Bill Summary – FastDemocracy

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


                                                 April 20, 2023


         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 2193 by House Committee on Appropriations
                 In accordance with KSA 75-3715a, the following fiscal note concerning HB 2193 is
         respectfully submitted to your committee.
                Under current law, the State Treasurer is required to certify and transfer to KPERS state
         funds equivalent to the aggregate net amount received for unclaimed property, with these funds
         to be invested by KPERS. However, current law imposes a moratorium on these transfers
         during FY 2022, FY 2023, and FY 2024. HB 2193 would remove the moratorium.
                According to the State Treasurer, the enactment of the bill could be implemented using
         the existing agency budget resources. KPERS indicates that reestablishing the investment
         program for the State Treasurer would require staff time to prepare the necessary documentation
         for consideration and approval by the KPERS Board of Trustees and reestablishing investment
         accounts with various investment managers to invest the funds as they are received by KPERS.
         The agency indicates that this can be accomplished within existing staffing resources. The
         agency notes that any time spent on the Treasurer’s Unclaimed Property Fund would be
         segregated and funded separately from work performed on behalf of the KPERS Trust Fund.
                The enactment of the bill could result in additional revenues from the State General
         Fund, as any interest earned by KPERS on these funds, after investment expenses, would be
         deposited into the State General Fund. However, a fiscal effect cannot be estimated and would
         depend on the amounts to be invested by KPERS and the rate of return on these investments.
The Honorable Nick Hoheisel, Chairperson
Page 2—HB 2193

Any fiscal effect associated with HB 2193 is not reflected in The FY 2024 Governor’s Budget
Report.


                                                  Sincerely,

                                                  Adam Proffitt
                                                  Director of the Budget

cc: Jarod Waltner, KPERS
    John Hedges, Office of the State Treasurer
Statutes affected: 
As introduced: 75-2263