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


March 11, 2021


The Honorable Fred Patton, Chairperson
House Committee on Judiciary
Statehouse, Room 519C-N
Topeka, Kansas 66612
Dear Representative Patton:
SUBJECT: Fiscal Note for HB 2322 by Representative Probst
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2322 is
respectfully submitted to your committee.
HB 2322 would enact the Kansas Contract of Deed Act. A seller would not be allowed to
execute a contract for a deed if the seller does not hold the title to the property. The seller would
be required to maintain the property free from mortgage, lien, or encumbrance for the duration of
the contact for the deed, except for certain exceptions described in the bill. The bill would also
specify when a buyer’s right to a contract for deed could be forfeited. Violations of the bill would
be considered deceptive acts or practices in violation of the Kansas Consumer Protection Act
(KCPA) and would be subject to enforcement under the KCPA.
The Office of the Attorney General states that it investigates and litigates violations of
KCPA. HB 2322 could require the Office to develop new complaint forms specific to violations
of the Act. The agency cannot estimate how many complaints would be received and therefore it
is unable to determine the resources that would be needed to intake, investigate, and potentially
litigate violations. In addition, if cases are litigated, the KCPA allows for penalties of up to
$10,000 per violation that would be deposited into either the State General Fund or the general
fund of the county in which the case was litigated. However, a fiscal effect cannot be estimated.
The Office of Judicial Administration indicates that the bill could have a negligible fiscal
effect on its operations. However, a fiscal effect cannot be determined. The Real Estate Appraisal
Board and the Real Estate Commission both state that the bill would not have a fiscal effect. Any
fiscal effect associated with HB 2322 is not reflected in The FY 2022 Governor’s Budget Report.
The Honorable Fred Patton, Chairperson
Page 2—HB 2322

The Kansas Association of Counties indicates that the HB 2322 could have a fiscal effect
because counties currently subsidize the office that processes deeds. The League of Kansas
Municipalities states that the bill would not have a fiscal effect on cities.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Willie Prescott, Office of the Attorney General
Wendi Stark, League of Municipalities
Jay Hall, Association of Counties
Debbie Thomas, Judiciary
Erik Wisner, Real Estate Commission
Sally Pritchett, Real Estate Appraisal