Session of 2024
HOUSE BILL No. 2788
By Committee on Commerce, Labor and Economic Development
Requested by Representative K. Williams
2-9
AN ACT concerning government transparency; requiring cities and
counties to report certain local economic development incentive
program information to the secretary of commerce; defining such
programs; requiring the secretary of commerce to post such information
on the economic development incentive program database maintained
by the secretary and requiring certain other changes to that database
regarding the presentation of search results; providing for a summary
report by the secretary of commerce to summarize economic
development incentive program data from the several statutorily-
required reports on such programs; directing the secretary of
administration to include on the Kansas taxpayer transparency act
website certain information concerning grants, grant awardees and
grant applications; amending K.S.A. 74-72,123 and K.S.A. 2023 Supp.
74-50,226 and 74-50,227 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) The secretary of commerce shall prepare a
summary report to the legislature that shall summarize information
provided pursuant to statutorily required reports, as defined in subsection
(c), by the secretary regarding economic development incentive programs.
The purpose of the summary report shall be to provide the legislature with
a readily accessible reference for reviewing the state's investment in
economic development incentive programs. The summary report shall be
provided by the end of the second week of the 2025 regular legislative
session and the end of the second week of each regular legislative session
thereafter.
(b) The summary report shall include the following information:
(1) The total number of businesses and individuals who have
participated in economic development incentive programs in the prior
year, categorized by each economic development incentive program;
(2) the total amount of benefits provided for each economic
development incentive program and a total of such benefits for each of the
prior 10 years. The summary report shall note if benefits have been
provided by a program that are prohibited from disclosure by law. For any
such benefits, the reporting period shall include the most recent 10 years of
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35 HB 2788 2
benefits available for disclosure shall be reported as provided in this
paragraph;
(3) the maximum amount of remaining economic development
incentive program obligations to benefit recipients, categorized by each
economic development incentive program; and
(4) a summary of a return-on-investment analysis, categorized by
each economic development incentive program. Such summary report
shall include a discussion of the total amount of capital investment, jobs to
be created or other requirements required by the program for an applicant
business to receive benefits.
(c) As used in this section, "statutorily required reports" includes:
(1) Any new report required by law enacted on or after July 1, 2024,
for an economic development incentive program administered by the
secretary of commerce that provides annual benefits of more than $50,000;
and
(2) the reports required by the secretary of commerce pursuant to:
(A) K.S.A. 74-5049, and amendments thereto;
(B) K.S.A. 74-50,151(g), and amendments thereto;
(C) K.S.A. 74-50,216, and amendments thereto;
(D) K.S.A. 74-50,224(c), and amendments thereto;
(E) K.S.A. 74-50,320(a), and amendments thereto;
(F) K.S.A. 74-8135(b), and amendments thereto; and
(G) K.S.A. 2023 Supp. 74-8136(c), and amendments thereto.
Sec. 2. K.S.A. 2023 Supp. 74-50,226 is hereby amended to read as
follows: 74-50,226. As used in K.S.A. 2023 Supp. 74-50,226 and 74-
50,227, and amendments thereto:
(a) "Administering agency" means the state agency or department
charged with administering a particular economic development incentive
program, as set forth by the program's enacting statute or, where no
department or agency is set forth, the department of revenue.
(b) "Economic development incentive program" means:
(1) Any economic development incentive program administered
wholly or in part by the secretary of commerce;
(2) any tax credit program, except for social and domestic tax credits,
regardless of the administering agency;
(3) property that has been exempted from ad valorem taxation under
the provisions of section 13 of article 11 of the constitution of the state of
Kansas;
(4) property that has been purchased, acquired, constructed,
reconstructed, improved, equipped, furnished, repaired, enlarged or
remodeled with all or any part of the proceeds of revenue bonds issued
under the authority of K.S.A. 12-1740 through 12-1749a, and amendments
thereto, that is exempt from ad valorem taxation under K.S.A. 79-201a
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2788 3
Second, and amendments thereto; and
(5) any economic development fund, including, but not limited to, the
job creation program fund established by K.S.A. 74-50,224, and
amendments thereto, and the economic development initiatives fund,
established by K.S.A. 79-4804, and amendments thereto; and
(6) commencing January 1, 2026, "economic development incentive
program" shall include additional active city-based or county-based local
economic development programs, including, but not limited to:
(A) Community improvement districts, K.S.A. 12-6a26 et seq., and
amendments thereto;
(B) tax increment financing, K.S.A. 12-1770 et seq., and amendments
thereto;
(C) business improvement districts, K.S.A. 12-1781 et seq., and
amendments thereto;
(D) self-supported municipal improvement districts, K.S.A. 12-1794
et seq., and amendments thereto;
(E) neighborhood revitalization act, K.S.A. 12-17,114 et seq., and
amendments thereto;
(F) downtown redevelopment act, K.S.A. 12-17,121 et seq., and
amendments thereto;
(G) transportation development districts, K.S.A. 12-17,140 et seq.,
and amendments thereto;
(H) public improvement districts, K.S.A. 12-17,152 et seq., and
amendments thereto;
(I) STAR bonds, K.S.A. 12-17,160 et seq., and amendments thereto;
(J) industrial development bonds, K.S.A. 12-3801 et seq., and
amendments thereto;
(K) qualified manufacturer act, K.S.A. 19-4106 et seq., and
amendments thereto; and
(L) federal enclave redevelopment districts, K.S.A. 19-4901 et seq.,
and amendments thereto.
(c) "Enterprise" means a corporation, limited liability company, S
corporation, partnership, registered limited liability partnership,
foundation, association, nonprofit entity, sole proprietorship, business trust
or other entity engaged in business.
(d) "Recipient" means the enterprise that is the original applicant for
and that receives proceeds from an economic development incentive
program directly from the administering agency. "Recipient" includes an
enterprise that is no longer solvent due to bankruptcy and a recipient with
respect to an economic development project that has failed.
(e) "Social and domestic tax credits" means the adoption credit
created pursuant to K.S.A. 79-202a 79-32,202a, and amendments thereto,
the earned income tax credit created pursuant to K.S.A. 79-32,205, and
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2788 4
amendments thereto, the food sales tax credit created pursuant to K.S.A.
79-32,271, and amendments thereto, the child and dependent care tax
credit created pursuant to K.S.A. 79-32,111c, and amendments thereto, and
the homestead property tax refund created pursuant to K.S.A. 79-4501 et
seq., and amendments thereto.
(f) "Tax credit program" means any credit allowed against the tax
imposed by the Kansas income tax act, the premium or privilege fees
imposed pursuant to K.S.A. 40-252, and amendments thereto, or the
privilege tax as measured by net income of financial institutions imposed
pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and
amendments thereto.
Sec. 3. K.S.A. 2023 Supp. 74-50,227 is hereby amended to read as
follows: 74-50,227. (a) The department of commerce shall collect
incentive data from economic development incentive programs that
provide more than $50,000 of annual incentives from administering
agencies as required by this section. Such data shall be collected from
administering agencies and be stored in a database that is available to the
public in a digital format. The database shall contain information from
multiple years and must be searchable, printable and available to access
over the internet on the department of commerce's website on a
permanently accessible web page that may be accessed via a conspicuous
link to that web page placed on the front page of the department's website.
Information included in the database shall be updated by the department of
commerce on an annual basis and such update shall be completed prior to
the end of the following fiscal year in which such incentive was earned or
distributed. The database shall be comprehensive of all information
required by this section. The database shall permit the user, on one web
page and by means of an easily accessible drop-down menu or other
prompt, to select to search by keyword or phrase within separately
identified categories of economic development incentive program, county
or business name. The result of a search shall include all applicable
information required by this section for such incentive program, county or
business in one printable report, categorized as provided by subsection
(c). In addition to such comprehensive report, the database shall be
configured to provide a summary report in response to a search when
requested.
(b) Cities and counties shall provide the department of commerce
with all applicable information required by this section for all active
economic development programs of such city or county that provide more
than $50,000 of annual incentives. Such information shall be provided for
all such active programs on January 1, 2026. Notwithstanding any other
provision of law, providing such information shall be a condition of
commencing any economic development incentive program by a city or
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2788 5
county on and after January 1, 2026, and shall be provided to the
department of commerce within 30 days of the commencement of an
economic development incentive program. The city or county shall provide
updates of all applicable information required by this section to the
secretary of commerce at least annually or as required by the secretary of
commerce.
(c) The database required to be created by subsection (a) shall contain
the following information or shall contain a link by which the user can
access such information:
(1) User information for each economic development incentive
program, including the:
(A) Names and addresses, including county, of recipients receiving
benefits from the program and, for sales tax and revenue bonds issued
under the STAR bond financing act, K.S.A. 12-17,162 et seq., and
amendments thereto, the names of principals and officers for each:
(i) Recipient that is a project developer for a STAR bond project,
pursuant to K.S.A. 12-17,162, et seq., and amendments thereto; and
(ii) recipient receiving benefits from any economic development
incentive program if the recipient is organized as a limited liability
company;
(B) annual amount of incentives claimed, distributed to or received
by each recipient and any remaining balance of the total amount of
incentives claimed or awarded to the recipient;
(C) qualification criteria for the economic development incentive
program, including, if available, qualification criteria specific to the
recipient. Qualification criteria shall include, but not be limited to, any
requirements regarding the number of jobs created or the amount of initial
or annual capital improvement;
(D) required benchmarks for continued participation in the economic
development incentive program and progress made toward the
benchmarks; and
(E) years for which the recipient has received benefits under the
economic development incentive program; and
(F) if incentives provided by an economic development incentive
program are transferable, disclosure shall be made of the transferor, the
specific benefit and value of such benefit transferred, the transferee and
the annual and total economic benefit for both the initial recipient and
subsequent transferee or transferees. This information shall be searchable
by name of either the transferor or transferee;
(2) descriptive information for each economic development program,
which shall include:
(A) A description and history of the program, including its inception
date;
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2788 6
(B) the purpose or goals of the program and the criteria for
qualification;
(C) applications for the program, if any, and relevant resources or
contacts;
(D) the program cost and return on investment, including
assumptions used to calculate the return on investment;
(E) the program compliance rate;
(F) annual reports, if required by statute; and
(G) evaluations of the program, if any; and
(3) annual data, which shall be organized by recipient, county and
program and shall include the:
(A) Total amount of annual incentives from a program claimed or
received by a recipient;
(B) total amount of incentives received by recipients in each county;
and
(C) total amount of incentives distributed by each program.
(c) Data collected pursuant to this section must be aggregated and
provided by program, recipient and county.
(d) Except as otherwise provided in this subsection, and
notwithstanding any information publication requirements listed in this
section, no information shall be disclosed by the secretary of commerce
under this section if such disclosure would:
(1) Violate any federal law;
(2) violate the confidentiality provisions of any agreement executed
before July 1, 2019;
(3) in the discretion of the secretary of commerce, be detrimental to
the development of a STAR bond project or jeopardize an economic
development incentive program or project; or
(4) disclose the names or other personally identifying information of
individuals who have made contributions or investments pursuant to the
provisions of an economic development incentive program for the purpose
of receiving a tax credit.
Information that is otherwise publicly available shall not be considered
confidential and shall be subject to publication as provided in this section.
(e) (1) The secretary of commerce shall report in writing to the
standing committee on commerce, labor and economic development of the
house of representatives and the standing committee on commerce of the
senate any information not disclosed by the secretary pursuant to
subsection (d)(3) and the reason the information was not disclosed. Any
testimony or oral presentation before the committee or discussion by the
committee with respect to the report shall be considered the discussion of
data relating to financial affairs or trade secrets of corporations,
partnerships, trusts, and individual proprietorships pursuant to the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2788 7
provisions of K.S.A. 75-4319(b)(4), and amendments thereto, for purposes
of the Kansas open meetings act, and shall be closed to the public.
(2) The report of the secretary pursuant to subsection (e)(1) 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, 2024, unless the
legislature reviews and reenacts this provision pursuant to K.S.A. 45-229,
and amendments thereto, prior to July 1, 2024.
Sec. 4. K.S.A. 74-72,123 is hereby amended to read as follows: 74-
72,123. (a) As used in the Kansas taxpayer transparency act:
(1) "Searchable website" means a website that allows the public to
search and aggregate the information identified in subsection (b) including
requirements that the website offer the public the ability to efficiently
search and display data, and ascertain the total amounts of revenues and
expenditures of:
(A) of Funds established within the state treasury in an aggregate or
summary form in a manner determined by the secretary of administration,;
(B) of compensation paid to public employees employed by state
agencies,; and
(C) of bond debt as specified in this act.
(2) "Agency" means any entity or instrumentality of the state of
Kansas as defined in K.S.A. 75-3701, and amendments thereto, and any
other entity or instrumentality delegated statutory authority by the
legislature to issue bonds and to collect revenue for the purpose of
repaying bonds issued under authority delegated by statute.
(3) "Board" means the public finance transparency board.
(b) No later than March 1, 2009, The secretary of administration shall
develop and operate a single, searchable website accessible by the public
at no cost to access, that includes:
(1) Annual expenditures, as determined by the secretary of
administration and as available within the central accounting system and
state payroll system, shall include, but not be limited to:
(A) Disbursements by any state agency from funds established within
the state treasury;
(B) bond debt payments;
(C) salaries and wages including, but not limited to, compensation
paid to individual employees of state agencies;
(D) contractual services including, but not limited to, amounts paid to
individual vendors;
(E) commodities including, but not limited to, amounts paid to
individual vendors;
(F) capital outlay including, but not limited to, amounts paid to
individual vendors;
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2788 8
(G) debt service including, but not limited to, amounts of bond
interest paid and sources of funds paid for individual bond issues;
(H) aid to local units including, but not limited to, amounts paid to
individual units of government for individually identifiable aid programs;
(I) other assistance and benefits;
(J) capital improvements including, but not limited to, amounts of
bond principal paid and sources of funds paid for individual bond issues;
and
(K) tax expenditures as reported by the secretary of revenue in the
annual tax expenditure report.
(2) Annual revenues, as determined by the secretary of administration
and as available within the central accounting system, shall include, but
not be limited to:
(A) Receipts or deposits by any state agency into funds established
within the state treasury;
(B) taxes including, but not limited to, compulsory contributions
imposed by the state for the purpose of financing services;
(C) agency earnings including, but not limited to, amounts collected
by each agency for merchandise sold, services performed, licenses and
permits issued, or regulation;
(D) revenue for the use of money and property including, but not
limited to, amounts received for compensation for the use of state-owned
money and property;
(E) gifts, donations and federal grants including, but not limited to,
amounts received from public and private entities to aid in support of a
specific function or other governmental activity;
(F) other revenue including, but not limited to, receipts not classified
elsewhere; and
(G) non-revenue receipts including, but not limited to, all receipts that
do not constitute revenue.
(3) Annual bonded indebtedness which shall include, but not be
limited to the amount of the total original obligation stated in terms of
principal and interest, the term of the obligation, the source of funding for
repayment of the obligation, the amounts of principal and interest
previously paid to reduce the obligation, the balance remaining of the
obligation, any refinancing of the obligation, and the cited statutory
authority to issue such bonds.
(4) Any grant awarded by any agency using state or federal funds,
including the grant awardee, applications and a list of all applicants who
applied for such grant. The list of all such applicants shall include: (A)
Such applicant's organization name; (B) the county where the proposed
project is located; (C) a brief description of the proposed project in such
application; (D) the dollar amount requested in such application; and (E)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2788 9
the date that the above agency received such application. Information
required to be included on the website pursuant to this paragraph shall be
posted within 30 business days of the date of awarding the grant.
(5) Any other relevant information specified by the secretary of
administration after consulting with and seeking the advice of the public
finance transparency board as established in K.S.A. 74-72,124, and
amendments thereto.
(c) The single website provided for in subsection (b) of this section
shall include data for fiscal year 2003 and each fiscal year thereafter. The
website shall be designed so that such data shall be retained on the single
website for not less than 10 years and shall include data for the most recent
fiscal years. Data that is available in the central accounting system and
state payroll system shall be on the single website as soon as possible, but
not later than 45 days after the last day of the preceding fiscal year. The
secretary of administration shall develop policies and procedures to make
data available from any other source. Nothing in this act shall require the
secretary of administration to provide information on the website that is
not available in the central accounting system and the state payroll system
at the time of initial implementation of the website. After implementation
of the initial website, the public finance transparency board shall advise
the secretary of administration on incorporating additional information
described by this act from any other source of information available to the
secretary of administration including information submitted by state
agencies pursuant to subsection (d) of this section.
(d) Any state agency shall provide, at the request of the secretary of
administration, such information as is necessary to accomplish the
purposes of this act.
(e) Nothing in this act shall permit or require the disclosure of
information which is considered confidential by state or federal law.
Sec. 5. K.S.A. 74-72,123 and K.S.A. 2023 Supp. 74-50,226 and 74-
50,227 are hereby repealed.
Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33