SESSION OF 2021
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2203
As Amended by Senate Committee on
Agriculture and Natural Resources

Brief*
HB 2203, as amended, would establish the Asbestos
Remediation Fund (Fund). The bill would also require the
Secretary of Health and Environment (Secretary) to remit all
moneys received from the following sources to the State
Treasurer:
● Permit and approval fees related to the Asbestos
Control Program;
● Moneys recovered by the State under the
provisions of the Asbestos Control Act (Act)
including administrative expenses and money paid
under any agreement stipulation, or settlement;
and
● Interest attributable to investment of moneys in the
Fund.
The bill would require the State Treasurer to credit the
entire amount of moneys received from those sources to the
Fund. The bill would require moneys in the Fund to be
expended only for the purpose of administering the Act,
including funding of a technical and environmental
compliance assistance program.
The bill would require the Director of Accounts and
Reports to transfer the average daily balance of moneys in
the Fund for the preceding month and the net earnings rate of
____________________
*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
the pooled money investment portfolio for the preceding
month from the State General Fund to the Fund on or before
the 10th of each month.
The bill would require all expenditures from the Fund to
be made in accordance with appropriation acts as authorized
by the Director of Accounts and Reports pursuant to vouchers
approved by the Secretary for purposes of administering the
Act.
The bill would require the State Treasurer to deposit in
and credit the Fund with the entire amount of moneys
received from fees related to the Act.

Background
The bill was introduced by the House Committee on
Appropriations at the request of Representative Hoffman.
[Note: The provisions of the bill are similar to the
provisions of SB 261, as amended by the Senate Committee
of the Whole.]

House Committee on Agriculture and Natural Resources
Budget
In the House Committee hearing, proponent testimony
was provided by a representative of the Kansas Department
of Health and Environment (KDHE). The representative
stated the Asbestos Control Program’s budget needs are
greater than the current State General Fund allocation. The
difference is made up with moneys from the Air Quality Fee
Fund. The representative stated the bill would allow the
agency to no longer use moneys from the Air Quality Fee
Fund.
Proponent testimony was also provided by a
representative of the Kansas Agribusiness Retailers

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Association, Kansas Grain and Feed Association, and Renew
Kansas Biofuels Association. The representative stated
members of these associations pay fees into the Air Quality
Fee Fund, which KDHE uses to cover program expenses not
covered by the State General Fund allocation, but the fees for
the Air Quality Fee Fund are unrelated to asbestos control.
The bill would allow KDHE to stop using moneys from the Air
Quality Fee Fund.
Written-only proponent testimony was provided by
representatives of the ACM Removal-Kansas, Associated
Insulation, Inc., B&R Insulation, Inc., Evergy, iSi Industrial
Services, Kansas Electric Cooperatives, Inc., and a private
citizen.
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 KDHE. The
representative stated the bill would permanently establish the
Asbestos Remediation Fund and would allow the revenues
generated to be utilized by the Asbestos Control Program.
Written-only proponent testimony was provided by
representatives of ACM Removal-Kansas, Associated
Insulation, Inc., Bradburn Environmental Services, Inc., B&R
Insulation, Inc., Kansas Agribusiness Retailers Association,
Kansas Electric Cooperatives, Inc., Kansas Grain and Feed
Association, Renew Kansas Biofuels Association, and a
private citizen.
The Senate Committee amended the bill by removing
Section 3 and all references to KSA 65-5314 in the bill. These
provisions would have imposed civil penalties for violations of
the Act or any rules and regulations adopted under the Act
and credited such penalties to the Fund.

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Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, KDHE indicates
expenditures for the Asbestos Control Program are
approximately $110,000 per year. Because redirecting fee
revenue to the Fund is not authorized for FY 2022 under
current law, only $85,137 from the State General Fund is
available for the Asbestos Control Program in FY 2022. The
remaining expenditures will have to be subsidized from
special revenue funds unrelated to asbestos remediation. The
bill would increase revenue to the Fund by $110,000 in FY
2022, but it would decrease revenue to the State General
Fund by the same amount. Consequently, the Asbestos
Control Program would no longer need a State General Fund
appropriation of $85,137. The net effect would be $24,863
less from the State General Fund available to the state in FY
2022. Any fiscal effect associated with enactment of the bill is
not reflected in The FY 2022 Governor’s Budget Report.
Kansas Department of Health and Environment; Asbestos Remediation Fund;
Asbestos Control Program; Asbestos Control Act


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Statutes affected:
As introduced: 65-5309, 65-5314
As Amended by Senate Committee: 65-5309, 65-5314
Enrolled: 65-5309