Division of the Budget Landon State Office Building Phone: (785) 296-2436 900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov Topeka, KS 66612 http://budget.kansas.gov Adam C. Proffitt, Director Laura Kelly, Governor Division of the Budget January 24, 2024 The Honorable Sean Tarwater, Chairperson House Committee on Commerce, Labor and Economic Development 300 SW 10th Avenue, Room 346-S Topeka, Kansas 66612 Dear Representative Tarwater: SUBJECT: Fiscal Note for HB 2545 by House Committee on Commerce, Labor and Economic Development In accordance with KSA 75-3715a, the following fiscal note concerning HB 2545 is respectfully submitted to your committee. HB 2545 would allow self-service storage unit operators to sell an occupant’s property if the occupant does not retrieve the property within 45 days of a notice of termination or non- renewal. Before selling the property, the operator would be required to mail a final notice to the occupant stating that the property may be sold unless removed from the storage unit by a specified date that is at least 15 days after the final notice. Any remaining proceeds from the sale of the property after the deduction of rent, labor, or other reasonable expenses would be considered abandoned property and paid to the State Treasurer. The bill would amend the Self-Service Storage Act to define certain terms and allow for self-service storage unit rental agreements to be signed electronically. The bill would also allow unsigned rental agreements to be considered effective if the occupant pays and the operator accepts the amount of rent described in the agreement, provided that the occupant was notified of this policy in the agreement. The Department of Revenue indicates that enactment of the bill would result in $162 of additional State General Fund expenditures in FY 2025 to update forms and train staff on the policy changes made by the bill. The Judiciary indicates that the bill would not have a fiscal effect on its The Honorable Sean Tarwater, Chairperson Page 2—HB 2545 operations. Any fiscal effect associated with HB 2545 is not reflected in The FY 2025 Governor’s Budget Report. Sincerely, Adam C. Proffitt Director of the Budget cc: Trisha Morrow, Judiciary Lynn Robinson, Department of Revenue