SESSION OF 2020
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2463
As Amended by House Committee on
Agriculture

Brief*
HB 2463, as amended, would make changes regarding
proof of financial responsibility requirements for a pesticide
business license and disciplinary changes regarding pesticide
licensees and chemigation users.

Proof of Financial Responsibility
The bill would remove the option for a pesticide
business license applicant to provide a letter of credit as proof
of financial responsibility. Under continuing law, applicants
would need to provide either a surety bond in the amount of
$6,000 or a certificate of liability insurance for a policy that
provides not less than $25,000 for bodily injury liability and
not less than $5,000 for property damage liability for each
occurrence as proof of financial responsibility.
Prior to January 1, 2021, any existing proof of financial
responsibility that has been properly filed with the Secretary
of Agriculture (Secretary) remains valid and would fulfill the
financial responsibility requirements. After January 1, 2021,
the bill would require pesticide business licensees and
applicants to have either a surety bond or certificate of liability
insurance properly filed with the Secretary to fulfill the proof of
financial responsibility requirements.

____________________
*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
Disciplinary Changes
The bill would remove conviction of a felony under state
or federal law and the person has not been sufficiently
rehabilitated to warrant the public trust from the factors the
Secretary may consider when considering whether to deny,
suspend, revoke, or modify the provisions of any license,
registration, permit, or certificate issued to a pesticide
licensee or chemigation user. In addition, the Secretary could
not consider whether a pesticide licensee has had any
license, certificate, registration, or permit revoked.
The bill would also make technical changes.

Background
The bill was introduced by the House Committee on
Agriculture at the request of the Kansas Department of
Agriculture (KDA).
In the House Committee hearing, the Chief Counsel of
the KDA provided proponent testimony, stating that requiring
all licenses to maintain liability insurance will better serve the
public and reduce the verification required of KDA staff. In
addition, the Chief Counsel noted the KDA does not have the
authority to run background checks and certain disciplinary
actions only occur when an applicant admits to committing a
violation.
Opponent testimony was provided by a representative of
the American Property Casualty Insurance Association. The
representative stated surety bonds are a common way for
businesses to show proof of financial responsibility and
protect consumers from financial harm.
Neutral testimony was provided by a representative of
the Kansas Agricultural Aviation Association (KAAA). The
representative stated the KAAA has opposed this type of
legislation in the past; however, opinions change and the
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aviation industry is seeing more specialization in federal rules
and regulations that have removed some concerns about the
bill. Written-only neutral testimony was provided by the
Kansas Agribusiness Retailers Association, Kansas
Cooperative Council, and Kansas Grain Feed Association.
The House Committee amended the bill to retain current
law relating to surety bonds as proof of financial responsibility
and to make technical changes.
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the KDA indicates
enactment of the bill would have no fiscal effect on agency
operations.


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Statutes affected:
As introduced: 2-2440, 2-2449, 2-2450, 2-2448, 2-2467a, 2-2471, 2-3310
As Amended by House Committee: 2-2440, 2-2449, 2-2450, 2-2448, 2-2467a, 2-2471, 2-3310