KS
Kansas House Bill HB2304

Kansas 2025-2026 Regular Session

Kansas House Bill HB2304 Compare Versions

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1+Session of 2025
12 HOUSE BILL No. 2304
2-AN ACT concerning economic development; relating to government transparency;
3-requiring local governments to report certain local economic development incentive
4-program information to the secretary of commerce; defining such programs;
5-requiring the secretary of commerce to post such information on the economic
6-development incentive program database maintained by the secretary; requiring
7-certain search result presentation formats, a comprehensive report and a summary
8-report; amending K.S.A. 2024 Supp. 74-50,226 and 74-50,227 and repealing the
9-existing sections.
3+By Committee on Commerce, Labor and Economic Development
4+Requested by Representative K. Williams
5+2-5
6+AN ACT concerning economic development; relating to government
7+transparency; requiring local governments to report certain local
8+economic development incentive program information to the secretary
9+of commerce; defining such programs; requiring the secretary of
10+commerce to post such information on the economic development
11+incentive program database maintained by the secretary; requiring
12+certain search result presentation formats, a comprehensive report and a
13+summary report; amending K.S.A. 2024 Supp. 74-50,226 and 74-
14+50,227 and repealing the existing sections.
1015 Be it enacted by the Legislature of the State of Kansas:
11-Section 1. K.S.A. 2024 Supp. 74-50,226 is hereby amended to
12-read as follows: 74-50,226. As used in K.S.A. 2024 Supp. 74-50,226
13-and 74-50,227, and amendments thereto:
16+Section 1. K.S.A. 2024 Supp. 74-50,226 is hereby amended to read as
17+follows: 74-50,226. As used in K.S.A. 2024 Supp. 74-50,226 and 74-
18+50,227, and amendments thereto:
1419 (a) "Administering agency" means the state agency or department
15-charged with administering a particular economic development
16-incentive program, as set forth by the program's enacting statute or,
17-where no department or agency is set forth, the department of revenue.
20+charged with administering a particular economic development incentive
21+program, as set forth by the program's enacting statute or, where no
22+department or agency is set forth, the department of revenue.
1823 (b) "Economic development incentive program" means:
1924 (1) Any economic development incentive program administered
2025 wholly or in part by the secretary of commerce;
21-(2) any tax credit program, except for social and domestic tax
22-credits, regardless of the administering agency;
23-(3) property that has been exempted from ad valorem taxation
24-under the provisions of section 13 of article 11 of the constitution of the
25-state of Kansas;
26+(2) any tax credit program, except for social and domestic tax credits,
27+regardless of the administering agency;
28+(3) property that has been exempted from ad valorem taxation under
29+the provisions of section 13 of article 11 of the constitution of the state of
30+Kansas;
2631 (4) property that has been purchased, acquired, constructed,
2732 reconstructed, improved, equipped, furnished, repaired, enlarged or
2833 remodeled with all or any part of the proceeds of revenue bonds issued
29-under the authority of K.S.A. 12-1740 through 12-1749a, and
30-amendments thereto, that is exempt from ad valorem taxation under
31-K.S.A. 79-201a Second, and amendments thereto; and
32-(5) any economic development fund, including, but not limited to,
33-the job creation program fund established by K.S.A. 74-50,224, and
34+under the authority of K.S.A. 12-1740 through 12-1749a, and amendments
35+thereto, that is exempt from ad valorem taxation under K.S.A. 79-201a
36+Second, and amendments thereto; and
37+(5) any economic development fund, including, but not limited to, the
38+job creation program fund established by K.S.A. 74-50,224, and
3439 amendments thereto, and the economic development initiatives fund,
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3575 established by K.S.A. 79-4804, and amendments thereto; and
3676 (6) local government-based economic development programs or
3777 incentives, including, but not limited to:
3878 (A) Community improvement districts, K.S.A. 12-6a26 et seq., and
3979 amendments thereto;
40-(B) tax increment financing, K.S.A. 12-1770 et seq., and
41-amendments thereto;
80+(B) tax increment financing, K.S.A. 12-1770 et seq., and amendments
81+thereto;
4282 (C) business improvement districts, K.S.A. 12-1781 et seq., and
4383 amendments thereto;
44-(D) self-supported municipal improvement districts, K.S.A. 12-
45-1794 et seq., and amendments thereto;
84+(D) self-supported municipal improvement districts, K.S.A. 12-1794
85+et seq., and amendments thereto;
4686 (E) neighborhood revitalization act, K.S.A. 12-17,114 et seq., and
4787 amendments thereto;
4888 (F) downtown redevelopment act, K.S.A. 12-17,121 et seq., and
4989 amendments thereto;
5090 (G) transportation development districts, K.S.A. 12-17,140 et seq.,
5191 and amendments thereto;
5292 (H) public improvement districts, K.S.A. 12-17,152 et seq., and
5393 amendments thereto;
5494 (I) industrial development bonds, K.S.A. 12-3801 et seq., and
5595 amendments thereto; and
56-(J) any other economic development incentive offered by the local
57-government and accepted by the recipient that may be quantified as to
58-the value provided to the recipient, including any grant, loan, lease,
59-land acquisition, site preparation, utilities, facilities, streets or
60-roadways, workforce development or workforce training.
96+(J) any grant, loan, lease, land acquisition, site preparation, utilities,
97+facilities, streets or roadways, workforce development, workforce training
98+or any other incentive offered by the local government and accepted by the
99+recipient that may be quantified as to the value provided to the recipient.
61100 (c) "Enterprise" means a corporation, limited liability company, S
62101 corporation, partnership, registered limited liability partnership,
63-foundation, association, nonprofit entity, sole proprietorship, business
64-trust or other entity engaged in business.
65-(d) "Local government" means: HOUSE BILL No. 2304—page 2
102+foundation, association, nonprofit entity, sole proprietorship, business trust
103+or other entity engaged in business.
104+(d) "Local government" means:
66105 (1) Any city, county or unified government, or any subdivision
67106 thereof; or
68107 (2) any instrumentality of a city, county or unified government,
69-established for the purpose of economic development of such city,
70-county or unified government, that is funded in whole or in part by
71-such local government.
72-(e) "Recipient" means the enterprise, identified by the business
73-name filed with the secretary of state, that is the original applicant for
74-and that receives proceeds from an economic development incentive
75-program directly from the administering agency. "Recipient" includes
76-an enterprise that is no longer solvent due to bankruptcy and a recipient
77-with respect to an economic development project that has failed. If the
78-"recipient" is an enterprise created primarily for the purpose of the
79-economic development project, "recipient" includes the enterprise or
80-enterprises, partners or principals that own or, individually or with
81-other enterprises, have a controlling interest in the "recipient."
82-(f) "Searchable website or web page" means a website or web
83-page that allows the public to search and aggregate the information
84-identified and required to be provided by this section and K.S.A. 74-
85-50,227, and amendments thereto, including requirements that the
86-website or web page offer users the ability to efficiently search and
87-display data at least by economic development incentive program,
88-recipient and location of the economic development project by county
89-and calculate incentive totals for each category claimed by year and be
90-searchable by year.
108+established for the purpose of economic development of such city, county
109+or unified government, that is funded in whole or in part by such local
110+government.
111+(e) "Recipient" means the enterprise, identified by the business name
112+filed with the secretary of state, that is the original applicant for and that
113+receives proceeds from an economic development incentive program
114+directly from the administering agency. "Recipient" includes an enterprise
115+that is no longer solvent due to bankruptcy and a recipient with respect to
116+an economic development project that has failed. If the "recipient" is an
117+enterprise created primarily for the purpose of the economic development
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161+project, "recipient" includes the enterprise or enterprises, partners or
162+principals that own or, individually or with other enterprises, have a
163+controlling interest in the "recipient."
164+(f) "Searchable website or web page" means a website or web page
165+that allows the public to search and aggregate the information identified
166+and required to be provided by this section and K.S.A. 74-50,227, and
167+amendments thereto, including requirements that the website or web page
168+offer users the ability to efficiently search and display data at least by
169+economic development incentive program, recipient and location of the
170+economic development project by county.
91171 (e)(g) "Social and domestic tax credits" means the adoption credit
92-created pursuant to K.S.A. 79-202a 79-32,202a, and amendments
93-thereto, the earned income tax credit created pursuant to K.S.A. 79-
94-32,205, and amendments thereto, the food sales tax credit created
95-pursuant to K.S.A. 79-32,271, and amendments thereto, the child and
96-dependent care tax credit created pursuant to K.S.A. 79-32,111c, and
97-amendments thereto, and the homestead property tax refund created
98-pursuant to K.S.A. 79-4501 et seq., and amendments thereto.
99-(f)(h) "Tax credit program" means any credit allowed against the
100-tax imposed by the Kansas income tax act, the premium or privilege
101-fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or
102-the privilege tax as measured by net income of financial institutions
103-imposed pursuant to article 11 of chapter 79 of the Kansas Statutes
104-Annotated, and amendments thereto.
172+created pursuant to K.S.A. 79-202a 79-32,202a, and amendments thereto,
173+the earned income tax credit created pursuant to K.S.A. 79-32,205, and
174+amendments thereto, the food sales tax credit created pursuant to K.S.A.
175+79-32,271, and amendments thereto, the child and dependent care tax
176+credit created pursuant to K.S.A. 79-32,111c, and amendments thereto, and
177+the homestead property tax refund created pursuant to K.S.A. 79-4501 et
178+seq., and amendments thereto.
179+(f)(h) "Tax credit program" means any credit allowed against the tax
180+imposed by the Kansas income tax act, the premium or privilege fees
181+imposed pursuant to K.S.A. 40-252, and amendments thereto, or the
182+privilege tax as measured by net income of financial institutions imposed
183+pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, and
184+amendments thereto.
105185 Sec. 2. K.S.A. 2024 Supp. 74-50,227 is hereby amended to read as
106186 follows: 74-50,227. (a) The department of commerce shall collect
107187 incentive data from economic development incentive programs that
108188 provide more than $50,000 of annual incentives from administering
109-agencies or local governments as required by this section. Such data
110-shall be collected from administering agencies or local governments
111-and be stored in a database that is available to the public in a digital
112-format. The database shall contain information from multiple years and
113-must be searchable, printable and available to access over the internet
114-on the department of commerce's website on a permanently accessible
115-web page that may be accessed via a conspicuous link to that web page
116-placed on the front page of the department's website. Information
117-included in the database shall be updated by the department of
118-commerce at least on an annual basis and such update shall be
119-completed prior to the end of the following fiscal year in which such
120-incentive was earned or distributed. The database shall be a searchable
121-website or web page that is comprehensive of all information required
122-by this section for all years as required by this section and shall permit
123-searches by a user of such information by economic development
124-incentive program, county and recipient. The database shall permit the
125-user, on one web page and by means of an easily accessible drop-down
126-menu or other similar prompt, to select to search at least by keyword or
127-phrase within separately identified categories of economic
128-development incentive program, county and recipient name. The
129-database shall be capable of calculating total incentives for each HOUSE BILL No. 2304—page 3
130-category claimed by year and be searchable by year. A search result
131-shall include all information required by this section, and such
132-information applicable to the search result shall be in one printable or
133-downloadable report. In addition to such a comprehensive report, the
134-database shall be configured to provide a summary report in response
135-to a search when requested. The summary report shall provide the total
136-incentives awarded to the recipient, the number of years that the
137-incentive may be claimed, the total unencumbered incentive award that
138-may be claimed and the total incentives that have been claimed by the
139-recipient per year. Such information shall be produced by economic
140-development incentive program, county and recipient name. Such
141-summary report shall be provided to the house committee on
142-commerce, labor and economic development and the senate committee
143-on commerce on or before January 31 of each year and shall disclose
144-the most recent three years of economic incentives claimed and the
145-total amount of funds committed by the state or the local government
146-that are required to be paid as an incentive over the entire period of the
147-incentive.
148-(b) (1) Local governments shall provide the department of
149-commerce with all available and reasonably obtainable information
150-required by this section for all active economic development incentive
151-programs of such local government commenced prior to July 1, 2025,
152-that provide more than $50,000 in value in annual incentives as
153-provided by subsection (c). On and after July 1, 2025, requiring the
154-provision of all information required by this section as necessary from
155-a recipient and providing such information to the department of
156-commerce by the local government shall be a condition of commencing
157-or providing any incentive to a recipient pursuant to any economic
158-development incentive program that will provide more than $50,000 in
159-value in annual incentives. Information required by this section for
160-programs commencing after July 1, 2025, shall be provided to the
161-department of commerce within 45 days of the execution of an
162-economic development incentive program agreement between the local
163-government and the recipient. The local government shall provide
164-updates of all applicable information required by this section to the
165-secretary of commerce, in the manner and form as required by the
166-secretary, at least annually and at such additional time or times as may
167-be required by the secretary.
168-(2) On and after July 1, 2025, any recipient that will receive more
169-than $50,000 in value in annual incentives from any economic
170-development incentive program provided by a local government or any
171-administering agency shall, as a condition of the award of such
172-incentives, agree to provide all information required by this section to
173-the secretary, at such times and in the form and manner as required by
174-the secretary, for publication on the department's database as provided
175-by this section.
176-(3) All information shall be provided in the form and manner as
177-required by the secretary, except that the secretary shall make an
178-electronic form available for local governments to report such
179-information in a simple online format and shall only require the
180-submission of information in digital form.
189+agencies or local governments as required by this section. Such data shall
190+be collected from administering agencies or local governments and be
191+stored in a database that is available to the public in a digital format. The
192+database shall contain information from multiple years and must be
193+searchable, printable and available to access over the internet on the
194+department of commerce's website on a permanently accessible web page
195+that may be accessed via a conspicuous link to that web page placed on the
196+front page of the department's website. Information included in the
197+database shall be updated by the department of commerce at least on an
198+annual basis and such update shall be completed prior to the end of the
199+following fiscal year in which such incentive was earned or distributed.
200+The database shall be a searchable website or web page that is
201+comprehensive of all information required by this section for all years as
202+required by this section and shall permit searches by a user of such
203+information by economic development incentive program, county and
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247+recipient. The database shall permit the user, on one web page and by
248+means of an easily accessible drop-down menu or other similar prompt, to
249+select to search at least by keyword or phrase within separately identified
250+categories of economic development incentive program, county and
251+recipient name. A search result shall include all information required by
252+this section, and such information applicable to the search result shall be
253+in one printable or downloadable report. In addition to such a
254+comprehensive report, the database shall be configured to provide a
255+summary report in response to a search when requested. The summary
256+report shall provide the total incentives awarded to the recipient and the
257+total incentives that have been provided to the recipient. Such information
258+shall be produced by economic development incentive program, county
259+and recipient name.
260+(b) (1) Local governments shall provide the department of commerce
261+with all available and reasonably obtainable information required by this
262+section for all active economic development incentive programs of such
263+local government commenced prior to July 1, 2025, that provide more
264+than $50,000 in value in annual incentives. On and after July 1, 2025,
265+requiring the provision of all information required by this section as
266+necessary from a recipient and providing such information to the
267+department of commerce by the local government shall be a condition of
268+commencing or providing any incentive to a recipient pursuant to any
269+economic development incentive program that will provide more than
270+$50,000 in value in annual incentives. Information required by this section
271+for programs commencing after July 1, 2025, shall be provided to the
272+department of commerce within 30 days of the execution of an economic
273+development incentive program agreement between the local government
274+and the recipient. The local government shall provide updates of all
275+applicable information required by this section to the secretary of
276+commerce, in the manner and form as required by the secretary, at least
277+annually and at such additional time or times as may be required by the
278+secretary.
279+(2) On an after July 1, 2025, any recipient that will receive more than
280+$50,000 in value in annual incentives from any economic development
281+incentive program provided by a local government or any administering
282+agency shall, as a condition of the award of such incentives, agree to
283+provide all information required by this section to the secretary, at such
284+times and in the form and manner as required by the secretary, for
285+publication on the department's database as provided by this section.
181286 (b)(c) The database required to be created by subsection (a) shall
182-contain the following information or shall contain a link by which the
183-user can access such information, except that local governments shall
184-provide such information as required by this section for active
185-economic development incentive programs commenced prior to July 1,
186-2025, specified in section 1(b)(6)(A) through (I), and amendments
187-thereto, to the secretary on or before July 1, 2026, and thereafter as
188-required by this section. Local governments shall provide such
189-information as required by this section for active economic
190-development incentive programs commenced prior to July 1, 2025,
191-specified in section 1(b)(6)(A) through (J) to the secretary on or before
192-July 1, 2028, and thereafter as required by this section: HOUSE BILL No. 2304—page 4
287+contain the following information or shall contain a link by which the user
288+can access such information:
193289 (1) User information for each economic development incentive
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194333 program, including the:
195-(A) Names and addresses, including county, of recipients
196-receiving benefits from the program and, for sales tax and revenue
197-bonds issued under the STAR bond financing act, K.S.A. 12-17,162 et
198-seq., and amendments thereto, the names of principals and officers for
199-each project developer;
200-(B) annual amount of incentives claimed, distributed to or
201-received by each recipient and any remaining balance of the total
202-amount of incentives claimed or awarded to the recipient;
334+(A) Names and addresses, including county, of recipients receiving
335+benefits from the program and, for sales tax and revenue bonds issued
336+under the STAR bond financing act, K.S.A. 12-17,162 et seq., and
337+amendments thereto, the names of principals and officers for each project
338+developer;
339+(B) annual amount of incentives claimed, distributed to or received
340+by each recipient and any remaining balance of the total amount of
341+incentives claimed or awarded to the recipient;
203342 (C) qualification criteria for the economic development incentive
204343 program, including, if available, qualification criteria specific to the
205344 recipient. Qualification criteria shall include, but not be limited to, any
206-requirements regarding the number of jobs created or the amount of
207-initial or annual capital improvement;
208-(D) required benchmarks for continued participation in the
209-economic development incentive program and progress made toward
210-the benchmarks; and
345+requirements regarding the number of jobs created or the amount of initial
346+or annual capital improvement;
347+(D) required benchmarks for continued participation in the economic
348+development incentive program and progress made toward the
349+benchmarks; and
211350 (E) years for which the recipient has received benefits under the
212351 economic development incentive program;
213-(2) descriptive information for each economic development
214-program, which shall include:
215-(A) A description and history of the program, including its
216-inception date;
352+(2) descriptive information for each economic development program,
353+which shall include:
354+(A) A description and history of the program, including its inception
355+date;
217356 (B) the purpose or goals of the program and the criteria for
218357 qualification;
219358 (C) applications for the program, if any, and relevant resources or
220359 contacts;
221360 (D) the program cost and return on investment, including
222361 assumptions used to calculate the return on investment;
223362 (E) the program compliance rate;
224363 (F) annual reports, if required by statute; and
225364 (G) evaluations of the program, if any; and
226365 (3) annual data, which shall be organized by recipient, county and
227366 program and shall include the:
228367 (A) Total amount of annual incentives from a program claimed or
229368 received by a recipient;
230-(B) total amount of incentives received by recipients in each
231-county; and
369+(B) total amount of incentives received by recipients in each county;
370+and
232371 (C) total amount of incentives distributed by each program.
233-(c)(d) Data collected pursuant to this section must shall be
234-aggregated and provided by program, recipient and county.
372+(c)(d) Data collected pursuant to this section must shall be aggregated
373+and provided by program, recipient and county.
235374 (d)(e) Except as otherwise provided in this subsection, and
236375 notwithstanding any information publication requirements listed in this
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237419 section, no information shall be disclosed by the secretary of commerce
238420 under this section if such disclosure would:
239421 (1) Violate any federal law;
240-(2) violate the confidentiality provisions of any agreement
241-executed before July 1, 2019 2025;
242-(3) in the discretion of the secretary of commerce, be detrimental
243-to the development of a STAR bond project or jeopardize an economic
422+(2) violate the confidentiality provisions of any agreement executed
423+before July 1, 2019 2025;
424+(3) in the discretion of the secretary of commerce, be detrimental to
425+the development of a STAR bond project or jeopardize an economic
244426 development incentive program or project; or
245-(4) disclose the names or other personally identifying information
246-of individuals who have made contributions or investments pursuant to
247-the provisions of an economic development incentive program for the
248-purpose of receiving a tax credit.
249-Information that is otherwise publicly available shall not be
250-considered confidential and shall be subject to publication as provided
251-in this section.
427+(4) disclose the names or other personally identifying information of
428+individuals who have made contributions or investments pursuant to the
429+provisions of an economic development incentive program for the purpose
430+of receiving a tax credit.
431+Information that is otherwise publicly available shall not be considered
432+confidential and shall be subject to publication as provided in this section.
252433 (e)(f) (1) The secretary of commerce shall report in writing to the
253-standing committee on commerce, labor and economic development of
254-the house of representatives and the standing committee on commerce
255-of the senate any information not disclosed by the secretary pursuant to
256-subsection (d)(3) and the reason why the information was not disclosed. HOUSE BILL No. 2304—page 5
257-Commencing on January 31, 2026, such reports shall be made on
258-or before January 31 of each year for such information not disclosed in
259-the fiscal year ending the preceding June 30. Any testimony or oral
434+standing committee on commerce, labor and economic development of the
435+house of representatives and the standing committee on commerce of the
436+senate any information not disclosed by the secretary pursuant to
437+subsection (d)(3) and the reason why the information was not disclosed.
438+Commencing on January 31, 2026, such reports shall be made on or
439+before January 31 of each year for such information not disclosed in the
440+fiscal year ending the preceding June 30. Any testimony or oral
260441 presentation before the committee or discussion by the committee with
261-respect to the report shall be considered the discussion of data relating
262-to financial affairs or trade secrets of corporations, partnerships, trusts,
263-and individual proprietorships pursuant to the provisions of K.S.A. 75-
264-4319(b)(4), and amendments thereto, for purposes of the Kansas open
265-meetings act, and shall be closed to the public.
442+respect to the report shall be considered the discussion of data relating to
443+financial affairs or trade secrets of corporations, partnerships, trusts, and
444+individual proprietorships pursuant to the provisions of K.S.A. 75-4319(b)
445+(4), and amendments thereto, for purposes of the Kansas open meetings
446+act, and shall be closed to the public.
266447 (2) The report of the secretary pursuant to subsection (e)(1) (f)(1)
267448 shall be confidential and shall not be subject to the provisions of the
268-Kansas open records act, K.S.A. 45-215 et seq., and amendments
269-thereto, except that two years after the report is submitted to a
270-legislative committee, such report shall be a public record open for
271-inspection under the Kansas open records act, K.S.A. 45-215 et seq.,
272-and amendments thereto.
273-(g) The secretary may impose an administrative fee of 1% of the
274-amount of the total incentive, not to exceed $1,000, upon each recipient
275-of an economic development incentive program administered by the
276-secretary for the purpose of the payment of costs incurred by the
277-secretary for administering and maintaining the database required by
278-this section.
449+Kansas open records act, K.S.A. 45-215 et seq., and amendments thereto,
450+except that two years after the report is submitted to a legislative
451+committee, such report shall be a public record open for inspection under
452+the Kansas open records act, K.S.A. 45-215 et seq., and amendments
453+thereto.
279454 Sec. 3. K.S.A. 2024 Supp. 74-50,226 and 74-50,227 are hereby
280455 repealed.
281456 Sec. 4. This act shall take effect and be in force from and after its
282457 publication in the statute book.
283-I hereby certify that the above BILL originated in the House, and passed
284-that body
285-HOUSE concurred in
286-SENATE amendments __________________________________________________________________
287-
288-Speaker of the House.
289-
290-Chief Clerk of the House.
291-
292-Passed the SENATE
293- as amended
294-
295-President of the Senate.
296-
297-Secretary of the Senate.
298-APPROVED ____________________________________________
299-
300-Governor.
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