Changing the fee charged by the department of commerce for applications for certain economic development programs from a flat fee to a certain percentage of the total economic development incentive program package as determined by the secretary of commerce within a specified percentage range.
Impact
This proposed revision to the fee structure is expected to have significant implications for businesses seeking economic development incentives in Kansas. By linking fees to the size of the incentive package, HB2775 aims to ensure that the application fees are reflective of the services rendered by the Department of Commerce. This form of fee assessment can potentially improve the financial sustainability of the Department’s operations, allowing for better funding of the administrative processes involved in these programs.
Summary
House Bill 2775 aims to reform the fee structure associated with economic development incentive programs administered by the Kansas Department of Commerce. The bill proposes transitioning from a flat application fee to a fee determined as a percentage of the total economic development incentive package. Specifically, the fee range will fall between 0.5% to 2%, with a cap of $750. This change is intended to more closely align the fees with the scale of the projects being undertaken, ensuring that larger projects contribute proportionally more towards the costs incurred during application processing and oversight.
Contention
While the bill is positioned as a means to enhance the economic development framework of Kansas, it may also incite debate among stakeholders. Proponents of the bill argue that this change will facilitate better resource allocation and transparency within the Department of Commerce. However, opponents may raise concerns regarding the financial burden that variable fees could place on smaller businesses or startups that may be seeking these incentives, particularly if the fees escalate due to larger overall incentive packages. The dialogue surrounding the bill indicates a broader discussion about balancing the need for economic growth with equitable access to state resources.
Requiring local governments to report certain local economic development incentive program information to the secretary of commerce, defining such programs, requiring the secretary of commerce to post such information on the economic development incentive program database maintained by the secretary and requiring certain search result presentation and report formats.
Substitute for HB 2346 by Committee on Commerce, Labor and Economic Development - Establishing the Kansas sports tourism grant program administered by the secretary of commerce to provide matching grants to communities for developing and continuing sporting events and providing for funding of such grants from the state economic development initiatives fund.
House Substitute for SB 9 by Committee on Commerce, Labor and Economic Development - Prohibiting foreign principals from acquiring interests in real estate in proximity to military installations, state agencies and local government from purchasing drones or critical components of drones from foreign principals or that are manufactured in countries of concern and foreign principals from receiving benefits from economic development programs.
Economic development; findings; establishing program within the Oklahoma Film and Music Office; tracks; program funds; state contribution percentages; collaboration with the Department of Career and Technology Education; creating the Community Music Infrastructure and Events Development Revolving Fund; effective date.
Enacting the Kansas film and digital media industry production development act, providing a tax credit and sales tax exemption to incentivize film, video and digital media production in Kansas, establishing a program to be administered by the secretary of commerce for the purpose of developing such production in Kansas and requiring the secretary of commerce to issue reports to the legislature regarding the program.
Enacting the Kansas film and digital media industry production development act, providing a tax credit and sales tax exemption to incentivize film, video and digital media production in Kansas, establishing a program to be administered by the secretary of commerce for the purpose of developing such production in Kansas and requiring the secretary of commerce to issue reports to the legislature regarding the program.