SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2477
As Amended by Senate Committee on
Agriculture and Natural Resources
Brief*
HB 2477, as amended, would make changes to the
Remediation Reimbursement Program (Program) that
provides remediation funding from the Kansas Agricultural
Remediation Fund (Fund).
[Note: The Program was established by the Legislature
to provide financial support to eligible persons through
reimbursement of expenses incurred during the performance
of remediation activities for releases of agricultural chemicals.
The Fund receives no state funding and is funded by
environmental assessment fees paid by the industry.]
Reimbursement Cap Limits
The bill would clarify that an eligible person could
receive reimbursement per remediation site and evidenced by
receipts for any eligible corrective action costs, but the total
reimbursement could not exceed $300,000, an increase from
$200,000.
The bill would state that if an eligible person has paid at
least $2,000, an increase from $1,000, for eligible corrective
action costs at a site, reimbursement could be received in an
amount equal to:
____________________
*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
● 90 percent of total eligible corrective action costs
greater than $2,000 until the person has received
$100,000; plus
● Additional reimbursement in an amount equal to 80
percent of additional total eligible corrective action
costs until the person has received an additional
$200,000 in reimbursement.
The total reimbursement amount for any one
remediation site could not exceed $300,000, unless the
Kansas Agricultural Remediation Board (Board) could set
forth a different amount that is less than or equal to $300,000.
The bill would remove language regarding
reimbursement if both a buyer and seller or a lessee and
lessor are jointly responsible for remediation on a property.
Kansas Agricultural Remediation Fund Expenditure
Limitation
The bill would increase the limitation of expenditures
from the Fund for administrative expenses of the Board from
$150,000 to $175,000 in any fiscal year.
Technical Amendments
The bill would update the names of legislative
committees that would be designated to receive the Board’s
annual report and make technical and conforming
amendments to continuing law.
Background
The bill was introduced by Representative Rahjes.
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House Committee on Agriculture and Natural Resources
In the House Committee hearing, proponent testimony
was provided by the Deputy Secretary of Agriculture and
representatives of the Kansas Cooperative Council; Kansas
Corn Growers Association, Kansas Soybean Association,
Kansas Grain Sorghum Producers Association, and Kansas
Association of Wheat Growers; and Kansas Grain and Feed
Association and Kansas Agribusiness Retailers Association.
The proponents stated that stakeholders from the
industry pay into the Fund, which helps cover the cost of
chemical, pesticide, or fumigation product cleanup that is not
covered by regular insurance coverage. The current
remediation reimbursement limit of $200,000 does not cover
the current costs of remediation, and the increase proposed
in the bill would help cover those costs.
Written-only proponent testimony was provided by a
representative of the Bureau of Environmental Remediation,
Kansas Department of Health and Environment (KDHE).
No other testimony was provided.
Senate Committee on Agriculture and Natural Resources
In the Senate Committee hearing, proponent testimony
was provided by a representative of the Kansas Grain and
Feed Association and Kansas Agribusiness Retailers
Association and representatives of the Kansas Cooperative
Council and Kansas Department of Agriculture.
The proponents explained the Fund receives no money
from the State General Fund and is financed completely by
assessments on commercial grain warehouses, agricultural
chemical registrants, custom fertilizer blenders, commercial
fertilizer registrants, and pesticide dealers. The proponents
also stated the limit increases for remediation reimbursement
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and expenditures for administrative expenses would account
for inflation and the increased costs of remediation projects.
Written-only proponent testimony was provided by the
Acting Bureau Chief of the Bureau of Environmental
Remediation, KDHE. In addition, joint written-only testimony
was submitted by the Kansas Corn Growers Association,
Kansas Soybean Association, Kansas Grain Sorghum
Producers Association, and Kansas Association of Wheat
Growers.
The Senate Committee amended the bill to:
● Increase the lower cap on the Fund from $1,000 to
$2,000;
● Increase the higher cap on the Fund from
$200,000 to $300,000;
● Remove language regarding reimbursement if both
a buyer and seller or a lessee and lessor are jointly
responsible for remediation on a property; and
● Update the names of the standing legislative
committees that receive the annual report
regarding the Fund.
Fiscal Information
According to the fiscal note provided by the Division of
the Budget on the bill, as introduced, the Kansas Department
of Agriculture and KDHE indicate enactment of the bill would
have no fiscal effect on agency operations.
Agriculture; reimbursement; remediation; Kansas Agricultural Remediation Fund
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Statutes affected:
As introduced: 2-3708, 2-3710
As Amended by Senate Committee: 2-3708, 2-3710
Enrolled - Law effective July 1, 2024: 2-3708, 2-3710
Enrolled: 2-3708, 2-3710