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


January 29, 2019


The Honorable Jene Vickrey, Chairperson
House Committee on Insurance
Statehouse, Room 276-W
Topeka, Kansas 66612
Dear Representative Vickrey:
SUBJECT: Fiscal Note for HB 2057 by House Committee on Insurance
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2057 is
respectfully submitted to your committee.
Under current law, a small employer carrier that provides coverage to one or more
association groups may establish a class of business to reflect substantial differences in expected
claims experience or administrative costs. HB 2057 would not allow small employer carriers to
continue to do this. Additionally, HB 2057 would strike “from and after January 1, 1993” from
KSA 40-2209g.
The Insurance Department indicates enactment of HB 2057 would have no fiscal effect on
the Department. However, the Department indicates striking “from and after January 1, 1993”
from statute would affect current allowances that some carriers use to file an exemption from Small
Group Rate Reform, which could affect some school districts. Any fiscal effect associated with
HB 2057 is not reflected in The FY 2020 Governor’s Budget Report.

Sincerely,

Larry L. Campbell
Director of the Budget

cc: Glenda Haverkamp, Insurance


Statutes affected:
As introduced: 40-2209g