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
February 26, 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 2638 by House Committee on Agriculture and Natural
Resources
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2638 is
respectfully submitted to your committee.
Starting July 1, 2024, HB 2638 would prohibit a person owned by, controlled by, or subject
to the jurisdiction or direction of a foreign adversary from purchasing, acquiring by grant, or
obtaining ownership of real property in Kansas. A foreign adversary could sell or convey real
property that was acquired prior to July 1, 2024, but not to another foreign adversary. If a foreign
adversary inherits real property on or after July 1, 2024, they would have 12 months to divest the
property once the violation is known. The Attorney General would investigate any sale, transfer,
or conveyance of real property title in Kansas if the Attorney General has reason to believe it
violates the provisions of the bill. Real property that violates the provisions of the bill would be
subject to forfeiture. The provisions of the bill would also be severable.
Estimated State Fiscal Effect
FY 2024 FY 2025 FY 2026
Expenditures
State General Fund -- $330,000 $363,000
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Expenditures -- $330,000 $363,000
Revenues
State General Fund -- -- --
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- -- --
FTE Positions -- 3.00 3.00 The Honorable Sean Tarwater, Chairperson
Page 2—HB 2638
The Office of the Attorney General states that it would require 1.00 Investigator FTE
position, 1.00 Attorney FTE position, and 1.00 Administrative FTE position at a total cost of
$330,000 for FY 2025 and $363,000 for FY 2026 from the State General Fund, which would
provide salaries and wages and other operating costs. The agency also notes that it is likely that
the bill’s provisions would be challenged in court. However, the agency cannot estimate the
resources that would be required or the fiscal effect if this would occur.
The Office of Judicial Administration states that the bill could increase the number of cases
filed in district courts because it creates a new crime, which would increase the time spent by
district court judicial and nonjudicial personnel in processing, researching, and hearing cases. The
bill could also increase the collection of docket fees that would be deposited into the State General
Fund. However, a fiscal effect cannot be estimated, as the number of additional cases is unknown.
Any fiscal effect associated with HB 2638 is not reflected in The FY 2025 Governor’s Budget
Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: William Hendrix, Office of the Attorney General
Trisha Morrow, Judiciary