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 20, 2025
The Honorable Susan Humphries, Chairperson
House Committee on Judiciary
300 SW 10th Avenue, Room 582-N
Topeka, Kansas 66612
Dear Representative Humphries:
SUBJECT: Fiscal Note for HB 2351 by House Committee on Judiciary
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2351 is
respectfully submitted to your committee.
HB 2351 would specify that an agreement contained in an insurance contract, entered into
or renewed after July 1, 2025, to submit to appraisal or arbitration any existing or subsequent
controversy arising between the parties to the agreement. An exception would be made for those
contracts between insurance companies, including reinsurance contracts, would not be valid,
enforceable, or irrevocable, but would be regarded as an offer by the insurance company to enter
into binding or nonbinding arbitration.
The Office of Judicial Administration states the bill’s enactment would have a negligible
fiscal effect on the operations of the Judicial Branch. The Kansas Department of Insurance states
enactment of the bill would not have a fiscal effect on agency operations.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Trisha Morrow, Judiciary
Kyle Strathman, Insurance Department