Increasing transfers from the lottery operating fund, to the community crisis stabilization centers fund and the clubhouse model program fund of the Kansas department for aging and disability services.

2025-2026 Regular Session

Raises annual transfers of vending-machine net profits from Lottery Operating Fund to KDADS funds to $16M (from $8M), split 75/25 to crisis centers and clubhouse programs.

Died in Committee

#appropriations #funds

Purpose / Intent

HB 2146 increases the portion of net profits from lottery ticket vending machines that are required to be transferred from the Lottery Operating Fund to two mental‑health related funds administered by the Kansas Department for Aging and Disability Services (KDADS): the Community Crisis Stabilization Centers Fund and the Clubhouse Model Program Fund. The change is intended to provide additional, dedicated funding for crisis stabilization facilities and certified clubhouse programs serving people with serious mental illness.

Key provisions

Amends K.S.A. 2024 Supp. 74-8711(e)(2) to raise the annual cap on transfers of vending‑machine net profits:

Current law caps transfers at $8,000,000 in FY2026 and thereafter.
HB 2146 raises that cap to $16,000,000 beginning in FY2026 and each fiscal year thereafter.

Maintains the split of certified vending‑machine net profits: 75% to the Community Crisis Stabilization Centers Fund and 25% to the Clubhouse Model Program Fund.

Leaves other lottery transfer and distribution provisions unchanged.

Fiscal impact (per Division of the Budget / Kansas Lottery)

Potential increase in annual transfers of up to $8.0 million beginning FY2026:

Approximately $6.0 million additional to the Community Crisis Stabilization Centers Fund (75%).
Approximately $2.0 million additional to the Clubhouse Model Program Fund (25%).

Consequence for other funds: amounts currently exceeding the old cap flowed to the State Gaming Revenues Fund and, depending on thresholds, to the State General Fund or the Attracting Professional Sports to Kansas Fund. The fiscal note estimates the Attracting Professional Sports to Kansas Fund’s FY2026 receipt would fall from an estimated $10.0 million to $2.0 million under HB 2146.

The Kansas Lottery reports no operational fiscal effect.

Who is affected

Kansas Department for Aging & Disability Services (receives increased, dedicated funding for crisis stabilization and clubhouse programs).

Attracting Professional Sports to Kansas Fund, State Gaming Revenues Fund and potentially the State General Fund—these may receive smaller transfers depending on actual lottery revenues.

Lottery retailers and operations are unaffected operationally.

Procedural status & timeline

Introduced: January 28, 2025.

Hearing: Friday, February 14, 2025, 9:00 AM, Room 346‑S (House Committee on Federal and State Affairs).

Subsequent legislative actions include committee referrals and readings (see bill history). The transfer increase would take effect for FY2026 and fiscal years thereafter if enacted.

Notes

The targeted funds support (1) crisis stabilization facilities for mental‑health/substance‑use crises and (2) certified clubhouse‑model programs for people living with mental illness.

Fiscal effects depend on actual vending‑machine net profit levels; the fiscal note frames the $8.0 million increase as a likely outcome depending on those profits.

Bill