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 27, 2020


The Honorable Carolyn McGinn, Chairperson
Senate Committee on Ways and Means
Statehouse, Room 545-S
Topeka, Kansas 66612
Dear Senator McGinn:
SUBJECT: Fiscal Note for SB 244 by Senator Hilderbrand
In accordance with KSA 75-3715a, the following fiscal note concerning SB 244 is respectfully
submitted to your committee.
SB 244 would have all rules and regulations adopted by state agencies in existence on July 1,
2020, expire five years after that date. In addition, any new rule or regulation or substantial
amendment of an existing rule or regulation would expire on July 1 of the fifth year after the
enactment, unless the Legislature takes action to renew the rule or regulation.
By July 15, in the year before the expiration of a rule or regulation, the Revisor of Statutes
would be required to certify the language and citation of each rule and regulation that will expire in
the following year to the President of the Senate and the Speaker of the House of Representatives.
Any rule and regulation that is not identified and certified would not be subject to Legislative review
and would not expire. If the Revisor would fail to certify a rule and regulation, but subsequently
determines that the rule and regulation should have been certified, the Revisor would be required to
make the certification in the year following that determination.
Since SB 244 would not change any process for rules and regulations until all rules and
regulations would expire on July 1, 2025, the Division of the Budget estimates that the enactment of
SB 244 would likely not have a fiscal effect for most agencies in FY 2020 or FY 2021. Agencies
would likely begin the process of reviewing all applicable rules and regulations and how the
expiration date would affect the agency; however, the timing of this review would vary among state
agencies. For those that have few rules and regulations, it is likely that the fiscal effect would be
negligible. However, for agencies with many rules and regulations, the fiscal effect could be
substantial. For reference, the Secretary of State reports that as of December 31, 2019, there are 9,318
active rules and regulations enacted by state agencies. The Division of the Budget contacted a sample
of state agencies for a fiscal effect response to SB 244 and the responses from these agencies are
summarized below. Any cost estimates provided are based upon cost indices for FY 2021.
Revisor of Statutes—Although the bill would add additional requirements for the agency to compile
reports to the Legislature, the agency states that it could implement any changes associated with the
enactment of SB 244 within existing staff.
The Honorable Carolyn McGinn, Chairperson
Page 2—SB 244

Office of the Attorney General—The agency estimates that within five years, it would need between
3.00 and 5.00 new FTE positions for the additional workload of reviewing all rules and regulations
that would be subject to expiration; however, the agency did not provide a fiscal effect estimate for
these new positions.
In addition, the agency notes that there would be a chance that the constitutionality of the bill
would be challenged. In the event of a challenge, the agency would hire outside counsel to represent
one side of the litigation, as the two state entities would be on opposing sides of the litigation. The
agency estimates the cost of outside counsel would be between $250,000 and $300,000 from the State
General Fund, which is based on the cost of outside counsel hired for similar litigation in recent years.
Department of Administration—The agency estimates that staff review time for administrative
rules and regulations would increase starting in the fourth year after the enactment of SB 244;
however, the fiscal effect was not estimated by the agency.
Secretary of State—The Secretary of State indicates the bill would require an additional 2.00 FTE
positions costing $110,000, along with other operating expenditures of $13,000, for a total
expenditure increase of $123,000. These estimates were using cost indices from FY 2021.
In addition, the Division of the Budget notes that the Secretary of State’s fee fund associated
with the publication of the Kansas Register would experience an increase in revenues as a result of
the additional publication of all agencies’ rules and regulations; however, the additional amount of
revenue by fiscal year would depend on the timing of the rules and regulations are published.
Department of Health and Environment—The agency states that it would require additional
staffing of 67.00 FTE positions as a result of the five-year “churning” period of all rules and
regulations, totaling approximately $4.8 million from the State General Fund. The additional staff
would provide constant review, development, and support for agency regulations.
In addition, Kansas Medicaid would be affected by the bill. The agency notes that one of the
contractual requirements for maintaining the Kansas Medicaid State Plan is for the Centers for
Medicare and Medicaid Services (CMS) to review and approve Kansas Medicaid regulations and
policies. Some of the Medicaid eligibility requirements are implemented through the rules and
regulations process. Any Kansas Medicaid regulations not promulgated in a timely manner could
affect CMS approval of the federal share of Kansas Medicaid expenditures.
It should also be noted that the Department has agreed to promulgate and maintain regulations
acceptable to federal oversight agencies for programs in public health and environment. The
Department’s failure to effectively maintain the current regulations that have been approved by the
federal government could lead to potential loss of federal funding.
Department of Wildlife, Parks and Tourism—The agency indicates the bill would likely increase
annual expenditures to recertify rules and regulations; however, the agency is unable to estimate a
fiscal effect.
Department of Revenue—The agency notes the bill would have a significant effect on the agency’s
operating process. If a rule or regulation would expire unintentionally, the Department’s ability and
authority to interpret, implement, and enforce Kansas law would be diminished and compromised.
The agency notes that it has 788 rules and regulations applicable to the Department. To ensure
The Honorable Carolyn McGinn, Chairperson
Page 3—SB 244

unintended expiration of the agency’s rules and regulations, the agency estimates that it would need
to hire an additional 3.00 FTE positions to complete the annual review of its regulations at a cost of
$264,238 each year, including base salary, fringe benefits, and other operating expenditures.
Department of Agriculture—If SB 244 was enacted, the agency would require an additional 1.00
FTE position for administrative and legal reviews of its rules and regulations at a cost of $90,000
from the State General Fund, including base salary and fringe benefits.
Department of Education—The agency indicates that most of the rules and regulations for the State
Board of Education would not be affected by the enactment of SB 244, as the agency has authority
for these with Article 6, Section 2 of the Kansas Constitution. However, the agency does have some
rules and regulations adopted outside of this constitutional authority. The Department indicates that
it would require an additional 0.50 FTE position with associated expenditures totaling $30,000 from
the State General Fund.
Kansas Corporation Commission—The agency indicates that it would need an additional 1.50 FTE
positions at a cost of $97,500 for the proper reviewing of its rules and regulations.
Board of Accountancy—The agency states that its ability to enforce the regulation of certified public
accountants and firms are contained in the agency’s adopted rules and regulations. The enactment of
SB 244 would have a fiscal effect on the agency; however, an estimate cannot be made.
Office of the State Bank Commissioner—The agency notes that its fees are set through the rules
and regulations process. For example, within the Consumer and Mortgage Lending Division, its fees
for credit service organizations and mortgage businesses are listed in regulation. If timely renewal of
its regulations does not occur, the agency would lose authorization to collect fees which would affect
its operations.
Behavioral Sciences Regulatory Board—The agency estimates that it would require additional
expenditures totaling $25,000 to review each of the agency’s regulations to comply with SB 244. In
addition, the agency notes that there would be additional costs to publish all of its rules and regulations
in the Kansas Register; however, a cost estimate for this additional expense is not available.
Board of Healing Arts—The agency states that it would require additional staff to assess the revision
or justification of expiring rules and regulations. Assuming one-fifth of the agency’s regulations
would go through the process every year, the agency would have to promulgate approximately 40
rules and regulations each year. Because the agency’s staff is currently fully occupied with other
duties, the agency estimates that it would require an additional 2.00 FTE positions with a cost of
$188,762 each year, including base salary, fringe benefits, and other operating expenditures, all from
the agency’s fee fund.
Board of Nursing—The agency indicates that it would require an additional 1.00 FTE position
totaling $65,400, including base salary and other operating expenditures. As of FY 2020, the Board
has 88 rules and regulations for the regulation of its licensees. The agency also notes that additional
board meetings would likely be needed to review and approve rules and regulations that would expire;
however, a cost estimate for these additional meetings is not available.
Board of Pharmacy—Like the Board of Healing Arts, the Board of Pharmacy states that SB 244
would require additional staff to assess the revision or justification of expiring rules and regulations.
The Honorable Carolyn McGinn, Chairperson
Page 4—SB 244

Because the agency’s staff is currently fully occupied with other duties, the agency estimates that it
would require an additional 2.00 FTE positions with a cost of $181,000 each year, including base
salary, fringe benefits, and other operating expenditures, all from the agency’s fee fund.
Kansas Real Estate Commission—The agency notes that there would be additional costs to justify
the need to the Legislature to renew an expiring regulation. However, the cost estimate for the
additional requirements is not available.
Board of Technical Professions—The agency indicates that it would incur additional administrative
costs to renew its regulations every five years. However, the cost estimate for the additional
requirements is not available.
Board of Veterinary Examiners—The agency estimates that an additional 0.50 FTE position would
be required in approximately five years to review all of its 31 existing rules and regulations and
estimates the cost to be approximately $35,000 from the agency’s fee fund. The cost estimate includes
base salary, fringe benefits, and other operating expenditures.
Any fiscal effect associated with SB 244 is not reflected in The FY 2021 Governor’s Budget
Report.

Sincerely,

Larry L. Campbell
Director of the Budget


cc: Jake Fisher, KCC Mary Greb-Hall, Department of Administration
Shonda Rabb, CURB Alexandra Blasi, Board of Pharmacy
Max Foster, Behavioral Sciences Dan Thimmesch, Health & Environment
Kellen Liebsch, Agriculture Jeff Scannell, Department of Administration
Charity Carlat, Dental Board Sally Pritchett, Real Estate Appraisal
Matt Unruh, Water Office Erik Wisner, Real Estate Commission
Mack Smith, Mortuary Arts Jody Johnson, Veterinary Examiners
Lori Ferguson, Board of Barbering Melissa Wangemann, Office of Banking Commissioner
Aubrie Pryer, Cosmetology Chris Tymeson, Wildlife, Parks & Tourism
Dale Dennis, Education Sandy Tompkins, Office of the Secretary of State
Jerel Wright, Credit Unions Willie Prescott, Office of the Attorney General
Larry Karns, Technical Professions Zack Miller, Hearing Instruments Examiners
Jill Simons, Board of Nursing Susan Gile, Board of Healing Arts
Joe House, EMS Susan Somers, Board of Accountancy
Jan Murray, Optometry Jean Krahn, Guardianship Program