K.S.A. § 74-50,227 — KS Code / Chapter 74 / Article 50 / Section 74-50,227
74-50,227 - Format; internet access; information to be published; exceptions; database search and report capability requirements; reporting of information by local governments; disclosure of information by businesses a condition of granting incentives; electronic report form for local governments; reporting deadlines; reports to legislative committees, confidentiality under Kansas open records, exception; administrative fee.
Status: in_force

74-50,227. Format; internet access; information to be published; exceptions; database search and report capability requirements; reporting of information by local governments; disclosure of information by businesses a condition of granting incentives; electronic report form for local governments; reporting deadlines; reports to legislative committees, confidentiality under Kansas open records, exception; administrative fee. (a) The department of commerce shall collect incentive data from economic development incentive programs that provide more than $50,000 of annual incentives from administering agencies or local governments as required by this section. Such data shall be collected from administering agencies or local governments and be stored in a database that is available to the public in a digital format. The database shall be available to access over the internet on the department of commerce's website on a permanently accessible web page that may be accessed via a conspicuous link placed on the front page of the department's website. Information included in the database shall be updated by the department of commerce at least on an annual basis and such update shall be completed prior to the end of the following fiscal year in which such incentive was earned or distributed. The database shall be a searchable website or web page that is comprehensive of all information required by this section for all years as required by this section and shall permit searches by a user of such information by economic development incentive program, county and recipient. The database shall permit the user, on one web page and by means of an easily accessible drop-down menu or other similar prompt, to select to search at least by keyword or phrase within separately identified categories of economic development incentive program, county and recipient name. The database shall be capable of calculating total incentives for each category claimed by year and be searchable by year. A search result shall include all information required by this section, and such information applicable to the search result shall be in one printable or downloadable report. In addition to such a comprehensive report, the database shall be configured to provide a summary report in response to a search when requested. The summary report shall provide the total incentives awarded to the recipient, the number of years that the incentive may be claimed, the total unencumbered incentive award that may be claimed and the total incentives that have been claimed by the recipient per year. Such information shall be produced by economic development incentive program, county and recipient name. Such summary report shall be provided to the house* committee on commerce, labor and economic development and the senate committee on commerce on or before January 31 of each year and shall disclose the most recent three years of economic incentives claimed and the total amount of funds committed by the state or the local government that are required to be paid as an incentive over the entire period of the incentive.

(b) (1) Local governments shall provide the department of commerce with all available and reasonably obtainable information required by this section for all active economic development incentive programs of such local government commenced prior to July 1, 2025, that provide more than $50,000 in value in annual incentives as provided by subsection (c). On and after July 1, 2025, requiring the provision of all information required by this section as necessary from a recipient and providing such information to the department of commerce by the local government shall be a condition of commencing or providing any incentive to a recipient pursuant to any economic development incentive program that will provide more than $50,000 in value in annual incentives. Information required by this section for programs commencing after July 1, 2025, shall be provided to the department of commerce within 45 days of the execution of an economic development incentive program agreement between the local government and the recipient. The local government shall provide updates of all applicable information required by this section to the secretary of commerce, in the manner and form as required by the secretary, at least annually and at such additional time or times as may be required by the secretary.

(2) On and after July 1, 2025, any recipient that will receive more than $50,000 in value in annual incentives from any economic development incentive program provided by a local government or any administering agency shall, as a condition of the award of such incentives, agree to provide all information required by this section to the secretary, at such times and in the form and manner as required by the secretary, for publication on the department's database as provided by this section.

(3) All information shall be provided in the form and manner as required by the secretary, except that the secretary shall make an electronic form available for local governments to report such information in a simple online format and shall only require the submission of information in digital form.

(c) The database required to be created by subsection (a) shall contain the following information, except that local governments shall provide such information as required by this section for active economic development incentive programs commenced prior to July 1, 2025, specified in section 1(b)(6)(A) through (I), and amendments thereto, to the secretary on or before July 1, 2026, and thereafter as required by this section. Local governments shall provide such information as required by this section for active economic development incentive programs commenced prior to July 1, 2025, specified in section 1(b)(6)(A) through (J) to the secretary on or before July 1, 2028, and thereafter as required by this section:

(1) User information for each economic development incentive program, including the:

(A) Names and addresses of recipients receiving benefits from the program and, for sales tax and revenue bonds issued under the STAR bond financing act, K.S.A. 12-17,162 et seq., and amendments thereto, the names of principals and officers for each project developer;

(B) annual amount of incentives claimed, distributed to or received by each recipient and any remaining balance of the total amount of incentives claimed or awarded to the recipient;

(C) qualification criteria for the economic development incentive program, including, if available, qualification criteria specific to the recipient. Qualification criteria shall include, but not be limited to, any requirements regarding the number of jobs created or the amount of initial or annual capital improvement;

(D) required benchmarks for continued participation in the economic development incentive program and progress made toward the benchmarks; and

(E) years for which the recipient has received benefits under the economic development incentive program;

(2) descriptive information for each economic development program, which shall include:

(A) A description and history of the program, including its inception date;

(B) the purpose or goals of the program and the criteria for qualification;

(C) applications for the program, if any, and relevant resources or contacts;

(D) the program cost and return on investment, including assumptions used to calculate the return on investment;

(E) the program compliance rate;

(F) annual reports, if required by statute; and

(G) evaluations of the program, if any; and

(3) annual data, which shall be organized by recipient, county and program and shall include the:

(A) Total amount of annual incentives from a program claimed or received by a recipient;

(B) total amount of incentives received by recipients in each county; and

(C) total amount of incentives distributed by each program.

(d) Data collected pursuant to this section shall be aggregated and provided by program, recipient and county.

(e) Except as otherwise provided in this subsection, and notwithstanding any information publication requirements listed in this section, no information shall be disclosed by the secretary of commerce under this section if such disclosure would:

(1) Violate any federal law;

(2) violate the confidentiality provisions of any agreement executed before July 1, 2025;

(3) in the discretion of the secretary of commerce, be detrimental to the development of a STAR bond project or jeopardize an economic development incentive program or project; or

(4) disclose the names or other personally identifying information of individuals who have made contributions or investments pursuant to the provisions of an economic development incentive program for the purpose of receiving a tax credit.

Information that is otherwise publicly available shall not be considered confidential and shall be subject to publication as provided in this section.

(f) (1) The secretary of commerce shall report in writing to the standing committee on commerce, labor and economic development of the house of representatives and the standing committee on commerce of the senate any information not disclosed by the secretary pursuant to subsection (d)(3) and the reason why the information was not disclosed. Commencing on January 31, 2026, such reports shall be made on or before January 31 of each year for such information not disclosed in the fiscal year ending the preceding June 30. Any testimony or oral presentation before the committee or discussion by the committee with respect to the report shall be considered the discussion of data relating to financial affairs or trade secrets of corporations, partnerships, trusts, and individual proprietorships pursuant to the provisions of K.S.A. 75-4319(b)(4), and amendments thereto, for purposes of the Kansas open meetings act, and shall be closed to the public.

(2) The report of the secretary pursuant to subsection (f)(1) shall be confidential and shall not be subject to the provisions of the Kansas open records act, K.S.A. 45-215 et seq., and amendments thereto, except that two years after the report is submitted to a legislative committee, such report shall be a public record open for inspection under the Kansas open records act, K.S.A. 45-215 et seq., and amendments thereto.

(g) The secretary may impose an administrative fee of 1% of the amount of the total incentive, not to exceed $1,000, upon each recipient of an economic development incentive program administered by the secretary for the purpose of the payment of costs incurred by the secretary for administering and maintaining the database required by this section.