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Bill

HB 2345

Commercial code; Commercial Code Reform Act of 2025; effective date.

2025 Regular Session Introduced by Kyle Hilbert

Creates a single Kansas Office of Natural Resources to centralize water and conservation programs by absorbing the Kansas Water Office and two Agriculture divisions.

Second Reading referred to Rules
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Bill Summary · HB 2345

Summary — HB 2345 (2025): Kansas Office of Natural Resources

Status: Introduced Feb 3, 2025; Referred to House Committee on Water.
Effective date in bill: Establishes the new office effective July 1, 2026 (per fiscal note).

Main purpose

Create a consolidated Kansas Office of Natural Resources (ONR) in the executive branch to centralize water and conservation functions now performed by the Kansas Water Office and two divisions of the Kansas Department of Agriculture. The bill reorganizes authority, transfers statutory duties, and abolishes the prior entities.

Key provisions

  • Establishes the Kansas Office of Natural Resources within the executive branch.
  • Creates three divisions within ONR:
    • Division of Water Resources — water rights administration, dam safety, and water resources management.
    • Division of Conservation — oversight of conservation districts and related programs.
    • Division of Water Policy and Planning — water planning, policy development, and reservoir operations.
  • Abolishes:
    • Kansas Water Office (and its director position), and
    • Kansas Department of Agriculture’s Division of Conservation and Division of Water Resources. All powers, duties and functions of those entities transfer to ONR/divisions.
  • Executive Director:
    • Appointed by the Governor with Senate confirmation.
    • Serves in the unclassified civil service and at the Governor’s pleasure; salary set by Governor.
    • May organize internal divisions, adopt rules, appoint unclassified staff, enter contracts, and establish an official seal.
    • Custody of records for abolished/transferred agencies; preserves continuity of pending judicial/administrative actions.
  • Fee authority: allows the Executive Director to charge an additional processing fee for paper documents when electronic processing exists — language in the bill specifies a fee “up to 6% of such applicable fee amount” but also includes a cap reference (as written) that such fee “shall not exceed 40%” in certain circumstances.
  • ONR is subject to the Kansas governmental operations accountability law (audit/review/evaluation).

Fiscal and operational impact

  • Department of Agriculture estimates net decreases in its expenditures because divisions move out of the agency:
    • FY2026: decrease of $58,576,749 total (including $43,582,979 State General Fund; $1,893,977 agency fee funds; $13,099,793 federal funds).
    • FY2027: decrease of $53,154,915 total (including $38,161,145 SGF; $1,893,977 agency fee funds; $13,099,793 federal funds).
  • Kansas Water Office reports anticipated increases in costs (new Executive Director salary, additional staff, rent, replacing shared resources, transition materials) but could not provide a precise estimate.
  • Several other state agencies (KDHE, KDWPT, Dept. of Revenue, Legislative Administrative Services, University of Kansas) reported no fiscal effect. Counties and conservation districts could experience fiscal impacts depending on local handling of conservation districts and investments.
  • The fiscal effects are not reflected in the FY2026 Governor’s Budget Report.

Who is affected

  • State agencies: Kansas Water Office (abolished), Department of Agriculture’s Divisions of Water Resources and Conservation (abolished/transferred), and ONR as the successor.
  • Conservation districts, water-right holders, dam owners, reservoir operators, and entities that interact with the transferred programs.
  • Counties may see indirect fiscal/administrative effects related to conservation district management.

Procedural notes

  • The bill replaces many statutory references to the abolished entities across state law.
  • Provides for continuity of records and ongoing legal actions after reorganization.
  • At the time of summary, HB 2345 is pending in the House Committee on Water.

If you want, I can produce a one-page fact sheet for stakeholders (conservation districts, water users, county officials) describing immediate operational changes they should expect.

Compiled from official sources — confirm details with the bill’s official record.

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