscal note provided by the Division of the Budget on
the bill as introduced is not applicable to the House substitute
bill.
HB 2290
According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, the Office of the Attorney
General states that it would require $822,657 in FY 2026 and
$838,789 for FY 2027 from the State General Fund (SGF) to
14- 9 perform the responsibilities required under the bill. Of the
amount for FY 2026, $63,755 would be for 1.00 Legal
Assistant position, $60,839 would be for 1.00 Investigator
position, $133,905 would be for 1.00 Assistant Attorney
General position, $500,000 would be for litigation costs, and
$64,158 would be for operating expenditures. For FY 2027,
the agency estimates a 5.0 percent increase of expenditures
above FY 2026 amounts.
The Office of Judicial Administration states that the bill
could increase the number of cases filed in district court
because the bill allows the Attorney General to bring a court
action. This would increase the time spent by district court
judicial and nonjudicial personnel in processing, researching,
and hearing cases. The bill could also increase the collection
of docket fees that would be deposited into the SGF.
However, the Office cannot determine a precise fiscal effect
of the bill.
The Department of Commerce, the Adjutant General,
and the Department of Revenue all state that the bill would
not have a fiscal effect on agency operations. However, the
Department of Revenue states that any foreign principals
currently receiving benefits from an economic development
program would no longer receive those benefits upon
enactment, which could increase SGF revenues by an
unknown amount.
Kansas State University states that it would require
$17,015 from the SGF starting in FY 2026. The amount
includes $10,465 for 0.08 Extension Assistant position and
$6,550 for 0.05 Faculty Member position to prepare, review,
and submit the annual report.
Any fiscal effect associated with enactment of HB 2290
is not reflected in The FY 2026 Governor’s Budget Report.
15- 9 HB 2293
According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, the Kansas Department
of Transportation indicates that most of the drones it currently
uses comply with the provisions of the bill. However,
enactment of the bill would require the agency to replace six
drones, which would require an increase of $110,000 to the
expenditure limitation of the agency operations account in FY
2026. The Department states that the bill would require the
agency to ensure that critical components of drones are
sourced through firms that are not from countries of concern
or foreign principals, and if critical components are not able to
be acquired, the aircraft would have to be grounded.
The Highway Patrol states there would be no fiscal
effect to agency operations if the bill is enacted.
Any fiscal effect associated with enactment of HB 2293
is not reflected in The FY 2026 Governor’s Budget Report.
The League of Kansas Municipalities states enactment
of the bill would have a fiscal effect on cities because of
software upgrades. The Kansas Association of Counties
indicates enactment of the bill could have a fiscal effect on
counties if they need to replace drones that they currently
own. However, neither organization can estimate a fiscal
effect.
Country of concern; foreign principal; drone; real property; military installation;
Fusion Center Oversight Board
16- 9