Senate Substitute for HOUSE BILL No. 2302
AN ACT concerning water; relating to funding for the state water plan and water
infrastructure projects; making and concerning appropriations for the fiscal year
ending June 30, 2023, and June 30, 2024, for the state treasurer; providing for a
transfer of moneys from the state general fund to the state water plan fund; creating
the water technical assistance fund and water projects grant fund; authorizing the
Kansas water office to provide grants from such funds and adopt rules and
regulations to establish the criteria for grants from such funds; amending K.S.A. 82a-
951 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
New Section 1.
STATE TREASURER
(a) There is appropriated for the above agency from the state
general fund for the fiscal year ending June 30, 2023, the following:
Water supply storage debt payment for
Milford and Perry reservoirs.................................................$52,000,000
Provided, That notwithstanding the provisions of article 42 of chapter
75 of the Kansas Statutes Annotated, and amendments thereto, or any
other statute, the state treasurer shall invest, or in the state treasurer's
discretion direct the pooled money investment board to invest, all
moneys in the water supply storage debt payment for Milford and Perry
reservoirs account in United States treasury bills until the interest rate
for such treasury bills is equal to or less than the interest rate for water
supply storage debt payments as determined by the state treasurer:
Provided further, That upon determination of the state treasurer that the
United States treasury bill rate is equal to or less than the interest rate
on such storage debt, expenditures shall be made by the above agency
from the water supply storage debt payment for Milford and Perry
reservoirs account during fiscal year 2023 for the payment of water
supply storage debt for Milford and Perry reservoirs: Provided,
however, That if, during the fiscal year ending June 30, 2023, the
director of the Kansas water office certifies to the state treasurer and
the governor that there is a need for the Kansas water office to call the
water supply storage into service, the state finance council shall
authorize the state treasurer to immediately make expenditures from the
water supply storage debt payment for Milford and Perry reservoirs
account for the payment of water supply storage debt for Milford and
Perry reservoirs: And provided further, That such state finance council
action on this matter is hereby characterized as a matter of legislative
delegation and subject to the guidelines prescribed in K.S.A. 75-
3711c(c), and amendments thereto, except that such authorization also
may be given while the legislature is in session: And provided further,
That at the same time such certification is transmitted to the state
treasurer and the governor, the director of the Kansas water office shall
transmit a copy of such certification to the director of the budget and
the director of legislative research.
New Sec. 2.
STATE TREASURER
(a) Any unencumbered balance in the water supply storage debt
payment for Milford and Perry reservoirs account in excess of $100 as
of June 30, 2023, is hereby reappropriated for fiscal year 2024:
Provided, That notwithstanding the provisions of article 42 of chapter
75 of the Kansas Statutes Annotated, and amendments thereto, or any
other statute, the state treasurer shall invest, or in the state treasurer's
discretion direct the pooled money investment board to invest, all
moneys in the water supply storage debt payment for Milford and Perry
reservoirs account in United States treasury bills until the interest rate
for such treasury bills is equal to or less than the interest rate for water
supply storage debt payments as determined by the state treasurer:
Provided further, That upon determination of the state treasurer that the
United States treasury bill rate is equal to or less than the interest rate
on such storage debt, expenditures shall be made by the above agency
from the water supply storage debt payment for Milford and Perry
reservoirs account during fiscal year 2024 for the payment of water
supply storage debt for Milford and Perry reservoirs: Provided,
however, That if, during the fiscal year ending June 30, 2024, the Senate Substitute for HOUSE BILL No. 2302—page 2
director of the Kansas water office certifies to the state treasurer and
the governor that there is a need for the Kansas water office to call the
water supply storage into service, the state finance council shall
authorize the state treasurer to immediately make expenditures from the
water supply storage debt payment for Milford and Perry reservoirs
account for the payment of water supply storage debt for Milford and
Perry reservoirs: And provided further, That such state finance council
action on this matter is hereby characterized as a matter of legislative
delegation and subject to the guidelines prescribed in K.S.A. 75-
3711c(c), and amendments thereto, except that such authorization also
may be given while the legislature is in session: And provided further,
That at the same time such certification is transmitted to the state
treasurer and the governor, the director of the Kansas water office shall
transmit a copy of such certification to the director of the budget and
the director of legislative research.
New Sec. 3. (a) On July 1, 2023, the director of accounts and
reports shall transfer $35,000,000 from the state general fund to the
state water plan fund. It is the intent of the legislature to provide for the
transfer of $35,000,000 from the state general fund to the state water
plan fund on July 1, 2024, July 1, 2025, July 1, 2026, and July 1, 2027.
(b) (1) The state water plan fund shall continue to be appropriated
and expended for the purposes prescribed in K.S.A. 82a-951, and
amendments thereto, except that if an appropriation is made for any
fiscal year as intended in subsection (a), on July 1 of such fiscal year, or
as soon thereafter on such dates as moneys are available:
(A) $5,000,000 shall be transferred from the state water plan fund
to the water technical assistance fund established in section 4, and
amendments thereto; and
(B) $12,000,000 shall be transferred from the state water plan
fund to the water projects grant fund established in section 5, and
amendments thereto.
(2) The provisions of this section shall expire on July 1, 2028. On
July 1, 2028, the director of accounts and reports shall transfer all
moneys in the water technical assistance fund and the water projects
grant fund to the state water plan fund and all liabilities of the water
technical assistance fund and the water projects grant fund shall be
imposed upon the state water plan fund. On July 1, 2028, the water
technical assistance fund and the water projects grant fund shall be
abolished.
(c) (1) (A) Notwithstanding any restrictions in K.S.A. 82a-951,
and amendments thereto, the Kansas water authority may recommend
to the legislature the appropriation of up to 10% of the unencumbered
balance of the state water plan fund to be used to supplement salaries of
existing state agency full-time equivalent employees and for funding
new full-time equivalent positions created to implement the state water
plan. Moneys from such appropriation may be used to supplement
existing positions, but such moneys shall not be used to replace state
general fund moneys, any fee fund moneys or other funding for
positions existing on July 1, 2023.
(B) Eligible full-time equivalent positions that moneys may be
used for pursuant to this paragraph include engineers, geologists,
hydrologists, environmental scientists, attorneys, resource planners,
grant specialists and any other similar positions.
(2) If at least two conservation districts present a joint proposal to
the Kansas water authority for a position or positions to provide shared
services to all districts involved in such proposal, the Kansas water
authority may recommend that moneys be used to supplement the
salary or salaries of such position or positions pursuant to paragraph
(1).
(3) The Kansas water authority shall encourage funding requests
from state and local entities that cooperate with qualified nonprofit
entities on projects that provide a direct benefit to water quantity and
quality, including water infrastructures that are both natural and
constructed, and include matching funds from non-state sources. Senate Substitute for HOUSE BILL No. 2302—page 3
(4) The Kansas water authority may direct the Kansas water office
to provide funding pursuant to section 4 or section 5, and amendments
thereto, for the improvement of water infrastructure in an
unincorporated area related to or serving a national park site or state
historic site if the request for funding is made by a nonprofit
organization or state agency that is willing to administer the moneys
and oversee the project, and the Kansas water authority deems such
applicant capable of successfully managing the project. Upon receipt of
such a request, the Kansas water office may award moneys in any fiscal
year prior to July 1, 2028, with such awarding of moneys to be made at
the discretion of the Kansas water office.
(5) The Kansas water authority shall encourage the creation of
grant programs for stockwatering conservation projects. Such grant
programs shall prioritize the use of fees collected pursuant to K.S.A.
82a-954(a)(3), and amendments thereto.
(d) All reporting requirements established in K.S.A. 82a-951, and
amendments thereto, shall continue and such reporting requirements
shall apply to the water technical assistance fund established in section
4, and amendments thereto, and the water projects grant fund
established in section 5, and amendments thereto.
New Sec. 4. (a) (1) There is hereby established in the state
treasury the water technical assistance fund. The fund shall be
administered by the Kansas water office. Expenditures from such fund
shall be used for the purposes described in subsection (b). All
expenditures shall be made in accordance with appropriation acts upon
warrants of the director of accounts and reports issued pursuant to
vouchers approved by the director of the Kansas water office, or such
director's designee.
(2) Whenever the unencumbered balance of the water technical
assistance fund exceeds $15,000,000, such excess moneys may be
recommended for appropriation by the Kansas water authority for the
same purposes as any other moneys in the state water plan fund are
appropriated.
(b) (1) The water technical assistance fund shall be used by the
Kansas water office to provide grants for the planning, engineering,
managing and other technical assistance that may be necessary in the
development of plans for water infrastructure projects or for processing
the grant and loan applications for such water infrastructure projects.
The Kansas water office may offer services directly, provide funding to
other organizations to provide such services at no cost to a municipality
or special district related to water or the Kansas water office may
provide grants directly to applicants to cover expenses related to the
hiring of such technical assistance.
(2) Any municipality or special district related to water organized
under the laws of the state of Kansas may apply for a grant, and the
Kansas water office is authorized to award full or partial grants to such
applicants. Municipalities with fewer than 2,000 residents shall be
prioritized for the awarding of full grants. Watershed districts,
conservation districts, groundwater management districts and all
special districts related to water shall not be prioritized for the awarding
of full grants for the purposes of this section.
(c) The Kansas water office shall adopt rules and regulations to
establish any necessary criteria for administering the water technical
assistance fund and awarding grants for technical assistance. Such
criteria shall include, but not be limited to, factors applicable to:
(1) Municipalities of different populations including the
prioritization of small municipalities as required by subsection (b)(2).
Such factors may include, but not be limited to, public health, socio-
economic factors and the ability for a municipality to repay any loans
without grant assistance; and
(2) special districts such as watershed districts, conservation
districts, groundwater management districts, rural water districts and
any other similar districts formed for a special or single purpose related
to water. Senate Substitute for HOUSE BILL No. 2302—page 4
(d) No single grant awarded for technical assistance pursuant to
this section shall exceed $1,000,000 unless specified by any
appropriation act of the Kansas legislature.
New Sec. 5. (a) (1) There is hereby established in the state
treasury the water projects grant fund. The fund shall be administered
by the Kansas water office. Expenditures from such fund shall be used
for the purposes described in subsection (b). All expenditures shall be
made in accordance with appropriation acts upon warrants of the
director of accounts and reports issued pursuant to vouchers approved
by the director of the Kansas water office, or such director's designee.
(2) Whenever the unencumbered balance of the water projects
grant fund exceeds $35,000,000, the director of the Kansas water office
shall certify such excess amount to the director of accounts and reports.
Upon receipt of such certification, the director of accounts and reports
shall transfer the certified excess amount from the water projects grant
fund to the state general fund.
(b) The Kansas water office may provide full or partial funding in
the form of grants to any municipality or special district related to
water established pursuant to the laws of the state of Kansas for the
following:
(1) Construction, repair, maintenance or replacement of water-
related infrastructures and any related construction costs;
(2) matching moneys for grant or loan applications for water-
related infrastructure projects; and
(3) grants that may be applied to an outstanding loan balance from
the public water supply loan fund established in K.S.A. 65-163e, and
amendments thereto, or the Kansas pollution control revolving fund
established in K.S.A. 65-3322, and amendments thereto, subject to the
provisions of subsection (c).
(c) The Kansas water office shall adopt rules and regulations to
establish any necessary criteria for grants from the water projects grant
fund. Such rules and regulations shall include any necessary criteria
that may be applied to the selection of projects with outstanding loan
balances from the public water supply loan fund established in K.S.A.
65-163e, and amendments thereto, or the Kansas pollution control
revolving fund established in K.S.A. 65-3322, and amendments thereto.
Such criteria shall be based on the following factors:
(1) The planned construction on the project with the outstanding
loan balance is complete;
(2) the municipality or special district has made at least five years
of payments on such project loans;
(3) awarding grants that provide repayment of up to:
(A) 90% of any remaining project loan balance for cities with
fewer than 2,000 residents;
(B) 75% of any remaining project loan balance for cities with
fewer than 5,000 residents;
(C) 50% of any remaining project loan balance for cities with
fewer than 10,000 residents; and
(D) 25% of any remaining project loan balance for all other cities
in Kansas; and
(4) any other relevant criteria including, but not limited to, the
socio-economic status of the residents of any municipality, public
health and the ability of any municipality to repay a loan without
further assistance.
(d) No single grant awarded for a project pursuant to this section
shall be greater than $8,000,000 unless specified by any appropriation
act of the Kansas legislature.
(e) The Kansas water office and the department of health and
environment shall coordinate the sharing of information regarding
applicants for loans from the public water supply loan fund established
in K.S.A. 65-163e, and amendments thereto, and the Kansas pollution
control revolving fund established in K.S.A. 65-3322, and amendments
thereto, and shall take into consideration the approval or likely approval
of a grant by the Kansas water office when considering the eligibility of Senate Substitute for HOUSE BILL No. 2302—page 5
any municipality to receive moneys from such funds.
Sec. 6. K.S.A. 82a-951 is hereby amended to read as follows: 82a-
951. (a) On and after July 1, 1989, There is hereby created, in the state
treasury, the state water plan fund. All moneys in the state water plan
fund shall be expended in accordance with appropriations acts for
implementation of the state water plan formulated pursuant to K.S.A.
82a-903 et seq., and amendments thereto. Except as provided in section
3, and amendments thereto, such moneys shall be used only for the
establishment and implementation of water-related projects or
programs, and related technical assistance, and shall not be used for:
(1) Replacing full time equivalent positions of any state agency; or (2)
recreational projects which do not meet one or more of the long-range
goals, objectives and considerations set forth in the state water resource
planning act.
(b) On or before December 1 of each year, the Kansas water
authority shall submit to the governor and the legislature a report
setting out: (1) An account of all moneys expended from the state water
plan fund, the water technical assistance fund and the water projects
grant fund during each such fiscal year; and (2) a five-year capital
development plan for state water plan projects.
Sec. 7. K.S.A. 82a-951 is hereby repealed.
Sec. 8. This act shall take effect and be in force from and after its
publication in the Kansas register.
I hereby certify that the above BILL originated in the
HOUSE, and was adopted by that body
HOUSE adopted
Conference Committee Report
Speaker of the House.
Chief Clerk of the House.
Passed the SENATE
as amended
SENATE adopted
Conference Committee Report
President of the Senate.
Secretary of the Senate.
APPROVED
Governor.