Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


April 30, 2021


The Honorable Sean Tarwater, Chairperson
House Committee on Commerce, Labor and Economic Development
Statehouse, Room 151D-S
Topeka, Kansas 66612
Dear Representative Tarwater:
SUBJECT: Fiscal Note for HB 2293 by House Committee on Commerce, Labor and
Economic Development
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2293 is
respectfully submitted to your committee.
HB 2293 would enact the Taxpayer Empowerment, Accountability and Transparency in
State Contracting Act. The bill would require the Division of Purchases within the Department of
Administration to establish and maintain an online database of private service contract information
that is accessible, searchable, sortable, and downloadable. The bill also specifies what information
would be included in the database. The database information would then be compiled into an
annual service contractor expenditure budget accompanying the Governor’s budget, detailing total
spending on private service contracts for the state.
The bill would require each private service contract in excess of $25,000 to specify that the
state agency is entitled to a copy of records and files related to the performance of the governmental
function and indicate that the records and files are subject to the Kansas Open Records Act and
would be required to be disclosed in accordance with the Act.
Before any private service contract is finalized, the bill would require the contracting state
agency to prepare a request to the Legislature for an appropriation and any authority that is
necessary for the contracting state agency to hire personnel and obtain resources necessary to
oversee and monitor the performance of private service contracts and enforce other conditions as
required by law. The bill specifies that no procurement for a private service contract would
proceed unless the necessary appropriation and authority have been granted.
The Honorable Sean Tarwater, Chairperson
Page 2—HB 2293

Prior to entering into a private service contract, HB 2293 would require the Secretary of
Administration to make public a cost comparison. No state agency could enter into a private
service contract unless the proposed contract is projected to result in overall cost savings of at least
10.0 percent less than the projected cost of having the service provided by public employees.
Additionally, the bill would require that prior to entering into a private service contract, the
Secretary of Administration would produce a thorough analysis of the possible impacts of the
private service contract. The analysis would include, but not be limited to, the possible loss of
employment or income in a local area; impacts on social services in the local area; impacts on
public assistance programs; economic impacts on local businesses; any possible loss or increase
in tax revenue for the local area; and any environmental impacts that may result from the private
service contract, including any upgrades or possible degradation. The analysis would be posted
on the Department’s website and, after the report is posted, the contracting state agency would be
required to conduct public meetings in order for all citizens to have an opportunity to address
concerns and obtain information.
HB 2293 would require that no private service contract could be automatically renewed
without utilizing the competitive bidding process. Any in-house bids submitted would be
considered and if an in-house bid meets the cost and performance criteria specified in law or the
request for proposal, the bid would be deemed the most qualified bid. The bill also outlines other
requirements for private service contracts.
The Department of Administration estimates additional State General Fund expenditures
in FY 2022 of $490,000, along with an additional 6.00 FTE positions to carry out the bill’s
provisions. Of that amount, $440,000 would be for salaries and wages and $50,000 would be for
other operating expenditures.
The Board of Regents states enactment of the bill would have a fiscal effect on state
universities that would be dependent on how the private service database is created and how
universities would interface with the database. State universities would be required to collect,
track, submit, and manage contract data and would be required to ensure the contractors would
maintain and report the required data. The Board states the Legislature would also need to approve
an appropriation and grant authority to the state universities for any personnel and resources
necessary to oversee contracts, which could potentially lead to delays or issues with
implementation of contracts as the Legislature is only in session for a portion of the year.
The Kansas Department for Aging and Disability Services indicates any fiscal effect
resulting from the bill’s enactment could be absorbed within existing resources.
The Kansas Department of Transportation (KDOT) states enactment of HB 2293 would
result in additional expenditures and personnel in order to fulfil the administrative requirements of
the bill. However, KDOT is unable to estimate the additional expenditures and personnel required
until the agency has a better understanding of the requirements and processes to be instituted by
the Department of Administration. KDOT also states it is unable to determine if any existing
The Honorable Sean Tarwater, Chairperson
Page 3—HB 2293

private service contracts would have to be eliminated under the bill’s provisions and what staffing
and expenditures would be required to complete the work being performed under such contracts if
they could no longer be utilized. Any fiscal effect associated with HB 2293 is not reflected in The
FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Jeff Scannell, Department of Administration
Debbie Thomas, Judiciary
Lynn Robinson, Department of Revenue
Karen Clowers, Legislative Services