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 17, 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 2182 by Representative Hodge
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2182 is
respectfully submitted to your committee.
HB 2182 would raise the minimum bodily injury or death limits of liability to $100,000
for one person and $300,000 for two or more persons in any one accident as well as $25,000 for
property damage coverage for individuals with a record of conviction for certain crimes within ten
years of the commission of the offense. The bill would require such minimum limits of liability
for individuals with convictions of: (1) vehicular battery or aggravated vehicular homicide while
driving under the influence; (2) driving under the influence; (3) aggravated battery causing great
bodily harm or disfigurement while driving under the influence; and (4) involuntary manslaughter
while committing the act of flight from the offense of driving under the influence. In addition, the
bill would require such minimum limits of liability if such offenses were committed in another
state, as a violation of a city ordinance in Kansas, or on or off a military reservation in Kansas.
According to the Insurance Department, enactment of HB 2182 would have no fiscal effect
on agency expenditures. However, the agency notes that the bill would result in an increase of
premium taxes collected from insurance companies, as premiums will be presumably higher for
drivers that must maintain the higher insurance limits. The agency would retain 1.0 percent of any
additional premium tax collected from enactment of the bill and the remainder would be remitted
to the State General Fund. The agency notes that increases in automobile premiums tend to result
in higher numbers of drivers operating vehicles without the required insurance. In addition, the
agency states that the increase in premium tax revenue from enactment of the bill may not remain
stable if it results in more uninsured drivers. However, the fiscal effect cannot be estimated
The Honorable Jene Vickrey, Chairperson
Page 2—HB 2182

because the number of additional premium taxes that would be collected is unknown. Any fiscal
effect associated with HB 2182 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: 40-3107