A new law allows Kansas to charge hundreds of dollars to those applying to the state’s economic development incentive programs, a change intended to defray costs that also has raised concerns about the possibility of harm to rural areas.

Under provisions that went into effect on July 1, the Kansas Department of Commerce can require up to $750 from applicants to programs promoting industrial training, job creation and community service. Also affected, the agency says: Rural Opportunity Zones — a signature initiative of Gov. Sam Brownback to lure young people to some of the least-populated areas of the state.

A consulting firm’s efficiency report of state government, heralded by Republicans, first put forward the fee recommendations. Lawmakers acted on the guidance in the waning days of regular session this spring, passing House Bill 2509 nearly unanimously in the Senate and 86-30 in the House.

The law gives the commerce secretary the power to set the fees. An agency spokesman didn’t immediately respond to an email and call Tuesday asking whether Secretary Antonio Soave intends to charge fees and what amounts, as well as what programs may see fees.

Yet at least some fees appear imminent. On its website, the commerce department says "ATTENTION!! COMING SOON…" atop an explanation of the secretary’s new fee power. The site says additional information will be posted as it becomes available.

The website lists a number of potentially affected programs: Promoting Employment Across Kansas, High Performance Incentive Program, Job Creation Fund Program, Kansas Industrial Training, Kansas Industrial Retraining, Rural Opportunity Zones Program and Community Service Tax Credit Program.

The fee power will allow the agency to recover costs and pay for time spent by agency staff on ultimately nonsuccessful applications, said Sen. Julia Lynn, an Olathe Republican who chairs the Senate Commerce Committee. Applications, especially for large projects, consume employee time, she indicated.

"The bigger the project, the more time it takes," Lynn said.

Eric Stafford, a lobbyist with the Kansas Chamber of Commerce, said member feedback indicated that a fee up to $750 seemed reasonable to cover costs incurred by the commerce department when processing applications.

An efficiency report from the consulting firm Alvarez and Marsal, commissioned by lawmakers, found the commerce department doesn’t assess any administrative fees for its major economic development incentive programs. According to the report, staff spends "significant time each year" reviewing, analyzing and negotiating proposed projects.

While the economic development incentives subjected to possible new fees often draw businesses, the Rural Opportunity Zone program targets individuals. The program attempts to attract people to the 77 participating counties by offering income tax waivers and thousands in student loan forgiveness.

At a time when the state budget faces constant pressure, the program’s usefulness has at times been questioned. The program waived $800,000 in income taxes in 2014.

Supporters say they see benefits. Lea Ann Seiler works as the director of economic development in Hodgeman County, situated north of Dodge City. The county currently has a waiting list for the program, she said.

"Just having it there is helpful for us because even though I can’t provide a match it does give me an opportunity to visit with someone," Seiler said. "So when I get the application or the information I can send back and say, ‘I’m sorry, we don’t currently have any more matches for that; however … ’ and then let them know what we do have as far as jobs in the area and things."

Lawmakers didn’t explore the potential of charging to apply to the ROZ program, Lynn said. She noted that she isn’t opposed to a nominal fee to apply, but said ROZ was not part of legislative discussions.

"That was not mentioned," Lynn said. "I don’t think that was on the radar."

House Bill 2509 — now law — is detrimental to rural areas, Rep. John Doll, R-Garden City, said. Doll was among the 30 House members to vote against the bill on May 1, the last day of the regular session.

Doll said he doesn’t understand where the fees would fit in with the state’s philosophy of trying to be business-friendly.

"It’s hypocritical when you’re trying to bring businesses in, and then you get a backdoor tax and that’s what it essentially is, a backdoor tax. They can call it a fee, they can call it whatever it is, but it’s a tax," Doll said.

Rep. Pam Curtis, D-Kansas City, was among the House and Senate negotiators who forged an agreement on House Bill 2509. She recalled discussion over how the fees would affect the economic development programs and whether they would cause some of them to go away.

Curtis, who voted in favor of the legislation, described the $750 cap on fees as a safeguard. She also cited the secretary’s discretion as reassuring because it allows the agency leader to ensure projects can move forward despite the fee if necessary.

"Having that discretion and having the cap — it was a compromise," Curtis said.