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 8, 2019


The Honorable Jim Kelly, Chairperson
House Committee on Financial Institutions and Pensions
Statehouse, Room 581-W
Topeka, Kansas 66612
Dear Representative Kelly:
SUBJECT: Fiscal Note for HB 2363 by House Committee on Veterans and Military
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2363 is
respectfully submitted to your committee.
HB 2363 would require lenders to inquire about any potential borrower’s veteran status on
loan applications. Lenders who extend loans to veterans would be required to provide veterans
with a pamphlet titled “Protecting Our Kansas Veterans.” The pamphlet would be published by
the Office of the State Bank Commissioner and would explain veteran rights under the Uniform
Consumer Credit Code. Fines would be assessed to lenders who violate provisions of the bill.
The Office of the Attorney General indicates enforcement of the bill would primarily be
the responsibility of the Office of the State Bank Commissioner. Consumer complaints arising
from noncompliance with HB 2363 would increase complaints filed with the Consumer Protection
Division within the Office of the Attorney General, but those complaints would forwarded to the
Office of the State Bank Commissioner. However, some of those complaints may also allege
violations of the Kansas Consumer Protection Act and the Office of the Attorney General is the
primary enforcer of that Act. Increased complaints would increase caseloads and related
expenditures. However, the Office of the Attorney General cannot estimate the fiscal effect of the
bill because the number of complaints that would arise from noncompliance with HB 2363 is
unknown.
The bill would require the Office of the State Bank Commissioner to create, publish,
distribute and periodically update informational pamphlets. The Office of the State Bank
Commissioner indicates it would utilize existing resources from agency fee funds to comply with
HB 2363. The Office also notes the bill would require examiners to verify lender compliance with
The Honorable Jim Kelly, Chairperson
Page 2—HB 2363

the bill which would increase staff workload and could potentially increase examination time and
reduce the number of examinations that could be performed each year. Any fiscal effect associated
with HB 2363 is not reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Willie Prescott, Office of the Attorney General
Mark Heim, Veterans Affairs
Tim Kemp, Banking