Bill Summary – FastDemocracy

SESSION OF 2023
    SUPPLEMENTAL NOTE ON SENATE BILL NO. 205
            As Amended by House Committee on Water

Brief*
     SB 205, as amended, would amend law concerning
water rights, the establishment of multi-year flex accounts,
and participation in a water bank.

Multi-year Flex Account Participation
      The bill would require the Chief Engineer, Division of
Water Resources, Kansas Department of Agriculture (KDA),
to approve a complete application for the establishment of a
multi-year flex account (MYFA) that was submitted to the
Chief Engineer on or before December 31, 2022, if a water
right participating in a water bank meets the requirements of
the MYFA statute and would have been approved if not for
the water right’s participation in a water bank. This portion of
the bill would sunset on December 31, 2023.

Prohibition of Participation in a Multi-year Flex Account
     The bill would prohibit a water right, or any portion of a
water right, that has been deposited, enrolled, or placed in a
safe deposit account associated with a water bank from
enrolling in a MYFA that begins during a calendar year when
the water from the water right was withdrawn from a safe
deposit account.
    The bill would also prohibit water from a water right that
has been deposited, enrolled, or placed in a safe deposit
____________________
*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
account from being withdrawn while the water right is enrolled
in a MYFA.

Enrollment in a Multi-year Flex Account
     The bill would state that a water right would be
considered enrolled in a MYFA until the end of the calendar
year in which the MYFA permit expires, even if the MYFA
allocation is exhausted prior to the expiration of the MYFA
permit.

Technical and Clarification Changes
      The bill would make technical changes and add
clarifying language regarding the water users in Sections 1
and 2 of the bill.

Effective Date
    The bill would be in effect upon publication in the
Kansas Register.

Background
     The bill was introduced by the Senate Committee on
Agriculture and Natural Resources at the request of the Chief
Engineer.

Senate Committee on Agriculture and Natural Resources
    In the Senate Committee hearing, the Chief Engineer
and the Manager of the Central Kansas Water Bank
Association provided proponent testimony on the bill.
    The proponents explained the Central Kansas Water
Bank (Water Bank) operates within the boundaries of Big

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Bend Groundwater Management District No. 5 under the
authority of the Kansas Water Banking Act. The Water Bank
has two programs, one of which is called a “Savings
Account,” in which a user can “deposit” a portion of unused
water to be preserved for future use at the same location.
When the “Savings Account” water is needed later on, the
water can be “withdrawn” from the Water Bank by pumping it
under the authority of a term permit. An issue arose during
the 2022 drought where Water Bank users pumped water
from their Savings Accounts and pumped more water through
enrollment in a MYFA. The Division of Water Resources staff
reviewed the two laws regarding water banks and MYFAs and
found there was a lack of clarity on whether a water bank
account holder could also enroll in a MYFA at the same time
as “withdrawing” water from a water bank. An Attorney
General’s opinion was requested and received. The bill would
allow a one-time fix to assist the water bank users who
sought MYFAs in 2022 and make other changes based on
the Attorney General’s opinion.
     No other testimony was provided.
      The Senate Committee amended the bill to add
clarifying language regarding the water users in Sections 1
and 2 of the bill.

House Committee on Water
      In the House Committee hearing, the Water
Appropriations Manager of the KDA and the Manager of the
Central Kansas Water Bank Association provided proponent
testimony on the bill that was similar to the testimony
provided in the House Committee hearing. A representative of
the Kansas Farm Bureau provided written-only proponent
testimony.
     No other testimony was provided.


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      The House Committee amended the bill to remove
criteria that a bankable water right must not currently be
enrolled in an active MYFA. The amendment would allow a
water right to be bankable when the water right is currently
enrolled in a MYFA.

Fiscal Information
      According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the KDA indicates that
enactment of the bill could decrease agency revenues due to
a potential reduction of MYFA applications and the
reimbursement of fees for certain MYFA applications filed
after December 11, 2022. The Kansas Water Office indicates
that enactment of the bill would not have a fiscal effect on
agency operations. Any fiscal effect associated with
enactment of the bill is not reflected in The FY 2024
Governor’s Budget Report.
Water; water rights; water bank; multi-year flex account


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Statutes affected: 
As introduced: 
As Amended by Senate Committee: 
As Amended by House Committee: 
Enrolled: 