Bill Summary – FastDemocracy

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 4, 2019
                                                     CORRECTED

       The Honorable Sean Tarwater, Chairperson
       House Committee on Commerce, Labor and Economic Development
       Statehouse, Room 151-S
       Topeka, Kansas 66612
       Dear Representative Tarwater:
                 SUBJECT:         Corrected Fiscal Note for HB 2012 by Representative Carmichael
               In accordance with KSA 75-3715a, the following corrected fiscal note concerning HB 2012
       is respectfully submitted to your committee.
              HB 2012 would amend the Workers Compensation Act by replacing the word “prevailing”
       with the word “substantial” which would lower the threshold for compensation. Under the bill, a
       substantial factor would be defined as a material element in bringing about an injury, repetitive trauma
       or occupational disease. A prevailing factor would be the primary factor for the injury and need for
       medical care.
               The Department of Labor states that enactment of HB 2012 would not have a fiscal effect on
       the agency. According to the Kansas Department of Health and Environment, the bill would have a
       fiscal effect of $1,245,078 for FY 2020. This estimate includes legal costs of $15,250 and denied
       claims cost of $1,229,828. In the fiscal effect statement originally issued, the agency was reported as
       the Department of Administration rather than the Kansas Department of Health and Environment.
       The Insurance Department states that the bill would increase expenditures for the Workers
       Compensation Fund. However, currently it is not possible to determine the extent of the increase.
       Any long-term costs would be associated with other factors such as rising medical costs, increased
       wages, and other statutory changes to benefits. The bill would also increase costs to local
       governments and the fiscal effect would vary based on the local government employment base. Any
       fiscal effect associated with HB 2012 is not reflected in The FY 2020 Governor’s Budget Report.

                                                              Sincerely,

                                                              Larry L. Campbell
                                                              Director of the Budget
       cc: Dawn Palmberg, Department of Labor
           Dan Thimmesch, Health & Environment
           Colleen Becker, Department of Administration
Statutes affected: 
As introduced: 44-508, 44-510k