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 3, 2025 The Honorable Larry Alley, Chairperson Senate Committee on Commerce 300 SW 10th Avenue, Room 159-S Topeka, Kansas 66612 Dear Senator Alley: SUBJECT: Fiscal Note for SB 216 by Senator Corson, et al. In accordance with KSA 75-3715a, the following fiscal note concerning SB 216 is respectfully submitted to your committee. SB 216 would enact the Kansas Paid Sick Time Act. The bill would require employers with 15 or more employees to provide paid sick time to be compensated at the same hourly rate and benefits as normally earned. The bill would detail how earned sick time accrues, with accrual not occurring before January 1, 2026. Employers would be required to provide employees with written notice regarding earned paid sick time. Employers would be prohibited from requiring employees to find replacement workers when using paid sick time. The bill would also list other requirements and restrictions for employers and employees regarding the paid sick time, specify penalties for violation of the Act, and include provisions related application of the Act for municipalities, counties, cities, towns or villages. The Secretary of Labor would be authorized to adopt rules and regulations to implement the bill’s provisions. The Department of Labor would be authorized to investigate and enforce compliance with the Act. According to the Kansas Department of Labor, enactment of SB 216 would increase State General Fund expenditures by $300,000, beginning in FY 2026. This is based on the assumption that wage claims would double. Current wage claims operations total $300,000 annually and include 3.00 positions. The agency anticipates an additional 3.00 positions would be necessary to handle the increased workload to implement all requirements of the bill and all other operational costs would also increase. The agency was unable to estimate new revenue related to the bill’s provisions as it would be dependent on the findings and fines assessed in each case. The Honorable Larry Alley, Chairperson Page 2—SB 216 The Department of Administration states that the fiscal effect for most state agencies under the Governor’s jurisdiction would be negligible because the State’s current sick leave policy is more generous than what is required by the bill. The agency notes that enactment of the bill would require amendments to the Kansas Administrative Regulations regarding sick leave and would impact specific provisions regarding the eligibility for, approval of, and use of sick leave. Legislative Administrative Services indicates enactment of the bill would not result in a fiscal effect for the Legislature. The Kansas State Department of Education states enactment of the bill would not have a fiscal effect on agency operations and would affect school districts in the same manner as any other employer, but a total fiscal effect could not be estimated. The Kansas Board of Regents indicates enactment of the bill could have a fiscal effect on postsecondary educational institutions in the state for employees, such as temporary, part-time, and student workers, that are not currently eligible for benefits and do not accrue sick leave. The total fiscal effect could not be estimated. Any fiscal effect associated with SB 216 is not reflected in The FY 2026 Governor’s Budget Report. The League of Kansas Municipalities states that enactment of SB 216 would have a fiscal effect for cities, but a total effect could not be estimated. The League notes that many cities have implemented leave policies, but many smaller cities may not have policies in place and may not have the budget for the leave as required by the bill. The bill would also require municipalities to develop and implement new procedures which would increase duties and costs. The Kansas Association of Counties indicates that enactment of the bill could affect some counties as employers if they do not currently accrue sick time for all qualifying employees at the rates prescribed in the bill. A total fiscal effect could not be estimated. Sincerely, Adam C. Proffitt Director of the Budget cc: Trisha Morrow, Judiciary Wendi Stark, League of Kansas Municipalities Jay Hall, Kansas Association of Counties Becky Pottebaum, Board of Regents Samir Arif, Department of Administration Tom Day, Legislative Services Gabrielle Hull, Department of Education Dawn Palmberg, Department of Labor