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 January 27, 2025 The Honorable Brenda Dietrich, Chairperson Senate Committee on Financial Institutions and Insurance 300 SW 10th Avenue, Room 546-S Topeka, Kansas 66612 Dear Senator Dietrich: SUBJECT: Fiscal Note for SB 28 by Senate Committee on Financial Institutions and Insurance In accordance with KSA 75-3715a, the following fiscal note concerning SB 28 is respectfully submitted to your committee. SB 28 would amend the Uniform Insurance Agents Licensing Act and the Public Adjusters Licensing Act. The bill would allow the status of an insurance agent’s license or securities registration to be considered by the Commissioner when reviewing a public adjuster’s license and would also allow the status of a public adjuster’s license or securities registration to be considered by the Commissioner when reviewing an insurance agent’s license. Under the bill, the Insurance Commissioner would be able to suspend, revoke, or refuse to issue or renew a public adjuster’s license for failing to respond to an inquiry from the Commissioner within 15 days. The bill also details items the Commissioner would be required to consider when deciding to deny, suspend, revoke, or refuse to renew a public adjuster’s license application of an individual who has convicted of a misdemeanor or felony. The bill lists items the Commissioner would be required to consider when deciding whether to reinstate or grant a public adjuster’s license that was revoked. Actions taken by the Commissioner that would affect any license or imposes an administrative penalty would be taken only after an opportunity for a hearing to be conducted in accordance with the Kansas Administrative Procedures Act. Any cost incurred to conduct an administrative hearing would be assessed against the individual or entity who is the subject of the hearing. A public adjuster whose license has been suspended or revoked would not be allowed to be employed by any insurance company that does business in Kansas during the period of suspension or revocation. An applicant whose public adjuster license has been denied after a hearing would not be able to apply again until after one year from the date of the Commissioner's order. If a public adjuster license has been revoked, the licensee would not be able to apply again for a license until two years after the date of the Commissioner’s order. The Honorable Brenda Dietrich, Chairperson Page 2—SB 28 The Kansas Department of Insurance states that the bill would increase agency operating expenditures by an unknown amount; however, any increase would be absorbed within existing resources. Sincerely, Adam C. Proffitt Director of the Budget cc: Kyle Strathman, Insurance Department