Page 204 – State Affairs

Key lawmaker believes Chiefs, Royals can’t refuse STAR bond offer

Posted on June 29, 2024June 29, 2024 by Matt Resnick

The Kansas Legislature’s billion-dollar overture aimed at poaching Missouri’s marquee professional sports franchises has high-ranking officials in the Show-Me State on the defensive.

Meanwhile, Sen. J.R. Claeys, the carrier of the bill, believes the Kansas Legislature’s recently ratified STAR bond bill, laden with tax incentives, is an offer the NFL’s Kansas City Chiefs and MLB’s Kansas City Royals cannot refuse.

“This is a once-in-a lifetime opportunity to not just retain two major sports franchises in Kansas City metro, but also to bring them to the Kansas side,” Claeys, R-Salina, told State Affairs.

During its one-day special session on June 18, House and Senate supermajorities approved House Bill 2001, positioning the state to land one or both franchises with the pledge of bankrolling up to 70% of a $1 billion-plus stadium via Sales Tax and Revenue (STAR) bonds. Missouri finds itself in jeopardy of losing either of the teams after Jackson County voters in April rejected a 3/8th-cent sales tax extension that would have covered the cost of stadium renovations for the Chiefs — and potentially a brand new venue for the Royals.

Secretary of Commerce’s role

On the eve of the special session, a few Republican lawmakers expressed discontent with Secretary of Commerce David Toland’s looming role in the STAR bond process — which entails the issuance of bonds and site selection. Toland doubles as Laura Kelly’s lieutenant governor and is viewed by some lawmakers as the Democratic frontrunner for governor in 2026.

But Claeys dismissed any concerns over Toland’s role in the process. “This bill transcends the politics of claiming victory [by one side],” Claeys said, adding that while Toland would be armed with “substantial powers in the process,” he would be precluded from utilizing eminent domain as a mechanism for site-selection and would not have the authority to override local ordinances and their respective planning processes.

Claeys said local municipalities can choose to remain on the sideline or be a party to the negotiation process.

“We would expect that the [selected] city would have a key interest in being a party to this and wanting to help bring the Chiefs and/or Royals to the Kansas side and into their county,” Claeys said.

Patrick Lowry, a spokesperson for the Department of Commerce, further expounded on the role Toland and company will play.

“This includes deciding whether a potential project is an ‘eligible area’ under the STAR Bond Act, approval of the physical district where the project will be located, the project plan — which includes the feasibility study [and] substantial financial metrics about the project, market study, market impact, economic impact and other items,” Lowry said in an email.

According to Lowry, the agency approves the specific terms and rates of the STAR bonds when they are issued. It also stays in touch with municipalities during the construction phase to get updates on the project while the bonds are still active.

A difference from a typical STAR bond project is the commerce department would enter into the agreement rather than the local municipality where the stadium would go.

Added Lowry: “We are open to the opportunity to bring Chiefs/Royals to Kansas and willing to work on their timelines and the locations that could result in their new home in Kansas.”

Timeline

If one or both teams opt to relocate to Kansas, 2031 is the earliest they could ditch Missouri for their new digs in the Sunflower State. There has been much speculation related to the location of venues on the Kansas side, with most pointing to Wyandotte and Johnson counties as possibilities, said Claeys. If a deal is reached, Claeys said construction of a new stadium and practice facility/headquarters would kick off in the next two to three years with an additional two years to complete.

The Chiefs in February unveiled renderings for an $800 million renovation of Arrowhead Stadium. But those plans were scuttled with the rejection of the sales tax measure.

“There is a process here involved where I believe the shortest amount of time where the Chiefs have worked through a renovation is seven years in advance,” Claeys said. “And we’re inside that timeframe already because of Missouri’s sales tax vote not going through in April.”

The bill gives Toland the ability to negotiate with the teams until June 30, 2025 on a STAR bond district. The Legislative Coordinating Council retains the ability to extend that deadline until June 30, 2026.

The process, according to Claeys, entails four or five different ideas or insights from consultants affiliated with the franchises “before settling on one that really helps the focus of both the team and developers who are assisting that process.”

“That would be brought to the state and negotiated with the Department of Commerce, and would then go off to the Legislative Coordinating Council for approval,” Claeys said.

Mistakes of the past

In debate during special session, Claeys fielded questions from Senate colleagues expressing concern over the use of STAR bonds as one of the primary mechanisms to facilitate the project. Claeys told State Affairs he understood the concern because of past STAR bond failures. Specifically, Prairiefire, an upscale development in Overland Park that recently defaulted on a portion of its $65 million STAR bond issuance.

Claeys said Prairiefire’s failure prompted the Legislature to take a hard look at the STAR bond framework. The Chiefs/Royals STAR bond proposal, he said, hasmore “guardrails.”

“There have been concerns over time, but they have been addressed as we’ve gone through the process of refining the law,” Claeys said, adding that the statute governing STAR bonds has been “significantly” updated since the first project was authorized a quarter-century ago for the Kansas Speedway project.

“We’ve learned from some of the mistakes,” Claeys said. “It’s a much stronger law than it was 25 years ago.”

Specifically, Claeys said the Legislature relied too heavily on information provided by developers as opposed to independent auditors and related studies.

“Many of those concerns have to deal with the tourism portion of it and the ability to attract a number of people to a tourist destination, but we’re not talking about that here with the Chiefs and Royals,” Claeys said.

“We know exactly how many tourists it attracts. We don’t have to wonder — we don’t have to guess — it’s not a dinosaur museum,” he said in reference to Prairiefire’s dinosaur museum, which has hemorrhaged millions of dollars.

Matt Resnick is a statehouse reporter at State Affairs Pro Kansas/Hawver’s Capitol Report. Reach him at [email protected].

Kansas turnpike ready to roll out cashless tolling July 1

Posted on June 29, 2024June 29, 2024 by Brett Stover

Kansas drivers should be ready for a big change that’s coming to the state’s highways when the Kansas Turnpike Authority debuts its fully cashless tolling system July 1.

The conversion of 236 miles of Kansas roadway to cashless tolling — first announced in early 2020 — cost the authority an estimated $102.5 million over the course of the project, Rachel Bell, Kansas Turnpike Authority’s director of business services and customer relations, told State Affairs.

Bell, who’s worked for the turnpike authority for nearly 24 years, said the agency started studying a possible switch a decade ago.

At the time, the authority wasn’t ready to make the change. But that study helped to gather information on how and when to go cashless, including how best to increase usage of transponders, better known as K-TAGs, which allow the easy identification and billing of cars and trucks.

In 2014, only about 45% of the turnpike auhority’s traffic used compatible transponders. Today, Bell said that figure has climbed to 70%.

“We have seen steady growth in K-TAG usage just over the last decade,” she said.

Staff have also worked on adding to Kansas’ transponder compatibility with other states, including a partnership with Colorado that went live just a month ago. Transponders are now compatible with that state and three others: Oklahoma, Texas and Florida.

It’s possible for drivers with compatible transponders to account for about 80% to 85% of traffic after connecting with other turnpikes, Bell said, particularly the E-ZPass Group. That organization, founded in the northeast, now covers 19 states in the eastern part of the country.

“It’s just a much larger group, so it’s a slower process to connect with them,” Bell said.

Kansas will be the 20th state to convert to cashless tolling, according to Mark Muriello, vice president of policy and government affairs for the International Bridge, Tunnel and Turnpike Association.

The United States has 6,700 miles of toll roads across 33 states, Muriello said. Cashless tolling now covers at least 65% of those miles, and 98% of new toll facilities built since 2010 are cashless.

“It’s definitely a growing trend,” he said.

Part of the turnpike authority’s initial 2014 effort was a closer look at when the authority would need to replace its cash collection equipment — Bell said that “you never want to invest in old technology” — and when staff would be least impacted.

“What we found when we looked at all of that information together was that here, within this 2024 window, was really our best opportunity,” she said.

Nearly 70% of the authority’s cash collection staff are of retirement age this year, Bell said. According to the authority’s online fact sheet, “many other toll collection employees have already successfully transitioned to other areas” within the organization.

The Legislature in 1953 established the Kansas Turnpike Authority as a quasi-public organization, and it doesn’t receive funding from the state or federal government.

Internally, the turnpike authority decided in 2019 to begin the switch and publicly announced its plans the next year.

“We announced it publicly in January 2020,” Bell said. “Then, of course, we know what happened in March, and nobody really paid attention for a while.”

The COVID-19 pandemic didn’t cause delays in the process, however. If anything, Bell said the virus made people more likely to switch to a K-TAG transponder.

Muriello said the number of cashless toll facilities nationwide spiked in 2020.

“Lots of facilities … opted to accelerate plans to convert facilities to cashless operations for safety considerations, both for their employees and for motorists,” he said.

Benefits of cashless tolling include reductions in congestion, emissions and traffic delays, Muriello said. Cashless facilities also increase safety, because they eliminate crashes caused by confusion as cars merge to enter and exit toll plazas.

The turnpike authority hasn’t seen much pushback, Bell said, and it’s tried hard to educate drivers about the upcoming change.

“We don’t want anyone to be surprised,” she said.

How will it work? The 70% of drivers who use compatible transponders will continue paying as normal. The other 30% will be identified by their license plate and the plates’ associated vehicle registration information, Bell said. They’ll then be billed by mail.

“I don’t know that we’ve encountered any real setbacks. … Knock on wood, it’s been a pretty smooth process,” she said. “We feel like we went into this with a good plan, and we’ve worked hard at maintaining that plan.”

Brett Stover is a Statehouse reporter at State Affairs Pro Kansas/Hawver’s Capitol Report. Reach him at [email protected] or on X @BrettStoverKS.

New FAFSA graduation requirement in limbo, could be eliminated by state ed board

Posted on June 28, 2024June 28, 2024 by Matt Resnick

A newly minted high school graduation requirement could be on the brink of elimination.

The Kansas State Board of Education in May greenlit an overhaul of the state’s minimum high school graduation requirements, marking the first time in two decades the state has approved such changes. But one of the items contained in the package — a provision that students complete the Free Application for Federal Student Aid— could be repealed prior to it taking effect this fall.

The board approved the measure by an 8-2 vote, with the caveat that it would further assess the FAFSA requirement at future meetings. That decision was made after several board members raised objections. The “no” votes, meanwhile, were cast by Danny Zeck and Michelle Dombrosky.

In an interview with State Affairs, board member Ann Mah said the objections were tied to feedback from an unspecified number of superintendents who were displeased with the requirement. During the board’s June meeting, Randy Watson, commissioner of the Department of Education, said superintendents surveyed statewide “overwhelmingly were in support” of the FAFSA requirement. He added that superintendents also voiced support because they were “fearful” that students not completing the form, who would otherwise qualify for grants and other federal dollars, were leaving large sums of money on the table.

“The board understood that it’s important to let kids know about FAFSA and to encourage as many of them as we can to fill it out, but sometimes the carrot is better than the stick,” Mah said.

Mah added that placing students’ accreditation status at risk via noncompliance with the FAFSA requirement “didn’t make sense, especially when you were going to give them an ‘out’ anyway” — referring to a clause allowing students, parents or a school official to withdraw the student from participating.

“We should make sure that every kid knows about finance options they may not be aware of,” Mah said, “but there are better ways to do it than put it in the accreditation system.”

Completion of the FAFSA form enables prospective college students to receive grant awards and loans to help ease the cost of tuition and fees. According to data compiled by FAFSA Tracker, Kansas ranks in the bottom tier of FAFSA completion rates at 38.8%, while Tennessee leads the pack at 63.4%. Completion of the application by high school upperclassmen in Kansas, according to the data, has dropped by roughly 3,000 from the previous year.

The board hasn’t released its July agenda, but Mah said if she was “a betting woman” she anticipates the board will vote to remove the requirement at its upcoming meeting.

Kansas Board of Regents member Carl Ice told the state board at its June meeting that regents have taken an active role in assisting high schools with making the FAFSA form “clear and available.”

“We’ve had some progress [but] we’ve now slipped on that,” he said. “Our completion [rate] is pretty low, so we think things we can do to help with that are pretty important.”

Advocates of the FAFSA requirement view it as a “career-readiness” policy while also contending a lack of interest in completing the form has resulted in millions of dollars in federal funding being left on the table.

Board member Dennis Hershberger, who represents a swath of central and south central Kansas, indicated during the June meeting that he doesn’t believe it’s of paramount importance for high school students to complete the form, asserting the requirement infringes on their “freedoms and privacy.”

Board member Jim McNiece, who represents several counties in southeast Kansas, expressed surprise at Hershberger’s opposition to the measure. McNiece said throughout the course of extensive discussion with the state’s graduation task force, which was assembled to develop the new minimum graduation requirements, he didn’t recall a single occasion when anyone was “adamantly” opposed to the FAFSA measure. After the multiyear process wrapped, McNiece said he was left with the general feeling that the FAFSA provision would prove beneficial to students “by actually placing a burden on schools.”

“Graduation requirements are, quite frankly, a burden on the school,” he said, “and that was the approach we were taking.”

Senate Education Committee Chair Molly Baumgardner, R-Louisburg, told State Affairs that families often “are absolutely unaware that high school graduates are eligible for Pell Grants or federal funding.”

“So there is a value for the FAFSA to be completed,” she said. “Historically, only 1 out of 3 high school kids in Kansas even fills out FAFSA.”

Matt Resnick is a Statehouse reporter at State Affairs Pro Kansas/Hawver’s Capitol Report. Reach him at [email protected].

Today @ 10:15 AM PST: ROUNDTABLE WITH WHITE HOUSE SENIOR ADVISOR TOM PEREZ ON THE BIDEN-HARRIS ADMINISTRATION’S NEW IMMIGRATION ACTIONS

Posted on June 28, 2024 by Arizona Legislative Report Staff

WASHINGTON, D.C. — Today, LUCHA and Poder Latinx will host White House Director of the Office of Intergovernmental Affairs, Tom Perez, in Phoenix, Arizona, for a roundtable discussion on the recent immigration actions announced by the Biden-Harris Administration with LUCHA, Poder Latinx and Building Back Together Executive Director Mayra Macías. At 10:15 MST at the LUCHA Office, Director Perez, LUCHA, Poder Latinx, and Building Back Together Executive Director, Mayra Macías, will meet to discuss

President Biden’s new actions

to provide relief from deportation to nearly 500,000 eligible undocumented immigrants married to U.S. citizens, 50,000 non-citizen children under the age of 21 and streamline the process for Dreamers and other undocumented immigrants who graduated from college to obtain temporary work visas. Director Perez, LUCHA, Poder Latinx, and Ms. Macías will discuss how these new actions will affect mixed-status families across Arizona. Roundtables on the Impact of the Biden-Harris Administration’s New Actions on Immigration in Arizona WHO: White House Director of the Office of Intergovernmental Affairs Tom Perez Poder Latinx LUCHA Building Back Together Executive Director Mayra Macias WHAT: Roundtable discussion on the impact of President Biden’s new immigration actions on mixed-status families in Arizona WHEN: Friday, June 28 at 10:15 MST WHERE: LUCHA Office, 5716 N 19th Ave, Phoenix, AZ 85015 RSVP: Sign Up for the Roundtable on Immigration

Here

Governor sheds ‘veto queen’ moniker after this session ends

Posted on June 28, 2024 by Yellow Sheet Report Staff

Hobbs shed the “veto queen” nickname this session and told our reporter that she attributes it to the lessons her team learned after last year’s session. In 2023, Hobbs vetoed a record 143 bills, but only vetoed half as many this year. She acknowledged it could be due to Republicans using ballot referrals to bypass her desk entirely or not introducing bills they knew she wouldn't sign. But Hobbs said her team made an effort to communicate with lawmakers early in the session and made sure bills that made it to her desk could be signed. “I’ve heard feedback across the board from members of both parties that they’ve just really appreciated that ability to work with our legislative team,” Hobbs said. She said her legislative team is “completely different” than last year after members “walked away from last session with lessons learned” about how to work with lawmakers. However, not everyone agrees with her assessment. Many lawmakers from both parties complained throughout the session about a lack of communication from the governor’s office. Toma told our reporter that there wasn’t a “policy vision from the ninth floor” and said there still wasn’t enough communication. “[On] policy issues there was largely little-to-no communication from the ninth floor on where they stood on something.” On the contrary, Hobbs said several bills that received vetoes last year were signed this year because her office worked with lawmakers to find compromises that enabled them to become law. She acknowledged many issues like ESA reform and groundwater policy were left on the table but said she’s looking forward to addressing them next year with a new Legislature.

Desert Heat Claims the Lives of Three Migrants

Posted on June 28, 2024 by Arizona Legislative Report Staff

TUCSON, Ariz. –The scorching Sonoran Desert heat has claimed the lives of three Mexican migrants. Early Wednesday morning, U.S. Border Patrol agents in Ajo, Arizona were alerted to an activation of a Rescue Beacon in an area referred to as Sheep Peak. After agents were advised by surviving migrants of four others who had been left behind, and exhaustive air and ground search involving Ajo Station agents and air assets from the Yuma Air Branch was initiated. A second activation of the same Rescue Beacon led agents to a member of the missing migrants, they had been searching for. The aircrew was able to locate the body of a Mexican male. Shortly after noon, agents located the bodies of the second and third migrant. The bodies have been transported to the Pima County Medical Examiners by Pima County Sheriff’s Department. The Mexican Consulate has been notified of the incident. “CBP’s message for anyone who is thinking of soliciting the services of smuggling organizations to enter the United States illegally along the Southern border is simple: don’t do it”, said Tucson Sector Deputy Chief Patrol Agent Justin De La Torre. “As is evidenced by this case, when migrants cross the border illegally, they put their lives in peril. The terrain along the border is extreme, the relentless summer heat is severe, and remote areas where smugglers bring migrants is unforgiving. Far too many people who made the decision to place their lives into the hands of the criminal organizations have died of dehydration, and heat stroke.” Smugglers continue to lie to migrants, claiming the borders are safe to cross. The borders are not open to irregular migration, and people should not attempt to make the dangerous journey. Transnational criminal organizations continue to recklessly endanger the lives of individuals they smuggle for their own financial gain with no regard for human life. Smuggling organizations abandon migrants in remote and dangerous areas.

Gallego Stands Up for Border Communities, Votes Against Bill that Would Slash Border Funding

Posted on June 28, 2024 by Arizona Legislative Report Staff

WASHINGTON – Today, Rep. Ruben Gallego (AZ-03) voted against H.R. 8752, the

Department of Homeland Security Appropriations Act, 2025

. Following the vote, he released this statement: “Just like when they rejected the bipartisan border deal, this bill is proof that extremists in Congress have no interest in actually securing our border or helping border communities. It slashes funding for CBP and USCIS and provides no increase in the number of Border Patrol agents, meaning slower response times and increased backlogs. And, it completely zeros out funding to local governments and nonprofits, straining their budgets and likely leading to increased street releases. “We need bipartisan, comprehensive solutions that secure our border and fix our broken immigration system. This bill does none of those things which is why I voted against it.” H.R. 8752 eliminates the Shelter and Services Program (SSP) which over the last two years has provided over $86 million to Arizona border communities for migrant shelter and transportation. It also cuts funding to Customs and Border Protection (CBP) by $1.4 billion and U.S. Citizenship and Immigration Services (USCIS) by $168.7 million.

Background On Rep. Gallego’s Wins To Support Arizona’s Border Communities:

Following

numerous

letters

urging

the Federal Emergency Management Agency (FEMA) and the Biden Administration to deliver Arizona’s frontline border communities essential resources to deal with the border crisis, as well as a

one-on-one call

with Sec. Mayorkas, Rep. Gallego announced in September that he had

secured over $2 million

in emergency funding from the Department of Homeland Security (DHS) to support Arizona’s border communities as they address an increase in migrant crossings. After close coordination with Arizona’s non-profits, border community leaders, and law enforcement officials, Rep. Gallego

rolled out

his plan

to institute sweeping reforms to address the problems plaguing FEMA’s failed Shelter and Services Program (SSP) that has shortchanged Arizona’s border communities on the front line of the border crisis. In December, Rep. Gallego traveled across Arizona meeting with border community leaders. He

met with

local officials, farmers, and business owners in Yuma to discuss the impact the closing of the Lukeville Port of Entry had on their businesses and Arizona’s economy, and

he visited

Nogales, Bisbee, and Tucson to meet with local leaders, nonprofit officials, and representatives from Customs and Border Protection (CBP) to discuss the impact of increased migration on Arizona’s border communities. To stop the flow of fentanyl across the border, Rep. Gallego

introduced

the Buck Stops Here Act to authorize the U.S. Treasury’s Financial Crimes Enforcement Network to designate financial institutions, transaction classes, or accounts as primary money laundering concerns in connection to illicit fentanyl trafficking. This bill was signed into law in April. In April, Rep. Gallego

announced

$54,573,093 in funding from SSP to support Arizona’s border communities on the frontlines of the border crisis. Rep. Gallego helped secure $650 million in SSP funding as part of the fiscal year 2024 government funding package.

He immediately called on Homeland Security Secretary Alejandro Mayorka s

to swiftly disperse the funds and to prioritize Arizona border communities. In May, Rep. Gallego introduced the

Direct Hire Act

and the

Screening Efficiency Act

, both aimed at speeding up migrant processing and providing relief to Arizona’s frontline border communities.

Court: exemption in Clean Elections rulemaking unconstitutional

Posted on June 28, 2024 by Yellow Sheet Report Staff

The Arizona Court of Appeals found a provision exempting Clean Elections rulemaking and enforcement of the Voters Right to Know Act from oversight by “any other executive or legislative governmental body or official” to be unconstitutional. But it also rejected a bid from legislative leaders’ bid to enjoin the act in its entirety. Petersen and Toma sued to have the Voters Right to Know Act, a voter initiative requiring further disclosure of campaign media spending, and three rules promulgated by Clean Elections struck down given a perceived infringement on legislative power. In an opinion, Judge Michael Catlett found the challenged provision of the law limiting oversight to be unconstitutional as it “restricts future legislatures from passing laws prohibiting or limiting the Commission’s rules or enforcement actions.” It also “lets the Commission choose when future legislation is off limits—in whatever areas the Commission promulgates rules or pursues enforcement actions.” But the appellate panel rejected the legislature’s argument that the entire act should be struck down and noted a severability clause in which “the people expressed their will that courts should respect any part of the Act not deemed unconstitutional.” The court noted, if the provision of the act deemed unconstitutional is enjoined, “the Act’s core will remain—its disclosure requirements will still be enforceable. The Act will be workable.”

Change in primary shelter provider won’t affect County’s LPAS sheltering effort

Posted on June 28, 2024 by Arizona Legislative Report Staff

PHOENIX, ARIZONA— A major victory in the fight to address Arizona's homeless crisis after the U.S. Supreme Court today ruled in favor of the position argued by Senate President Warren Petersen in an amicus brief on a case originating out of Oregon, clearing the way for states and local jurisdictions to adopt policies tackling the issue of tent cities and other encampments plagued with public safety and public health concerns. In July of last year, the Ninth Circuit Court of Appeals issued a ruling in City of Grants Pass, Oregon v. Gloria Johnson finding a constitutional "right" for individuals to camp and sleep on sidewalks, in parks, on playgrounds, and other public places, in defiance of traditional health, safety, and welfare laws. The court's bizarre interpretation of the Eight Amendment effectively required states and municipalities to surrender public spaces to homeless encampments, with all the criminal activity, drug abuse, violence, and dangerous diseases associated with them. Two months later, while Phoenix residents were pleading for help with the homeless encampment near the Arizona Capitol known as "The Zone," President Petersen filed an amicus brief on behalf of the Arizona State Legislature asking the U.S. Supreme Court to weigh in on the case. The request was accepted in January of this year, and the Court confirmed today the Ninth Circuit seized a policymaking area reserved for state and local lawmakers, while it also wrongfully classified the enforcement of laws to limit homeless encampments as "cruel and unusual punishment," and that the Ninth Circuit's ruling blocked state and local lawmakers from doing their jobs to mitigate the problems surrounding homeless encampments. According to a 2024 report from Common Sense Institute, Arizona is spending approximately $1 billion yearly on homelessness, with an estimated 14,000 people experiencing homelessness statewide. In 2023, 7600 of those individuals were living on the streets. "This ruling is a victory in our state's efforts to tackle the humanitarian crisis destroying lives and livelihoods within our communities on a daily basis," said President Petersen. "Our children shouldn't be forced to walk to school on streets littered with needles, feces, and trash. The individuals camping out should be discouraged from this practice through enforceable laws and be provided with the mental health or substance abuse services they need to overcome this terrible situation. Our Governor and other progressive elected officials serving in Arizona no longer have any excuses as to why we must continue to allow these encampments. We look forward to crafting common sense legislation on this matter in the near future, and for the Governor to do the right thing by signing those bills. While Arizona's attorney general remains absent on these issues of grave importance to our state, the Legislature remains committed to defending our laws and fighting against both judicial and executive overreach."