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 2, 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 203 by Senator Sykes
In accordance with KSA 75-3715a, the following fiscal note concerning SB 203 is
respectfully submitted to your committee.
SB 203 would amend workers compensation law to allow an injured employee rather than
the employer to designate a healthcare provider from which to receive services. Employers would
be required to pay for the healthcare services. The bill would also remove provisions regarding
changing and consulting other healthcare providers if services are unsatisfactory.

Estimated State Fiscal Effect
FY 2021 FY 2021 FY 2022 FY 2022
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure -- -- -- $1,062,294
FTE Pos. -- -- -- --
The Department of Administration indicates the bill would result in the loss of network
provider discounts, which would increase expenditures from the State Self Insurance Fund. The
Department estimates the bill would increase expenditures from the State Self Insurance Fund by
$1,062,294 in FY 2022. 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
The Honorable Robert Olsen, Chairperson
Page 2—SB 203

Department estimates State Self Insurance Fund expenditures would increase by $1,090,976 for
FY 2023.
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
203 is not reflected in The FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Bobbi Mariani, Insurance
Dawn Palmberg, Department of Labor
Jeff Scannell, Department of Administration


Statutes affected:
As introduced: 44-510h