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Session of 2026
HOUSE BILL No. 2558
By Committee on Water
Requested by Representative Minnix
1-27
AN ACT concerning water; relating to funding for the state water plan and
water infrastructure projects; increasing the amount of moneys
transferred from the state general fund to the state water plan fund;
requiring the Kansas water office to transfer appropriations for the
water technical assistance fund and the water projects grant fund;
amending K.S.A. 2025 Supp. 82a-955, 82a-956 and 82a-957 and
repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2025 Supp. 82a-955 is hereby amended to read as
follows: 82a-955. (a) On July 1, 2024, the director of accounts and reports
shall transfer $45,000,000 from the state general fund to the state water
plan fund. On July 1, 2025, and July 1, 2026, July 1, 2027, July 1, 2028,
July 1, 2029, and July 1, 2030, the director of accounts and reports shall
transfer $35,000,000 $60,000,000 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, 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 When an appropriation is made for any fiscal year as
intended in pursuant to subsection (a), on July 1 , 2025, and July 1, 2026,
of such fiscal year or as soon thereafter on such dates as moneys are
available:
(A) $5,500,000$15,500,000 shall be transferred from the state water
plan fund to the water technical assistance fund established in K.S.A. 2025
Supp. 82a-956, and amendments thereto; and
(B) $12,500,000$22,500,000 shall be transferred from the state water
plan fund to the water projects grant fund established in K.S.A. 2025
Supp. 82a-957, and amendments thereto.
(2) The provisions of this section shall expire on July 1, 2028 2031.
On July 1, 2028 2031, 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
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the state water plan fund. On July 1, 2028 2031 , 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.
(4) The Kansas water authority may direct the Kansas water office to
provide funding pursuant to K.S.A. 2025 Supp. 82a-956 or 82a-957, 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 K.S.A. 2025
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Supp. 82a-956, and amendments thereto, and the water projects grant fund
established in K.S.A. 2025 Supp. 82a-957, and amendments thereto.
Sec. 2. K.S.A. 2025 Supp. 82a-956 is hereby amended to read as
follows: 82a-956. (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, $36,000,000, 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,
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groundwater management districts, rural water districts and any other
similar districts formed for a special or single purpose related to water.
(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.
Sec. 3. K.S.A. 2025 Supp. 82a-957 is hereby amended to read as
follows: 82a-957. (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, $50,000,000, 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;
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(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 any
municipality to receive moneys from such funds.
Sec. 4. K.S.A. 2025 Supp. 82a-955, 82a-956 and 82a-957 are hereby
repealed.
Sec. 5. This act shall take effect and be in force from and after its
publication in the Kansas register.
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