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Committee advances bill to require local reporting of economic development incentives to Commerce (House Bill 2304)
Summary
House Bill 2,304, as amended, would require local governments to report economic development incentive awards to the Secretary of Commerce for posting in a searchable database; the amendment extends the reporting deadline from 30 to 45 days and clarifies the definition of covered incentives.
The Committee on Government Efficiency approved House Bill 2,304 as amended, a bill requiring local governments to report economic development incentive programs and related data to the Secretary of Commerce, which must maintain a searchable public database.
David Weese, the committee reviser, summarized that the bill “require[s] that certain reports from local governments concerning local economic development incentive programs” be submitted to the Secretary of Commerce and posted in a searchable database. The text incorporates definitions of covered programs and timelines for reporting.
Senator Thomas offered an amendment to clarify language in the bill’s definition section and to extend the deadline for reporting executed economic development plans from 30 days to 45 days; he said the change reflected direct feedback from the city of Overland Park. Weese confirmed the amendment clarifies the definition and changes the reporting timeline to 45 days.
Senator Holscher asked about fiscal impacts; Weese referenced an earlier fiscal note on the introduced version that carried a state fiscal note of $189,000 and noted that House amendments could affect that estimate. Senator Thomas noted the Department of Commerce requested two FTEs at a cost of $189,000 on the fiscal note and suggested reallocating existing FTEs as one way to reduce state cost. Senator Thompson emphasized the need for transparency in order to “get an arm around” how much the state, counties and municipalities subsidize development.
Senator Thompson moved the bill as amended; Senator Thomas seconded. The motion carried on a voice vote.
Committee discussion identified transparency of local tax incentives (TIF, IRBs and similar instruments) as the bill’s principal aim and noted uncertainty about local fiscal impacts if the Department of Commerce needs new staff to operate the database.
