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 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


February 15, 2023


The Honorable Emil Bergquist, Chairperson
House Committee on Local Government
300 SW 10th Avenue, Room 281-N
Topeka, Kansas 66612
Dear Representative Bergquist:
SUBJECT: Fiscal Note for HB 2174 by House Committee on Local Government
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2174 is
respectfully submitted to your committee.
Under HB 2174, if the Kansas Human Rights Commission, a city, or a county determines
that an inactive homeowners’ association’s restrictive covenant violates discrimination laws, then
the Commission, city, or county could upon adoption of a resolution by the governing body of that
entity correct or remove the restrictive covenant by recording a redacted plat or declaration that
deletes the violating restrictive covenants without change or modification to the remainder of the
plat or declaration. No signature or other consent of the property owner affected by the recording
would be required to record any redaction of a plat or declaration. Any redaction to a plat or
declaration recorded would not affect the validity of a property interest recorded within the original
or redacted plat. The Commission, city, or county would not incur any liability arising from
recording any redacted plat or declaration. There would no fee charged for any recording and the
recording would be exempt from survey requirements.
The Kansas Human Rights Commission states enactment of HB 2174 would likely increase
expenses for time and effort to research inactive homeowners’ associations and associated plats
and declarations, as well as charges to research documents filed with the Register of Deeds. The
Commission would also incur costs including communicating with impacted property owners,
making redactions, and drafting and facilitating necessary resolutions. The Commission is unable
to estimate the number of requests it would receive to perform duties under the bill; and therefore,
is unable to estimate what the fiscal effect would be. Any fiscal effect associated with HB 2174
is not reflected in The FY 2024 Governor’s Budget Report.
The Honorable Emil Bergquist, Chairperson
Page 2—HB 2174

The Kansas Association indicates because a correction or removal of a restrictive covenant
is optional under HB 2174, the fiscal effect would be limited to those who choose to remove the
restrictive covenant. The Association indicates the restrictive covenant would likely be corrected
or removed during a transfer of title and would have a negligible fiscal effect on counties. The
League of Kansas Municipalities indicates the bill could have a negligible fiscal effect on cities.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Ruth Glover, Human Rights Commission


Statutes affected:
As introduced: 44-1017a, 44-1002