Hearing on SB 197: bill would expand Star Bonds to mall redevelopment, tighten transparency and add visitor reporting

A legislative committee heard testimony and questions on substitute Senate Bill 197 on SB 197 on [date not specified], which would amend the Star Bond Financing Act to add mall redevelopment as an eligible project, tighten transparency requirements for the Secretary of Commerce and local governments, require quarterly visitor-data reporting from point-of-sale systems within Star Bond districts, prohibit use of state general funds to pay Star Bonds and extend the statute’s sunset to July 1, 2028.

The bill’s sponsor and the reviser briefed the committee on multiple changes, including a temporary allowance for vertical construction in cities with populations under 60,000 provided the Star Bond Project District is approved by Dec. 31, 2025, and a requirement that unions of cities or counties and the Secretary publish feasibility studies and related documents within 90 days of adoption or bond sales. The reviser summarized those provisions: “It prohibits financial assistance from the state or state general fund monies to be used for the purpose of paying Star Bonds,” and said the bill “extends the Star Bond Financing Act's expiration date…to 07/01/2028.”

Why it matters: Star Bonds are a state tool that lets municipalities use new sales-tax revenue generated by a tourism or entertainment attraction to pay bonds issued for large development projects. Supporters argued extending the law and adding transparency will help rural and smaller communities attract investment; critics and some witnesses warned proposed data-collection requirements could be burdensome for small businesses and intrusive for customers.

Key provisions and…