Chairperson Smith opened the hearing for HB2541.

Mr. Siebers provided an overview for HB2541 that enacts the Kansas rural business growth program act and establishes a premium tax credit program to be administered by the Secretary of Commerce for the purpose of incentivizing capital investment in rural areas. (Attachment 19)

Mr. Siebers stood for questions from Committee members.

Chairperson Smith stated the fiscal note for HB2541 has the limit of the amount of credits per year is $7.5 million from the State General Fund.

Alex Stepanek, Advantage Capital, a rural investor that has been providing growth capital to small businesses, testified as a proponent for HB2541.  (Attachment 20)

Eric Stafford, Kansas Chamber, testified as a proponent for HB2541, which creates the Kansas Rural Business Growth Program. A replacement for the Rural Opportunity Zones will help continue to attract investment or potentially even attract more investment and growth in rural parts of the state compared to we've see.  (Attachment 21)

Jarrod Forbes, VP of Government Affairs for Sutherland Capital, testified as a proponent for HB2541 that addresses a critical gap in Kansas's economic development programs by creating a program specifically designed to incentivize capital investment in rural communities. (Attachment 22)

The proponent conferees stood for questions from Committee members.

Written proponent testimony for HB2541 was submitted by the following:

Randy Stookey, Kansas Grain and Feed Association, Kansas Agribusiness Retailers Association, (Attachment 23)

Spencer Duncan, League of Kansas Municipalities, (Attachment 24)

Kelly VanZwoll, Kansas Bankers Association, (Attachment 25)

Brock Miller, County Commissioner, 2nd District, Pawnee County, Kansas, (Attachment 26)

Neutral:

Joshua Jefferson, Deputy Secretary of Business Development, Kansas Department of Commerce, testified as neutral to HB2541 which can be highly impactful for the state's economy.  The Commerce Department requests several changes to better encourage capital investment in rural areas and support long-term economic growth. (Attachment 27)

Mr. Jefferson stood for questions from Committee members.

Chairperson Smith closed the hearing for HB2541.