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HB 2107

Economic development; Economic Development Act of 2025; effective date.

2025 Regular Session Introduced by Mike Osburn

Creates civil claims for fire damages against electric utilities, with a 2-year window (discovery) within 10 years, $5M punitive cap, and a KCC wildfire workshop by 7/31/2026.

Second Reading referred to Rules
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Bill Summary · HB 2107

HB 2107 — Summary (Approved April 1, 2025)

Title

Providing for claims to recover economic damages from fire events caused by electric public utilities, establishing a statute of limitations for such claims, and requiring the Kansas Corporation Commission (KCC) to convene a workshop on utility wildfire risk and mitigation.

Main purpose

To create a defined civil cause of action and legal framework for claims arising from uncontrolled fires alleged to have been caused by electric public utilities, to set time limits and evidentiary standards for those claims, cap punitive awards, and require the KCC to convene a workshop (and, if necessary, further investigations) on wildfire risk and utility mitigation.

Key provisions

  • Definitions

    • “Fire event”: an uncontrolled or unplanned fire in Kansas alleged to have been caused by an electric public utility.
    • “Fire claim”: any civil claim (negligence, nuisance, trespass, or other) by a person against an electric public utility for damages resulting from a fire event.

  • Statute of limitations

    • Generally: a fire claim must be brought within two years of the date of the damage from the fire event.
    • Discovery rule: if the fact of injury is not reasonably ascertainable immediately, the two-year period does not begin until the injury becomes reasonably ascertainable to the injured party.
    • Absolute cap: in no event may a claim be commenced more than 10 years after the fire event.

  • Burden of proof and recoverable damages

    • Plaintiffs must prove liability by a preponderance of the evidence (the standard used in negligence cases).
    • Plaintiffs may recover economic and noneconomic damages to compensate for losses caused by the fire event.

  • Punitive damages

    • Punitive damages in a fire claim are capped at $5,000,000.

  • Kansas Corporation Commission (KCC) duties

    • On or before July 31, 2026, the KCC must convene a workshop to assess wildfire risk and mitigation that includes:
    • General wildfire risks in Kansas;
    • Utility readiness and mitigation strategies;
    • Risk mitigation approaches; and
    • Cost recovery treatment for wildfire mitigation investments and expenses.
    • The KCC may open a general investigation or hold additional workshops if further assessment is necessary.

Fiscal and administrative impacts

  • KCC estimates increased consulting expenditures: approximately $200,000 (FY2026) and $100,000 (FY2027) from agency fee funds to support the required workshop(s) and related work.
  • Office of Judicial Administration expects increased district court filings (new civil cause of action), increasing court workload; an accurate expenditure estimate was not provided.
  • Citizens’ Utility Ratepayer Board noted potential additional regulatory dockets if utilities seek cost recovery for mitigation expenditures.

Who is affected

  • Electric public utilities operating in Kansas (subject to new liability framework).
  • Property owners and individuals claiming damages from fire events allegedly caused by utilities.
  • KCC (workshop/possible investigations) and Kansas district courts (expected increased filings).
  • Utility ratepayers, if utilities seek and receive regulatory cost recovery for mitigation investments.

Procedural & timeline notes

  • Introduced: Jan 27, 2025.
  • Enacted: Approved by the Governor on April 1, 2025; effective upon publication in the statute book.
  • KCC workshop deadline: on or before July 31, 2026.
  • The bill was requested by a representative of Evergy; it drew proponent (utilities, business groups), opponent (agriculture groups) and neutral testimony during committee consideration. Some amendment iterations addressed damages calculation, noneconomic damages, and the discovery rule; the enrolled (final) bill includes the two-year/10-year limitation, recovery of economic and noneconomic damages, preponderance burden, and a $5 million punitive cap.

Notes: Earlier committee versions included a specific formula for calculating real property damages (cost to restore vs. diminution in fair market value). That specific formula is not in the enrolled (final) version; the final law permits recovery of economic and noneconomic damages without the earlier explicit real property valuation formula.

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

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