The Kansas House Committee on Commerce, Labor, and Economic Development convened on March 13, 2025, to discuss significant amendments to the rural mall star bond project legislation, focusing on eligibility criteria and project requirements.
Key discussions centered around defining project costs and establishing specific conditions for rural mall projects. Notably, the committee emphasized the inclusion of a sports or entertainment tourism component, or educational facilities like museums, as essential elements for project approval. A deadline of December 31, 2026, was set for applications, ensuring timely progress on these initiatives.
The committee also revised visitor data tracking requirements, mandating that entities within a Starbond Project District collect and report visitor data quarterly to the Secretary of Commerce. This data must be aggregated and devoid of personal identification, enhancing privacy while providing valuable insights into project impact.
Another critical amendment allows the Kansas Development Finance Authority to issue star bonds for approved projects, clarifying that these bonds will not be general obligations of the state. The committee introduced a mechanism for the State Finance Council to review and potentially veto projects, ensuring oversight while allowing the Secretary to proceed if no timely objections arise.
The legislation now requires that projects attract a significant percentage of visitors from outside the local area, with specific metrics to be reported to the legislature. Developers must also provide personal guarantees for repayment of state sales tax increment revenues, linking financial accountability to project performance.
These amendments aim to bolster economic development in rural areas while ensuring that projects deliver tangible benefits to the community. The committee's actions reflect a commitment to responsible growth and oversight in the use of public funds for development initiatives.