Bill
HB 2304
HB 2304 requires local governments and recipients to report incentive data to the Kansas Department of Commerce, which will publish a public searchable database with yearly summari
Purpose
- HB 2304 expands transparency for economic development incentives by requiring local governments and incentive recipients to report specified program data to the Kansas Department of Commerce (the Secretary of Commerce). The Department must publish the data in a searchable, public database and produce annual summary reports to the Legislature.
Key provisions
- Expanded definition: “Economic development incentive program” is broadened to include many local-government-based incentives (e.g., community improvement districts, tax increment financing, business improvement districts, transportation development districts, public improvement districts, industrial development bonds) and any local grant, loan, lease, land or infrastructure contribution, workforce development or other incentive that can be quantified.
- Who must report:
- Local governments (cities, counties, unified governments, subdivisions and instrumentalities funded in whole or in part by a local government) must provide available information on active local incentive programs that provide more than $50,000 in annual value.
- Recipients (enterprises identified by business name filed with Secretary of State) receiving more than $50,000 in annual incentives must agree to provide required information as a condition of receiving incentives on or after July 1, 2025.
- Database requirements:
- The Department’s Economic Development Incentive Program database must be a searchable website/web page that allows users to search/aggregate by incentive program, recipient, county and year; calculate totals by category and be printable/downloadable.
- A single search result must produce a comprehensive report and a concise summary report showing: total incentives awarded to the recipient, number of years the incentive may be claimed, total unencumbered award available, and total incentives claimed (including the most recent three years claimed and the total funds committed over the incentive period).
- Reporting and nondisclosure:
- The Secretary must update the database at least annually and post required information for programs commenced before July 1, 2025 (subject to confidentiality limits).
- Confidential information under agreements executed before July 1, 2025 need not be disclosed; however, beginning January 31, 2026, and each January 31 thereafter, the Secretary must report to the Legislature explaining any nondisclosures for the prior fiscal year.
- Timing (phased submission deadlines):
- Data for community improvement districts, TIF, business improvement districts, self‑supported municipal improvement districts, neighborhood revitalization, downtown redevelopment, transportation development districts and public improvement districts: by July 1, 2026.
- Industrial development bonds: by July 1, 2027.
- Other quantifiable local incentives (grants, loans, land, infrastructure, workforce programs, etc.): by July 1, 2028.
- (The enrolled bill requires local governments to submit information within a specified period after execution of an agreement; committee versions differed between 30 and 45 days.)
- Cost recovery: The Secretary may impose a 1.0% administrative fee (not to exceed $1,000) on each recipient of incentives administered by the Secretary to help pay database administration and maintenance costs.
- Other change: removes a prior statutory requirement that STAR bonds include the county of recipients.
Fiscal impact
- Department of Commerce estimated costs:
- FY 2026: one‑time $200,000 (web/design/consulting and Salesforce upgrade) plus two new positions (2.00 FTE) with combined annual salary/wages of $189,000 — total FY2026 State General Fund cost ≈ $389,000.
- FY 2027 onward: ongoing personnel cost ≈ $189,000 annually.
- Local governments: Kansas Association of Counties and League of Kansas Municipalities indicated potential need for additional local staff to compile/report data but could not quantify costs.
Who is affected
- Local governments and their development instrumentalities (cities, counties, unified governments).
- Incentive recipients (businesses/enterprises receiving >$50,000 in annual incentives).
- Department of Commerce (operational workload and technical implementation).
- Legislature and public users (greater access to incentive data).
Legislative history & status
- Introduced January 31, 2025; amended in committee (House and Senate committee substitutes); enrolled March 27, 2025; presented to Governor March 28, 2025; approved by Governor April 1, 2025.
- Companion/related bill: SB 1202.
Prepared for readers who want to understand HB 2304’s substance, deadlines and likely administrative impacts.
Compiled from official sources — confirm details with the bill’s official record.
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