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


March 1, 2021


The Honorable Robert Olsen, Chairperson
Senate Committee on Commerce
Statehouse, Room 236A-E
Topeka, Kansas 66612
Dear Senator Olsen:
SUBJECT: Fiscal Note for SB 193 by Senator Holland
In accordance with KSA 75-3715a, the following fiscal note concerning SB 193 is
respectfully submitted to your committee.
SB 193 would amend the definition of “personal injury,” as it is used in the Workers
Compensation Act, to include a mental injury, which the bill would define as a mental or
behavioral disorder or a loss of mental faculties. A mental injury may arise out of a compensable
physical injury; a sudden, severe emotional shock traceable to a specific work-related event; or a
series of work-related events after which an employee develops a psychological injury. A mental
injury would not be considered work-related if the mental injury solely resulted from any
disciplinary action, work evaluation, job transfer, layoff, demotion, termination or any similar
action taken in good faith by the employer.

Estimated State Fiscal Effect
FY 2021 FY 2021 FY 2022 FY 2022
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure -- -- -- $3,687,605
FTE Pos. -- -- -- --
The Department of Administration estimates SB 193 would require additional expenditures
of $3,687,605 from the State Self Insurance Fund in FY 2022. The estimate assumes costs for
workers compensation claims would increase by 25.0 percent based on Department research. To
calculate this estimate, the Department used the total amount spent on workers compensation
The Honorable Robert Olsen, Chairperson
Page 2—SB 193

claims in FY 2019, which was $14,750,419. Information from FY 2019 was used because FY
2020 data included variances related to COVID-19. The Department estimates expenditures from
the State Self Insurance Fund would increase to $3,787,169 in FY 2023.
The increase in State Self Insurance Fund expenditures would result in an increase in
workers compensation assessment rates for state agencies. This would increase agency
expenditures for employee benefits, which would be funded from a variety of funding sources
including the State General Fund. However, the fiscal effect on state agencies cannot be
determined because the rate increases that would occur under the bill are unknown.
The Kansas Insurance Department indicates the bill could increase benefit payments from
the Workers Compensation Fund. However, the agency is unable to estimate the fiscal effect. The
bill would have no fiscal effect on the Department of Labor. Any fiscal effect associated with SB
193 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
Bobbi Mariani, Insurance


Statutes affected:
As introduced: 44-508