HOUSE BILL No. 2335
AN ACT concerning transportation; relating to the rail service improvement program;
authorizing loans or grants for qualified track maintenance; providing a definition for
qualified track maintenance; increasing the transfer amount from the state highway
fund to the rail service improvement fund; amending K.S.A. 2022 Supp. 75-5048 and
repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2022 Supp. 75-5048 is hereby amended to read
as follows: 75-5048. (a) The secretary of transportation is hereby
authorized to make loans or grants to a qualified entity for the purpose
of facilitating the financing, acquisition, qualified track maintenance or
rehabilitation of railroads and rolling stock in the state of Kansas.
(b) Such loans or grants shall be made upon such terms and
conditions as the secretary may deem appropriate, and such loans or
grants shall be made from funds credited to the rail service
improvement fund.
(c) The rail service improvement fund is hereby established in the
state treasury which shall be for the purpose of facilitating the
financing, acquisition, qualified track maintenance and rehabilitation of
railroads pursuant to subsection (a) of this section and for the
refinancing thereof. The secretary shall administer the rail service
improvement fund. All expenditures from the rail service improvement
fund shall be made in accordance with appropriation acts upon warrants
of the director of accounts and reports issued pursuant to vouchers
approved by the secretary or by a person or persons designated by the
secretary.
(d) All moneys received from the federal government, pursuant to
K.S.A. 75-5026, and amendments thereto, shall be remitted to the state
treasurer in accordance with the provisions of K.S.A. 75-4215, and
amendments thereto. Upon receipt of each such remittance, the state
treasurer shall deposit the entire amount in the state treasury to the
credit of the rail service improvement fund.
(e) The management and investment of the rail service
improvement fund shall be in accordance with K.S.A. 68-2324, and
amendments thereto. Notwithstanding anything to the contrary, all
interest or other income of the investments, after payment of any
management fees, shall be considered income of the rail service
improvement fund.
(f) On July 1, 2013 2023, and each July 1 thereafter, the director
of accounts and reports shall transfer $5,000,000 $10,000,000 from the
state highway fund to the rail service improvement fund. The secretary
is hereby authorized to transfer moneys from the state highway fund to
the rail service improvement fund or from the rail service improvement
fund to the state highway fund. In no event shall the amount remaining
in the rail service improvement fund and the amount spent or dedicated
for loans or grants in each fiscal year be less than $5,000,000
$10,000,000.
(g) As used in this section,:
(1) (A) "Qualified entity" means:
(i) Any interstate commerce commission certificated surface
transportation board-certificated class II or class III railroad, as
defined in 49 C.F.R. § 1201.1-1(a), as in effect on July 1, 2023;
(ii) a port authority established in accordance with Kansas laws,
or;
(iii) any entity meeting the rules and regulations established by
K.S.A. 75-5050, and amendments thereto; or
(iv) any owner or lessee industry track, as defined in 49 C.F.R. §
218.93, as in effect on July 1, 2023, located on or adjacent to a class II
or class III railroad in the state of Kansas.
(B) "Qualified entity" does not include a class I railroad as
defined in 49 C.F.R. § 1201.1-1(a), as in effect on July 1, 2023.
(2) "Qualified track maintenance" means gross expenditures for
the maintenance, reconstruction or replacement of railroad track,
including roadbed, bridges, industrial leads and side track, and related
track structures to the extent the expenditures are on track located in HOUSE BILL No. 2335—page 2
the state of Kansas and such track was owned or leased by a qualified
entity, as defined in paragraph (1)(D) or (E) as of July 1, 2023.
Sec. 2. K.S.A. 2022 Supp. 75-5048 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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.