February 5, 2021
Diving Into Department of Labor Fraud
This week, it surfaced that the state’s unemployment program has paid out an estimated $300 to $400 million in fraudulent claims. In fact, despite being a smaller population state, Kansas now ranks second in the nation for new unemployment claims, only behind Illinois. Experts believe the spike in claims in Kansas is due to the fraudulent activity. As these fraudulent claims soared, Kansas families, some of whom applied for benefits months ago, have still been unable to receive their benefits.
Previously, the state’s unemployment trust fund had nearly $1 billion in reserves. The department’s payout of fraudulent claims has more quickly spent down the trust fund. When the trust fund
reserves are low, Kansas business owners are on the hook to refill it, meaning businesses are expected to see their premiums skyrocket to cover the fraudulent claims.
Last week there was a bill introduced to protect the employers that support the Unemployment Trust Fund, House Bill 2195. The Commerce and Economic Development Committee held a hearing regarding the fraud cases with the Department of Labor on Wednesday, February 3.
The Appropriations Committee held a hearing on House Bill 2195 on Thursday, February 4. During the committee hearing we heard from the Kansas Chamber of Commerce, employers from across the state, municipalities, and school districts that would be held harmless for the fraud issues and would not be expected to pay the increased premiums. The fiscal impact of House Bill 2195 is $300-400 million.
Medicaid Expansion Funded by Medical Marijuana
On Monday, February 1, Governor Kelly announced legislation for her latest attempt for Medicaid Expansion and having Kansas’ cost offset with the legalization of medicinal marijuana. Under the proposed legislation, Medicaid would be expanded to the full 138% of the Federal poverty line at the 90% to 10% match from the Federal Government. Individuals will be required to pay a premium not to exceed $25 per person or $100 per family, with a provision to grant exceptions based on hardship.
The bill grants the Kansas Department of Health and Environment the authority for overseeing patients and their use of medical marijuana, Kansas Department of Revenue for licensure and fee collections, and the Board of Healing Arts for certifying prescribing physicians. Kansas’ 10% portion for the cost of Medicaid Expansion has been estimated at $70 million a year.
Bills Passed the House
On Wednesday, February 3, the Kansas House of Representatives debated and voted on eight bills, passing seven of those bills to the Kansas State Senate and referring one bill back to the Elections Committee.
One of those bills that we debated and voted on is House Bill 2090, which changes current law regarding vacancies for an elected office due to military service. It also updates “military service” which has not been changed since 1941. This bill passed the House and I voted, “yes.”
Another bill is House Bill 2017, which increases the criminal penalties for the stalking of a minor. The definition of stalking would now include language protecting children under the age of 14. The bill also increases the penalty if convicted of stalking a minor. The bill passed the House with a vote of 125-0.
The next bill is House Bill 2079 which would transfer the responsibilities of the Charitable Organizations and Solicitations Act from the Kansas Secretary of State to the Attorney General. It also increases the fees for charitable organizations from $20 to $25 in order to register. I do not feel that it is necessary to change the authority of the act and it is not appropriate to raise the fees, even if minimal, or charitable organizations at this particular time. I voted, “no” on this bill, though it passed the House, 70-54.
Contact Information
Anytime that one would like to participate and listen to the developments of committee hearings or discussion on the House floor, one can tune in by listening to the audio footage at www.kslegislature.org.
As always, if you have any concerns, feel free to contact me (785) 296-7672, follow on twitter at @waymaster4house, or email me at [email protected]. Please contact me regarding any issues and legislation that we are discussing during session.
It is a distinct honor to serve as your representative for the 109th Kansas House District and the state of Kansas. Please contact me with your thoughts, concerns, and questions. I always appreciate hearing from the residents of the 109th House District and others from the state of Kansas, as well.
Troy L. Waymaster, R-Bunker Hill, is the 109th Kansas House District state representative and chairman of the Appropriations Committee.