Bill Summary – FastDemocracy

SESSION OF 2024
    SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2678
            As Amended by House Committee on Water

Brief*
    HB 2678, as amended, would amend the Kansas Water
Banking Act (Act).
       [Note: A “water bank” is a not-for-profit entity that allows
groundwater right holders (users) to “deposit” excess water
from their water right in a “safety deposit account” to hold for
later use, if needed. Currently, users must “withdraw” their
water from their account before exceeding their existing
groundwater right yearly limitation, which requires the users
to estimate how much water they will need, with the
understanding they will lose the withdrawn water they do not
utilize. There is one water bank in Kansas: the Central
Kansas Water Bank Association, in Groundwater
Management District (GMD) No. 5.]

Water Bank Evaluation
     The bill would require the Director of the Kansas Water
Office, in consultation with the Chief Engineer, Division of
Water Resources, Kansas Department of Agriculture (KDA),
to develop a request for proposal and select an independent
consultant to evaluate the water bank in accordance with
provisions of the Act in KSA 82a-767. The bill would require
the evaluation to be initiated before July 1, 2025.
    [Note: KSA 82a-767 requires an evaluation of water
banks every five years; the bill would state this required
____________________
*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
evaluation would be in lieu of the next regularly scheduled
evaluation of the Central Kansas Water Bank Association.]
      The bill would require the evaluation to include specific
findings regarding the consumptive use and potential
impairment impacts involved with the use of safe deposit
accounts in the Rattlesnake Creek Hydrologic Unit.
      The evaluation required by the bill would be funded from
existing resources of the KDA. This section of the bill would
expire on July 1, 2027.

Withdrawing Water
     The bill would clarify that water withdrawn from a safe
deposit account would be authorized by the water bank on or
before December 1 of the calendar year in which the
withdrawn water is to be used.

Water Bank Charter
    The bill would establish a seven-year review process for
a water bank charter and would limit the extension of a water
bank charter to no more than seven years.
     Currently, a water bank is chartered for an initial period
of no more than seven years, at which time the water bank is
subject to review to determine whether the initial charter will
lapse or be continued. The bill would state at that seven-year
review, the initial charter would lapse or be extended.
     In addition, for any water bank charter that was
previously extended permanently or for a period of more than
seven years after the review required by law, the bill would
require the Chief Engineer to determine whether the water
bank charter would lapse or be extended for a period of no
more than seven years at the water bank’s next evaluation in

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accordance with the recommendations of the evaluation
team.
     The bill would require any amendment to a water bank
charter to be approved by the Chief Engineer before adopting
the amendment.

Technical Amendments
     The bill would also make technical amendments.

Background
    The bill was introduced by the House Committee on
Water at the request of a representative of GMD No. 5.

House Committee on Water
      In the House Committee hearing, representatives of the
Central Kansas Water Bank Association and GMD No. 5
provided proponent testimony, stating the change from five
years to ten years was a suggestion by area water users and
can be used for longer-term planning on water investments.
Currently, water bank users must guess how much water they
will need to withdraw from their safe deposit accounts before
they are able to use it. The proponents stated the bill will
allow for greater flexibility and more accurate accounting of
how much water will need to be withdrawn.
     Written-only proponent testimony was provided by a
representative of the Kansas Corn Growers Association.
      Neutral testimony was provided by a representative of
Kansas Water Resources Consulting, who stated his
concerns with the operation of safe deposit accounts and
whether that conflicts with the statutory requirement to not
increase the net consumptive use of water in any hydrologic
unit.
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     Written-only neutral testimony was provided by the Chief
Engineer, Division of Water Resources, KDA, who answered
questions from the House Committee members.
      No other testimony was provided.
      The House Committee amended the bill to:
      ●      Require an evaluation by an independent
             consultant of the Central Kansas Water Bank
             before July 1, 2025; and
      ●      Establish a maximum length for an extension of a
             water bank charter.
Fiscal Information
      According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Kansas Water Office
and KDA indicate enactment of the bill would have no fiscal
effect.
Water; Kansas Water Banking Act; water bank; safe deposit account


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