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 19, 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 2324 by Representatives Whipple and Holscher
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2324 is
respectfully submitted to your committee.
HB 2324 would create a public policy in Kansas that any non-disclosure agreement or any
agreement governing post-employment benefits entered into by an employee and an employer
could not include any provisions imposing damages, penalties or loss of benefits against the
employee for communicating any alleged sexual abuse or sexual harassment committed against
the employee by another employee or officer of the employer.
The Office of the Attorney General indicates enactment of HB 2324 could have an effect
on expenditures from the Tort Claims Fund if the bill’s constitutionality is challenged in court.
However, the Office is unable to determine what the fiscal effect on the Tort Claims Fund might
be. The Office indicates outside counsel may need to be retained to defend the bill in court. In
addition, the Office indicates there could be a monetary judgement against the state as well as an
order to pay the prevailing party’s attorney fees.
The Department of Administration estimates no fiscal effect on the Department’s
operations. The Department notes enactment of HB 2324 could affect private and local employers,
but the Department is unable to estimate how the bill would affect those employers. Any fiscal
effect associated with HB 2324 is not reflected in The FY 2020 Governor’s Budget Report.

Sincerely,

Larry L. Campbell
Director of the Budget
cc: Jay Hall, Association of Counties
Chardae Caine, League of Municipalities
Colleen Becker, Department of Administration
Willie Prescott, Office of the Attorney General