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 26, 2024
The Honorable Nick Hoheisel, Chairperson
House Committee on Financial Institutions and Pensions
300 SW 10th Avenue, Room 582-N
Topeka, Kansas 66612
Dear Representative Hoheisel:
SUBJECT: Fiscal Note for HB 2562 by House Committee on Financial Institutions and
Pensions
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2562 is
respectfully submitted to your committee.
HB 2562 would establish the Protect Vulnerable Adults from Financial Exploitation Act.
The bill would require certain security registrants to report suspected financial exploitation of a
vulnerable adult, or eligible adult as defined in the bill, to the Securities Commissioner and the
Kansas Department for Children and Families. Those security registrants could also disclose the
information to a person reasonably associated with the eligible adult. When the security registrant
reports or discloses the information made in good faith and with reasonable care, they would be
immune from administrative and civil liability.
In instances of suspected financial exploitation, the bill would also permit certain
registrants to delay a disbursement from an eligible adult’s account for time frames detailed in the
bill that could include a court decision. Records pertaining to the suspected or attempted financial
exploitation would be provided to the Securities Commissioner, the Kansas Department for
Children and Families, and to law enforcement agencies. The records provided to the Securities
Commissioner, the Kansas Department for Children and Families, or other agencies would not be
considered public record under the Open Records Act. However, the Commissioner and the
Department could respond to reasonable inquiries from persons reasonably associated with the
eligible adult about the general or final disposition of an investigation. The confidentiality of
public records would expire on July 1, 2029, unless extended by the Legislature. The bill would
also give immunity from administrative and civil liability to registrants who delay disbursements
and are acting in good faith and exercising reasonable care. The bill would not limit or impede
the authority of the Commissioner to access or examine the books or records of security registrants
detailed in the bill. Under the bill, grounds for discipline would include a person who is required
to report information under the Act and knowingly failed to make the report or knowingly caused
the report not to be made within the previous ten years.
The Honorable Nick Hoheisel, Chairperson
Page 2—HB 2562
The Kansas Insurance Department states that even though the bill would increase reports
of financial exploitation of elder and dependent adults, the agency has sufficient resources to be
able to receive and investigate the reports. Therefore, the bill would not have a fiscal effect on the
agency.
The Department for Children and Families states that the bill would not have a fiscal effect.
The agency does state that financial exploitation could result in premature applications for
Medicaid. The Department currently works with the Department of Health and Environment
Medicaid eligibility staff when vulnerable adults have been a victim of financial exploitation,
which occurs in approximately 125 cases per year. This is current practice, and therefore no
additional expenditures are anticipated.
The Office of Judicial Administration states that the bill could increase the number of cases
filed in district courts because it authorizes certain civil or administrative court actions. The bill
would allow for judicial review and administrative action for the failure to report violations, which
would increase the time spent by district court judicial and nonjudicial personnel in processing,
researching, and hearing cases. The bill could also result in the collection of docket fees that would
be deposited into the State General Fund. However, the agency cannot estimate the overall fiscal
effect of the bill.
The Office of the Attorney General states that the bill would not have a fiscal effect on the
agency. Any fiscal effect associated with HB 2562 is not reflected in The FY 2025 Governor’s
Budget Report.
The Kansas Association of Counties indicates that the bill would not have a fiscal effect
on counties unless current resources are not adequate to handle additional prosecution and court
needs. The League of Kansas Municipalities states that the bill would not have a fiscal effect on
cities.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Bobbi Mariani, Insurance Department
William Hendrix, Office of the Attorney General
Leigh Keck, Department for Aging & Disability Services
Trisha Morrow, Judiciary
Wendi Stark, League of Kansas Municipalities
Jay Hall, Kansas Association of Counties