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 25, 2019


The Honorable Sean Tarwater, Chairperson
House Committee on Commerce, Labor and Economic Development
Statehouse, Room 151-S
Topeka, Kansas 66612
Dear Representative Tarwater:
SUBJECT: Fiscal Note for HB 2312 by Representative Hodge
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2312 is
respectfully submitted to your committee.
HB 2312 would create the Rural Revitalization Student Loan Repayment Program to be
administered by the Secretary of Commerce. The Program would provide for the repayment of
student loans for eligible individuals that establish domicile in a rural county. An eligible
individual may enroll and continue participation in the program for 20 years unless the eligible
individual relocates outside of a rural county at which point the individual forfeits his or her
eligibility. The Program would be subject to appropriations and if the amount of appropriations
for the Program is insufficient to pay in full the amount of student loans of eligible individuals in
any year, the Secretary would be required to prorate the amount appropriated among all eligible
individuals. The Secretary would be required to adopt rules and regulations necessary to
administer the Program. The bill includes definitions for “eligible individual,” “institution of
higher education,” “rural county,” and “student loan.”
The Department of Commerce estimates HB 2312 would require $42,125 from the State
General for a 0.50 FTE position to administer the Rural Revitalization Student Loan Repayment
Program. The Department provided no estimate for student loan repayment. The bill provides
that the Program would be subject to appropriations and prorated if the amount appropriated is
insufficient to cover the full cost. The fiscal effect will be updated if additional information is
provided by the Board of Regents. Any fiscal effect associated with HB 2312 is not reflected in
The FY 2020 Governor’s Budget Report.

Sincerely,

Larry L. Campbell
Director of the Budget
cc: Sherry Rentfro, Commerce
Kelly Oliver, Board of Regents