Bill Summary – FastDemocracy

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 Jeff Longbine, Chairperson
          Senate Committee on Financial Institutions
          Statehouse, Room 235A-E
          Topeka, Kansas 66612
          Dear Senator Longbine:
                    SUBJECT:      Fiscal Note for SB 114 by Senate Committee on Insurance
                  In accordance with KSA 75-3715a, the following fiscal note concerning SB 114 is
          respectfully submitted to your committee.
                  Under current law, governmental entities and self-insurers must have uninsured motorist
          insurance coverage and personal injury coverage. SB 114 would give a governmental entity or a
          self-insurer the right to reject, in writing, uninsured motorist coverage and personal injury
          coverage. The bill would also make other technical adjustments.
                  The Department of Administration states that if the bill were enacted the state could choose
          not to carry uninsured motorist coverage which would save money. However, if an accident occurs
          with an uninsured motorist, then the state would have increased costs to cover the damage.
          Therefore, a fiscal effect cannot be determined because the level of coverage the state would select
          is unknown.
                 The Kansas Insurance Department states that the bill would not have a fiscal effect on its
          operating expenditures. Any fiscal effect associated with SB 114 is not reflected in The FY 2022
          Governor’s Budget Report.
                  The Kansas Association of Counties and the League of Kansas Municipalities both state
          that the fiscal effect is unknown because each county or city may or may not choose to reject
          uninsured motorist and personal injury coverages. There could be savings from not having those
          coverages; however, where insurance is waived, and no other insurance is in place there would be
The Honorable Jeff Longbine, Chairperson
Page 2—SB 114

increased costs if an accident would occur. However, it is not possible to estimate the fiscal effect
of the bill.


                                                      Sincerely,

                                                      Adam Proffitt
                                                      Director of the Budget

cc: Wendi Stark, League of Municipalities
    Jay Hall, Association of Counties
    Debbie Thomas, Judiciary
    Bobbi Mariani, Insurance
    Lynn Robinson, Department of Revenue
    Jeff Scannell, Department of Administration
Statutes affected: 
As introduced: 40-284, 40-3107