Senate Commerce Committee advances SB197 after adopting Star Bond amendments

The Senate Commerce Committee moved a substitute for Senate Bill 197 favorably for passage after extended debate over changes to the state's Star Bond program.

Senator Tyson offered amendments that would tighten oversight and shorten the program's sunset. "It would require approval from the finance council for any Star Bond project," Tyson said when explaining one amendment, adding the intent was to make sure the finance council review applied regardless of which statutory path the Secretary of Commerce used. The committee considered several related changes, including time-limited construction authority for small communities and a bonding mechanism through the Kansas Development Finance Authority.

Why it matters: Star Bonds are a state economic-development financing tool designed to incentivize large investments by diverting sales tax generated at a project to pay project debt. Lawmakers argued over whether the program needs more checks and whether added steps would slow or deter projects.

Committee discussion and amendments

Senator Tyson argued for requiring…