House committee passes substitute for Senate Bill 197 after multiple amendments to star bond law

A House committee on an unspecified date approved a substituted version of Senate Bill 197, the "star bond" bill, after debating and adopting several amendments that change how projects are approved, what penalties apply and how the program is reported to the Legislature.

The changes approved by the committee include allowing Wyandotte County authority in the bill to form a port authority; modifying a statutory review role for the State Finance Council from a mandatory step to a discretionary one; replacing a potential state tax-payback penalty with a bar on seeking future star bond projects for noncompliant developers; adding an annual reporting requirement for the secretary; extending the bill's sunset date; giving the revisor discretion to tidy language; and passing the substitute bill as amended.

Why it matters: The bill governs "star bond" projects, a financing mechanism tied to sales-tax incentives for large tourism and development projects. The committee's amendments alter oversight, enforcement and the timeline for the program, and they shift some decision authority from a mandatory review process to discretionary review by the State Finance Council.

What the committee adopted

Port authority change: The committee adopted an amendment to add a statute allowing port authorities under the bill. Charles Rymer, the revisor/staff member at the table, summarized the change: "Yes. That covers it. Just we'll be adding a statute to the bill. There'll need to be some amendments as a title and we're just gonna change that statute." The amendment was moved, seconded by Representative Ward, and passed by voice vote.

State Finance Council discretion: Committee debate included a change to language that previously required the State Finance Council to act and now makes its review discretionary. Representative Williams explained the effect: "So that's that piece there. It's just giving the it's kind of like a veto authority. And they have to have the majority in order to make that possible." Under the amendment, the secretary notifies the State Finance Council when approval is imminent; the council may call a meeting within 30 days and may go into executive session under the Open Meetings Act to review the project. If the council calls a meeting and a majority votes not to move forward, the committee record shows that the council's decision would prevent the project from entering an agreement. The committee voted on this portion and the motion passed by voice vote.

Penalty and reporting changes: The committee removed language that would require a developer to repay state sales-tax portions in certain compliance failures. Instead, the committee adopted language barring a developer from seeking another star bond project if the project fails to meet visitor-origin requirements measured three years after the attraction opens. Representative Williams described the intended enforcement timeline: the district may take several years to build and then an additional three years after opening is used to evaluate visitor-origin targets. The bill also requires the secretary to include compliance information in the secretary's annual report to the Legislature so projects and master developers who do not meet the visitor-origin requirements are identified. The amendment was approved by voice vote.

Sunset extension: The committee debated and approved an extension of the statute's termination date. Committee discussion referenced the bill as originally terminating on July 1, 2026; the committee first discussed an earlier two-year extension, then approved a motion to extend the termination by five years instead. In committee discussion someone summarized the math as moving the termination from 2026 to 2034; the motion to extend by five years was seconded and passed by voice vote.

House procedure items: The committee gave the revisor discretion to clean up language after the many amendments and then passed the substituted Senate Bill 197 as amended. Vice Chair Turk moved the substitute be passed favorably as amended; the substitute was seconded by Representative Ward and passed by voice vote. Members indicated votes by saying "aye" or "no" on voice votes; the record does not show roll-call tallies in the transcript excerpt.

Votes at a glance

- Adopted amendment adding port-authority statute language (gives Wyandotte authority to form a port authority): motion seconded by Representative Ward; outcome: passed (voice vote). Note: amendment text changes requirement from joint resolution to bill format for port authorities.

- Approved change making State Finance Council review discretionary ("shall" changed to "may"): motion seconded by Representative Wasser; outcome: passed (voice vote).

- Adopted amendment that removes state sales-tax payback penalty and instead bars noncompliant developers from seeking another project for a set period (three years after opening), and requires the secretary to report compliance: motion seconded by Representative Wasinger; outcome: passed (voice vote).

- Extended the act's sunset date by five years (committee discussion moved termination from 07/01/2026 to 07/01/2034): motion seconded by Representative Penn; outcome: passed (voice vote).

- Gave the revisor discretion to clean up bill language: motion seconded by Representative Penn; outcome: passed (voice vote).

- Passed substitute for Senate Bill 197 as amended (final passage in committee): motion moved by Vice Chair Turk, seconded by Representative Ward; outcome: passed (voice vote).

What the record shows and what it does not

The committee's discussion and votes in the transcript were recorded as voice votes; the excerpt does not include roll-call vote tallies or named vote records for each member. The transcript shows the committee removed a paragraph related to a developer's personal guarantee in an earlier amendment package approved the day before, as noted by Supervisor Bremer. The transcript also records committee members' intent that most of the substantive changes apply prospectively; Charles Rymer said the language, as written, would apply from July 1, 2025, and committee members said they could clarify that it would apply only to districts created after that date if desired.

Next steps

The committee closed the discussion and approved the substitute as amended. The committee chair indicated plans to meet again Monday and Tuesday to continue work on other bills (a daycare bill and a sports grant bill). The transcript does not record further actions or the bill's subsequent referral or final disposition beyond the committee's approval.

Quotes (selected)

"Yes. That covers it. Just we'll be adding a statute to the bill. There'll need to be some amendments as a title and we're just gonna change that statute," Charles Rymer, revisor/staff member.

"So that's that piece there. It's just giving the it's kind of like a veto authority. And they have to have the majority in order to make that possible," Representative Williams.

Ending: The committee concluded after passing the substitute and adjourned; no roll-call vote totals were recorded in the provided transcript excerpt.