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

February 13, 2019


The Honorable Sean Tarwater, Chairperson
House Committee on Commerce, Labor and Economic Development
Statehouse, Room 151-S
Topeka, Kansas 66612
Dear Representative Tarwater:
SUBJECT: Fiscal Note for HB 2016 by Representative Carmichael
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2016 is
respectfully submitted to your committee.
Currently, employers may deduct retirement benefits for employer-sponsored retirement
plans from workers compensation benefits paid to an employee. HB 2016 would disallow
reduction of workers compensation benefits from the social security benefits received by the
employee. The bill would allow employer contributions to a retirement plan to be used to reduce
workers compensation benefits while employee contributions to a retirement plan would not be
used to reduce workers compensation benefits.
The Insurance Department indicates that with the enactment of HB 2016, workers
compensation benefits could increase as a result of no longer deducting social security benefits
from the payments. The agency states that this happens infrequently, and the fiscal effect would
be negligible. The Department of Labor, Kansas Association of Counties and the League of
Kansas Municipalities indicate that HB 2016 would not have a fiscal effect.

Sincerely,

Larry L. Campbell
Director of the Budget

cc: Dawn Palmberg, Department of Labor
Glenda Haverkamp, Insurance
Chardae Caine, League of Municipalities
Jay Hall, Association of Counties


Statutes affected:
As introduced: 44-501