Committee passes amended bill to create State Conservation Fund, directs $16 million annual transfers from gaming revenues

At a meeting of the Committee on Agriculture and Natural Resources, members voted to pass House Bill 2063 as amended, creating a State Conservation Fund and directing annual transfers of $16,000,000 from the state gaming revenues fund to conservation programs.

Committee staff member Kyle summarized the bill: "House Bill 2063 relates to state monies for conservation. It would establish the State Conservation Fund, and then the Working Lands conservation fund, the wildlife conservation fund, and the Kansas outdoors fund," and noted the bill would require annual reports to the governor and legislature and authorize transfers among those funds.

The amendment, introduced by Representative Neely and explained by Kyle, reduces a previously proposed $60,000,000 annual transfer to $16,000,000 and changes the revenue source from the state general fund to the state gaming revenues fund. The $16,000,000 would be distributed each July 1 as follows: $8,000,000 to the Working Lands Conservation Fund (up to $160,000 or 2% for administration), $4,000,000 to the Wildlife Conservation Fund (up to $80,000 or 2% for administration), and $4,000,000 to the Kansas Outdoors Fund (up to $80,000 or 2% for administration). The amendment also excludes sports-wagering receipts from the transfers, prioritizes working-lands applications that provide tangible water-quality or quantity benefits, prioritizes wildlife-fund applications that advance public access for hunting, fishing and similar recreational uses, sets annual transfer dates from 06/25/2026 through 06/25/2030, and includes a sunset for the new sections on 07/01/2031.

Representative Gardner opposed the measure, arguing it does not produce new revenue and risks duplicating existing, underfunded programs: "We've got programs that do all of these things, but are underfunded today... we' re not coming up with any new revenue," he said. Representative Neely countered that the dedicated fund could enable state agencies and local projects to access federal matching funds they have not been able to secure previously, increasing leverage for conservation spending.

Kyle clarified the source of the transfer when asked by Representative Moser, saying the money would come from traditional lottery proceeds (scratch-off ticket revenues) that are now routed to the state general fund and would not include sports-wagering receipts. Kyle also explained the amendment would be a multi-year pilot to allow review and evaluation.

The committee voted on the amendment by voice; the chair announced the amendment carried. The chair later closed debate and announced House Bill 2063 passed favorably, as amended. The transcript records Representative Fairchild and Representative Gardner as voting "no"; Representative Lehi, Representative Roth and Representative Featherston were recorded as voting "yes." The transcript does not include a complete roll-call in the record provided.

The committee also discussed other business: the chair recommended holding House Bill 2547 until it is ready and scheduled a hearing on House Bill 2582 (a program to support veterinary medicine in rural Kansas) for the committee's next meeting.

What happens next: with a favorable committee report, HB 2063 will proceed according to legislative rules for floor consideration and further action by the legislature. The committee will receive program-level reports required by the bill if enacted.