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
Adam Proffitt, Director Laura Kelly, Governor


January 20, 2021

The Honorable Sean Tarwater, Chairperson
House Committee on Commerce, Labor and Economic Development
Statehouse, Room 151D-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.
HB 2016 would amend workers compensation law by changing language related to the
cause of injury from a “prevailing factor” to a “substantial factor.”
According to the Kansas Department of Labor, HB 2016 would have no fiscal effect on the
Workers Compensation Program. The Department of Administration estimates the bill would
increase workers compensation claim costs for the State Self Insurance Fund by $298,992 in FY
2022. This amount includes $267,148 for claims that would be paid under HB 2016 (47 claims x
$5,684 average cost per claim) plus $31,844 for legal costs. The Department of Administration
estimates additional costs of $307,065 from the State Self Insurance Fund in FY 2023. The
increase in costs would result in an increase in workers compensation assessment rates for state
agencies. This would increase agency expenditures for benefits, which would be funded from a
variety of funding sources including the State General Fund. However, the fiscal effect on state
agencies is unknown because the quantitative increase in workers compensation assessment rates
is also unknown. Any fiscal effect associated with HB 2016 is not reflected in The FY 2022
Governor’s Budget Report.

Sincerely,

Adam Proffitt
Director of the Budget
cc: Dawn Palmberg, Department of Labor
Jeff Scannell, Department of Administration


Statutes affected:
As introduced: 44-508, 44-510k