Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


February 16, 2021


The Honorable Troy Waymaster, Chairperson
House Committee on Appropriations
Statehouse, Room 111-N
Topeka, Kansas 66612
Dear Representative Waymaster:
SUBJECT: Fiscal Note for HB 2195 by House Committee on K-12 Education Budget
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2195 is
respectfully submitted to your committee.
HB 2195 would hold employers harmless for fraudulent claims of unemployment benefits.
Additionally, employers would not be charged for any benefits paid beginning March 12, 2020,
through December 31, 2021. Employers would not be required to reimburse the state for claims
identified as fraudulent by the employer. The time limitation on disputed claims or appeals in
current law would not apply to cases of fraud or benefits paid from March 15, 2020 through
December 31, 2022. The Department of Labor would be required to immediately and fully credit
an employer’s account for any benefits that were determined to be fraudulent or provided in error.
The Department of Labor would be required to review all reimbursing employer accounts for the
20 years preceding July 1, 2021 and credit any employer for benefits paid by fraud or in error that
were charged to the employer’s account and not recovered through normal recovery efforts.
The bill would require the Department of Labor to review all available information
regarding improper unemployment benefit payments for the state for the time period of March 15,
2020, through December 31, 2022. Within 60 days of the information becoming available, the
Department of Labor would be required to certify to the Department of Administration any
amounts for improper payments. The bill would require the Department of Administration to
transfer amounts identified in the certification from the State General Fund to the Unemployment
Trust Fund. The bill would authorize the Governor to transfer the certified amounts from a fund
other than the State General Fund, if approved by the State Finance Council.
The Kansas Department of Labor is currently unable to estimate the total amount of
fraudulent or improper unemployment payments in the state. As a result, the amount from State
The Honorable Troy Waymaster, Chairperson
Page 2—HB 2195

General Fund or other funds that would be transferred to the Unemployment Trust Fund because
of fraudulent or improper payments is unknown. The Department anticipates having a working
figure in the coming weeks. A revised fiscal note will be issued once the information is available.
The agency notes that, according to the U.S. Department of Labor’s Office of Inspector General,
the national total of fraudulent unemployment payments could be $36.0 billion or more. The
Kansas Department of Labor estimates the fiscal effect on the State General Fund could be
sizeable.
The Kansas Department of Labor estimates the bill would require additional expenditures
of $499,650 from federal funds and 7.00 FTE positions to conduct research on fraud. The amount
includes $356,650 for salaries and wages and $143,000 for other operating expenditures. Any
fiscal effect associated with HB 2195 is not reflected in The FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Dawn Palmberg, Department of Labor


Statutes affected:
As introduced: 44-710, 44-710b