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Minutes for HB2477 - Committee on Agriculture and Natural Resources

Short Title

Increasing the maximum reimbursement from the Kansas agricultural remediation fund from $200,000 to $300,000 for an eligible person and from $400,000 to $600,000 when both a buyer and a seller or a lessee and a lessor are responsible for remediation and increasing the amount available to the Kansas agricultural remediation board for administrative overhead expenses from $150,000 to $175,000.

Minutes Content for Tue, Mar 5, 2024

Chairman Peck opened the hearing on HB2477.

Tamera Lawrence, Revisor, gave an overview of the bill. (Attachment 1)

Randy Stookey, Senior Vice President and General Counsel, Kansas Grain and Feed Association (KGFA), Kansas Agribusiness Reatailers Association (KARA) spoke in support of the bill.(Attachment 2) The fund which receives no money from the state general funds is completely financed by assessments on commercial grain warehouses, agricultural chemical registrants, custom fertilizer blenders, commercial fertilizer registrants and pesticide dealers. KGFA and KARA strongly support the purpose of the remediation fund which serves the agribusiness industry for otherwise non-insurable remediation expenses.

Eligible parties can receive reimbursement for up to $200,000 per facility. The fund has an outstanding balance of over $1 million. KGFA and KARA industry members seek to increase the maximum reimbursement from $200,000 to $300,000.

Mr. Stookey stood for questions.

Joshua McGinn, Assistant Secretary, Kansas Department of Agriculture, testified in support of the bill.(Attachment 3) The fund and reimbursement requests are overseen by the Kansas Agricultural Remediation Board (KARB) and KDA holds an ex officio position on the Board.The bill also provides an increase in the statutory limit on KARB's admnistrative fees to $175,000.

Inflation and the increase in the cost of goods since 2001 has diluted the value of the dollar over time.  The amendments in this bill would provide additional financial support which would assist in alleviating those increased costs.

Mr. McGinn stood for questions.

Shahira Stafford, Kansas Cooperative Council spoke in favor of the bill. (Attachment 4) The Co-op Council members consistently pay year after year into the remediation fund because they recognize the importance of protecting and remediating Kansas soil and ground water. Thus, they stand in support of allowing more of their dollars to be returned specifically for this purpose.

Ms. Stafford stood for questions.

Kate Gleeson, Deputy Director, Kansas Department of Health and Environment submitted written testimony in favor of HB2477. (Attachment 5)

Chairman Peck closed the hearing on HB2477 at 9:15 am.

Chairman Peck then asked for the approval of minutes as emailed for Jan. 29, 30, 31 and Feb. 1.

Senator Ware moved to approve the minutes was seconed by Senator Kerschen. Motion carries.

Chairman Peck adjourned the meeting at 9:17 am.