Conference committee reviews Kansas Land and Military Installation Protection Act; debates drone procurement date, foreign-ownership definitions

A conference committee of the Kansas Legislature on a House substitute for Senate Bill 9 reviewed provisions that would bar most foreign principals from acquiring interests in real property within 100 miles of military installations and would limit governmental purchases of drones and drone components produced in "countries of concern."

The legislative reviser told the committee, "The bill would establish the Kansas Land and Military Installation Protection Act to prohibit foreign principals from acquiring interests in real property within 100 miles of military installations, except for de minimis interests." The reviser also described registration and enforcement steps, saying foreign principals "would be required to register any such interest with the attorney general within 90 days of acquisition," and that the attorney general would be empowered to investigate violations and seek divestiture in court.

The bill would explicitly exempt residential real property, which the reviser said is defined as property "used exclusively as a place of residence for human habitation." It would also require the Secretary of State to notify business entities and nonprofit organizations of the registration requirement, require Kansas State University to report annually on foreign land holdings in the state, and authorize the Fusion Center Oversight Board to adopt rules regarding foreign terrorist organization designations.

Why it matters: The measure aims to reduce perceived national-security risks from foreign ownership near military sites and to limit procurement of drone components from designated countries. Committee members debated how to balance those goals with law-enforcement needs and with businesses and entities already operating in Kansas.

Key proposal areas and committee discussion

Definitions and "de minimis" holdings: Committee members discussed a proposed amendment to strike a separate definition of "foreign entity" and to narrow the language to "foreign principal" in the bill's de minimis exemption. The reviser explained that, under the bill as drafted, a de minimis interest would include certain small holdings in publicly traded companies or noncontrolling interests (for example, less than 10% of a class of registered securities). The reviser noted the conference committee would need to decide whether to allow larger noncontrolling interests under the narrower "foreign principal" phrasing.

A governor-review exception for existing registrants: One proposed amendment would let currently registered companies seek approval to expand if the governor, in consultation with the Fusion Center Oversight Board and the attorney general, finds no threat to military installations or critical infrastructure. The amendment would give the governor 90 days to make that determination, committee members said.

Drone procurement and replacement parts deadline: The bill's drone provisions would bar governmental agencies from purchasing drones or related services, maintenance agreements, or equipment if critical components are produced in a country of concern or produced or owned by a foreign principal. The reviser clarified that critical components already purchased before the act's effective date could be used as replacement parts, and that contracts entered into before the effective date would not be affected.

Representative Shipp asked whether the provision would create a new registration process for existing companies and how the governor's review would work. The reviser replied that the attorney general would lay out the process for the act, and that the governor's 90-day review would apply to requests to expand by companies already registered under the act.

Senator Warren proposed delaying the effective date for replacement parts and related contract protections, saying committee members had heard from law enforcement that they needed more time. Warren described a conceptual change to move deadlines from July 1, 2025, to July 1, 2026: "...we were hearing from our law enforcement community that to be able to effectively do what they need to do and keep their officers safe, that they were asking for ... July first of 2026." Committee members discussed matching date changes across related contract provisions.

Exceptions and enforcement: The reviser told the committee that the bill contains exceptions intended to preserve public safety and continuity of operations. "Critical components that have been purchased from a foreign principal can be used as replacement parts as long as those parts were purchased before the effective date of this act," the reviser said. The reviser also said the act would give agencies limited paths to complete otherwise prohibited acquisitions if certain criteria are met.

Other implementation provisions: Committee members noted the bill would bar foreign principals from receiving benefits from defined economic-development programs and would require the attorney general to report nonnotified transactions and to submit annual reports on implementation. The Secretary of State would be required to provide notice of the registration requirement when business entities and nonprofits file documents.

Committee process and next steps: Members exchanged conceptual and written amendments (referred to as "balloons") and agreed to reconvene after the second recess of the second chamber to continue negotiations. The committee did not take a final vote during the session recorded in the transcript.

Ending: Committee leadership said members would confer and return with revised language on the definition changes, the governor-review process for expansions, the agency responsible for local technical review in the drone section, and the proposed one-year extension for replacement-part and contract deadlines. No final action was recorded at the meeting.