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 6, 2025
The Honorable Kellie Warren, Chairperson
Senate Committee on Judiciary
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Senator Warren:
SUBJECT: Fiscal Note for SB 54 by Senate Committee on Judiciary
In accordance with KSA 75-3715a, the following fiscal note concerning SB 54 is
respectfully submitted to your committee.
SB 54 would allow a party to obtain discovery of the existence and content of any third-
party agreement under which any person, other than an attorney representing a party, has agreed
to pay expenses directly related to prosecuting a legal claim and has a contractual right to receive
compensation that is contingent on and sourced from any proceeds. The bill would not allow
information concerning the third-party agreement to be admissible as evidence at a trial. The bill
would also establish certain limitations on discovery of third-party agreements and would require
any third-party agreement in which a person has a contractual right to receive compensation that
is contingent upon the outcome of the claim to be reported to the Judicial Council within 45 days
after the commencement of an action or after the agreement is entered into, whichever is later. The
Judicial Council would be required to provide documentation to the person who reported the
agreement showing that the report was made. Any third-party agreement that is not reported would
be considered void and unenforceable unless the court finds the agreement is admissible and
necessary to prove an element of a claim in a case. The clerk of the Supreme Court would be
required to create a form for use in reporting. Reports would be considered confidential. On or
before July 1, 2028, the Judicial Council would be required to establish a committee to study the
issue of third-party agreements, which would need to be reported to the Supreme Court, Attorney
General, House Committee on Judiciary, and Senate Committee on Judiciary on December 1,
2029, and each December 1 thereafter.
The Office of Judicial Administration indicates enactment of the bill could increase
expenditures for the Judicial Branch because the bill requires additional findings and items for the The Honorable Kellie Warren, Chairperson
Page 2—SB 54
court to consider in certain cases. In addition, the bill requires that the appellate court clerk create
a reporting form. However, the Office states that a fiscal effect cannot be determined until the
Judicial Branch has had an opportunity to operate under the provisions of the bill.
The Judicial Council indicates enactment of the bill would require it to collect information
and confirm receipt of such information to individuals reporting third-party agreements in Kansas.
The Council states that it would need to establish an advisory committee to study third-party
agreements, which would begin in FY 2029. Approximately six meetings would be necessary to
conduct the initial study to comply with the provisions of the bill, with an additional three meetings
in FY 2029 and three meetings in FY 2030. Beginning in FY 2031, the Council would need to
hold two meetings per year to report findings to the appropriate entities. The Council states the
cost per meeting would be $1,575 for reimbursement of travel expenses and subsistence payments.
The Council states it would not be able to fund expenditures associated with the provisions of the
bill within existing resources. Any fiscal effect associated with SB 54 is not reflected in The FY
2026 Governor’s Budget Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Trisha Morrow, Judiciary
Janelle Williams, Judicial Council