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 Jene Vickrey, Chairperson
House Committee on Insurance
Statehouse, Room 276-W
Topeka, Kansas 66612
Dear Representative Vickrey:
SUBJECT: Fiscal Note for HB 2296 by House Committee on Insurance
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2296 is
respectfully submitted to your committee.
HB 2296 would allow law enforcement to impound the vehicle of a driver who fails to
show valid proof of liability insurance coverage if that driver previously received a citation for the
same offense. An individual who committed the violation would be able to show proof that they
have obtained liability insurance and pay the costs of towing, storage and any other fees in order
to retrieve an impounded vehicle. In addition, the bill would allow local authorities to auction an
impounded vehicle if it is not retrieved within 60 days in order to recover the costs of towing and
storage. Any excess proceeds from the sale of the vehicle would be distributed to either the owner
of the vehicle or the victims of an accident that led to the citation.
The Office of Judicial Administration indicates that enactment of HB 2296 could increase
the number of cases filed in district courts because it allows an attorney to seek a court order for
the impoundment of a vehicle. The Office states this would increase the time spent by district
court judicial and nonjudicial personnel to process, research and hear cases, which could also result
in the collection of additional docket fees. However, the fiscal effect cannot be estimated because
the number of additional court orders that would be filed is unknown.
The Kansas Association of Counties indicates that enactment of the bill could result in
additional expenditures for local law enforcement if an impounded vehicle is sold for less than the
cost of storage, towing and any other fees. In addition, the League of Kansas Municipalities states
the bill could result in additional staff time for law enforcement to arrange towing, impoundment
and auction of vehicles. However, these fiscal effects would be negligible.
The Honorable Jene Vickrey, Chairperson
Page 2—HB 2296

The Kansas Highway Patrol, the Insurance Department, and the Department of Revenue
indicate that enactment of the bill would have no fiscal effect on the agencies. Any fiscal effect
associated with HB 2296 is not reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Janie Harris, Judiciary
Glenda Haverkamp, Insurance
Sherry Macke, Highway Patrol
Chardae Caine, League of Municipalities
Jay Hall, Association of Counties


Statutes affected:
As introduced: 40-3104