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Conference debate over Star Bonds expansion and an unemployment insurance proviso grew heated; vice chair opposes UI language
Summary
Members agreed to expand Star Bonds guidelines to include mall and amusement-park projects with tourism thresholds and commerce guidelines, but a proposed change to unemployment insurance language drew strong objections from the vice chair, who argued it would harm most employers and open the system to repeated changes.
Conference negotiators discussed revisions to STAR bond authority and a late proposal to alter unemployment insurance rules; the STAR bond language was adopted with clarifications about investment and tourism thresholds while the unemployment language prompted strong objections.
STAR bonds and mall facilities: committee members accepted modifications authorizing the Kansas Development Finance Authority (KDFA) to issue STAR bonds for certain projects, and they added requirements for larger projects—such as $50 million minimum capital investment and $50 million in retail sales for larger metropolitan mall projects—plus tourism thresholds intended to ensure projects serve out-of-state and long-distance visitors. Commerce guidelines were to require, for larger metropolitan projects, 20% out-of-state visitors and 30% visitors from 100 miles or more; medium/rural projects would be required to have 20% visitors from 100 miles or more. Members also discussed a sunset or deadline for mall-related approvals to be finalized by December 31, 2025.
Unemployment insurance language: a late-hour proposal to change unemployment insurance provisions prompted significant pushback. Vice Chair Williams strongly opposed the change, saying it would increase costs to the state trust fund and penalize well-rated employers; she described the measure as reopening the unemployment insurance law one year after the committee had settled it and said that the proposal would expose many employers to higher liabilities. Williams argued the committee should not adopt the change and suggested a stakeholder committee if lawmakers want to reexamine the law.
Outcome and procedure: the STAR bond clarifications were accepted subject to the commerce guidelines and deadlines discussed; the unemployment insurance change generated no committee consensus in the excerpt and a senior member warned it would set a precedent for repeated changes if adopted without a broadly agreed process.
