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


February 22, 2021


The Honorable Robert Olsen, Chairperson
Senate Committee on Commerce
Statehouse, Room 236A-E
Topeka, Kansas 66612
Dear Senator Olsen:
SUBJECT: Fiscal Note for SB 219 by Senate Committee on Commerce
In accordance with KSA 75-3715a, the following fiscal note concerning SB 219 is
respectfully submitted to your committee.
SB 219 would require that any individual or employee officer, owner or member of an
association, corporation, limited liability company, limited liability partnership, partnership,
professional corporation or trust that engages in a pattern of business of buying, selling, offering
to buy or sell, marketing for sale, exchange or otherwise dealing in assignable contracts for the
purchase or sale, or options on real estate or improvements on two or more occasions in any 12-
month period to be licensed by the Kansas Real Estate Commission. The bill also authorizes the
Kansas Real Estate Commission the authority to assess civil fines of up to $1,000 per violation,
issue cease and desist orders, and subpoena individuals transacting real estate without a real estate
license.
The Kansas Real Estate Commission indicates SB 219 has the potential to increase license
fee revenues if additional individuals obtain a real estate license in order to comply with the
provisions of this bill. However, the Commission does not know how many individuals would
obtain a real estate license to make a precise estimate of the additional license fee revenues. It is
unclear if individuals or entities that are currently involved in transacting real estate without a real
estate license would get a real estate license or exit this market.
The Attorney General’s Office indicates the bill has the potential to increase the workload
of the civil attorney assigned as litigation counsel to the Kansas Real Estate Commission beginning
in FY 2022. The Commission pays the Attorney General’s Office a negotiated fee for those
services, so if additional capacity is needed, the fee for those increased services would be
negotiated with the Commission. The Attorney General’s Office indicates that it is also possible
The Honorable Robert Olsen, Chairperson
Page 2—SB 219

that the constitutionality of this legislation could be challenged. The case would likely need to go
through the appellate process to get a definitive ruling on the validity of the law. Depending on
which court system, federal or state, the case was filed in, getting to an appellate decision could
take two to four years.
The bill has the potential for increasing litigation in the courts. If it does, the Office of
Judicial Administration indicates that there would be a fiscal effect on the operations of the court
system. However, it is not possible to estimate the number of additional court cases that would
arise or how complex and time-consuming the cases would be. The fiscal effect would most likely
be negligible and could be accommodated within the existing budget resources. Any fiscal effect
associated with SB 219 is not reflected in The FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Erik Wisner, Real Estate Commission
Debbie Thomas, Judiciary
Willie Prescott, Office of the Attorney General


Statutes affected:
As introduced: 58-3035, 58-3036, 58-3037, 58-3042, 58-3079, 58-3065, 74-4202