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 16, 2023


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 2399 by House Committee on Commerce, Labor and
Economic Development
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2399 is
respectfully submitted to your committee.
HB 2399 would create the Freelance Isn’t Free Act. The bill would define a “freelance
worker” as any natural person or any organization composed of not more than one natural person,
whether or not incorporated or employing a trade name, that is hired or retained as an independent
contractor by a hiring party to provide services in exchange for compensation. The bill would also
specify what is not considered a freelance worker and would make other definitions for use under
the Act. The bill would require written contracts for retained services of a freelance worker valued
over $500 and would include specific requirements for these contracts. The bill would also provide
other protections for freelance workers and include new duties and requirements for the Kansas
Department of Labor and the Attorney General related to those protections, complaints, and
violations of the Act. In addition, the Secretary of Labor would be required to establish a Freelance
Worker Assistance Program as detailed in the bill. The Secretary of Labor and Attorney General
would have authority to adopt rules and regulations necessary to implement provisions Act.
According to the Kansas Department of Labor, enactment of HB 2399 would increase
expenditures by $440,000 in FY 2023 and $290,000 in FY 2024, all from the State General Fund,
and would require 2.00 additional FTE positions. The bill would require a new program and the
agency reports it could not be incorporated into any of the agency’s current programs or processes.
Estimated costs related to building a database for the program are $150,000 in FY 2023. Program
staffing of 2.00 FTE positions, including benefits and overhead for one attorney and one
conciliator, is estimated to be $290,000 each fiscal year and would continue for the duration of the
program. The agency does not currently have funding available for the program, so a State General
Fund appropriation would be necessary.
The Honorable Sean Tarwater, Chairperson
Page 2—HB 2399

The Office of the Attorney General estimates enactment of the bill would increase FY 2024
expenditures by $234,352, all from the State General Fund, and would require 2.00 additional FTE
positions. The estimate includes $209,508 for salary and benefits for one attorney and one
investigator/special agent. Additional expenditures would include overhead, supplies, and
training. All expenditures would be ongoing.
The Office of Judicial Administration states enactment of HB2399 could increase the
number of cases filed in district court because it allows for a civil suit to be filed by an individual
or the Attorney General. In addition, all Department of Labor orders are subject to the Kansas
Judicial Review Act. This could result in more time spent by district court judicial and nonjudicial
personnel processing, researching, and hearing cases. The Office estimates enactment of the bill
could result in the collection of docket fees assessed in those cases filed under the bill’s provisions,
which would be deposited in the State General Fund. According to the Office, a fiscal effect
cannot be estimated. Any fiscal effect associated with HB 2399 is not reflected in The FY 2024
Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Dawn Palmberg, Department of Labor
John Milburn, Office of the Attorney General
Vicki Jacobsen, Judiciary