Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor


March 4, 2019


The Honorable John Barker, Chairperson
House Committee on Federal and State Affairs
Statehouse, Room 285-N
Topeka, Kansas 66612
Dear Representative Barker:
SUBJECT: Fiscal Note for HB 2226 by House Committee on Federal and State Affairs
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2226 is
respectfully submitted to your committee.
HB 2226 would make various changes to the Scrap Metal Theft Reduction Act. The
changes would include removing jurisdiction and responsibilities regarding scrap metal dealers
from the Attorney General and placing those responsibilities with either cities or counties. Scrap
metal dealers would be required to register with the governing body of a city if their place of
business is within city limits. If the place of business is not within city limits, the dealer would be
required to register with the county where the business is located. Local units of law enforcement
would be required to be given notice of new scrap metal dealers registered with cities and counties.
The bill would also change the fees associated with becoming a registered scrap metal dealer. The
bill would also remove certain registration standards and include changes to procedures regarding
any suspension or revocation of scrap metal dealer registrations.
Under current law, all administrative and civil action pursued under the Scrap Metal Theft
Reduction Act is brought to the district court of Shawnee County. HB 2226 would remove this
requirement. Additionally, the bill would remove language requiring scrap metal dealers to obtain
and maintain copies of identification cards other documents and pictures of items or lots of items
being sold and removes fines associated with noncompliance of those provisions. The bill would
also remove the Scrap Metal Theft Reduction Fee Fund from the list of funds designated to remain
intact and inviolate for purposes set forth by statute.
The Office of the Attorney General indicates enactment of HB 2226 would have no fiscal
effect on the Office because much of the Attorney General’s regulatory authority regarding the
Scrap Metal Theft Reduction Act has been suspended. Suspension of those responsibilities is set
to expire on January 1, 2020.
The Honorable John Barker, Chairperson
Page 2—HB 2226

The Judicial Branch estimates enactment of HB 2226 could increase the number of cases
filed in district courts because the bill would allow scrap metal dealers to file appeals in district
courts. However, the Judicial Branch cannot estimate how enactment of the bill would affect the
courts because the number of appeals that would be filed is unknown.
The League of Kansas Municipalities and the Kansas Association of Counties indicate
enactment of HB 2226 could increase revenues received by Kansas cities and counties because of
registration fees being collected from scrap metal dealers. However, the number of registrations
is unknown, and the League of Kansas Municipalities and the Kansas Association of Counties
cannot estimate how city and county revenues would be affected. Any fiscal effect associated with
HB 2226 is not reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Division of the Budget


cc: Willie Prescott, Office of the Attorney General
Janie Harris, Judiciary
Chardae Caine, League of Municipalities
Jay Hall, Association of Counties


Statutes affected:
As introduced: 50-6, 75-3036