SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2096
As Recommended by House Committee on
Insurance
Brief*
HB 2096 would amend provisions pertaining to premium
taxes paid by municipal group-funded liability pools and
group-funded workers’ compensation pools to change the
basis upon which the premium taxes for these pools are
calculated.
The bill would change, from fiscal year to calendar year,
the basis upon which the 1.0 percent annual premium tax is
paid. (Under both the bill and current law, the premium tax is
based on the annual gross premium collected by the pool for
the preceding year. Payment must made no later than 90
days after the conclusion of each year.)
The bill would also make technical changes.
Background
The bill was introduced by the Senate Committee on
Financial Institutions and Insurance at the request of the
Kansas Insurance Department (Department). [Note: A
companion bill, SB 19, has been introduced in the Senate.]
House Committee on Insurance
In the House Committee hearing, a representative of the
Department provided proponent testimony, stating the bill
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org would better align the statute with the Department’s business
practices and eliminate the ambiguity concerning the
definition of “fiscal year.” The representative noted, of the 17
group-funded pools transacting business in Kansas, 12 pools
conclude their respective fiscal years on December 31.
Consistent with a filing date of 90 days after the end of the
reporting year, the filing date would become March 31.
No other testimony was provided.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the Department states the bill would
shift when these premium taxes are collected, which could
affect the total amount collected in the first years as those
pools make payment adjustments. The Department indicates
it cannot estimate the net change because each company’s
fiscal year is different. Any fiscal effect associated with the bill
is not reflected in The Governor’s FY 2024 Report.
Insurance; group-funded pools; premium tax collection
2- 2096