SESSION OF 2020
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2411
As Amended by House Committee on Federal
and State Affairs

Brief*
HB 2411, as amended, would amend law related to the
review of administrative rules and regulations.

Economic Impact Statements
Current law requires, as part of the rules and regulations
approval process, state agencies provide an economic impact
statement to the Director of the Budget (Director) that
considers, among other things, the total annual
implementation and compliance costs to businesses, local
governments, or individuals; a determination of whether costs
would be more than $3,000,000 over two years; and an
estimate of such costs expressed as a single dollar figure.
Under current law, the Director, among other things, is
also required to make an independent determination
regarding implementation and compliance costs and may
approve or disapprove of a rule and regulation based upon
the accuracy of the economic impact statement or a
determination that implementation and compliance costs will
be more than $3,000,000 over two years. Additionally, if it is
determined that such costs would be over $3,000,000, the
state agency must also conduct a public hearing.
The bill would remove the requirement that the Director
make an independent determination of the amount of
implementation and compliance costs and would remove
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
provisions requiring the Director to approve all rules and
regulations, and would specify the Director would not be
required to review or approve rules and regulations if the
submitting agency would not result in costs of more than
$3,000,000 over two years. Agencies would still be required
to provide the Director with a copy of the economic impact
statement for every rule and regulation submitted for
approval.
The bill would also specify that the implementation and
compliance costs would be those costs reasonably expected
to be incurred and shall be separately identified for the
affected businesses, local government units, and members of
the public. The bill would further specify that in its
determination of costs, the agency should not account for any
actual or estimated cost savings realized by those entities.
The bill would further state, if a state agency is
proposing a rule and regulation because of a federal
mandate, the state agency would be required to provide an
economic impact statement, but the Director would not be
required to review or approve the proposed rule and
regulation, regardless of estimated implementation and
compliance costs. The bill would specify, for rules and
regulations proposed due to a federal mandate, compliance
costs would be calculated from the effective date of the rule
and regulation.

Order of Review of Proposed Rules and Regulations
The bill would amend the order of submission to require
state agencies send proposed rules and regulations to the
Secretary of Administration and Attorney General before
submission to the Director of the Budget. Current law requires
proposed rules and regulations be submitted to the Director
of the Budget before being submitted to the Secretary of
Administration and Attorney General.


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 The bill would be in effect upon publication in the
Kansas Register.

Background
The bill was introduced on March 25, 2019, by the
House Committee on Federal and State affairs at the request
of Representative Highland.
In the House Committee hearing on January 23, 2020,
Representatives Highland and Carmichael; the Director of the
Budget; and a representative of the Kansas Department of
Wildlife, Parks and Tourism testified in support of the bill.
Proponents indicated the bill would help streamline the rules
and regulations approval process and would lighten the
administrative workload of the Director of the Budget, as most
rules and regulations submitted estimated costs well below
the $3,000,000 threshold in statute.
Neutral testimony was provided by representatives of
the Kansas Chamber of Commerce, the Kansas Cooperative
Council, and the Kansas Grain and Feed Association.
Written-only neutral testimony was provided by the Kansas
Soybean Association.
The House Committee amended the bill by inserting
provisions related to cost savings, amending the agency
review order of proposed rules and regulations, and changing
the effective date of the bill.
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Secretary of State
and Department of Administration indicate enactment of the
bill would not increase or decrease agency expenditures or
revenues and the requirements of the bill could be met within
existing resources. The Director of the Budget states the
changes in the bill will allow the agency to maintain its current
resource budget and if the bill is not enacted, the Division of
the Budget will have to request supplemental funding for FY
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2020 and beyond for additional staff to meet the requirements
of the rules and regulations process. The Office of the
Attorney General (Office) states the bill would have a
negligible effect on the legality review conducted by the Office
and it is unlikely the bill would cause any additional
expenditures. Any fiscal effect associated with enactment of
the bill is not reflected in The FY 2020 Governor’s Budget
Report.


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Statutes affected:
As introduced: 77-420, 77-416
As Amended by House Committee: 77-416, 77-420, 77-420a, 77-421, 77-422