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 C. Proffitt, Director Laura Kelly, Governor

February 7, 2024


The Honorable Mike Thompson, Chairperson
Senate Committee on Federal and State Affairs
300 SW 10th Avenue, Room 144-S
Topeka, Kansas 66612
Dear Senator Thompson:
SUBJECT: Fiscal Note for SB 446 by Senate Committee on Federal and State Affairs
In accordance with KSA 75-3715a, the following fiscal note concerning SB 446 is
respectfully submitted to your committee.
SB 446 would prohibit a person owned by, controlled by, or subject to the jurisdiction or
direction of a foreign government from acquiring any interest in any parcel of real property located
in Kansas that is three acres or more. The provisions of the bill would not apply to any interest
that was acquired prior to July 1, 2024, or unless an exception is granted by the State Land Council,
which would be created by the bill. Any property that was acquired before July 1, 2024, by a
foreign national would not be allowed to be sold, conveyed, or leased to a foreign national. If a
foreign national inherits real property in this state that is three acers or more, the person would be
required to divest the interest within 12 months and the divestiture would be an affirmative defense
to a violation of the bill. The Attorney General would investigate any sale, transfer of title, or
other interest in real property located in Kansas if the Attorney General has reason to believe that
the transaction would violate provisions of the bill.
The bill would establish the State Land Council. Members of the council would include
the Attorney General, the Adjutant General, the Governor, the Secretary of State, and the Director
of the Kansas Bureau of Investigation. The Council would establish policies and procedures and
would meet at least once every other month when any application for exemption is pending. The
Council would review each application and grant or deny the exemption. The provisions of the
bill would be severable.
The Office of the Attorney General states that it would require 1.00 Investigator FTE
position and 1.00 Attorney FTE position at a total cost of $230,000 for FY 2025 and $253,000 for
FY 2026 from the State General Fund, which would provide salaries and wages and other operating
costs. Those positions would assist in investigating the sale and the transfer of title as required by
the bill. Although the bill would not specifically authorize support staff for the Kansas Land
Council, the Attorney General indicates that the Council would require at least 1.00 FTE position
for administrative support at an additional estimated cost of $100,000 in FY 2025 and $110,000 in
FY 2026 from the State General Fund. The agency also notes that it is likely that the bill’s
The Honorable Mike Thompson, Chairperson
Page 2—SB 446

provisions would be challenged in court. However, the agency cannot estimate the resources that
would be required or the fiscal effect if this would occur.
The Office of Judicial Administration states that the bill could increase the number of cases
filed in district courts because it creates a new crime, which would increase the time spent by
district court judicial and nonjudicial personnel in processing, researching, and hearing cases. The
bill could also increase the collection of docket fees that would be deposited into the State General
Fund. However, a fiscal effect cannot be estimated, as the number of additional cases is unknown.
The Governor’s Office states that the number of applications the Council would be required
to review for approval could be significant. The number of applications that would be reviewed
cannot be estimated. However, the current staff of the Governor’s Office is not equipped to handle
the potential increase in workload. The Governor’s Office would require an additional 3.00 FTE
positions at a total cost of $219,819 from the State General Fund in FY 2025. The positions would
include one attorney ($106,973) and two support staff ($56,423 X 2 staff = $112,846). The cost
estimates for all positions would include fringe benefit expenditures. The positions would review
each application, which could take a significant amount of time, and make an informed decision
at the Council meetings. A similar cost estimate would be applicable for FY 2026.
The Secretary of State assumes that Council meetings would not keep an existing employee
from also performing their regular duties and no additional funding or positions would be required.
The Department of Commerce indicates that any additional workload would be handled with its
current staff and would not have a fiscal effect.
The Kansas Highway Patrol, the Adjutant General, and the Kansas Bureau of Investigation
indicate that the bill would not have a fiscal effect. Any fiscal effect associated with SB 446 is not
reflected in The FY 2025 Governor’s Budget Report.
The Kansas Association of Counties states that because there is a divestment requirement,
there could be some additional expenditures for the Register of Deeds, as well as the potential
forfeiture actions that could increase court costs. However, the Association cannot estimate a
fiscal effect. The League of Kansas Municipalities states that the bill would not have a fiscal effect
on cities.

Sincerely,

Adam C. Proffitt
Director of the Budget
cc: Trisha Morrow, Judiciary
Sherry Macke, Kansas Highway Patrol
William Hendrix, Office of the Attorney General
Paul Weisgerber, Kansas Bureau of Investigation
Wendi Stark, League of Kansas Municipalities
Jay Hall, Kansas Association of Counties


Statutes affected:
As introduced: 60-4104