H.B. 3007 would create a research reserve fund for the Kansas Wheat Commission. A one-time deposit of $650,000 from the Kansas Wheat Commission Fund would be made into the reserve. The reserve fund would retain the interest earned by the fund. The reserve fund would be used solely to replace funding shortfalls for wheat research and marketing. Expenditures from the reserve fund can only be authorized through the Legislature's appropriation process and the prior approval of the Kansas Wheat Commission.
The proponent of the bill was the administrator for the Kansas Wheat Commission. The Commission contends that a reserve fund should be established when its fee fund is relatively high. After the record harvest of 506 million bushels in 1997, the Wheat Commission Fund has an estimated ending balance of $2.5 million for FY 1998. The interest would be retained by the Fund as a means to hedge inflation and recover lost opportunity costs.
The fiscal note indicates that there would be a negligible decrease in State General Fund revenues attributable to the interest earnings.
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/fulltext-bill.html.