At a committee hearing, senators considered changes to the Star Bonds Financing Act, including an extension of the program’s sunset date to July 1, 2030, an amendment to allow redevelopment of certain dilapidated mall sites using Star Bond incentives, and a separate substitute package of transparency and limit provisions. The committee approved the mall‑redevelopment amendment and voted to divide and further study a broader set of proposed transparency and eminent‑domain restrictions, postponing some action until a follow‑up meeting on Monday.

The amendment approved in committee would extend the current Star Bonds sunset to 07/01/2030 and add eligibility for redevelopment projects converting certain dilapidated mall facilities into Star Bond projects. Under the amendment’s terms described to the panel, an eligible mall project must have at least 50% of its leasable area unoccupied and a minimum combined capital investment of $10,000,000; projects must also “demonstrate a substantial contribution to regional economic growth, tourism, and job creation,” consistent with the Star Bonds program’s economic‑development and tourism purposes.

Committee members debated the scope of the mall language. Senator Titus asked whether limiting the provision to malls — rather than including other large, vacant structures such as schools — was appropriate; the amendment sponsor said those other building types were not included in the current language but that the idea could be expanded on the Senate floor. Senator Owens asked whether Department of Commerce approval remains required for Star Bond projects; committee discussion confirmed Department of Commerce review and approval remain part of the process.

A separate substitute amendment, described to the committee as drawing from testimony by Americans for Prosperity, would break several policy changes into discrete items. The substitute’s provisions as presented include: eliminating the authority for a state or municipality to use eminent domain specifically for creating Star Bond districts; requiring all documents used to consider Star Bond approval to be posted on the Kansas Department of Commerce website within 30 days of municipal approval; requiring municipalities to notify residents of Star Bond approvals and to disclose increment revenue collected, sales tax revenue foregone (in dollars) and estimated municipal tax reduction; requiring the Department of Commerce to show sales tax foregone associated with pending and approved Star Bond projects on its website; requiring entities within a Star Bond district to report visitor ZIP codes quarterly with public posting; disallowing state general funds or federal revenues to be used to repay Star Bonds; and prohibiting Star Bond increment revenue from being used to fund subsequent Star Bond projects.

Committee members asked procedural and legal questions about the eminent‑domain proposal. The Legislative Research Department told the committee it had a 2014 memo noting use of eminent domain in building a racetrack project in Wyandotte County and cited a court decision — recorded in the hearing as Thomasick v. Unified Government of Wyandotte County — that upheld use of special‑obligation sales tax bonds and eminent domain for that project. Members said they needed more legal and factual background before voting on the substitute’s components.

Committee procedure: members voted to divide the substitute into separate amendment bullets so each could be considered on its own. The committee then agreed to take the separate bullets up individually and asked staff and advisors to prepare summaries and additional information. Senators requested the Kansas Department of Commerce provide visitor data that had been requested prior to the hearing. The committee postponed further action on the substitute package and scheduled follow‑up consideration for Monday at 1:30 p.m.

Why it matters: Star Bonds are a state‑authorized tool that uses sales tax increment financing to encourage large economic development and tourism projects. Changes that expand eligible project types, restrict eminent domain authority, or increase transparency about foregone sales tax would affect how local governments, developers and taxpayers experience and evaluate Star Bond projects.

Committee directions and next steps included asking Legislative Research and Department of Commerce staff for briefing material on the proposed changes and visitor‑data follow‑up. The committee scheduled continued consideration of Star Bonds items (including SB197) at its next meeting.