Brief ⁽¹⁾

HB 2493 would authorize the Kansas State Development Finance Authority, upon approval of the State Finance Council and after review by the Joint Committee on State Building Construction, to issue $29.0 million in bonds. The bond proceeds would allow the State Fair Board to make extensive improvements to the Fairground in Hutchinson, as specified in the Board's capital improvement master plan.

HB 2493 requires that the Board, prior to the issuance of bonds, meet with both the State Finance Council and the Joint Committee on State Building Construction and present a report detailing the amounts of bonds to be issued, the projects to be completed with the bond proceeds, and the state, local, and private funds to be used to service the debt. HB 2493 states that no bonds can be issued without approval of the State Finance Council, following review by the Joint Committee on State Building Construction. The bill establishes a state fair debt service special revenue fund, into which local and private funds are placed, and to which state funds are transferred annually for debt service payments, starting in FY 2003. The bill authorizes the use of EDIF funds for debt service payments.

Background

HB 2493, as introduced by Representative Minor in the House Committee on Appropriations, allowed the State Fair Board to issue enough bonds to finance the implementation of a master plan developed for the Board to improve the State Fair's buildings and grounds. Representatives from the State Fair Board testified on the bill as introduced. The introduced version of the bill included language issuing $29.0 million in bonds over a five-year period, starting in FY 2002, and specifying amounts to be issued for each of the five fiscal years. The bill did not specify when debt service payments would begin. During deliberations on the bill, representatives from the Kansas Development Finance Authority also testified.

The State Fair Board's capital improvement master plan would cost $36.1 million and specifically calls for creating a visual and physical environment in keeping with the reputation of the Kansas State Fair; repairing and expanding site infrastructure; increasing the Fair's penetration rate and attendance; developing more non-fair events; complying with ADA and code requirements; installing themed visitor gates; strengthening circulation by using landscape; installing focal points, like graphics, flags, and banners; creating a "green;" increasing the number of permanent food pavilions; creating a living history Yesterday/Ethnic Village; improving the Grandstand; remodeling all "historic" buildings; creating an "icon court;" improving livestock barns; relocating RVs and constructing 300 hookups; and exploring the construction of a multipurpose arena and a privately developed hotel on the grounds. Local contributions to the master plan include $300,000 per year, for 10 years, starting in FY 2002.

The House Committee on Appropriations amended the bill to use moneys from the EDIF instead of from the State General Fund for debt service payments. The Committee further amended the bill by establishing a state fair debt service special revenue fund in the state treasury, into which state, local, and private funds could be placed for payment of debt service costs. The Committee also amended the bill to state that in addition to State Finance Council review and authorization, the Joint Committee on State Building Construction is to also review and recommend projects proposed by the State Fair Board. Finally, the Committee amended the bill to specify that, after the bonds are to be issued, $1,060,656 is to be transferred during FY 2003 from the EDIF to the State Fair Debt Service Special Revenue Fund for debt service payments.

The House Committee of the Whole amended the bill to use transferred moneys from the state treasury, rather than exclusively from the EDIF, so that other available state funds could be used. The intent of the amendment was to improve the marketability of the bonds. The House further amended the bill by deleting the $1,060,656 to be transferred and replacing it with no specified amount.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi