Session of 2024 HOUSE BILL No. 2541 By Committee on Agriculture and Natural Resources Requested by Representative Blex on behalf of Kansans for Conservation 1-18 AN ACT concerning natural resources; relating to state moneys for conservation; establishing the state conservation fund, the working lands conservation fund, the wildlife conservation fund and the Kansas outdoors fund; providing for the use of moneys in such funds by the Kansas department of agriculture and the Kansas department of wildlife and parks; requiring certain reports regarding such funds be made to the governor and the legislature; authorizing certain transfers from the state general fund and the lottery operating fund to the state conservation fund; transfers from the state conservation fund to the working lands conservation fund, wildlife conservation fund and the Kansas outdoors fund; amending K.S.A. 2023 Supp. 74-8711 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas: New Section 1. (a) There is hereby established in the state treasury the state conservation fund. All moneys credited to the state conservation fund shall be expended or transferred only for the purposes and in the manner provided by this section. All expenditures from the state conservation fund shall be made in accordance with appropriation acts for the financing of conservation programs. It is the intent of the legislature that the fund shall remain intact and inviolate for the purposes set forth in this section and moneys in the fund shall not be subject to the provisions of K.S.A. 75-3722, 75-3725a and 75-3726a, and amendments thereto. Moneys credited to the state conservation fund shall be used to supplement existing appropriations and shall not be used to supplant state general fund or special revenue fund appropriations to the Kansas department of agriculture or the Kansas department of wildlife and parks. (b) (1) On July 1, 2024, and each July 1 thereafter, the secretary of revenue shall certify to the director of accounts and reports the amount of total retail sales and compensating use taxes credited to the state general fund pursuant to articles 36 and 37 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, during the preceding calendar year from sporting goods. Upon receipt of such certification, or as soon thereafter as moneys are available, the director of accounts and reports shall transfer an amount equal to 50% of such certified amount from the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 HB 2541 2 state general fund to the state conservation fund. The secretary of revenue shall transmit a copy of each such certification to the director of the budget and the director of legislative research. (2) As used in this section, "sporting goods" means sales from sporting goods stores under the North American industry classification system code 451110. (c) On July 15, 2024, and each July 15 thereafter, the director of accounts and reports shall transfer an amount equal to 50% of the balance in the state conservation fund to the working lands conservation fund established in section 2, and amendments thereto. (d) On July 15, 2024, and each July 15 thereafter, the director of accounts and reports shall transfer an amount equal to 25% of the balance in the state conservation fund to the wildlife conservation fund established in section 3, and amendments thereto. (e) On July 15, 2024, and each July 15 thereafter, after making the transfers prescribed by subsections (c) and (d), the director of accounts and reports shall transfer the remaining balance in the state conservation fund to the Kansas outdoors fund established in section 4, and amendments thereto. New Sec. 2. (a) There is hereby established in the state treasury the working lands conservation fund. The working lands conservation fund shall be administered by the director of the division of conservation established within the Kansas department of agriculture by K.S.A. 74- 5,126, and amendments thereto. All expenditures from such 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 director or the director's designee. (b) (1) The division shall adopt rules and regulations to administer a grant program expending moneys from the working lands conservation fund. (2) The division shall solicit input and facilitate public comment from industry members and stakeholders in developing such rules and regulations. (c) The secretary shall establish an external review panel and appoint the members of such external review panel. (d) The external review panel shall meet at least twice a year to provide funding recommendations to the division. The division shall annually submit the budget for the administration of such grant program to the external review panel for review and approval. (e) Public entities, including, but not limited to, state agencies, municipalities, counties, state or federally recognized tribal nations, conservation districts, special park and recreation districts, recreation commissions and nonprofit entities shall be eligible to receive funding 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2541 3 from the grant program. (f) Eligible grant applications shall benefit the natural resources of the state by promoting conservation on working lands through practices including, but not limited to: (1) Irrigation efficiency; (2) grazing land rest, rotation and management; (3) long-term land protection from conversion or loss of habitat; (4) soil health practices; (5) practices that promote or regenerate soil ecosystems, biodiversity and native grasslands; (6) management of woody encroachment; (7) sustainable and regenerative timber management; (8) ecological restoration of lands; (9) enhanced water quality or quantity; (10) relevant adult educational programs, including, but not limited to, expanded agricultural tourism and ecotourism supporting knowledge of food systems, sustainable practices and ecological relationships of working lands; and (11) relevant educational programs for youth, including, but not limited to, education about soils and soil health, sustainable land practices, ecosystems and ecosystem health. (g) Applications providing an opportunity to capture federal, private or other nonstate matching moneys through a state or local match shall be prioritized. Matching moneys shall include cash contributions, noncash contributions including land value donations and in-kind contributions. (h) Fee simple land acquisitions by a state agency shall be subject to the requirements in K.S.A. 32-833, and amendments thereto, at the time of acquisition, not the grant application. (i) It is the intent of the legislature that all moneys allocated to the working lands conservation fund shall be: (1) Fully obligated to approved projects within 12 months of allocation to the fund; and (2) in addition to, and not supplant, existing appropriations. (j) On or before December 1 of each year, the division shall submit a report to the governor and the legislature. Such report shall include: (1) An accounting of all moneys expended from the working lands conservation fund in the immediately preceding fiscal year and the current fiscal year to date; and (2) a brief description of all funding applications received with an explanation of why such applications were or were not funded. (k) The division may use a portion of moneys allocated to the working lands conservation fund to pay for relevant and necessary expenses of administering the grant program. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2541 4 (l) For purposes of this section: (1) "Director" means the executive director of the division. (2) "Division" means the division of conservation established within the Kansas department of agriculture by K.S.A. 74-5,126, and amendments thereto. (3) "Secretary" means the secretary of agriculture. (4) "Working lands" means lands used for farming, grazing or production of forest products. New Sec. 3. (a) There is hereby established in the state treasury the wildlife conservation fund. The wildlife conservation fund shall be administered by the secretary of wildlife and parks. All expenditures from such 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 of wildlife and parks or the secretary's designee. (b) (1) The secretary of wildlife and parks shall adopt rules and regulations to administer a grant program expending moneys from the wildlife conservation fund. (2) The Kansas department of wildlife and parks shall solicit input and facilitate public comment from industry members and stakeholders in developing such rules and regulations. (c) The Kansas department of wildlife and parks shall establish a volunteer advisory board to oversee the grant program comprised of members representing industry and stakeholders. (d) The advisory board shall submit funding recommendations to the Kansas department of wildlife and parks for final approval or revision. In the case of revision, the Kansas department of wildlife and parks shall provide explanatory guidance to the advisory board. No application shall receive funding without the recommendation of the advisory board and approval from the Kansas department of wildlife and parks. (e) Public entities, including, but not limited to, state agencies, municipalities, counties, state or federally recognized tribal nations, conservation districts, special park and recreation districts, recreation commissions and nonprofit entities shall be eligible to receive funding from the grant program. (f) Eligible grant applications shall benefit the natural resources of the state by promoting biodiversity or through practices established in the state wildlife action plan, including, but not limited to: (1) Establishing quality habitat; (2) increasing access to diverse high-quality privately owned native grassland habitat for hunting through the expansion of walk-in hunting access; (3) increasing access to diverse high-quality native grassland habitat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2541 5 through the expansion and creation of wildlife management areas; (4) establishing diverse high-quality native grasslands for the benefit of upland birds in a manner that prioritizes science-based habitat investments to create the most significant outcomes for these species; (5) engaging in long-term land protection from conversion or loss of habitat; (6) restoring habitat for threatened or endangered species or those species in need of conservation; (7) conserving or restoring native landscapes, such as forests, grasslands or state wetlands and streams; (8) improving fisheries, angler access and invasive species management; and (9) providing relevant educational programs for adults and youth that address any of the topics listed in paragraphs (1) through (8). (g) Applications providing an opportunity to capture federal, private or other nonstate matching moneys through a state or local match shall be prioritized. Matching moneys shall include cash contributions, noncash contributions including land value donations and in-kind contributions. (h) Fee simple land acquisitions by a state agency shall be subject to the requirements in K.S.A. 32-833, and amendments thereto, at the time of acquisition, not the grant application. (i) It is the intent of the legislature that all moneys allocated to the wildlife conservation fund shall be: (1) Fully obligated to approved projects within 12 months of allocation to the fund; and (2) in addition to, and not supplant, existing appropriations. (j) On or before December 1 of each year, the Kansas department of wildlife and parks shall submit a report to the governor and the legislature. Such report shall include: (1) An accounting of all moneys expended from the wildlife conservation fund in the immediately preceding fiscal year and the current fiscal year to date; and (2) a brief description of all funding applications received with an explanation of why such applications were or were not funded. (k) The Kansas department of wildlife and parks may use a portion of moneys allocated to the wildlife conservation fund to pay for relevant and necessary expenses of administering the grant program. (l) No moneys from the wildlife conservation fund shall be used for fulfillment of mitigation, restitution, litigation, bonds, permits or court- ordered settlements. New Sec. 4. (a) There is hereby established in the state treasury the Kansas outdoors fund. The Kansas outdoors fund shall be administered by the secretary of wildlife and parks as part of the parks division of the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2541 6 Kansas department of wildlife and parks. All expenditures from such 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 of wildlife and parks or the secretary's designee. (b) (1) The secretary of wildlife and parks, in consultation with the division, shall adopt rules and regulations to administer a grant program expending moneys from the Kansas outdoors fund. (2) The division shall solicit input and facilitate public comment from industry members and stakeholders in developing such rules and regulations. (c) The division shall establish a volunteer advisory board to oversee the grant program comprised of members representing industry and stakeholders. (d) The advisory board shall submit funding recommendations to the division for final approval or revision. In the case of revision, the division shall provide explanatory guidance to the advisory board. No application shall receive funding without the recommendation of the advisory board and approval from the division. (e) Public entities, including, but not limited to, state agencies, municipalities, counties, state or federally recognized tribal nations, conservation districts, special park and recreation districts, recreation commissions and nonprofit entities shall be eligible to receive funding from the grant program. (f) Eligible grant applications shall benefit the natural resources of the state by promoting outdoor access, environmental education and recreation through practices established in the state comprehensive outdoor recreation plan, including, but not limited to: (1) Increasing access to and numbers of natural areas for nature appreciation, camping, hiking, trail use, boating, kayaking, canoeing and other outdoor recreational pursuits; (2) engaging in long-term land protection from conversion or loss of habitat; (3) improving local, county and state recreation facilities and parks; (4) enhancing outdoor tourism opportunities; and (5) providing relevant educational programs. (g) Applications providing an opportunity to capture federal, private or other nonstate matching moneys through a state or local match shall be prioritized. Matching moneys shall include cash contributions, noncash contributions including land value donations and in-kind contributions. (h) Fee simple land acquisitions by a state agency shall be subject to the requirements in K.S.A. 32-833, and amendments thereto, at the time of acquisition, not the grant application. (i) It is the intent of the legislature that all moneys allocated to the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2541 7 Kansas outdoors fund shall be: (1) Fully obligated to approved projects within 12 months of allocation to the fund; and (2) in addition to, and not supplant, existing appropriations. (j) On or before December 1 of each year, the division shall submit a report to the governor and the legislature. Such report shall include: (1) An accounting of all moneys expended from the Kansas outdoors fund in the immediately preceding fiscal year and the current fiscal year to date; and (2) a brief description of all funding applications received with an explanation of why such applications were or were not funded. (k) The division may use a portion of moneys allocated to the Kansas outdoors fund to pay for relevant and necessary expenses of administering the grant program. (l) The division shall annually submit the budget for the administration of such grant program to the advisory board for review and approval. (m) For purposes of this section, "division" means the parks division established within the Kansas department of wildlife and parks. Sec. 5. K.S.A. 2023 Supp. 74-8711 is hereby amended to read as follows: 74-8711. (a) There is hereby established in the state treasury the lottery operating fund. (b) Except as provided by K.S.A. 74-8724 and the Kansas expanded lottery act, and amendments thereto, the executive director shall remit all moneys collected from the sale of lottery tickets and shares and any other moneys received by or on behalf of the Kansas lottery 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 lottery operating fund. Moneys credited to the fund shall be expended or transferred only as provided by this act. Expenditures from such fund shall be made in accordance with appropriations acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the executive director or by a person designated by the executive director. (c) Moneys in the lottery operating fund shall be used for: (1) The payment of expenses of the lottery, which shall include all costs incurred in the operation and administration of the Kansas lottery; all costs resulting from contracts entered into for the purchase or lease of goods and services needed for operation of the lottery, including but not limited to supplies, materials, tickets, independent studies and surveys, data transmission, advertising, printing, promotion, incentives, public relations, communications and distribution of tickets and shares; and reimbursement of costs of facilities and services provided by other state 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2541 8 agencies; (2) the payment of compensation to lottery retailers; (3) transfers of moneys to the lottery prize payment fund pursuant to K.S.A. 74-8712, and amendments thereto; (4) transfers to the state general fund pursuant to K.S.A. 74-8713, and amendments thereto; (5) transfers to the community crisis stabilization centers fund and clubhouse model program fund of the Kansas department for aging and disability services pursuant to subsection (e); (6) transfers to the state gaming revenues fund pursuant to subsection (d) and as otherwise provided by law; (7) transfers to the white collar crime fund of the governor pursuant to subsection (f); (8) transfers to the problem gambling and addictions grant fund of the department for aging and disability services pursuant to subsection (g); (9) transfers to the attracting professional sports to Kansas fund of the department of commerce state conservation fund pursuant to subsection (h) and (i); and (10) transfers to the county reappraisal fund as prescribed by law. (d) The director of accounts and reports shall transfer moneys in the lottery operating fund to the state gaming revenues fund created by K.S.A. 79-4801, and amendments thereto, on or before the 15 th day of each month in an amount certified monthly by the executive director and determined as follows, whichever is greater: (1) An amount equal to the moneys in the lottery operating fund in excess of those needed for the purposes described in subsections (c)(1) through (c)(6) subsection (c); or (2) except for pull-tab lottery tickets and shares, an amount equal to not less than 30% of total monthly revenues from the sales of lottery tickets and shares less estimated returned tickets. In the case of pull-tab lottery tickets and shares, an amount equal to not less than 20% of the total monthly revenues from the sales of pull-tab lottery tickets and shares less estimated returned tickets. (e) (1) Subject to the limitations set forth in paragraph (2), commencing in fiscal year 2020, on or before the 10 th day of each month, the director of the lottery shall certify to the director of accounts and reports all net profits from the sale of lottery tickets and shares via lottery ticket vending machines. Of such certified amount, the director of accounts and reports shall transfer 75% from the lottery operating fund to the community crisis stabilization centers fund of the Kansas department for aging and disability services and 25% from the lottery operating fund to the clubhouse model program fund of the Kansas department for aging and disability services. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 HB 2541 9 (2) Moneys transferred pursuant to paragraph (1) shall not exceed in the aggregate $9,000,000 in fiscal years 2023 and 2024, and shall not exceed in the aggregate $8,000,000 in fiscal year 2025 and each fiscal year thereafter. (f) On July 1, 2023, and each July 1 thereafter, or as soon thereafter as moneys are available, the first $750,000 credited to the lottery operating fund from sports wagering revenues deposited in the lottery operating fund shall be transferred by the director of accounts and reports from the lottery operating fund to the white collar crime fund established in K.S.A. 2023 Supp. 74-8792, and amendments thereto. (g) On July 1, 2023, and each July 1 thereafter, or as soon thereafter as moneys are available, after the transfer required under subsection (f) has been made, 2% of the remaining moneys credited to the lottery operating fund from sports wagering revenues deposited in the lottery operating fund shall be transferred by the director of accounts and reports from the lottery operating fund to the problem gambling and addictions grant fund established in K.S.A. 79-4805, and amendments thereto. (h) On July 1, 2023 2024, and each July 1 thereafter, or as soon thereafter as moneys are available, after the transfer required under subsection (f) has been made, 80% of the remaining moneys credited to the lottery operating fund from sports wagering revenues deposited in the lottery operating fund shall be transferred by the director of accounts and reports from the lottery operating fund to the attracting professional sports to Kansas state conservation fund established in K.S.A. 2023 Supp. 74- 8793 section 1, and amendments thereto. (i) On July 1, 2024, and each July 1 thereafter, or as soon thereafter as moneys are available, in addition to the transfer required under subsection (h), the director of accounts and reports shall transfer $32,000,000 from the lottery operating fund to the state conservation fund established in section 1, and amendments thereto. Sec. 6. K.S.A. 2023 Supp. 74-8711 is hereby repealed. Sec. 7. This act shall take effect and be in force from and after its publication in the statute book. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33