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 http://budget.kansas.gov Adam C. Proffitt, Director Laura Kelly, Governor Division of the Budget March 18, 2024 The Honorable Jeff Longbine, Chairperson Senate Committee on Financial Institutions and Insurance 300 SW 10th Avenue, Room 546-S Topeka, Kansas 66612 Dear Senator Longbine: SUBJECT: Fiscal Note for SB 553 by Senate Committee on Federal and State Affairs In accordance with KSA 75-3715a, the following fiscal note concerning SB 553 is respectfully submitted to your committee. SB 553 would allow a plan sponsor of a health benefit plan, on behalf of a covered person, to provide consent to electronic delivery of communications related to the plan and health insurance identification cards. Before providing consent on behalf of a covered person, a plan sponsor must confirm that the covered person routinely, at least once every 24 hours during the work week, uses electronic communications during the normal course of employment. Before utilizing electronic means to deliver any plan communications or health insurance identification cards, the health benefit plan must provide the covered person with an opportunity to opt out of electronic delivery and select United States mail as the preferred method of delivery for such health benefit plan covered person and document that all applicable requirements have been met. The Department of Administration and the Insurance Department indicate enactment of the bill would not have a fiscal effect on operations of either agency. Sincerely, Adam C. Proffitt Director of the Budget cc: Bobbi Mariani, Insurance Department Tamara Emery, Department of Administration