SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2335
As Amended by Senate Committee on
Transportation

Brief*
HB 2335, as amended, would authorize the Rail Service
Improvement Fund to be used for qualified track maintenance
and would increase transfers from the State Highway Fund
(SHF) to the Rail Service Improvement Fund from $5.0 million
to $10.0 million annually, starting July 1, 2023. Continuing law
authorizes use of these funds for financing, acquisition, or
rehabilitation of railroad and rolling stock.
The bill would amend the definition of “qualified entity” to
require a railroad to be a class II or class III railroad, as
defined in federal law (and commonly known as short line
railroads), and add any owner or lessee industry track, as
defined in federal law, located on or adjacent to a class II or
class III railroad in Kansas. The bill would define “qualified
track maintenance” to mean maintenance, reconstruction, or
replacement of railroad track owned or leased in Kansas by a
qualified entity as of July 1, 2023; “railroad track” would
include roadbed, bridges, industrial leads and side track, and
related track structures.
The bill would make technical amendments.
The bill would be in effect upon publication in the
Kansas Register.


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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
Background
The bill was introduced by the House Committee on
Transportation at the request of a representative of the
Kansas Grain and Feed Association.

House Committee on Transportation
In the House Committee hearing, proponent testimony
was provided by representatives of the Genesee & Wyoming
Railroad Services, Inc., on behalf of Kyle Railroad Company;
Kansas Cooperative Council; Kansas Department of
Transportation (KDOT); and Kansas Agribusiness Retailers
Association, Kansas Grain and Feed Association, and Renew
Kansas Biofuels Association. Proponents described needed
improvements to ensure efficient use of the railroads and the
importance of the railroads to commerce in Kansas.
Proponents also stated the bill would allow the Short Line Rail
Improvement Program and the Rail Service Improvement
Program to be combined, which would provide application
and administration efficiencies.
Neutral testimony was provided by a representative of
the International Association of Sheet Metal, Air, Rail, and
Transportation Workers, who suggested amendments to the
bill.
No other testimony was provided.
The House Committee amended the definition of
qualified entity in the bill to restrict eligibility for moneys from
the Rail Service Improvement Fund to class II and class III
railroads and to add references to federal railroad-related
definitions.


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Senate Committee on Transportation
In the Senate Committee hearing, proponent testimony
was provided by representatives of the Genesee & Wyoming
Railroad Services, Inc., on behalf of the Kyle Railroad
Company; Kansas Cooperative Council; KDOT; and the
Kansas Agribusiness Retailers Association, Kansas Grain
and Feed Association, and Renew Kansas Biofuels
Association. Proponents stated that funding for Short Line
Rail Improvement Fund, which was established with the
Eisenhower Legacy Transportation Program to support rail
infrastructure for local shippers, sunsets at the end of FY
2023. Proponents also stated the bill would allow such
funding to continue through the existing Rail Service
Improvement Program and noted short line rail provides
access to the national rail network and reduces heavy truck
traffic on state highways.
No other testimony was provided.
The Senate Committee amended the bill to make it
effective upon publication in the Kansas Register.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, KDOT states combining
the programs would improve efficiencies by streamlining the
application and review process. KDOT also notes that
enactment of the bill would increase expenditures from the
Rail Service Improvement Fund by $5.0 million in FY 2024.
Any fiscal effect associated with enactment of the bill is not
reflected in The FY 2024 Governor’s Budget Report.
[Note: The statute establishing the Short Line Rail
Improvement Fund in 2020 authorized $5.0 million transfers
from the SHF to the Short Line Rail Improvement Fund on
July 1, 2020, 2021, and 2022. The statute restricts eligibility

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for the Short Line Rail Improvement Program to short line
railroads.]
Railroad; fund; track maintenance; Rail Service Improvement Fund


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Statutes affected:
As introduced: 75-5048
As Amended by House Committee: 75-5048
As Amended by Senate Committee: 75-5048
Enrolled - Law effective July 1, 2023: 75-5048
Enrolled: 75-5048