SESSION OF 2000



SUPPLEMENTAL NOTE ON HOUSE BILL NO. 3020



As Recommended by House Committee on

Economic Development





Brief (1)



HB 3020 would establish the Sunflower Army Ammunition Plant Remediation Trust Fund which would be administered by the Secretary of Heath and Environment to pay qualified expenses of remediation of environmental contamination at the Sunflower Army Ammunition Plant.



Funding for the trust fund would come from any proceeds received by the Department of Heath and Environment from the payment obligation surety bonds furnished by the Oz Entertainment Company pursuant to a consent decree agreement. All expenditures from the trust fund would be subject to the appropriation process.





Background



The House Committee held a hearing on HB 3020 at which time the Secretary of the Kansas Department of Health and Environment testified in favor of the bill. The Secretary reminded the Committee that 1999 legislation which created the statutory authority for the Oz project requires that Oz Entertainment Company provide a prepaid third party financial guarantee to guarantee the funds necessary for remediation of the Sunflower Army Ammunition Plant. The Secretary told the Committee that without HB 3020, the agency would not have authority to access the payment obligation surety bond and pay the contractor for the remediation work performed on the Sunflower site.



According to the fiscal note provided by the Budget Division, any fiscal impact resulting from the passage of this bill would not affect revenues or expenditures from the State General Fund, but would be in addition to the Governor's FY 2001 budget recommendations.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html