2021 Seed to Silo - Spring by Kansas Grain and Feed Association | Kansas Agribusiness Retailers Association

KANSAS AGRIBUSINESS RETAILERS ASSOCIATION | KANSAS GRAIN AND FEED ASSOCIATION

Spring 2021 Kansas Agribusiness Retailers Association 816 SW Tyler Topeka, KS 66612 (785) 234-0463 ksagretailers.org

Spring 2021 Kansas Grain and Feed Association 816 SW Tyler Topeka, KS 66612 (785) 234-0461 ksgrainandfeed.org

ASSOCIATION STAFF Ron Seeber President & CEO

Randy Stookey Senior Vice President General Counsel

Staci Storey Senior Vice President Chief Financial Officer Shari Bennett Vice President Event Planning Samantha Tenpenny Director of Member Services Lisa Anschutz Senior Director Internal Operations Sidney Storey Administrative Assistant Trae Green Associate Vice President External Affairs & Creative Services BOARD OF DIRECTORS Lance Nelson Chairman Dustin Kuntz Vice Chairman Kevin Dieckmann Second Vice Chairman Clark Pearson Immediate Past Chairman Gary Beachner Brent Martin Bryan Bucl Warren Mayberry Troy Coon Kevin Mears Yance Farney Scott Morris Justin Foss Justin Ochs Tim Giesick O.J. Pearl Jim Grilliot Dave Spears Jeff Holling Mark Wegner Rachel Hurley Nick Krehbiel Brian Laverentz Jami Loecker

Editors: KARA & KGFA staff

TABLE OF

CONTENTS 03 PRESIDENT’S LETTER Lookout, the government’s going to regulate by shame

04 INDUSTRY NEWS Updates on issues affecting you

08 SCHOLARSHIP WINNERS KARA and KGFA award nearly $30,000 in scholarships to Kansas students

18 JOIN US IN PERSON We’re getting back together in person for our annual meetings in August as well as our plethora of trainings

22 2021 OSHA PRIORITIES Grain Journal and National Grain and Feed Association have teamed up to bring you this important update

14 KANSAS STATEHOUSE INSIDER We’ve wrapped up the 2021 Kansas legislative session and it was anything but a normal year at the capitol in Topeka

Advertising does not influence editorial decisions or content. Kansas Agribusiness Retailers Association and Kansas Grain and Feed Association reserve the right to refuse, reject, or cancel any ad for any reason at any time without liability.

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Gary Beachner Ted Behring Doug Biswell Brad Cowan Curt Engel Andrew Fullerton David Helfrich James Jirak Dub Johnson Mark Paul Troy Presley Devin Schierling Allen Williams

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PRESIDENT’SMESSAGE RONALD SEEBER

President and CEO

Ron Seeber was hired as president and CEO of Kansas Agribusiness Retailers Association and Kansas Grain and Feed Association in October 2017 after working for the associations since July 2008. An expert in state and federal legislative affairs, Seeber also worked for Senator Bob Dole in policy and political capacities, and has spent his entire career in the regulatory arena.

DEAR KARA and KGFA

MEMBERS

“

Last week, someone told me, “If it weren’t for government and weather, agribusiness wouldn’t have any problems at all.” I smiled and agreed, but the more I thought about it, I realized it was

“

spot on.

Last week, someone told me, “If it weren’t for government and weather, agribusiness wouldn’t have any problems at all.” I smiled and agreed, but the more I thought about it, I realized it was spot on. On the federal level, we are nearly six months into the new presidential administration and, as predicted, we are getting a flavor of what the next four years will bring. The Environmental Protection Agency (EPA), Occupational Safety and Health Administration (OSHA) and multiple other federal agencies’ ‘carrot and stick’ approach of regulation has again been transformed into an all-out punitive ‘stick’ approach and the regulatory “re-visits” are just getting started. Already, with the Biden Administration, the Lesser Prairie Chicken has once again become scarce, the “Waters of the United States” or WOTUS is being rewritten to appease special interests and OSHA is beginning to reveal a ‘Regulation by Shaming’ approach and insisting on implementing outdated COVID-19 standards. What is most disconcerting, however, is the silence of what is coming next. Welcome to the Obama Administration 2.0. On the state level right now, a workforce shortage is the No. 1 challenge facing our industry. It is real and I have personally met with Governor Laura Kelly and Lt. Governor David Toland to address the issue and the need to cease COVID-19-based unemployment insurance benefits. They have assured me this would be addressed in short order. Also, our lobbying team just wrapped up the Kansas legislative session. As your voice at the statehouse, I am pleased to report your associations stopped a lot of bad legislation from becoming law and were able to move forward with many policies productive for the industry. For example, we were able to assure your places of business remained protected during the pandemic and that vaccines were prioritized for

our employees. We ensured the Kansas Dept. of Agriculture’s Grain Warehouse Program remained solvent and operational and helped push the Kansas Department of Health and Environment to adopt commonsense legislation regarding hazardous spill reporting. It is true, as individuals and companies, we have a voice in government. When we combine those voices and throw in a political action committee (PAC) contribution, you not only have a loud voice, but also a campaign contribution stick to go with it. This is why your membership to KARA and KGFA is so important to your success. As the voice of the industry on the state-level, and a respected resource nationally, we have access to our state and federal policymakers where we can share our concerns, and fund Kansas representative and senators’ reelection efforts. If they do not agree with us or vote in a hostile fashion, we can simply fund their opponent. The Joint KARA/KGFA PAC, the Kansas Agribusiness Council (KABC PAC), is ready and willing to do just that. As you receive your KARA and/or KGFA membership renewal notices, remember we are your ‘minute men.’ We stand watch to ensure when the government is out to take away your livelihood, we are the front-line of defense. When you have a chance to check the voluntary check-off to fund the KABC PAC, please do. This will keep our legislative friends around and send our foes home. While your association can’t do much about the weather, the united front of KARA and KGFA can do something about the government. Sincerely, Ronald C. Seeber President and CEO SPRING 2021

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INDUSTRYnews Associations Wish Dell Princ Happy Retirement

Association staff president and CEO Ron Seeber traveled to Osborne on March 30 to celebrate Dell Princ’s retirement from Midway Coop. From left to right, Dell Princ, Ron Seeber and Craig Mans.

Association staff president and CEO Ron Seeber traveled to Osborne on March 30 to celebrate Dell Princ’s retirement from Midway Coop. Princ retired full time at the end of 2020, but will remain working part time for approximately three years assuring a smooth transition in the grain marketing department. Princ started at Midway Coop out of college in 1979 as the Grain Merchandiser. He became the Assistant General Manager in 1987 and then the General Manager in 1996, all while maintaining his position as Grain Merchandiser.

According to its website, Midway Coop became one of the strongest cooperatives in the state of Kansas. Not only is Midway financially strong, but it also improved its assets under Princ’s leadership. Midway’s total assets have grown from 12.0 million in 1996 to more than 130.0 million today. Most notably, grain storage has grown from 4.0 million in 1996 to more than 14-million-bushel capacity today.

No Fatalities from Grain Dust Explosions in 2020 Purdue University recently released the 2020 annual grain dust explosions report that catalogues the number of deaths and injuries nationwide. According to the report, there were eight-grain dust explosions in 2020, resulting in zero fatalities and nine injuries. The 10-year average for injuries is 8.1; for fatalities it is 1.7. The grain types identified in the explosions included two cases of corn,

two wheat, two mixed feed, one rice and one dietary fiber. Dust explosions occurred in eight different states, one each in Kansas, Iowa, Illinois, Ohio, Texas, Nebraska, Missouri and Arkansas. Four of these explosions occurred in a grain elevator, and the remaining four in a feed mill, corn mill, rice mill and grain processor for dietary fiber.

Purdue University recently released the 2020 annual grain dust explosions report that catalogues the number of deaths and injuries nationwide. Source: Asmark Institute

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EXPAND YOUR AUDIENCE Advertise with KGFA Would you like to reach more than 900 businesses involved in the Kansas grain industry? Call the association office 785.234.0461 or email membership@kansasag.org to learn more about our advertising opportunities.

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INDUSTRYnews KDA Changes Policy on Comingled Fertilizer Product

The Kansas Department of Agriculture (KDA) Pesticide and Fertilizer Program has made a change in policy concerning the registration of comingled fertilizer product.

The Kansas Department of Agriculture (KDA) Pesticide and Fertilizer Program has made a change in policy concerning the registration of comingled fertilizer product. In the past, fertilizer of the same grade purchased from multiple vendors and dumped in the same bin had been considered comingled and required the facility to register, guarantee and pay tonnage on the resulting product. Beginning July 1, 2021, registered commercial fertilizer of the same grade, purchased from multiple vendors, and then comingled in the same bin by the facility, is no longer required to be registered as a new commercial fertilizer product with KDA. However, the comingled fertilizer products must be currently registered in Kansas and the fertilizer tonnage fees will be

the responsibility of each registrant. Note however, that each fertilizer being comingled must be registered in Kansas. The policy change does not affect the practice of purchasing liquid fertilizer of a higher grade and blending with water to produce a lower grade, for example, adding water to 32-0-0 to produce 28-0-0. The new product, in the example 28-0-0, is required to be registered and tonnage paid by the facility. Please do not hesitate to contact KDA by phone, 785-564-6688, or email, KDA. pestfert@KS.gov, if you have any questions or concerns.

STB Adopts Demurrage Billing Requirements The Surface Transportation Board (STB) has announced the adoption of a final rule in Demurrage Billing Requirements. The final rule establishes certain minimum information requirements for demurrage bills from Class I railroads, including billing cycle, shipment details, the dates and times of original estimated car arrival time and actual car placement. This increased transparency will allow rail users to review and verify the accuracy

of demurrage charges and help in the resolution of disputes between railroads and their customers. In addition, the final rule establishes a machine-readable data requirement to ensure that rail users have the option to access machine-readable data containing the minimum information. The rule will become effective on October 6, 2021. The Surface Transportation Board (STB) has announced the adoption of a final rule in Demurrage Billing Requirements. Source: Asmark Institute

Settlement Reached After Injury in Grain Bin

OSHA has reached a settlement agreement with a North Dakota company after an investigation into the circumstances of how an employee suffered multiple lacerations and the partial amputation of his leg when caught in an operating grain bin auger on August 20, 2020. OSHA’s investigation determined the employee had slipped into an operating outfeed auger while clearing seeds from a grain bin. The agency cited the company with seven willful violations, one repeat violation, four serious and two other-than-serious violations of the agency’s grain handling, confined space, machine safety and

electrical safety regulations. Inspectors also found that the company did not sufficiently train workers to recognize hazards and take proper safety measures. The agreement requires the company to pay a penalty of $225,000, provide immediate and annual training to employees on grain bin entry procedures and hazards, and revise its permit required confined space and grain bin entry procedures companywide. The company has already purchased atmospheric testing equipment.

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INDUSTRYnews Top 10 Most Cited OSHA Violations

OSHA’s Top 10 most frequently cited violations for fiscal year 2020 have been announced. Source: Asmark Institute

OSHA’s Top 10 most frequently cited violations for fiscal year 2020 have been announced. Federal OSHA publishes this list to alert employers about these commonly cited standards so they can take steps to find and fix recognized hazards addressed in these and other standards before OSHA shows up. Fall protection continues to top the list with other standards swapping positions. 1. Fall Protection - General Requirements (1926.501) 2. Hazard Communication (1910.1200)

3. Respiratory Protection (1910.134) 4. Scaffolding (1926.451) 5. Ladders (1926.1053) 6. Lockout/Tagout (1910.147) 7. Powered Industrial Trucks (1910.178) 8. Fall Protection - Training Requirements (1926.503) 9. Eye and Face Protection (1926.102) 10. Machine Guarding (1910.212)

2021 Cranor Golf Tournament Played in April in Newton Swapped with KGFA’s annual meeting this year, grain and feed members participated in the annual Cranor Memorial Golf Tournament on a cold spring morning on April 14 at Sand Creek Station Golf Course in Newton. More than 100 members partook in the tournament which has historically generated

more than $100,000 over time for the KGFA scholarship program and assisted in funding the Kansas Agri-Business Council. The winning team featured to the right included: Justin Jenkins, Nick Levin, Todd Schultz and Scotty Yerges.

The winning team featured to the right included: Justin Jenkins, Nick Levin, Todd Schultz and Scotty Yerges.

Providing Kansas Agribusiness Professional Environmental Engineering Services since 1989

We provide: EXPAND YOUR AUDIENCE Advertise with KARA We know Kansas agribusiness. Our publications touch every aspect of Kansas ag retail. Call the association office 785.234.0463 or email membership@kansasag.org to learn more about our advertising opportunities.

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Environmental Site Assessments (Phase I & II) ● Spill Prevention Control & Countermeasure (SPCC) Plans ● Stormwater Management ● Containment Engineering ● Groundwater Investigations ● Regulatory Audits, Compliance & Permitting 214 N Saint Francis ● Wichita, KS 67202-2610 ● 316.262.5698 aec@alliedaec.com ● www.alliedenvironmental.com

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$1,000 WINNERS Travis Scheer – Garden Plain, KS Cole Stahlman – Concordia, KS Nagomi Watanabe – Arkansas City, KS Jody Zimmerman – Ulysses, KS Dub & Inez Johnson Memorial Kayler Getz – Quinter, KS Jim Lee Memorial Devin Guesnier – Great Bend, KS Dr. David Whitney Agronomy Landon Trout – Scott City, KS 8

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Associations Award Nearly $30,000 Combined in Scholarships The KARA and KGFA scholarship committees have separately announced and awarded nearly $30,000 in scholarships to 25 Kansas high school graduating seniors and college students for the 2021-22 academic year. The scholarship committees, comprised of KARA and KGFA’s membership, received nearly 300 applications combined and awarded financial aid based on equitable geographic locations throughout the state to students to assist in advancing their academic endeavors. “We are very proud of both of our associations scholarship programs,” president and CEO Ron Seeber said. “The associations, the boards and especially our members take tremendous pride each spring investing in students and helping them pursue their education.” KGFA annually awards 14 scholarships worth $1,500, four scholarships worth $1,000 and administers the Dub and Inez Johnson $500 memorial scholarship fund. KARA annually awards six scholarships four $1,500 awards, one $1,500 Dr. David Whitney Agronomy scholarship to a K-State student and one $500 Jim Lee Memorial scholarship. Students must be a self-starter with excellent academic credentials, good school and community citizens and show a strong desire to continue their education.

RON SEEBER President & CEO

“

$1,500 WINNERS Regan Ast – Ingalls, KS Michael Bahr – Albert, KS Trent Beier – Clifton, KS Patrick Biggs – Topeka, KS Lawson Collins – Chanute, KS Lauren Gatz – Fairview, KS Mary Goetting – Weir, KS Jarek Meyer – Athol, KS Owen Meyer – Oskaloosa, KS Kara Riffel – Westmoreland, KS Josephine Schmidt – Tribune, KS Rachel Sebesta – Wilson, KS Alyssa Sherron – Spring Hill, KS Emma Vogel – Hutchinson, KS James Brack – Haviland, KS Leah Hudson – Topeka, KS Kaitlyn Peters – Lakin, KS Lucas Wiens – Newton, KS

We are very proud of both of our associations scholarship programs. The associations, the boards and especially our members take tremendous pride each spring investing in students and helping them pursue their education.

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THANK YOU, SPONSORS “We know our sponsorship of Kansas Grain and Feed Association goes directly toward the seminars, networking events and communication products the association provides to its membership and we take pride in supporting those efforts year after year.” ANDREW FULLERTON BARTLETT GRAIN

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UNDERWRITER SPONSOR

COMMODITY PARTNERS

$20,000+

K A N S A S

C RN C O M M I S S I O N

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KANSAS W H E A T

Rediscover Wheat

FOUNDER SPONSOR

BENEFACTOR SPONSORS

$7,500

$5,000

PATRON SPONSORS $3,500

BUILDER SPONSORS $2,000 Bartlett Grain Company Beachner Grain Inc. Farmers Cooperative Equity Co. First National Bank of Hutchinson Gavilon Grain, LLC Grain Craft INTRUST Bank N.A. Irsik & Doll Feed Service Morrill Elevator, Inc. Offerle Coop Grain & Supply Co. The Cooperative Finance Assn. The Scoular Company

DONOR SPONSORS $1,250 Ag Partners Cooperative Inc. Agri Trails Coop B-R-C Bearing Company, Inc. CHS Inc. Conestoga Energy Partners LLC Cornerstone Ag LLC D.E. Bondurant Grain Co. Frisbie Construction Co., Inc. Frontier Ag Inc. Korol Financial Group LLC Midland Marketing Coop Inc. Midway Coop Assn. WindRiver Grain LLC

GIVER SPONSORS $750 BarnesCo Inc. Central States Fumigation & Services Central Valley Ag Cooperative Cline Wood A Marsh and McLennan Agency LLC Company Cloud Co. Coop Elev. Assn. Concordia Terminal LLC Drake Inc. Farmers Union Mercantile & Shipping Assoc. HABCO Inc. Kansas Coop Council Kanza Coop Assn. KC Supply Co. Inc. MFA/AgChoice Pride Ag Resources Rolfes @ Boone TSGC, Inc. Valley Coop, Inc. Wildcat Feeds LLC

UNDERWRITER SPONSOR $20,000+ ProValue Insurance is an independent agency providing comprehensive insurance products and business services to organizations in need of risk protection. Delivering unparalleled knowledge and experience, ProValue helps protect against more than organizational risk, offering coverages for personal assets to individuals throughout Mid-America.

FOUNDER SPONSORS $7,500

BENEFACTOR SPONSORS $5,000

PATRON SPONSORS $3,500

BUILDER SPONSORS $2,000

ADM Fertilizer Beachner Grain Inc. EGE Products Gavilon Fertilizer, LLC Interchem J.B. Pearl Sales and Services J.R. Simplot Co. Morrill Elevator, Inc. Nutrien Offerle Coop Grain & Supply Co.

DONOR SPONSORS $1,250

Ag Partners Cooperative Inc. CHS Inc. Fairbank Equipment, Inc. Farmers Cooperative Equity Co. MFA/AGChoice Novus Ag Skyland Grain LLC

GIVER SPONSORS $750

Agrilead Inc. Alliance Ag & Grain LLC American Implement, Inc. Central Valley Ag Cooperative Helm Fertilizer Corp. Kansas Coop Council Kanza Coop Assn.

Kiser Ag Service LLC Midwest Laboratories Inc. Pride Ag Resources Progressive Ag Coop Purple Wave, Inc. Servi-Tech Inc.

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THANK YOU, SPONSORS “Sponsoring KARA provides Syngenta an opportunity to support KARA’s initiatives to deliver expertise on critical industry issues and assist in training efforts for members. As a sponsor we are able to provide our own employees an additional opportunity to remain involved in making improvements locally and nationally for the agriculture industry.” JAMI LOECKER SYNGENTA

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Statehouse

INSIDER By: Association Government Affairs

The 2021 Kansas legislative session formally adjourned Sine Die just before 1:00 p.m., on Wednesday, May 26. Throughout the year, the capitol was eerily quiet with no school field trips or grassroots advocacy events taking place. Fortunately for everyone in Topeka, COVID-19 did not impede the progress of the 2021 session, however, legislative leadership was direct in achieving their agendas, fearful of the swift shutdown and unstructured timeline another outbreak would cause.

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2021 KANSAS LEGISLATURE ADJOURNS SINE DIE The half-day of floor work on May 26 was uneventful in terms of laws overridden as the Senate successfully overturned Governor Laura Kelly’s veto of a short-term health insurance bill, but the House fell nearly 20 votes short of the 2/3 majority needed to pass the law. Neither chamber attempted any other overrides on bills vetoed. Both chambers did pass a concurrent resolution to Governor Kelly, urging her administration to end the federally financed $300-a-week COVID-19 pandemic unemployment payments before the Sept. 4, 2021 program closure. The resolution was largely sparked by the Kansas Chamber of Commerce’s mid-May letter to Kelly requesting the program be discontinued due to a labor shortage for its member businesses. Nearly 200 businesses and associations signed onto the Kansas Chamber’s letter, including KARA and KGFA. Association President and CEO Ron Seeber attended a meeting with Kelly to discuss possible solutions in late-May.

Barring any unforeseen interim committees the legislature will return to Topeka at 2:00 p.m., on Monday, Jan. 10, 2022.

has signed this budget bill and the following proviso into law. The bill in its entirety includes changes in economic conditions, federal stimulus, and legislative adjustments SENATE LEADERSHIP SLIGHTLY which have changed the projected ending CHANGES balances to $1.1 billion in FY 2021, and Following the Senate’s adjournment, the $542 million in FY 2022. The language chamber’s 29 republicans caucused to elect regarding vaccine passports is below: Senator Larry Alley (R-Winfield) as the new Sec. 59. (a) Notwithstanding any other majority leader following former majority provision of law, no state agency named leader Gene Suellentrop’s (R-Wichita) legal in 2021 House Bill No. 2007, this or other issues in early March. appropriation act of the 2021 regular Earning 18 of 29 votes on the second session of the legislature shall expend any ballot, Alley was officially named majority moneys appropriated from the state general leader, beating out Senator Jeff Longbine fund or from any special revenue fund or (R-Emporia), and will serve out the remaining funds for each such state agency for fiscal three years of the senate membership in the year 2021 as authorized by chapter 5 of the prominent role. Senators also unanimously 2020 Session Laws of Kansas, 2021 House elected Renee Erickson (R-Hays) as assistant Bill No. 2007, this or other appropriation act majority leader following Alley’s promotion. of the 2021 regular session of the legislature to: (1) Issue a COVID-19 vaccination OMNIBUS BUDGET BILL PASSED, passport to any individual without such CONTAINS VACCINE PASSPORT individual’s consent; (2) require an individual PROVISO to use a COVID-19 vaccination passport On May 7, the legislature passed Senate Bill within this state for any purpose; or (3) 159, the omnibus budget bill for fiscal years deny housing or refuse access to a place 2021, 2022, and 2023. Governor Kelly accessible to the general public, or separate

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from others in a place accessible to the general public, including entry, education, travel and services within this state, based on such individual’s COVID-19 vaccination status: Provided, however, That nothing in this section shall prohibit a state agency from instituting COVID-19 screening protocols in accordance with state and federal law to protect the public health. (b) As used in this section: (1) “COVID-19 vaccination passport” means written or electronic documentation of an individual’s COVID-19 vaccination status; and (2) “screening protocol” means a non-invasive method to determine whether an individual has symptoms or other risk factors for developing COVID-19, including, but not limited to, temperature checks, self-reporting of exposure, self-reported vaccination status and questionnaires. VETO SUSTAINED ON COVID-19 SMALL BUSINESS RELIEF ACT Late on May 7, the legislature passed Senate Bill 273 creating the COVID-19 Small Business Relief Act. This bill would have allowed certain for-profit Kansas businesses, with 50 or fewer employees, which sustained financial losses due to the pandemic, to apply for reimbursement from a COVID-19 small business relief fund that is financed by federal pandemic funds to Kansas. The bill would have created a threemember panel that would have had authority to receive, and review, claims for

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reimbursement from businesses that suffered loss during the pandemic due to restrictions on the business caused by state or local pandemic orders. Money received from the fund was to be used for employee pay, salary, compensation or benefits. Governor Kelly vetoed this legislation and there was no override attempted on Sine Die. ECONOMIC RECOVERY LINKED DEPOSIT LOAN PROGRAM Governor Kelly has signed SB 15 into law to create a new Economic Recovery Linked Deposit Loan Program for businesses in response to the economic downturn caused by the COVID-19 pandemic. This 10-year program, administered by the office of the State Treasurer, will make up to $60 million available for low-interest (2 percent below market rate) loans to businesses. CORPORATE LIMITED LIABILITY CONCERNING COVID-19 Governor Kelly has also signed SB 283 into law, a bill that provides liability protections to businesses from claims of injury related to COVID-19 exposure. GOVERNOR SIGNS RETAIL STORE FRONT PROPERTY TAX RELIEF Beginning January 1, 2022, S Sub for HB 2313 will create a COVID-19 Retail Storefront Property Tax Relief Act to provide businesses access to partial property tax

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refunds if their business is constrained by either a state or local government emergency order. The bill, which is prospective only, allows for reimbursements from the county general fund to the owner of any building maintaining a business on the property that is shut down or limited in any capacity pursuant to a declared disaster emergency. The reimbursement would be 1/365 of the amount of taxes levied for every day the business is shut down and 1/365 the amount of taxes levied multiplied by the percentage restricted for every day the business is required to restrict operations. “Restricted” would mean any occupancy limitation, limitation on periods of operation, or the exertion by any governmental entity or other significant control on business resources or functionality. If the state or a city, issues an order shutting down or restricting the business, such governmental entity will be required to reimburse the county for the cost of the reimbursement. Governor Kelly signed this bill into law on May 24. KANSAS UNEMPLOYMENT CRISIS The COVID-19 pandemic and subsequent government shutdown led to record numbers of unemployment cases across the country. The Kansas Unemployment Trust Fund was being depleted at an exponential rate – but not just by Kansans in need. The pandemic’s spike in unemployment provided the perfect guise for fraudsters to take advantage of Kansas’ outdated technology system and inefficient processes. The Kansas Department of Labor audit estimates $300 million in fraudulent unemployment payments were paid during 2020 and the first few months of 2021, while legislative auditors found $600 million. Either way, all parties agreed that Kansas was a clear and easy target for fraudsters, so the legislature got to work. In early April, Governor Kelly and both chambers of the legislative body approved House Bill 2196, which, among other things, creates the Unemployment Compensation Modernization and Improvement Council. The bill requires the Kansas Department of Labor to improve its information technology systems, allow for the transfer of federal COVID relief or state general funds to the employment security fund, make temporary changes to the membership of the Employment Security Review Board, and make changes to the security rates table. Continued on Page 20

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Scan the QR codes next to the photos with a QR scanner or point your smartphone’s built-in camera at the QR code for more information and registration abilities.

CDL Exam Prep Schools These one-day courses will walk attendees through their Commercial Learners Permit (CLP). These courses are capped at 25 attendees per location. August 3 Hutchinson Encampment Building 2000 N. Poplar October 28 Butler Community College TBD

KSU Field Days 1A credit, CCA credit, herbicide efficacy and injury, crop insect pests, diseases, weed ID and more! July 06 - 07 & July 08 - 09 Manhattan K-State North Agronomy Lot Adjacent to Bill Snyder Family Stadium

A Summer of Training Programs and Annual Meetings “

“

the Kansas CDL Manual with the goal of obtaining

We think we’re on the right track to best fulfill our members’ needs with practical, useful courses. Having already completed grain grading schools, NH3 workshops, two CDL exam preparation workshops and elevator maintenance and safety schools, Kansas Agribusiness Retailers Association (KARA) and Kansas Grain and Feed Association (KGFA) are gearing up for the remainder of the associations’ training slates. “We’re always looking for new training opportunities and welcoming feedback on what we can do to diversify our training portfolio,” said Ron Seeber, President and CEO of KARA and KGFA. “We think we’re on the right track to best fulfill our members’ needs with practical, useful courses.” The associations are both now offering ‘house-call’ training sessions where for a

guaranteed number of participants, KARA and KGFA will travel anywhere in the state to provide any of their offered training programs at an agreed upon rate. Up next in early July, KARA will be hosting its annual Field Days with Kansas State University just after the Fourth of July with two sessions planned on July 6 - 7 and July 8 - 9. Participants will learn herbicide efficacy and injury, crop insect pests, crop diseases, weed identification, environmental water quality and so much more. KARA will also be in Hutchinson August 4 - 5 for its Kansas Applicator Institute, where applicators and certified crop advisors discuss tomorrow’s precision application today. The highly-attended event features a

Kansas Applicator Institute Where applicators and certified crop advisors discuss tomorrow’s precision application – today. August 04 - 05 Hutchinson Kansas State Fairgrounds Encampment Building 2000 N. Poplar

LEARN MORE Visit our websites by pointing your smartphone’s built-in camera at the QR codes or enter www.ksgrainandfeed.org/events-training or www.ksagretailers.org/events-training in your search engine to see full agendas, speaker information.

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Scan the QR codes next to the photos with a QR scanner or point your smartphone’s built-in camera at the QR code for more information and registration abilities.

KGFA Annual Meeting Our 125th annual meeting. Come celebrate with us

popular ride-and-drive where attendees are able to get behind the wheel and drive the newest equipment around the fairgrounds. KARA and KGFA will both be hosting their respective annual meetings in August. KGFA’s 125th annual gathering is slated for August 9 - 10 in Topeka, while KARA’s meeting is scheduled for August 23 - 24 in Manhattan. You can register for KGFA’s meeting by using the QR code to your right. In November, at the 35th Kansas Agri Business Expo, each association will be hosting its yearly recertification training, with KGFA’s 7B/4 course up first on November 17, while KARA’s 1A recertification class is

scheduled for November 18. KGFA will round out its 2021 training slate with a Grain Handlers workshop in Garden City on November 30, while KARA will end its continuing education courses on December 1 - 2 with a Crop Production Update in Lindsborg. For any questions on training offerings provided by the associations please contact Samantha Tenpenny (samantha@ kansasag.org) or call the association office (785.234.0461).

in Topeka. We have several new, fun things planned you won’t want to miss out on. August 9 - 10 Topeka Capital Plaza Hotel

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Continued from Page 16 Additionally, it requires the Secretary of Labor to provide tax notifications, certain Employment Security Fund Data Reporting and provides for certain employer account protections. There will be a continued effort to improve the unemployment system in Kansas, and the new leadership of Secretary of Labor, Amber Schultz, will hopefully help solve the systemic fraud issues. RESULTS FROM FEBRUARY’S EXTREME COLD WEATHER UTILITY BILLS Following the polar vortex in February, the legislature began discussing a variety of strategies to minimize the impact on businesses and consumers. The price of natural gas caused energy bills that, without relief, would be unpayable in many situations. Municipalities risked losing access to natural gas if their bills were not paid within days. To address this, the legislature and Governor Kelly passed a bill providing $100 million in low-interest loans to Kansas municipalities which would allow them to pay over time. Though the municipalities were able to experience some relief through the low-interest loan program, that left many businesses and consumers still with exorbitant bills hanging over them. For that reason, the legislature passed Senate Bill 86, which created the Kansas Extraordinary Utility Costs Loan Deposit Program. This program allows businesses and other eligible borrowers to apply for low-interest loans to help cover the extreme prices following the polar vortex. “Eligible borrowers,” defined as any wholesale natural gas customer in the state of Kansas who experienced extraordinary prices due to the extreme weather, may borrow up to $500,000 from the $20 million fund. 20

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In addition, Gov Kelly signed Senate substitute for House Bill 2072 into law. This bill allows Evergy to cover the costs of retiring older energy generation assets using securitized bonds. The bill, establishing the Kansas Grid Resiliency, Innovation and Dependability Act, was amended to include language which required any cost savings to be passed down to rate payers. Your association supported this legislation which is intended to help lower Kansas utility rates. PESTICIDE WASTE DISPOSAL PROGRAM SIGNED INTO LAW This session, your association introduced legislation establishing the Kansas Pesticide Waste Disposal Program and fund. With concerns of a shortened session, we introduced a version of the bill in both

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chambers. The language in this bill permits up to $50,000 to be transferred annually from the Kansas Agriculture Remediation fund to the Kansas Pesticide Waste Disposal Fund. With the passage of this legislation, Kansans may now apply to the Kansas Department of Agriculture (KDA) for free or low-cost collection and disposal of any unregistered or expired agricultural chemicals. Industry provided strong support for the Pesticide Waste Disposal Program because it represents good industry stewardship and provides a responsible avenue to dispose of pesticide waste. With our support, the bill was passed by the House and Senate, and was then signed into law by Governor Kelly. KDA’S GRAIN WAREHOUSE PROGRAM RECEIVES FUNDING Leading up to the legislative session, KGFA staff worked directly with the Kansas Department of Agriculture (KDA) to discuss the agency’s budget. It was identified that the grain warehouse inspection program would have a budget deficit of $120,000. To continue the program as an alternative to the federal program, the gap had to be filled. For that reason, the department introduced Senate Bill 143, which allows the program to increase industry fees and updates warehouse laws. While the bill also includes an extension of the current 12-month inspection cycle to 18 months, the department indicated that it intends to continue with the 12-month cycle when

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possible. In order to reduce the amount of the increase of industry fees, KGFA and Kansas Cooperative Council (KCC) also advocated for, and received, an additional $60,000 allotment of state general funds for the program. The language in the budget proviso directs that these funds must be used to reduce the increase to the fees proposed in Senate Bill 143. KANSAS PROPERTY TAXES Each year, property taxes are a core issue facing Kansas, and this year the Kansas legislature took action on more than a dozen bills addressing high property taxes. One bill, signed into law by the Governor, was conference committee report on HB 2104. This bill includes contents of other bills Kansas Grain and Feed Association and Kansas Agribusiness Retailers Association. Among other things, the bill ensures that, in a property tax hearing before a Kansas District Court, the county retains the burden of proof on the county appraiser’s valuation and classification. In addition, the bill allows the Governor to temporarily appoint former BOTA members as necessary. The bill also prohibits either the Board of Tax Appeals, or the county commission, from increasing the appraised valuation of property as a result of an appeal or an informal meeting. The bill makes other positive changes to the Kansas property tax system. ELEVATOR SAFETY ACT INTRODUCED AGAIN THIS SESSION For several years, a bill establishing the Elevator Safety Act has been brought before the legislature. This bill would require regulation of all elevators, man-lifts, and moving walkways from design and inspection, all the way to repairs. This year, when the bill was introduced, your association secured an amendment excluding agricultural processing facilities. The bill was passed by the Senate and ended the session in the House Committee on Federal and State Affairs. While it was not signed into law, it remains alive to be reviewed during next year’s session. HAZARDOUS CHEMICAL SPILL REPORTING Currently, all spills of hazardous chemicals must be reported to KDHE, regardless of the amount.

For that reason, your association supported passage of House Bill 2155 which authorizes KDHE to establish reportable minimum quantities of hazardous chemical spills and to harmonize those quantities with federal standards. Governor Kelly signed this legislation into law. REVITALIZING THE KANSAS WORKFORCE The agriculture industry is dependent on a skilled workforce in order to meet the needs of the growing population. It has long been one of our priorities to support legislation which develops that skilled, experienced workforce. Because of this, we supported both House Bill 2064, which establishes the Kansas Promise Scholarship Act, and House Substitute for Senate Bill 91, which deals with workplace learning. The Promise Scholarship in House Bill 2064 will be administered by the Board of Regents and is available to students attending any Kansas community college, technical college, or two-year program offered by a private post secondary institution. Students within the fields of manufacturing, construction, childhood education and development, physical and mental healthcare, information technology, etc will be eligible to apply to these funds. On April 23 Governor Laura Kelly signed this bill into law. House Substitute for Senate Bill 91 exempts businesses from liability when participating in a work-place learning program for high school students. This protects businesses from being liable for any negligent act of the student and any injury, sickness, or death that may occur. The participating school district must have obtained applicable insurance coverage for this to apply, as they would maintain sole responsibility for the student. This substitute bill was approved by the House chamber, but the Senate took no action. The bill will remain alive for review during

the 2022 session. HIGH-PERFORMANCE INCENTIVE PROGRAM UPDATE The High Performance Incentive Program (HPIP) provides tax credits to employers who pay above average wages, invest in employee training, and are a part of the manufacturing industry. This session, the legislature worked to alter certain aspects of the program to increase the number of qualifying companies and broaden the benefits. Senate Bill 65, signed into law on April 15, amends the HPIP economic development program so that taxpayers claiming the HPIP investment tax credit would no longer be required to participate in either the Kansas Industrial Training (KIT) or Kansas Industrial Retraining (KIR) programs. Decoupling the tax credit from these programs will likely increase the number of qualifying companies. The bill also allows for a company to transfer up to 50 percent of its earned but unused HPIP tax credits to another individual or entity. If the individual or entity’s tax liability is less than the transferred amount, the remainder would carry forward for up to 16 years.

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2021

OSHA PRIORITIES B y : J e s s M c C l u e r , N G FA

This article is courtesy of Grain Journal and excerpted from a Feb. 18 online presentation since updated in late March, by Jess McCluer, vice president-safety and regulatory affairs with the National Grain and Feed Association (NGFA), Arlington, VA (202-289-0873). BIDEN’S LABOR DEPARTMENT One of the first appointments announced by the Biden Administration was Marty Walsh, the mayor of Boston MA, as secretary of labor. Walsh, who was confirmed as secretary of labor March 23, is the former president of Laborers’ Union Local 223 and head of the powerful Boston Metro Building and Construction Trade Council, which is an umbrella organization of 20 local unions, so he has a strong background with labor unions. He started his career as a labor union member, before he worked his way up into the leadership. I think you can expect to see from him an emergency temporary standard on COVID-19 and a restart of rulemaking initiatives. Julie Su, who is secretary of the California Labor & Workforce Development Agency, was nominated Feb. 10 to be the deputy secretary of labor, and had her confirmation hearing March 16. Republican members of the Senate Health, Education, Labor, and Pensions Committee grilled her over funds that COVID-19 unemployment program funds that were inappropriately accounted for, and her confirmation remains pending. Where we’re at with OSHA right now is that there have been numerous political appointees who have either served in the Obama Administration or were involved with the House or Senate labor committees. As of March 29, there has been no formal nomination for the assistant secretary of labor for OSHA. Several names have been swirling around, however, one of them being David Michaels who was the director of OSHA under the Obama administration. Another name that’s been circulating is Doug Parker who is currently the division chief of CalOSHA. However, the rumor is that he doesn’t want to leave California to come back to Washington, D.C., where he worked previously. So right now, the current deputy assistant secretary is James Frederick. He has extensive experience with the United

Steelworkers Union as assistant director and principal investigator. Two other political appointees started on Jan. 21. One of them, Joseph “Chip” Hughes, is in a newly created position as deputy assistant secretary for pandemic and emergency response. So obviously, it’s related to COVID-19 and a potential standard. Ann Rosenthal, a senior advisor, recently retired from the Department of Labor and served for a long period of time within the general counsel’s office. COVID-19 STANDARD COVID-19 is a priority issue for the Biden Administration. It began back when the lockdown started in March 2020. OSHA came under criticism from worker groups for a relaxed enforcement posture on COVID. A lot of it was related to the meatpacking industry, where many workers become ill, and some of them died. With the Biden administration, they wanted to hit the ground running and create an emergency temporary standard (ETS) within the first 100 days.

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They also wanted to expand the illness and injury recordkeeping rules and enhance whistleblower retaliation provisions. How do you record it if someone becomes sick from COVID? Did they become sick at the workplace or at home? During his first full day in office, President Biden issued Executive Order 13999, which directed OSHA to consider whether an ETS was necessary and, if so, issue one by March 15. As of the end of March, OSHA still had not issued an ETS, though work reportedly is continuing. A proposed ETS reportedly has been sent to the White House Office of Management and Budget for at least a twoweek review period. In the meantime, OSHA on March 12 announced the launch of a National Emphasis Program (NEP) focusing enforcement efforts on companies that put the largest number of workers at risk of contracting the coronavirus. It also prioritizes employers that retaliate against workers for complaints about unsafe or unhealthy conditions. OSHA said the NEP inspections, which were to start after the end of March, will enhance the agency’s previous coronavirus enforcement efforts and will include some followup inspections of worksites inspected in 2020. The program will remain in effect for up to one year, though OSHA has the authority to amend or cancel the program. In a related action, OSHA also announced an updated Interim Enforcement 24

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Response Plan effective March 18 to prioritize the use of on-site workplace inspections or a combination of on-site and remote methods. OSHA said it will use remote inspections only where on-site inspections cannot be performed safely. In another development, OSHA revealed plans for the use of its share of the $1.9 trillion COVID-19 stimulus bill signed March 11 by President Biden. The remarks came during a roundtable discussion that included representatives from NGFA, other agriculture groups, manufacturing, construction and other sectors, and staff from the House Education and Labor Committee. The stimulus package allocates $100 million to OSHA. It includes $10 million for training grants and $5 million for enforcement activities. These activities include the enforcement of the COVID-19 NEP at high-risk workplaces, which will include health care, meat and poultry processing facilities, agricultural workplaces, and correctional facilities. Specifically, Food Manufacturing facilities (NAICS-311X) such as oilseed processing, corn milling, and wheat milling are the “secondary targeting” list of the NEP. ENFORCEMENT PRIORITIES OSHA Regions V, VI, VII, VIII, IX, and X all have emphasis programs that include the grain handling industry. Some of them extend as far as the fall of 2024. Under a recent OSHA directive, they now can be extended up to five years, so they

don’t have to be renewed annually. What that means is that if OSHA is not doing an inspection due to a worker complaint or an injury or fatality, it is conducting programmed inspections of workplaces in the affected industries during the period of the special emphasis. Among the enforcement priorities for the Biden administration: • Increased worker safety criminal investigations and prosecutions. • More complex inspections and revitalizing the agency’s enforcement weighting system. • A significant increase in “regulation by shaming” using enforcement press releases. • Restricted flexibility on settlements. • Regional office approval required for big penalty reductions or withdrawn citations. • A focus on whistleblower 11(c) actions. • Efforts to increase OSHA’s budget and staffing significantly. • Using a Democratic-controlled House and Senate to enact the Protecting America’s Workers Act, OSHA reform legislation. • An attack on the Voluntary Protection Program (VPP), which pre-emptively removes certain workplaces from inspection requirements based on their incidents and alleged violations. In particular, expect OSHA to go back to “naming and shaming” campaigns. These seek maximum publicity when the department files complaints against employers, even when those complaints are dropped or penalties are reduced in settlements. “Regulation through interpretation” was practiced during the Obama administration in attempt to avoid the stakeholder notice and comment rulemaking process. Instead, OSHA would issue memorandums and interim policy documents that reinterpreted previous letters of interpretation and changed the scope of the application of certain standards. Two examples of this were an attempt to change the definition of a “family farm,” so OSHA could have jurisdiction in case of an injury or death, and to narrow the Process Safety Management standards exemption for “retail facilities.” REPEAT VIOLATORS When it comes to issuing citations, OSHA traditionally treated workplaces as

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President Biden has a toolbox of ways to enact policy without going through Congress, mainly through the use of executive orders. individual, independent establishments. Under the Obama/Biden Administration, workplaces in a corporate family were treated as one big workplace. Under this approach, if you receive a citation for machine guarding in Kansas and then received another one in Nebraska, the Nebraska citation would be treated as a repeat violation. Historically, OSHA limited its review of employers’ records to three years. That increased to five years in the Obama/Biden Administration. Also historically, OSHA had a reactive philosophy of enforcement, making it less likely to revisit workplaces within a few years. Obama/Biden instituted more of a proactive targeting philosophy with more followup inspections and hand-selecting past violators for inspection. SEVERE VIOLATORS The Severe Violator Enforcement Program (SVEP) was created by the Obama Administration. The program has intended to direct OSHA’s enforcement resources to employers that OSHA believed to be “indifferent to their Occupational Safety and Health Act obligations.” Employers qualify for SVEP by being accused of willful or repeat violations in certain categories. They face a heavy dose

of public shaming, but more importantly, a heavy dose of OSHA inspections at the same and related facilities throughout the organization. SVEP includes hard and unrealistic exit criteria making it nearly impossible to ever leave the program. Worse, OSHA places employers into the SVEP based on allegations, not proven violations. Under the Biden administration, there is likely to be a renewed emphasis on the SVEP, which there wasn’t under the Trump Administration. RULEMAKING PRIORITIES President Biden has a toolbox of ways to enact policy without going through Congress, mainly through the use of executive orders. During his first week in office, President Biden issued more than 30 such actions. Among them: • Extending pandemic eviction dates and student loan deadlines. • Requiring masks for public transportation used for interstate travel. • Reversing the child separation policy for illegal border crossings. • The OSHA emergency temporary standard for COVID-19, discussed above. • Various environmental policies. On Jan. 20, the day after his inauguration,

President Biden placed a freeze on all pending regulations. Most new presidents do this after a transition from one administration to the next. It allowed Biden’s administration to review any “midnight rules” enacted by the Trump Administration at the last minute before they take effect. That said, these are likely to be rulemaking priorities in the Biden administration: • Restart the rulemaking process of reforming the Process Safety Management standard. • Revisit e-recordkeeping as a method of collecting Form 300 and 301 injury and illness data from large employers. • Working with Congresss to undo a repeal of the Volks rule, which extends the statute of limitations for recordkeeping from six months to five years. • A rule covering heat-related illness. • A rule covering violence in healthcare workplaces. • Pursuing lower permissible exposure levels and action levels for hazardous substances. • Modernizing the lockout/tagout standard and eliminating the term “unexpected energization.” • Updating the Hazard Communications Standard. NGFA currently is reviewing proposed changes to the standard that were published in the Federal Register Feb. 16. Ed Zdrojewski, editor

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INDUSTRYnews EPA Questioned in 2018 Dicamba Decision

The EPA Office of Inspector General recently released a report detailing how EPA deviated from typical procedures in its 2018 dicamba pesticide registration decision. Source: Asmark Institute

The EPA Office of Inspector General recently released a report detailing how EPA deviated from typical procedures in its 2018 dicamba pesticide registration decision. Report highlights conclude that EPA did not conduct the required internal peer reviews of scientific documents created to support the dicamba decision and staff felt constrained or muted in sharing their concerns about the registrations. The report recommendations and planned agency corrective actions are: • Implement a procedure requiring senior managers or policy makers to document changes to scientific opinions, analyses, and conclusions in pesticide registration decisions as well as their basis for such changes. • Require verification from EPA administrators that Scientific Integrity Policy requirements were reviewed and followed

during pesticide registration decisions. • Annually conduct training for all staff on the agency’s commitment to the Scientific Integrity Policy. This revision is in alignment with OSHA memos on respirators and addresses Worker Protection Standard (WPS) requirements. If there is a delay of an annual fit test caused by the COVID-19 public health emergency, handlers must have received an annual fit test during calendar year 2019 or 2020 on the specific make and model of respirator they will continue to use. Handlers must have not had a physiological change that affects the seal between the face-piece and the user’s face. The employer must demonstrate that the handler has received respirator training in the previous 12 months and inform the handler of the time-limited change to the annual fit test requirement.

Annual Fit Test Delay Extended Until September On June 1, 2020, EPA issued a “Statement Regarding Respiratory Protection Shortages and Reduced Availability of Respirator Fit Testing Related to Pesticide Uses Covered by the Agricultural Worker Protection Standard during the COVID-19 Public Health Emergency” to provide guidance for agricultural employers and pesticide handlers seeking respiratory protection for use of pesticides in agricultural production. The “annual fit test delay” provision of the June 2020 memorandum, which

is applicable to all NIOSH-approved respirators that require fit testing, was timelimited to 2020. Based on the continued challenges of the COVID-19 public health emergency, EPA is amending the “annual fit test delay” option to extend that option until September 30, 2021.

Based on the continued challenges of the COVID-19 public health emergency, EPA is amending the “annual fit test delay” option to extend that option until September 30, 2021. Source: Asmark Institute

Independent Contractor Rule Withdrawn

Just months after being issued, the Department of Labor is officially withdrawing the prior administration’s independent contractor rule. Source: Asmark Institute

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Just months after being issued, the Department of Labor is officially withdrawing the prior administration’s independent contractor rule. Now that the rule has been withdrawn, employers must utilize the sevenfactor economic realities test that was used previously to determine if a worker is an independent contractor or an employee. These factors are: 1. The extent to which the services rendered are an integral part of the principal’s business. 2. The permanency of the relationship.

3. The amount of the alleged contractor’s investment in facilities and equipment. 4. The nature and degree of control by the principal. 5. The alleged contractor’s opportunities for profit and loss. 6. The amount of initiative, judgment or foresight in open market competition with others required for the success of the claimed independent contractor. 7. The degree of independent business organization and operation.

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STATE MODIFIES SALES TAX REMITTANCE LAW House Bill 2143 increases the threshold filing amounts for retailers to submit sales tax to the Kansas Department of Revenue. The state has been operating so that Kansas retailers were required to estimate what they think they will receive in sales tax for the following month and prepay that amount if it exceeds $40,000. The bill was signed into law on April 21. As the committee worked the bill, they determined that the practice of businesses estimating, and pre-paying, sales tax was not required by Kansas law. The Department of Revenue has updated its website and procedures to require retailers to remit the actual sales tax collected during the first 15 days of each month rather than prepaying an estimate. KANSAS EMERGENCY MANAGEMENT ACT RECEIVING ATTENTION Following the COVID-19 pandemic and shutdown, the legislature reviewed and revised the Kansas Emergency Management Act. Senate Bill 40 amended the state’s emergency management law by installing new checks on the powers of the Governor, health offices, and school boards regarding the pandemic and future disasters. Kansans will now have more power to legally challenge emergency orders at all

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Rest assured, your government affairs team will remain vigilant in opposing any effort to balance the state budget on the backs of our industry. levels of government if they think their rights have been violated. The bill also revoked the executive orders that Governor Laura Kelly had previously issued related to the pandemic on March 31. The bill was signed into law and on April 1, Governor Kelly reissued her executive orders, including a statewide mask mandate. By afternoon of the same day the Legislative Coordinating Council revoked all reissued executive orders. INDUSTRY REGULATIONS The Kansas Legislature does not have the authority to veto regulations proposed by state agencies. Kansas Agribusiness Retailers Association and Kansas Grain and Feed Association President and CEO Ron Seeber joined other stakeholders in testifying in support of House Concurrent Resolution 5014. The resolution, brought forward by Attorney General Derek Schmidt, proposes a constitutional amendment to increase legislative oversight of agency regulations. If approved by two-thirds of the legislature, the proposed constitutional amendment would go before Kansas voters during the

2022 election. The bill was passed out of committee to the full House, and will be taken up for further action in 2022. KDHE AIR EMISSIONS – PROPOSED FEE INCREASE In recent years, the Kansas Department of Health and Environment (KDHE) has looked at increasing emissions fees to supplement a decrease in Air Quality Fee Fund revenues. Last year, the legislature included a budget proviso which restricted KDHE from raising fees and encouraged it to hold stakeholder meetings to find a compromise. This year, the department brought the proposal forward again, which includes a more than $1 million increase in industry fees. Class 1 and Class 2 emitters continue to work with KDHE and legislative leadership to pursue an agreed fee increase that would likely begin in 2025. Any proposal offered will maintain the integrity of the state program while minimizing the financial impact on industry. IN CLOSING AND LOOKING AHEAD TO 2022 Rest assured, your government affairs team will remain vigilant in opposing any effort to balance the state budget on the backs of our industry. We work day and night with our state’s legislators ensuring they are aware - and remember - the vital role agriculture and agribusiness play in our state. As our rural population dwindles, it’s more important now than ever before to maintain close relationships with our lawmakers, ensuring they always think twice about the potential effect on our industry before voting on a piece of proposed legislation. We thank you for your contributions to the Kansas Agri Business Council, which are vital to your association maintaining a strong voice in the legislative process. For up-to-date, week-by-week reports on the Kansas legislative session, visit our websites at ksgrainandfeed.org or ksagretailers.org/legislative-advocacy.

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