SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2047
As Amended by House Committee on
Agriculture and Natural Resources
Brief*
HB 2047, as amended, would authorize certain rules
and regulations to be adopted by the Secretary of Health and
Environment and would increase the amount of time a
municipality would have to repay a loan from the Kansas
Water Pollution Control Revolving Fund (Fund).
Rules and Regulations
The bill would allow the Secretary of Health and
Environment to adopt rules and regulations authorizing staff
to approve, as part of an existing program of annual
certification by public water supply systems, the replacement
of segments of distribution systems. [Note: The program
already approves the extension of distribution systems.]
Kansas Water Pollution Control Revolving Fund
Current law states the Secretary of Health and
Environment enters into agreements with a municipality to
loan moneys from the Fund. The agreement provides that
repayment of a loan from the Fund cannot begin until at least
one year after completion of a project and must be repaid in
full no later than 20 years thereafter.
The bill would extend the repayment period to 30 years
for agreements made on and after July 1, 2023.
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*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 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 the Kansas
Municipal Utilities.
[Note: The bill, as introduced, included some provisions
of 2023 SB 120 (a bill pertaining to a certification program for
certain water supply system). With the House Committee
amendments, the bill now mirrors SB 120.]
House Committee on Agriculture and Natural Resources
In the House Committee hearing, proponent testimony
was provided by representatives of the City of Dodge City,
Kansas Department of Health and Environment (KDHE), and
Kansas Municipal Utilities, stating the proposed increase to
the maximum loan repayment period from 20 to 30 years for
loans after July 1, 2023, will provide municipalities flexibility in
budgeting for annual debt service costs.
Written-only proponent testimony was provided by a
representative of the League of Kansas Municipalities.
No other testimony was provided.
The House Committee amended the bill to insert
provisions authorizing certain rules and regulations to be
adopted by the Secretary of Health and Environment (Section
1, SB 120).
2- 2047 Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, KDHE indicates
enactment of the bill would result in higher revenues for loans
paid over 30 years instead of 20 years because service fees
are paid every six months based on the outstanding balance
of the loan. An exact fiscal effect could not be estimated.
The fiscal note for 2023 SB 120, regarding the rules and
regulations portion of the bill, states that KDHE indicates that
delegation of waterline project review and approval would
lessen the plan review load on existing staff and could help
expedite some projects. An exact fiscal effect could not be
estimated.
Any fiscal effect associated with the bill is not reflected
in The FY 2024 Governor’s Budget Report.
The League of Municipalities states that enactment of
the bill could increase the amount of interest a municipality
would pay; however, the increased time frame to repay a
revolving loan could provide additional funding for cities to
use on other priorities.
Natural resources; Kansas Water Pollution Control Revolving Fund; amortization;
municipalities; Kansas Department of Health and Environment; Secretary of Health
and Environment; rules and regulations
3- 2047