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 17, 2021


The Honorable Steve Johnson, Chairperson
House Committee on Insurance and Pensions
Statehouse, Room 276A-W
Topeka, Kansas 66612
Dear Representative Johnson:
SUBJECT: Fiscal Note for HB 2242 by House Committee on Insurance and Pensions
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2242 is
respectfully submitted to your committee.
HB 2242 would increase the levy on gross cash receipts of fire insurance premiums
remitted to the State Fire Marshal from 0.8 percent to 1.0 percent beginning in calendar year 2021.

Estimated State Fiscal Effect
FY 2021 FY 2021 FY 2022 FY 2022
SGF All Funds SGF All Funds
Revenue -- -- -- $1,000,000
Expenditure -- -- -- --
FTE Pos. -- -- -- --

The Office of the State Fire Marshal estimates that enactment of the bill would increase
revenues by approximately $1.0 million to the Fire Marshal Fee Fund each year beginning in FY
2022. The Office states that the bill would create ongoing revenue to address financial shortfalls
that have triggered program discontinuations in recent years. The Office also indicates that the
increased revenue would cover the continued annual rising costs for general business expenses,
including pass-through expenditures and expenditures charged by other state agencies. Enactment
of the bill would not create any additional expenditures for the agency.
The Honorable Steve Johnson, Chairperson
Page 2—HB 2242

The Insurance Department indicates that enactment of the bill would increase the total fire
tax percentage on fire insurance premiums from 1.25 to 1.45 percent by increasing the levy made
by the State Fire Marshal from 0.8 percent to 1.0 percent. The Department indicates that the fiscal
effect to update the tax percentage on premium tax filings would be minimal and could be absorbed
within existing resources. Any fiscal effect associated with HB 2242 is not reflected in The FY
2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Jill McCarthy, Office of the Fire Marshal
Bobbi Mariani, Insurance
Lynn Robinson, Department of Revenue


Statutes affected:
As introduced: 75-1508