SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2096
As Amended by Senate Committee on Financial
Institutions and Insurance
Brief*
HB 2096, as amended, 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.
The bill would be in effect upon publication in the
Kansas Register.
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.]
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*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 House Committee on Insurance
In the House Committee hearing, a representative of the
Department provided proponent testimony, stating the bill
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.
Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, an overview of the bill
was provided and proponent testimony submitted by the
Department was made available.
The Senate Committee amended the bill to change the
effective date to publication in the Kansas Register.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, 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