Issue 18 - 04-30-2026 | Kansas Legislature

Volume 45 - Issue 18- April 30, 2026

State of Kansas

Secretary of State

Certification of New State Laws

I, Scott Schwab, Secretary of State of the State of Kansas, do hereby certify that the following bill is a correct copy of the original enrolled bill now on file in my office.

Scott Schwab
Secretary of State

(Published in the Kansas Register April 30, 2026.)

House Bill No. 2466

An Act concerning economic development; enacting the Kansas sports authority act to establish a sports authority to provide for the construction, financing and management of certain sports facilities and sports facility infrastructure and create venues for professional sports and other events; requiring members of the authority to submit to a state and national criminal history record check; authorizing STAR bond projects in major amusement park areas; permitting additional STAR bond districts where a major professional sports complex STAR bond district previously existed; clarifying geographic areas from which STAR bond revenues may be pledged; clarifying the length of time that revenues may be captured within a STAR bond project area; permitting cities or counties to pledge community improvement district or transportation development district revenues for the payment of STAR bonds; clearly establishing the authority of the secretary to set or modify STAR bond project district and STAR bond project areas without effect on local revenue pledges with respect to a major professional sports complex STAR bond district; permitting cities and counties, upon the request of the secretary, to modify their pledge area for a major professional sports complex STAR bond district; extending the expiration date of the STAR bonds financing act by prohibiting new STAR bond district approvals after July 1, 2031; clarifying the definition of a STAR bond project area; permitting the secretary to approve applications for STAR bond project financing more than one year after a STAR bond district has been established; condensing city, county and department of commerce notice, posting and reporting requirements; requiring a reset of the base year revenue for purposes of financing new STAR bonds in certain circumstances; clarifying that revenues from the attracting professional sports to Kansas fund may be used to pay management, operations and other costs of a professional sports team’s primary facility; authorizing STAR bond projects in certain counties located in certain metropolitan statistical areas as rural redevelopment projects; setting certain visitor origin requirements and requiring certain enforcement by the secretary against developers that fail to meet such requirements; requiring the secretary to make certain information concerning STAR bond projects publicly available on the website of the department of commerce; prohibiting state general fund moneys from being pledged for the repayment of any special obligation bond issued by a city or county to finance a STAR bond project; prohibiting a city or county from using eminent domain to acquire real property for a STAR bond project; requiring the secretary to add to the secretary’s annual report information regarding business movement into and out of STAR bond districts and local sales tax revenues lost as the result of such movement; amending K.S.A. 12-17,160, 12-17,166, 12-17,172 and 12-17,179 and K.S.A. 2025 Supp. 12-17,162, 12-17,164, 12-17,169, 22-4714 and 74-8793 and repealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

New Section 1. (a) Sections 1 through 8, and amendment thereto, shall be known and may be cited as the Kansas sports facilities authority act.

(b) The purpose of the act is to provide for the construction, financing, management and long-term use of sports facilities and sports facility infrastructure as venues for professional sports and a broad range of other civic, community, athletic, educational, cultural and commercial activities. The legislature finds that the expenditure of public money for this purpose is necessary, serves a public purpose and promotes the general welfare, and that property acquired by the Kansas sports facilities authority for the construction of sports facilities and sports facilities infrastructure is acquired for a public use and serves a public purpose. The legislature further finds that any provision in a lease or use agreement with a professional sports team that requires such team to play substantially all of its home games in a publicly funded sports facility for the duration of the lease or use agreement serves a unique public purpose for which enforcement is essential through the remedies of specific performance and injunctive relief.

New Sec. 2. As used in this act:

(a) “Act” means the Kansas sports facilities authority act.

(b) “Appointee” means a person who has been appointed to the authority pursuant to this act.

(c) “Appointing authority” means the person or entity required to make an appointment to the authority pursuant to this act.

(d) “Authority” means the Kansas sports facilities authority established under section 3, and amendments thereto.

(e) “Professional sports” means the national football league.

(f) “Professional sports team” means an organization that is a franchised member of the national football league engaged in the business of professional American football.

(g) “Sports facility” means, as designed, constructed, financed or managed pursuant to this act, a stadium, arena, field or other similar structure, including a practice facility for a professional sports team or a professional sports team headquarters building, and any enclosed or open-air entertainment or event venue, including, but not limited to, a recreational venue such as a ballpark, that is physically connected to or integrated with such facility and intended to support, complement or enhance the use, operation or fan experience of the sports facility.

(h) “Sports facility infrastructure” means plazas, walkways, landscaping, lighting, fencing, security infrastructure, parking facilities and structures, roadway and access improvements, including, but not limited to, streets, sidewalks, rights-of-way, intersections, medians, ramps, connectors, skyways and tunnels and other improvements intended to support pedestrian or vehicular circulation, utilities, including, but not limited to, water, sanitary sewer, storm sewer, electrical, gas, telecommunications, fiber and related distribution systems and other such property, facilities and improvements, owned by the authority or determined by the authority to facilitate the use and development of a sports facility pursuant to this act.

New Sec. 3. (a) (1) The Kansas sports facilities authority is established as a body corporate and politic and a political subdivision of the state. The authority is not an agency or instrumentality of any city or county. Any obligation, liability or debt of the authority shall constitute an obligation, liability or debt only of the authority and shall not constitute a liability or obligation of the state of Kansas or 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.

(2) Before the appointment of any person as a member of the authority, the appointing authority shall require such person to be fingerprinted and submit to a state and national criminal history record check in accordance with K.S.A. 2025 Supp. 22-4714, and amendments thereto.

(3) The Kansas bureau of investigation shall remain in custody and control of the criminal history record check information obtained pursuant to this section. The bureau shall allow only the appointing authority, the majority and minority leaders of the house of representatives and the majority and minority leaders of the senate to view such criminal history record check information.

(b) The authority shall consist of 11 voting members, including, as provided by subsection (d), two members who may be appointed by the mayors of cities where a sports facility is located and nine members who are legal residents of the state of Kansas and have relative education, training and experience related to facility administration, accounting, law, marketing or other pertinent fields, as follows:

(1) One member appointed by the governor. Each such member shall serve until a sucessor is appointed and takes office;

(2) one member appointed by the president of the senate. Each such member shall serve until a successor is appointed and takes office;

(3) one member appointed by the senate majority leader. Each such member shall serve until a successor is appointed and takes office;

(4) one member appointed by the senate minority leader. Each such member shall serve until a successor is appointed and takes office;

(5) one member appointed by the speaker of the house of representatives. Each such member shall serve until a successor is appointed and takes office;

(6) one member appointed by the house of representatives majority leader. Each such member shall serve until a successor is appointed and takes office;

(7) one member appointed by the house of representatives minority leader. Each such member shall serve until a successor is appointed and takes office;

(8) the secretary of commerce or acting secretary of commerce who shall serve at the pleasure of the governor; and

(9) a representative of the professional sports team that plays its games in the sports facility owned by the authority appointed by the professional sports team. Each such member appointed by the professional sports team shall serve until a successor is appointed and takes office.

(d) (1) The mayors of up to two cities where a sports facility of the authority is located may each appoint a member, that may be themselves, to the authority if:

(A) Such city passes an ordinance electing to participate in a STAR bond project as defined in K.S.A. 12-17,162(aa)(2), and amendments thereto;

(B) such participation is not withdrawn, repealed, terminated or rendered ineffective; and

(C) such city’s pledge of applicable local sales, use or transient guest tax revenue is not conditioned in a manner that:

(i) Limits or restricts the secretary’s authority to establish or modify a STAR bond project district as defined in K.S.A. 12-17,162(cc)(2), and amendments thereto, for purposes of pledging state revenues;

(ii) provides for termination or reduction of such local pledge based on actions taken by the secretary with respect to the establishment, modification or scope of a STAR bond project district as defined in K.S.A. 12-17,162(cc)(2), and amendments thereto, or the pledge of state revenues; or

(iii) conflicts with the terms and conditions set forth in the STAR bond agreement dated December 22, 2025, and executed by the Kansas city chiefs football club, inc. and the state of Kansas.

(2) Such membership shall be expressly conditioned upon the continued satisfaction of the requirements set forth in subparagraphs (1)(A), (B) and (C) above.

(3) In the event of the self appointment by a mayor to the authority, the governing body of such mayor’s city shall select a member of such governing body as the appointing authority for purposes of review of the criminal history record check as required by subsection (a)(2).

(e) Members of the authority may be compensated as provided by K.S.A. 75-3223, and amendments thereto, including a paid per diem and mileage reimbursement.

(f) The chairperson of the authority shall be elected by a majority of the voting members of the authority for a four-year term. The chairperson shall preside at all meetings of the authority, if present, and perform all other assigned duties and functions. The authority may appoint from among its voting members a vice chairperson to act for the chairperson during the temporary absence or disability of the chairperson and any other officers the authority determines are necessary or convenient.

(g) Each member of the authority shall serve at the pleasure of the entity or holder of the office authorized to appoint such member, including any new holder of such office.

(h) The authority shall adopt bylaws to establish rules of procedure, the powers and duties of its officers and other matters relating to the governance of the authority and the exercise of its powers.

(i) The authority shall engage a third-party independent auditor to audit the books and accounts of the authority annually. The authority shall engage a different independent auditor every three years to conduct such audit.

(j) The authority may appoint an executive director to serve as the chief executive officer of the authority. Such executive director shall serve at the pleasure of the authority and shall receive compensation as determined by the authority and approved by the state finance council acting on this matter, which is hereby characterized as a matter of legislative delegation and subject to the guidelines prescribed by K.S.A. 75-3711c(c), and amendments thereto. Such compensation for the executive director shall be paid from rents paid to the authority by the professional sports team that plays its games in the sports facility owned by the authority. No public funds shall be used for compensation for the executive director. As prescribed and directed by the authority, the executive director shall be responsible for the operation, management and promotion of activities of the authority. The executive director shall have such powers necessarily incident to the performance of the executive director’s duties and such powers granted by the authority, except that the executive director shall not have authority to incur liability or make expenditures on behalf of the authority without general or specific direction by the authority evidenced by the authority’s bylaws or minutes of a meeting of the authority.

(k) The authority may authorize additional employees. The executive director shall be responsible for hiring, supervision and dismissal of all other employees of the authority.

(l) The authority shall establish a website for purposes of providing information to the public concerning all actions taken by the authority. At a minimum, the website shall contain a current version of the authority’s bylaws, notices of upcoming meetings, minutes of the authority’s meetings and a telephone number and email address for public comments.

(m) Any seven voting members shall constitute a quorum for the conduct of business. Action may be taken upon the vote of a majority of members present at a meeting duly called and held.

(n) The authority shall be subject to the provisions of the open meetings act and the open records act. In the event that immediate action is required for which a meeting cannot be timely convened, then notwithstanding the provisions of the Kansas open meetings act, K.S.A. 75-4317, et seq., and amendments thereto, the authority may act by written consent, signed by all voting members, whose consent shall have the same effect as a unanimous action taken at a meeting of the authority duly called and held with a quorum present. The unanimous written consent and any attachments thereto shall be subject to the Kansas open records act, K.S.A. 45-215, et seq., and amendments thereto, and shall be posted on the authority’s website as soon as practicable after such action is taken.

New Sec. 4. (a) Any sports facility or sports facility infrastructure constructed or acquired by the authority shall be a part of the authority.

(b) Except as provided in subsection (c), any other sports facility may be acquired as a part of the authority upon satisfaction of the following factors and approval of the authority:

(1) The governing body, whether a public or private entity, of the sports facility has made a request to the authority to become a sports facility that is a part of the authority;

(2) such governing body and the authority have negotiated an agreement with respect to the transfer by the governing body to the authority of all obligations and responsibilities pertaining to such sports facility, including, but not limited to, outstanding debt, revenue sources, finance, funding, management, operations, equipment, repair and replacements, capital improvements, reserves, contracts and agreements;

(3) if separate entities, such governing body and the professional sports team that is the primary user of such sports facility have made a joint recommendation to the authority that such sports facility become a part of the authority;

(4) the authority finds that the inclusion of such sports facility in the authority will not have a negative impact on the authority or the state general fund or become an obligation of the state of Kansas; and

(5) such governing body shall have provided any other information and met any additional requirements requested by the authority.

(c) Nothing in this act shall authorize the authority to enter into any contract, agreement or business relationship with any other professional sport or franchise other than a professional sports team that is a franchised member of the national football league engaged in the business of professional American football. Any such action taken by the authority in violation of the provisions of this act is null and void.

New Sec. 5. (a) The authority is a body corporate and politic and a political subdivision of the state of Kansas. The authority may exercise and hold the duties, privileges, immunities, rights and liabilities and disabilities of an authority of the state and as a body corporate and a political instrumentality of the state. The authority may sue and be sued. Any obligation, liability or debt of the authority shall constitute an obligation, liability or debt only of the authority and shall not constitute an obligation or liability of the state of Kansas or 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.

(b) (1) (A) The authority may acquire from any public or private entity by lease, purchase, gift or devise all necessary right, title and interest in and to real property, air rights and personal property deemed necessary for the purposes of this act.

(B) Any such property referenced under this act that is owned, acquired or otherwise used by the authority shall be deemed exclusively used for state purposes within the meaning of article 11 § 1(b) of the constitution of the state of Kansas.

(C) The authority shall be exempt from any property or general ad valorem taxes levied under the laws of the state of Kansas upon any property of the authority acquired and used for a sports facility or sports facility infrastructure and upon any other property of the authority used for the authority’s public purposes and from any taxes or assessments upon any projects or operations of the authority. The authority shall be exempt from any taxes or assessments upon any project, property or local obligation acquired or used by the authority under the provisions of this act.

(2) The authority may sell, lease or otherwise dispose of any real or personal property acquired by the authority that is no longer required for the accomplishment of the authority’s purposes.

(c) (1) The authority may develop, construct, equip, improve, own, operate, manage, maintain, finance and control sports facilities, related sports facility infrastructure and related facilities constructed or acquired pursuant to this act, or may delegate such duties through an agreement, subject to the rights and obligations transferred to and assumed by the authority, a professional sports team, other user, third-party manager or program manager, under the terms of a lease, use agreement or development agreement.

(2) When purchasing construction, repairs, supplies, equipment, furniture, furnishings, fixtures or contractual services, the authority and the authority’s contractors and agents shall utilize competition among contractors and vendors to the extent reasonable and practicable under the circumstances, to be determined in the sole discretion of the authority and to such extent shall not be subject to the competitive bidding requirements of K.S.A. 75-3739, 75-37,102 or 75-37,132, and amendments thereto.

(3) All sales of tangible personal property or services purchased for the purpose of and in conjunction with the constructing, equipping or furnishing of a sports facility or sports facility infrastructure by the authority shall be exempt from the tax imposed by the Kansas retailers’ sales tax act and the Kansas compensating tax act and not be subject to sales or use tax imposed by the state, any county, city, town, public corporation or agency or subdivision or instrumentality thereof. When a person contracts for the construction, equipping or furnishing of any such sports facility or sports facility infrastructure, such person shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials, machinery and equipment for incorporation in such project. The contractor shall furnish the number of such certificates to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering such purchases bearing the number of such certificates. Upon completion of the project, the contractor shall furnish to the authority a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this paragraph. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. Any contractor or any agent, employee or subcontractor thereof who uses or otherwise disposes of any materials, machinery or equipment purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed thereon shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to the penalties provided for in K.S.A. 79-3615(h), and amendments thereto. Upon repayment in full of all bonds issued to finance any sports facility and any sports facility infrastructure pursuant to the STAR bond agreement dated December 22, 2025, between the state of Kansas and the Kansas city chiefs football club, inc., in an aggregate principal amount equal to the maximum amount authorized to finance such sports facility and sports facility infrastructure under such agreement, the sales and use tax exemptions authorized under this subsection shall automatically terminate.

(4) The authority may, but shall not be required to, consult with local governments regarding the planning and development of authority projects, except that no such consultation shall confer approval authority or regulatory jurisdiction on any city, county, township or other political subdivision of the state. The provisions of K.S.A. 75-3741c(a), and amendments thereto, related to state capital improvement projects shall apply to projects of the authority.

(d) (1) The authority may employ persons, contract for services, including legal services, and utilize employees and consultants retained by other governmental entities as necessary to carry out the authority’s functions. The authority may enter into agreements with other governmental entities or third parties necessary to accomplish the purposes of this act.

(2) The provisions of the retail electric suppliers act, K.S.A. 66-1,170, et seq., and amendments thereto, shall not apply to the provision of electric service to the authority. The authority shall have the power to negotiate or otherwise obtain utility and energy services, but the authority shall be required to obtain electric service from a retail electric provider, as defined in the retail electric suppliers act, that already provides electric service in one or more certified territories in Kansas. The provision or receipt of such utility and energy services shall not be subject to any fee or exactions imposed by local ordinance.

(e) The authority may accept monetary contributions, pledges of revenues, property, services and grants or loans of money or other property from any source, including, but not limited to, the state, any subdivision of the state, any agency of those entities or any person for any of its purposes, and may enter into any agreement required in connection with the gifts, grants or loans. The authority shall hold, use and dispose of the money, property or services according to the terms of the monetary contributions, grant, loan or agreement.

(f) The authority may lease, license or enter into use agreements and may fix, alter, charge and collect rents, fees, including seat licensing fees, and charges for the use, lease, license, occupation and availability of part or all of any premises, property or facilities under the authority’s ownership, operation or control for purposes that will provide athletic, educational, cultural, commercial or other entertainment, instruction or activity for the citizens of Kansas and visitors. The use agreements may provide that the other contracting party has exclusive use of the premises at the times agreed upon, as well as the right to retain some or all revenues from ticket sales, suite licenses, personalized seat licenses, concessions, advertising, naming rights, professional sports team designated broadcast or media, club seats, signage and other revenues derived from a sports facility. The authority may contract with a professional sports team or other third party to collect any such revenue on behalf of the authority.

(g) Any agreement by the authority for the lease, license, use or management of a sports facility or sports facility infrastructure shall require the lessee, licensee, user or manager to be responsible for all liabilities and obligations arising out of the use, occupancy, operation, management or control of the sports facility or sports facility infrastructure, except as expressly provided otherwise in such agreement. No such agreement shall create an obligation of the state of Kansas, liability against the state of Kansas or 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.

(h) The authority may procure insurance in the amounts the authority considers necessary against liability of the authority or its officers and employees for personal injury or death and property damage or destruction and against risks of damage to or destruction of any of its facilities, equipment or other property. Any agreement by the authority for the lease, license, use or management of a sports facility or sports facility infrastructure shall require the lessee, licensee, user or manager to be responsible for providing, at their sole cost and expense, insurance coverage in the types and amounts consistent with professional sports industry standards. The authority shall be named as an additional insured on any such insurance coverage.

(i) The authority is hereby authorized to fix, charge and collect fees or rents in order to recover all or part of the operating expenses incurred in carrying out its functions.

(j) In addition to the powers expressly granted in this act and provided that the exercise of such powers does not conflict with any agreement between the authority and the professional sports team, the authority shall have all powers necessary or incidental thereto, including, but not limited to, the following:

(1) To make grants of money to other public or private persons and any organization that is described in section 501(c)(3) of the federal internal revenue code of 1986, as amended, or any corresponding provision of any future revenue law;

(2) notwithstanding any other provision of law relating to the investment of state moneys or interest thereon, to receive, hold, use, deposit, withdraw, invest, expend and manage all funds and moneys of the authority, including interest thereon, from any source;

(3) to deposit any moneys of the authority in any banking institution within or without the state or in any depository authorized to receive such deposits, with one or more persons to act as custodians of the moneys in each respective depository, and to give surety bonds in such amounts in the form and for such purposes as the authority requires; and

(4) to enter into such contracts, agreements, joint ventures, partnerships, options, leases, loan agreements, deeds and other instruments with public and private entities and take such other actions as may be necessary or convenient to accomplish any purpose for which the authority is organized or exercise any power expressly granted hereunder.

(k) Notwithstanding any other provision of law to the contrary, the authority and its members, directors, employees and agents shall be subject to and covered by the Kansas tort claims act, K.S.A. 75-6101 et seq., and amendments thereto. The purchase of insurance, participation in an insurance plan or creation of a self-insurance fund by the authority shall not be deemed to be a waiver or relinquishment of any sovereign immunity to which the authority or its directors, employees or agents are otherwise entitled.

(l) (1) Commencing on January 15, 2027, and on or before January 15 of each year thereafter, the authority shall provide a written report to the legislative coordinating council, the senate committee on commerce and the house of representatives committee on commerce, labor and economic development. Such report shall include, at the level of detail as requested by the respective committee or chairperson thereof:

(A) (i) The current status of the sports facility and sports facility infrastructure;

(ii) actions and operations of the authority during the previous year with respect to the acquisition, construction and development of the sports facility or sports facility infrastructure; and

(iii) the projected construction and development of the sports facility and sports facility infrastructure and planned operations and actions of the authority in the current year ahead;

(B) any other actions of the authority undertaken pursuant to the provisions of this act; and

(C) any other information pertaining to the status, actions, activities and operations of the authority requested by the respective committee or chairperson thereof.

(2) At the request of any such committee, the chairperson and executive director of the authority shall appear before such committee and provide testimony regarding the report.

(m) Any lease or use agreement between the authority and a professional sports team shall provide for the disposition of the sports facility upon expiration or nonrenewal of the agreement and relocation of the team outside the state in a manner that ensures the authority shall have no ongoing financial obligation, liability or maintenance responsibility. Such provisions may include, but not be limited to:

(1) Conveyance of the sports facility and related improvements to the professional sports team, with the team assuming all costs, liabilities and obligations associated therewith; or

(2) payment by the professional sports team of the reasonable costs of demolition of the primary stadium structure.

New Sec. 6. (a) Sports facilities under this act shall be operated in a first-class manner, similar to and consistent with other comparable sports facilities of the same kind.

(b) The authority and the professional sports team shall agree to minimum annual sports facility utilization requirements by the state and its designees in order to host noncompeting community events, subject to sports facility availability for which the professional sports team shall have scheduling priority.

New Sec. 7. The authority shall be exempt from the following laws, unless otherwise provided for in this act:

(a) K.S.A. 12-1675 through 12-1677, and amendments thereto;

(b) K.S.A. 75-1250 through 75-1270, and amendments thereto;

(d) K.S.A. 75-6601 through 75-6607, and amendments thereto;

(e) K.S.A. 77-501 through 77-550, and amendments thereto;

(f) K.S.A. 75-3739 through 75-3740, and amendments thereto; and

(g) K.S.A. 75-37,102 and 75-37,132, and amendments thereto.

New Sec. 8. (a) This act shall be liberally construed. Nothing contained herein is or shall be construed as a restriction or limitation upon any powers that the authority might otherwise have under any other law of this state, and the provisions of this act are cumulative to such powers. The provisions hereof shall be construed to provide a complete, additional and alternative method for the doing of the things authorized hereby and shall be regarded as supplemental and additional to any other laws. It is the intent of the legislature to grant the authority all powers necessary and convenient to develop, construct, acquire and operate sports facilities and sports facility infrastructure in furtherance of the public purpose of providing state-owned and operated venues for the economic, cultural and recreational benefit of the citizens of the state. In carrying out such purposes, the authority shall be deemed to be a political subdivision of the state performing essential governmental functions. Insofar as the provisions of this act are inconsistent with the provisions of any other law, whether general, specific or local, the provisions of this act shall be controlling. Notwithstanding anything in this act to the contrary, the powers granted to the authority shall not be exercised in a way that conflicts with the terms and conditions set forth in the STAR bond agreement dated December 22, 2025, and executed by the Kansas City chiefs football club, inc. and the state of Kansas. Notwithstanding anything in this act to the contrary, nothing in this subsection or this act shall be construed so as to authorize, permit or provide any obligation, liability or debt of the authority to be an obligation, liability or 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.

(b) The provisions of this act are severable. If any portion of the act is declared unconstitutional or invalid, or the application of any portion of the act to any person or circumstance is held unconstitutional or invalid, the invalidity shall not affect other portions of the act that can be given effect without the invalid portion or application, and the applicability of such other portions of the act to any person or circumstance shall remain valid and enforceable.

Sec. 9. K.S.A. 12-17,160 is hereby amended to read as follows: 12-17,160. It is hereby declared to be the purpose of this act to promote, stimulate and develop the general and economic welfare of the state of Kansas and its communities and to assist in the development and redevelopment of eligible areas within and without a city thereby promoting the general welfare of the citizens of this state, through tourism by authorizing cities and counties to acquire certain property and to issue sales tax and revenue (STAR) bonds for the financing of STAR bond projects as defined in K.S.A. 12-17,162, and amendments thereto. It is further found and declared that the powers conferred by this act are for a public purpose and public use for which public money may be expended ~~and the power of eminent domain may be exercised~~. The necessity in the public interest for the provisions of this act is hereby declared as a matter of legislative determination.

Sec. 10. K.S.A. 2025 Supp. 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 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.

(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 amusement park area, major tourism area, major motorsports complex, auto race track facility, river walk canal facility, major multi-sport athletic complex, major business facility, 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 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 K.S.A. 2025 Supp. 12-17,181, 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 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.

(r) “Market impact study” means a study to measure the impact of the proposed project on similar businesses in the project’s market area.

(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.

(t) “Project” means a STAR bond project.

(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;

(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

(22) except as specified in paragraphs (1) through (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;

(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.

(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.

(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.

(x) “Rural redevelopment project” means a project that will enhance the quality of life in the community and the region and is in:

(1) An area outside of a metropolitan area with a population of more than 50,000, that is of regional importance, and with capital investment of at least $3,000,000 ~~and that will enhance the quality of life in the community and region~~; or

(2) a county with a population under 100,000 within the Kansas City or Wichita metropolitan statistical areas, of regional importance and with capital investment of at least $3,000,000.

(y) “Sales tax and revenue” ~~are those~~ means revenues that are available to finance the issuance of special obligation bonds as identified in K.S.A. 12-17,168, and amendments thereto.

(z) “STAR bond” means a sales tax and revenue bond.

(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:

(A) (i) Has at least a $75,000,000 capital investment and $75,000,000 in projected gross annual sales; or

(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

(B) for areas outside of metropolitan areas with a population of more than 50,000, the secretary finds the project:

(i) Is an eligible area as defined in subsection (f); and

(ii) would be of regional or statewide importance;

(D) is a major motorsports complex, as defined in subsection (l); or

(E) is a rural redevelopment project as defined in subsection (x); or

(2) a project approved or pursuant to an authorized agreement as provided by K.S.A. 2025 Supp. 12-17,181, 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.

(bb) “STAR bond project area” means the geographic area within the STAR bond project district, in which there may be one or more projects or which facilitates the development of one or more projects.

(cc) “STAR bond project district” means:

(1) (A) 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 STAR bond financing on or before November 1, 2007.

(B) No STAR bond project district shall include real property which has been part of another STAR bond project district unless ~~such~~:

(i) 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; or

(ii) such prior STAR bond project district was established pursuant to paragraph (2) relating to a major professional sports complex.

(C) A STAR bond project district as defined pursuant to this paragraph 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~~ STAR bond project; or

(2) the specific area approved or pursuant to an authorized agreement as provided by K.S.A. 2025 Supp. 12-17,181, 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.

(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.

(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 K.S.A. 2025 Supp. 12-17,181, and amendments thereto.

(ff) “Secretary” means the secretary of commerce.

(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.

(hh) “Tax increment” means:

(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~~ one or more STAR bond project areas 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 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).

(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.

(jj) “Major amusement park area” means an area containing a STAR bond project with amusement rides. “Amusement ride” includes:

(A) Buildings necessary to house and operate such amusement park rides, buildings immediately adjacent and attached to such amusement park rides and a building necessary to house a conference center within the major amusement park area; and

(B) attractions that allow for visitors to enjoy an interactive experience with licensed intellectual property. Such attractions shall be at least 25,000 square feet and have the capacity to draw over 100,000 people per year.

Sec. 11. K.S.A. 2025 Supp. 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 K.S.A. 2025 Supp. 12-17,181, 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 K.S.A. 2025 Supp. 12-17,181, 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 resolution shall be passed not later than 60 days after the date of approval by the legislative coordinating council of the agreement pursuant to K.S.A. 2025 Supp. 12-17,181, 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). The secretary’s authority to proceed after such 60-day period without the city or county’s participation shall not prohibit such city or county from subsequently participating in the STAR bond project, subject to the approval of the secretary. The ordinance or resolution of a city or county adopted for the purpose of electing to participate in a STAR bond project as provided by this paragraph shall not be subject to amendment, except that upon a written request from the secretary and a finding by the secretary that an amendment to such ordinance or resolution is necessary to carry out the purposes of the STAR bond project plan adopted for such project, the governing body of a city or county may amend such ordinance or resolution. No additional public hearing by the governing body of the city or county shall be required.

(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, and the establishment or modification of STAR bond project areas therein, except that no public notice or hearings shall be required and no such changes or modifications to the STAR bond project district or STAR bond project areas shall affect or modify the participation of any city or county, including the pledge of any city or county revenues or the boundaries of the area within which such city or county revenues are pledged as a source of repayment of STAR bonds issued by the Kansas development finance authority unless approved by the city or county as provided by paragraph (1)(B). 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 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 K.S.A. 2025 Supp. 12-17,181, 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 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 and the revenues described by K.S.A. 12-17,169(a), and amendments thereto, shall not be collected in any STAR bond project area for a term exceeding 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 and the revenues described by K.S.A. 12-17,169(a), and amendments thereto, shall not be collected in any STAR bond project area for a term exceeding 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.

(i) (1) For STAR bond projects approved on and after July 1, 2026, prior to approving a STAR bond project, the secretary shall establish project-specific visitation goals for visitors from a distance of at least 100 miles and from outside the state, consistent with department of commerce guidelines and taking into account the nature, scale, location and phasing of the project. The secretary shall track visitation as provided by K.S.A. 12-17,166, and amendments thereto, and shall include in the secretary’s annual report to the legislature the method of visitor origin tracking and aggregate visitation data, if available. Visitor tracking data shall be collected in the aggregate without personal identification information.

(2) For such projects for which STAR Bonds have been issued, commencing with the fifth calendar year following the year in which STAR bonds are initially issued, the secretary shall monitor available visitation data in relation to the visitation goals established pursuant to paragraph (1) on an annual basis. If the secretary determines that a STAR bond project is meeting the applicable visitation goal, the secretary may conclude such review. If the secretary determines that a STAR bond project is not meeting the applicable visitation goals, the secretary shall review visitation performance and discuss reasonable strategies with the developer to increase visitation at the developer’s cost, which may include marketing efforts, programming adjustments or other appropriate measures. No outstanding, series, or any further or additional STAR bonds shall be issued for such STAR bond project unless the secretary approves such issuance upon a finding that the developer has addressed any visitation performance issues, including any adoption of reasonable strategies to increase visitation at the developer’s cost, to the secretary’s satisfaction. The secretary shall include a summary of such monitoring and any such review, discussion and actions taken with a developer in the secretary’s annual report to the legislature.

Sec. 12. K.S.A. 12-17,166 is hereby amended to read as follows: 12-17,166. (a) One or more projects may be undertaken by a city or county within an established STAR bond project district upon submission of the project plan to the secretary of commerce and approval by the secretary as provided by K.S.A. 12-17,164, and amendments thereto. Any city or county proposing to undertake a STAR bond project shall prepare a STAR bond project plan in consultation with the planning commission of the city, and in consultation with the planning commission of the county, if any, if such project is located wholly outside the boundaries of the city. Any such project plan may be implemented in separate development stages.

(b) Any city or county proposing to undertake a STAR bond project within a STAR bond project district established pursuant to K.S.A. 12-17,165, and amendments thereto, shall prepare a feasibility study to be conducted by one or more consultants selected and approved by the secretary, and the costs shall be paid by the developer or the city or county. The secretary shall have control and oversight authority over the scope, conduct and methodology of the study. The secretary may establish a list of preapproved consultants and approved study parameters and methods. The feasibility study shall contain the following:

(1) Whether a STAR bond project’s revenue and tax increment revenue and other available revenues under K.S.A. 12-17,169, and amendments thereto, are expected to exceed or be sufficient to pay for the project costs;

(2) the effect, if any, a STAR bond project will have on any outstanding special obligation bonds payable from the revenues described in K.S.A. 12-17,169, and amendments thereto;

(3) a statement of how the jobs and taxes obtained from the STAR bond project will contribute significantly to the economic development of the state and region;

(4) visitation expectations and a plan describing how the number of visitors to the STAR bond project district will be tracked and reported to the secretary on an annual basis. Such plan shall include, but not be limited to, obtaining and reporting visitor residence zip code data to the secretary. All businesses located in the STAR bond district shall provide visitor residence data requested by the secretary. Any such data shall be provided in an aggregate manner without personally identifiable information;

(5) the unique quality of the project;

(6) economic impact study, including the anticipated effect of the project on the regional and statewide economies;

(7) market study;

(8) market impact study;

(9) integration and collaboration with other resources or businesses;

(10) the quality of service and experience provided, as measured against national consumer standards for the specific target market;

(11) project accountability, measured according to best industry practices;

(12) the expected return on state and local investment that the project is anticipated to produce;

(13) a net return on investment analysis;

(14) a statement concerning whether a portion of the local sales and use taxes are pledged to other uses and are unavailable as revenue for the STAR bond project. If a portion of local sales and use taxes is so committed, the applicant shall describe the following:

(A) The percentage of city and county sales and use taxes collected that are so committed; and

(B) the date or dates on which the city and county sales and use taxes pledged to other uses can be pledged for repayment of bonds;

(15) an anticipated principal and interest payment schedule on the bond issue;

(16) a summary of community involvement, participation and support for the STAR bond project; and

(17) a full disclosure and description of all state, federal and local tax incentives that apply or, pursuant to the project plan, are anticipated to apply within the STAR bond district or that apply to any business located in or, pursuant to the project plan, that will locate in the district.

The failure to include all information enumerated in this subsection in the feasibility study for a STAR bond project shall not affect the validity of bonds issued pursuant to this act.

(1) A summary of the feasibility study done as defined in subsection (b);

(2) a reference to the district plan established under K.S.A. 12-17,165, and amendments thereto, that identifies the project area that is set forth in the project plan that is being considered;

(3) a description and map of the project area to be redeveloped;

(4) the relocation assistance plan as described in K.S.A. 12-17,172, and amendments thereto;

(5) a detailed description of the buildings and facilities proposed to be constructed or improved in such area;

(6) the names of the owners, partners, officers or principals of any developer of the project and of any associated business partner of any developer of the project that is involved in the STAR bond project; and

(7) any other information the governing body of the city or county deems necessary to advise the public of the intent of the project plan.

(d) A copy of the STAR bond project plan prepared by a city shall be delivered to the board of county commissioners of the county and the board of education of any school district levying taxes on property within the STAR bond project area. A copy of the STAR bond project plan prepared by a county shall be delivered to the board of education of any school district levying taxes on property within the STAR bond project area.

(e) Upon a finding by the planning commission that the STAR bond project plan is consistent with the intent of the comprehensive plan for the development of the city, and a finding by the planning commission of the county, if any, with respect to a STAR bond project located wholly outside the boundaries of the city, that the STAR bond project plan is consistent with the intent of the comprehensive plan for the development of the county, the governing body of the city or county shall adopt a resolution stating that the city or county is considering the adoption of the STAR bond project plan. Such resolution shall:

(1) Give notice that a public hearing will be held to consider the adoption of the STAR bond project plan and fix the date, hour and place of such public hearing. In addition to any other notice, such notice shall be conspicuously provided at a prominent location on the first page of the website of the county or city, if the county or city has a website;

(2) describe the boundaries of the STAR bond project district within which the STAR bond project will be located and the date of establishment of such district;

(3) describe the boundaries of the area proposed to be included within the STAR bond project area; and

(4) state that the STAR bond project plan, including a summary of the feasibility study, market study, relocation assistance plan and financial guarantees of the prospective developer and a description and map of the area to be redeveloped or developed are available for inspection during regular office hours in the office of the city clerk or county clerk, respectively.

(f) (1) The date fixed for the public hearing to consider the adoption of the STAR bond project plan shall be not less than 30 nor more than 70 days following the date of the adoption of the resolution fixing the date of the hearing.

(2) A copy of the city or county resolution providing for the public hearing shall be by certified mail, return receipt requested, sent by the city to the board of county commissioners of the county and by the city or county to the board of education of any school district levying taxes on property within the proposed STAR bond project area. Copies also shall be sent by certified mail, return receipt requested to each owner and occupant of land within the proposed STAR bond project area not more than 10 days following the date of the adoption of the resolution. The resolution shall be published once in the official city or county newspaper not less than one week nor more than two weeks preceding the date fixed for the public hearing. A sketch clearly delineating the area in sufficient detail to advise the reader of the particular land proposed to be included within the STAR bond project area shall be published with the resolution.

(3) At the public hearing, a representative of the city or county shall present the city’s or county’s proposed STAR bond project plan. The presentation shall include a discussion of the feasibility study, including a description of all state, federal and local tax incentives that apply within the STAR bond district or are anticipated to apply within the district pursuant to the project plan or to any business located in the district or that will locate in the district pursuant to the project plan. Following the presentation of the STAR bond project area, all interested persons shall be given an opportunity to be heard. The governing body for good cause shown may recess such hearing to a time and date certain, which shall be fixed in the presence of persons in attendance at the hearing.

(g) The public hearing records and feasibility study shall be subject to the open records act, K.S.A. 45-215, and amendments thereto, and, if the city or county has a website, shall be placed conspicuously on such website at the same location or linked to the same location on the first page of the website as the notice for the hearing.

(h) Upon conclusion of the public hearing, the governing body may adopt the STAR bond project plan by ordinance or resolution passed upon a two-thirds vote of the members.

(i) After the adoption by the city or county governing body of a STAR bond project plan, the clerk of the city or county shall transmit a copy of the description of the land within the STAR bond project district, a copy of the ordinance or resolution adopting the plan and a map or plat indicating the boundaries of the district to the clerk, appraiser and treasurer of the county in which the district is located and to the governing bodies of the county and school district which levy taxes upon any property in the district. Such documents shall be transmitted following the adoption or modification of the plan or a revision of the plan on or before January 1 of the year in which the increment is first allocated to the taxing subdivision.

(j) If the STAR bond project plan is approved, the feasibility study shall be supplemented to include a copy of the minutes of the governing body meetings of any city or county whose bonding authority will be utilized in the STAR bond project, evidencing that a STAR bond project plan has been created, discussed and adopted by the city or county in a regularly scheduled open public meeting. The secretary shall make the following information publicly available on the department of commerce’s website:

(A) The feasibility study;

(B) the STAR bond project plan; and

(C) on a continuing basis, any subsequent modified versions of the information required by subparagraphs (A) and (B).

(k) Any substantial changes as defined in K.S.A. 12-17,162, and amendments thereto, to the STAR bond project plan as adopted shall be subject to a public hearing following publication of notice thereof at least twice in the official city or county newspaper.

(l) Any STAR bond project shall be completed within 20 years from the date of the approval of the STAR bond project plan. ~~The maximum maturity on bonds issued to finance projects pursuant to this act shall not exceed 20 years.~~

(m) Kansas resident employees shall be given priority consideration for employment in construction projects located in a STAR bond project area.

(n) Any developer of a STAR bond project shall commence work on the project within two years from the date of adoption of the STAR bond project plan. Should the developer fail to commence work on the STAR bond project within the two-year period, funding for such project shall cease and the developer of such project or complex shall have one year to resubmit the project to the secretary and to appeal to the secretary for reapproval of such project and the funding for it. Should the project be reapproved, the two-year period for commencement shall apply.

(o) In collaboration with the STAR bond project developer or developers and the governing body of a city or county that established the STAR bond district, the secretary shall collect visitor data using ticket sales tracking, reliable software or other similar technology that tracks visitation trends for each STAR bond district that receives state sales tax revenues until the bond debt service associated with the STAR bond district has been satisfied but in any event not later than the maturity period of the bond issuance. The secretary shall compile and include this data in the report required to be submitted to the house of representatives committee on commerce, labor and economic development and the senate committee on commerce pursuant to K.S.A. 12-17,169, and amendments thereto. Any such data shall be collected in an aggregate manner without personally identifiable information.

(p) (1) In the event that all STAR bonds issued for a project, or issuance of bonds to refund or refinance bonds previously issued for such project, including any such bonds issued in one or more series for a project pursuant to a project plan approved prior to June 30, 2026, or project approved pursuant to an agreement executed pursuant to K.S.A. 12-17,181, and amendments thereto, have been paid in full prior to the maximum period allowed pursuant to the STAR bond financing act, in addition to any other applicable requirements pursuant to the STAR bonds financing act, the secretary of commerce shall not approve a new STAR bond project and a city or county or the Kansas development finance authority shall not issue new or additional STAR bonds for such new STAR bond project that are to be financed from sales tax or other revenues from the existing STAR bond project area unless:

(A) A new tax increment base for the proposed STAR bond project district area for the new project is established pursuant to the STAR bonds financing act; and

(B) the issuance of such new bonds is expressly approved in writing by both the secretary of commerce and the governing body of the city or county that created such district.

(2) Nothing in this subsection shall prohibit the issuance of bonds:

(A) In one or more series to finance a STAR bond project approved prior to June 30, 2026, including a project authorized under K.S.A. 12-17,181, and amendments thereto, and approved by the secretary and the legislative coordinating council prior to such date, without being subject to the requirements of paragraphs (1)(A) and (B);

(B) in one or more series to finance a STAR Bond project approved after June 30, 2026; or

(C) to refund or refinance bonds previously issued.

Sec. 13. K.S.A. 2025 Supp. 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 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~~ that 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~~ one or more STAR bond project areas, 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~~ 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, that 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~~ one or more STAR bond project areas, 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~~ one or more STAR bond project areas;

(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~~ one or more STAR bond project areas, 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 and other businesses using public right-of-way within the STAR bond project district; (ii) from a pledge of all or a portion of the revenue received by the city or county from the establishment of a community improvement district formed under K.S.A. 12-6a26 et seq., and amendments thereto, or a transportation development district formed pursuant to K.S.A. 12-17,140 et seq., and amendments thereto; or ~~(ii)~~ (iii) from a pledge of all or a portion of the revenue received by a city or county from local sales ~~taxes~~, use or ~~local~~ transient guest ~~and local use~~ taxes collected from taxpayers doing business outside of the boundaries of the STAR bond project district; 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.

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)(1), and amendments thereto, that has been established by a city or county and approved by the secretary of commerce pursuant to K.S.A. 12-17,164 and 12-17,167, and amendments thereto. 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 the revenues described in subsection (a)(1)(A) through (I).

(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 K.S.A. 2025 Supp. 12-17,181, 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 K.S.A. 2025 Supp. 12-17,181, 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:

(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.

(3) Bonds issued by a city or county 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.

(4) Bonds issued by a city or county 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).

(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.

(6) Under no circumstance shall state general fund moneys be pledged for the repayment of any special obligation bond issued by a city or county to finance a STAR bond project pursuant to subsection (a)(1) or (a)(2).

(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.

(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 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) the number of businesses that have moved into and out of each STAR bond district;

(x) (a) the number of businesses that relocated from a Kansas location into each STAR bond district;

(b) the amount of sales tax revenue lost from the sales tax base of each STAR bond district as the result of businesses moving out of the district or going out of business; and

(c) the total aggregate amount of local sales tax revenue lost to all jurisdictions outside STAR bond districts as the result of such relocations; and

~~(ix)~~(xi) 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 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. 2025 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. 14. K.S.A. 12-17,172 is hereby amended to read as follows: 12-17,172. (a) Any city or county which has adopted a STAR bond project plan in accordance with the provisions of this act may purchase or otherwise acquire real property in connection with such project plan. Upon a ²/₃ vote of the members of the governing body thereof, a city or county may acquire by condemnation any interest in real property, including a fee simple title thereto, which it deems necessary for or in connection with any project plan of an area located within the project district; however, eminent domain may be used only as authorized by K.S.A. 26-501b, and amendments thereto.

Any such city or county may exercise the power of eminent domain in the manner provided by K.S.A. 26-501 et seq., and amendments thereto. In addition to any compensation or damages allowed under the eminent domain procedure act, such city or county shall also provide for the payment of relocation assistance as provided in K.S.A. 12-17,173, and amendments theretoNo city or county shall exercise eminent domain power to acquire real property for a STAR bond project.

(b) Any real property otherwise acquired by a city or county ~~under the provisions of K.S.A. 26-501 et seq., and amendments thereto,~~ may be sold, transferred or leased to a developer, in accordance with the STAR bond project plan and under such other conditions as may be agreed upon. Any real property acquired pursuant to this section that is sold, transferred or leased to a project developer for a specific project shall be sold, transferred or leased to such developer on the condition that such property shall be used only for that specific approved project. If the developer does not utilize the entire tract of the real property acquired pursuant to this section that is sold, transferred or leased in accordance with the STAR bond project plan, that portion of property not used shall not be sold, transferred or leased by the developer to another developer party, but shall be deeded back to the city or county. If the developer paid the city or county for the land, a percentage of the original purchase price paid to the city or county ~~which~~ that represents the percentage of the entire tract being deeded back to the city or county shall be reimbursed to the developer upon the deeding of the property back to the city or county.

(c) Any transfer by the project developer of real property acquired pursuant to this section shall be valid only if approved by a ²/₃ majority vote of the members of the governing body of ~~this~~ the city or county where such real property is located.

Sec. 15. K.S.A. 12-17,179 is hereby amended to read as follows: 12-17,179. (a) A city that created a redevelopment district in an eligible area that was approved for STAR bonds prior to the effective date of this act for the city of Manhattan Discovery Center on December 28, 2006, and the Schlitterbahn project in Wyandotte county on December 23, 2005, may by ordinance elect to have the provisions of this act applicable to such redevelopment district.

(b) ~~Subject to the provisions of section 61(h) of chapter 5 of the 2020 Session Laws of Kansas, the provisions of this act regarding STAR bond projects shall expire~~The secretary shall not make a finding that a proposed STAR bond project district is an eligible area on and after July 1, ~~2026~~ 2031.

Sec. 16. K.S.A. 2025 Supp. 22-4714 is hereby amended to read as follows: 22-4714. (a) A governmental agency other than a criminal justice agency as defined in K.S.A. 22-4701, and amendments thereto, identified in subsection (b) may require a person to be fingerprinted and shall submit such fingerprints to the Kansas bureau of investigation and the federal bureau of investigation for a search of the state and federal database. Fingerprints provided pursuant to this section may be used to identify a person and to determine whether such person has a record of criminal history in this state or in another jurisdiction. An agency identified in subsection (b) may use the information obtained from the criminal history record check for the purposes of verifying the identification of a person and in the official determination of the qualifications and fitness of such person to be issued or maintain employment, licensure, registration, certification or a permit, act as an agent of a licensee, hold ownership of a licensee or serve as a director or officer of a licensee.

(b) (1) The Kansas bureau of investigation shall release criminal history record information related to adult convictions, adult non-convictions, adult diversions, adult expunged records, juvenile adjudications, juvenile non-adjudications, juvenile diversions and juvenile expunged records to:

(A) The Kansas department for children and families or the Kansas department for aging and disability services for initial or continuing employment or participation in any program administered for the placement, safety, protection or treatment of vulnerable children or adults as described in K.S.A. 75-53,105, and amendments thereto;

(B) the attorney general for applicants as defined in K.S.A. 75-7b01, and amendments thereto, in connection with such application as described in K.S.A. 75-7b04 and 75-7b17, and amendments thereto;

(C) the attorney general for applicants as defined in K.S.A. 75-7c02, and amendments thereto, in connection with such application as described in K.S.A. 75-7c05, and amendments thereto;

(D) the attorney general for applicants as defined in K.S.A. 75-7b01, and amendments thereto, in connection with such application for certification as described in K.S.A. 75-7b21, and amendments thereto; and

(E) the attorney general for applicants as defined in K.S.A. ~~7e01~~ 75-7e01, and amendments thereto, in connection with such application as described in K.S.A. 75-7e03, and amendments thereto.

(2) The Kansas bureau of investigation shall release criminal history record information related to adult convictions, adult non-convictions, adult diversions, adult expunged records and juvenile expunged records to:

(A) The state lottery for candidates for employees as defined in K.S.A. 74-8702, and amendments thereto, in connection with such employment as described in K.S.A. 74-8704, and amendments thereto; and

(B) the Kansas racing and gaming commission for candidates for employees or licensees as defined in K.S.A. 74-8802, and amendments thereto, in connection with such employment or license as described in K.S.A. 74-8804, and amendments thereto, including an applicant for a simulcasting license.

(3) The Kansas bureau of investigation shall release criminal history record information related to adult convictions, adult non-convictions, adult diversions, adult expunged records, juvenile adjudications, juvenile non-adjudications and juvenile diversions to:

(A) The emergency medical services board for applicants as defined in K.S.A. 65-6129, and amendments thereto, in connection with such application as described in K.S.A. 65-6129, and amendments thereto;

(B) the department of administration for candidates for sensitive employees as defined in K.S.A. 75-3707e, and amendments thereto, in connection with such employment as described in K.S.A. 75-3707e, and amendments thereto; and

(C) the state gaming agency for candidates for employees and licensees as defined in K.S.A. 74-9802, and amendments thereto, in connection with such employment or license as described in K.S.A. 74-9805, and amendments thereto.

(4) The Kansas bureau of investigation shall release criminal history record information related to adult convictions, adult non-convictions, adult diversions and adult expunged records to:

(A) The supreme court and state board of law examiners for applicants as defined in K.S.A. 7-127, and amendments thereto, in connection with such application as described in K.S.A. 7-127, and amendments thereto; and

(B) the commission on peace officers’ standards and training for applicants for certification under the Kansas law enforcement training act as described in K.S.A. 74-5607, and amendments thereto.

(5) The Kansas bureau of investigation shall release criminal history record information related to adult convictions, adult non-convictions, adult diversions and juvenile adjudications to:

(A) The athletic commission within the Kansas department of commerce for a candidate for boxing commission as defined in K.S.A. 74-50,182, and amendments thereto, in connection with such appointment as described in K.S.A. 74-50,184, and amendments thereto;

(B) the secretary of health and environment for employees at a child care facility as defined in K.S.A. 65-503, and amendments thereto, in connection with such employment as described in K.S.A. 65-516, and amendments thereto;

(C) the secretary of commerce for final applicants for a sensitive position or employees in a sensitive position as defined in K.S.A. 2025 Supp. 74-5005a, and amendments thereto, in connection with such employment as described in K.S.A. 2025 Supp. 74-5005a, and amendments thereto;

(D) the secretary of labor for employees as defined in K.S.A. 75-5702, and amendments thereto, in connection with such employment as described in K.S.A. 75-5702, and amendments thereto; and

(E) the state bank commissioner for any officer, partner, member, owner, principal or director of an applicant or registrant in connection with such application or registration as described in K.S.A. 2025 Supp. 9-2411, and amendments thereto.

(6) The Kansas bureau of investigation shall release criminal history record information related to adult convictions and juvenile adjudications to:

(A) The secretary for aging and disability services for applicants as defined in K.S.A. 39-970, and amendments thereto, in connection with such application as described in K.S.A. 39-970, and amendments thereto;

(B) the Kansas department for aging and disability services for applicants as defined in K.S.A. 39-2009, and amendments thereto, in connection with such application as described in K.S.A. 39-2009, and amendments thereto; and

(C) the secretary for aging and disability services for applicants as defined in K.S.A. 65-5117, and amendments thereto, in connection with such application as described in K.S.A. 65-5117, and amendments thereto.

(7) The Kansas bureau of investigation shall release criminal history record information related to adult convictions and adult non-convictions to:

(A) The division of motor vehicles within the department of revenue for applicants for reinstatement of a license to drive a commercial motor vehicle as described in K.S.A. 8-2,142, and amendments thereto;

(B) the board of examiners in optometry for applicants or licensees as defined in K.S.A. 65-1501, and amendments thereto, in connection with such application or an investigation as described in K.S.A. 65-1505, and amendments thereto;

(C) the board of pharmacy for fingerprint candidates as defined in K.S.A. 65-1626, and amendments thereto, in connection with such application or license as described in K.S.A. 65-1696, and amendments thereto;

(D) the state board of healing arts for applicants or licensees as defined in K.S.A. 65-2802, and amendments thereto, in connection with such application or an investigation as described in K.S.A. 65-28,129, and amendments thereto;

(E) the state board of healing arts for applicants or licensees as defined in K.S.A. 65-2901, and amendments thereto, in connection with such application or an investigation as described in K.S.A. 65-2924, and amendments thereto;

(F) the board of nursing for applicants as defined in K.S.A. 74-1112, and amendments thereto, in connection with such application as described in K.S.A. 74-1112, and amendments thereto;

(G) the behavioral sciences regulatory board for licensees as defined in K.S.A. 74-7511, and amendments thereto, in connection with such application or license as described in K.S.A. 74-7511, and amendments thereto;

(H) the state lottery for a vendor to whom a major procurement contract is to be awarded in connection with an investigation as described in K.S.A. 74-8705, and amendments thereto;

(I) the attorney general for appointees of the governor to positions subject to confirmation by the senate and judicial appointees as described in K.S.A. 75-712, and amendments thereto;

(J) appointing authorities as defined in K.S.A. 75-4315d, and amendments thereto, for nongubernatorial appointees as described in K.S.A. 75-4315d, and amendments thereto;

(K) the Kansas real estate commission for applicants as defined in K.S.A. 58-3035, and amendments thereto, or for licensees as defined in K.S.A. 58-3035, and amendments thereto, in connection with an investigation as described in K.S.A. 58-3039, and amendments thereto;

(L) the insurance commissioner for applicants for licensure as an insurance agent as defined in K.S.A. 40-4902, and amendments thereto, in connection with such application as described in K.S.A. 40-4905, and amendments thereto;

(M) the insurance commissioner for applicants as defined in K.S.A. 40-5501, and amendments thereto, in connection with such application as described in K.S.A. 40-5505, and amendments thereto; ~~and~~

(N) the state bank commissioner for applicants in control of a licensee, licensees or key individuals as defined in K.S.A. 2025 Supp. 9-555, and amendments thereto, in connection with such application as described in K.S.A. 2025 Supp. 9-565, and amendments thereto; and

(O) appointing authorities as defined in section 2, and amendments thereto, for appointees as described in section 3, and amendments thereto.

(8) The Kansas bureau of investigation shall release criminal history record information related to adult convictions to:

(A) The department of agriculture for hemp employees as defined in K.S.A. 2-3901, and amendments thereto, in connection with such employment as described in K.S.A. 2-3902, and amendments thereto;

(B) the department of agriculture for applicants for licensure as a hemp producer as defined in K.S.A. 2-3901, and amendments thereto, in connection with such application as described in K.S.A. 2-3906, and amendments thereto;

(C) the office of state fire marshal for applicants for registration as a hemp processor as defined in K.S.A. 2-3901, and amendments thereto, in connection with such application as described in K.S.A. 2-3907, and amendments thereto;

(D) the department of agriculture for hemp destruction employees as defined in K.S.A. 2-3901, and amendments thereto, in connection with such employment as described in K.S.A. 2-3911, and amendments thereto;

(E) the bank commissioner for any applicant as defined in K.S.A. 9-508, and amendments thereto, in connection with such application as described in K.S.A. 9-509, and amendments thereto;

(F) the bank commissioner for an applicant for employment as a new executive officer or director with a money transmitter company as described in K.S.A. 9-513e, and amendments thereto;

(G) the bank commissioner for any applicant as defined in K.S.A. 9-1719, and amendments thereto, in connection with such application as described in K.S.A. 9-1722, and amendments thereto;

(H) the bank commissioner for an applicant, registrant or licensee as defined in K.S.A. 9-2201, and amendments thereto, in connection with such application, registration or license as described in K.S.A. 9-2209, and amendments thereto;

(I) the state banking board for any officer, director or organizer of a proposed fiduciary financial institution as defined in K.S.A. 9-2301, and amendments thereto, in connection with such role as described in K.S.A. 9-2302, and amendments thereto;

(J) municipalities for applicants for merchant or security police as described in K.S.A. 12-1679, and amendments thereto;

(K) the bank commissioner for applicants as defined in K.S.A. 16a-6-104, and amendments thereto, in connection with such application as described in K.S.A. 16a-6-104, and amendments thereto;

(L) the state department of credit unions for every candidate as defined in K.S.A. 17-2234, and amendments thereto, in connection with such employment as described in K.S.A. 17-2234, and amendments thereto;

(M) the division of alcoholic beverage control within the department of revenue for applicants as defined in K.S.A. 41-102, and amendments thereto, in connection with such application as described in K.S.A. 41-311b, and amendments thereto;

(N) the division of post audit for employees as defined in K.S.A. 46-1103, and amendments thereto, in connection with such employment as described in K.S.A. 46-1103, and amendments thereto;

(O) the bank commissioner for licensees as defined in K.S.A. 50-1126, and amendments thereto, in connection with such license as described in K.S.A. 50-1128, and amendments thereto;

(P) the real estate appraisal board for licensees as defined in K.S.A. 58-4102, and amendments thereto, in connection with an application or investigation as described in K.S.A. 58-4127, and amendments thereto;

(Q) the real estate appraisal board for applicants as defined in K.S.A. 58-4703, and amendments thereto, in connection with such application as described in K.S.A. 58-4709, and amendments thereto;

(R) the department of health and environment for an employee as defined in K.S.A. 65-2401, and amendments thereto, in connection with such employment as described in K.S.A. 65-2402, and amendments thereto;

(S) the Kansas office of veterans services for candidates as defined in K.S.A. 73-1210a, and amendments thereto, in connection with an application as described in K.S.A. 73-1210a, and amendments thereto;

(T) a senate standing committee for a member named, appointed or elected to the public employee retirement systems board of trustee membership as described in K.S.A. 74-4905, and amendments thereto;

(U) the department of revenue for employees as defined in K.S.A. 75-5133c, and amendments thereto, in connection with such employment as described in K.S.A. 75-5133c, and amendments thereto;

(V) the division of motor vehicles within the department of revenue for employees as defined in K.S.A. 75-5156, and amendments thereto, in connection with such employment as described in K.S.A. 75-5156, and amendments thereto;

(W) the Kansas commission for the deaf and hard of hearing for applicants as defined in K.S.A. 75-5397f, and amendments thereto, in connection with such application as described in K.S.A. 75-5393a, and amendments thereto;

(X) the Kansas commission for the deaf and hard of hearing for employees as defined in K.S.A. 75-5397f, and amendments thereto, in connection with such employment as described in K.S.A. 75-5393c, and amendments thereto;

(Y) the department of health and environment for employees as defined in K.S.A. 75-5609a, and amendments thereto, in connection with such employment as described in K.S.A. 75-5609a, and amendments thereto; and

(Z) an executive branch agency head for employees as defined in K.S.A. 75-7241, and amendments thereto, in connection with such employment as described in K.S.A. 75-7241, and amendments thereto.

(c) State and local law enforcement agencies shall assist with taking fingerprints of individuals as authorized by this section.

(d) Any board, commission, committee or other public body shall recess into a closed executive session pursuant to K.S.A. 75-4319, and amendments thereto, to receive and discuss criminal history record information obtained pursuant to this section.

(e) The Kansas bureau of investigation may charge a reasonable fee for conducting a criminal history record check.

(f) (1) Fingerprints and criminal history record information received pursuant to this section shall be confidential and shall not be subject to the provisions of the Kansas open records act, K.S.A. 45-215 et seq., and amendments thereto. The provisions of this paragraph shall expire on July 1, 2029, unless the legislature reviews and reenacts this provision pursuant to K.S.A. 45-229, and amendments thereto, prior to July 1, 2029.

(2) Disclosure or use of any information received pursuant to this section for any purpose other than the purpose described in this section shall be a class A nonperson misdemeanor and shall constitute grounds for removal from office.

Sec. 17. K.S.A. 2025 Supp. 74-8793 is hereby amended to read as follows: 74-8793. (a) There is hereby established in the state treasury the attracting professional sports to Kansas fund. The attracting professional sports to Kansas fund shall be administered by the secretary of commerce. All expenditures from the 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 of commerce, or the secretary’s designee, for the purpose set forth in this section.

(b) The secretary of commerce is authorized to pledge and use all or a portion of the funds held in the attracting professional sports to Kansas fund or sports wagering revenues credited to or to be credited to the attracting professional sports to Kansas fund for the benefit of any professional sports team ~~and used~~ to pay:

(1) Costs associated with the construction, rehabilitation, revitalization, expansion, maintenance, management or operation of a professional sports team’s primary facility;

(2) the principal or interest on any bonds issued by the state or any municipality, including, but not limited to, bonds issued pursuant to K.S.A. 12-1740 et seq., 12-1770 et seq. or 12-17,160 et seq., and amendments thereto, which shall include any such financing structured as pay-as-you-go, issued to fund the construction, rehabilitation, revitalization or, expansion, maintenance, management or operation of a professional sports team’s primary facility or any other ancillary development to such primary facility; or

(3) costs associated with approved community impact projects.

(c) Each month, the secretary of commerce shall certify to the director of accounts and reports the amount of moneys held in the attracting professional sports to Kansas fund that are in excess of the amount necessary for the purposes described in subsection (b). Upon receipt of each such certification, the director of accounts and reports shall transfer the amount certified from the attracting professional sports to Kansas fund to the lottery operating fund established in K.S.A. 74-8711, and amendments thereto.

Sec. 18. K.S.A. 12-17,160, 12-17,166, 12-17,172, and 12-17,179 and K.S.A. 2025 Supp. 12-17,162, 12-17,164, 12-17,169, 22-4714 and 74-8793 are hereby repealed.

Sec. 19. This act shall take effect and be in force from and after its publication in the Kansas register.

Doc. No. 054117