Session of 2024
HOUSE BILL No. 2834
By Committee on Appropriations
Requested by Representative Sutton
3-12
AN ACT concerning the state health care benefits program; transferring
officers, employees, powers, duties and functions relating to such
program from the division of the state employee health benefits plan of
the department of administration to the insurance department;
establishing the commissioner of insurance as the chairperson of the
Kansas state employees health care commission; providing that all
management functions of such commission shall be administered by the
commissioner of insurance; eliminating a pilot program regarding
employer contributions for certain children; amending K.S.A. 75-6503
and K.S.A. 2023 Supp. 75-37,169 and 75-6502 and repealing the
existing sections; also repealing K.S.A. 75-6506a and K.S.A. 2023
Supp. 75-37,162, 75-37,163, 75-37,164, 75-37,165, 75-37,166, 75-
37,167 and 75-37,168.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. All powers, duties and functions of the staff of the
division of the state employee health plan of the department of
administration established in K.S.A. 75-6501 et seq. and 75-7405(c)(7),
and amendments thereto, and any other statute involving the
administration of the state health care benefits program are hereby
transferred to and imposed upon the insurance department under the
direction of the commissioner of insurance.
New Sec. 2. (a) All officers and employees of the division of the state
employee health benefits plan of the department of administration who,
immediately prior to July 1, 2024, are engaged in the exercise and
performance of the powers, duties and functions involving the
administration of the state employee health benefits plan, as well as all
officers and employees of the department of administration who are
determined by the commissioner of insurance to be engaged in providing
administrative, technical or other support services that are essential to the
exercise and performance of the powers, duties and functions transferred
by section 1, and amendments thereto, are hereby transferred to the
insurance department. All classified officers and employees so transferred
shall retain their status as classified employees.
(b) Officers and employees of the division of the state employee
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35 HB 2834 2
health benefits plan of the department of administration transferred by this
section shall retain all retirement benefits and leave balances and rights
that had accrued or vested prior to the date of transfer. The service of each
such officer and employee so transferred shall be deemed to have been
continuous. Any subsequent transfers, layoffs or abolition of classified
service positions under the Kansas civil service act shall be made in
accordance with the civil service laws and any rules and regulations
adopted thereunder. Nothing in this section shall affect the classified status
of any transferred person employed by the division of the state employee
health benefits plan of the department of administration prior to the date of
transfer.
(c) Notwithstanding the effective date of this section, the provisions
of this section prescribing the transfer of officers and employees from the
division of the state employee health benefits plan of the department of
administration to the insurance department shall commence at the start of a
payroll period.
New Sec. 3. (a) The insurance department shall be the successor in
every way to the powers, duties and functions of the division of the state
employee health benefits plan of the department of administration
involving the administration of the state health care benefits program that
were vested pursuant to K.S.A. 75-37,162 through 75-37,168, prior to their
repeal.
(b) Every act performed in the exercise of such transferred powers,
duties and functions by or under the authority of the insurance department
and the commissioner of insurance involving the administration of the
state health care benefits program shall be deemed to have the same force
and effect as if performed by the division of the state employee health
benefits plan, the secretary of administration or the director of the state
employees health benefits plan in which the same were vested pursuant to
K.S.A. 75-37,162 through 75-37,168, prior to their repeal.
(c) Whenever the division of the state employee health benefits plan
of the department of administration or words of like effect are referred to
or designated by a statute, contract, memorandum of agreement or other
document and such reference is in regard to any of the powers, duties and
functions transferred to the insurance department pursuant to section 1,
and amendments thereto, such reference or designation shall be deemed to
apply to the insurance department.
(d) All rules and regulations, orders and directives of the division of
the state employee health benefits plan of the department of administration
that relate to the powers, duties and functions transferred by section 1, and
amendments thereto, and are in effect on July 1, 2024, shall continue to be
effective and shall be deemed to be rules and and regulations, orders and
directives of the commissioner of insurance until revised, amended,
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2834 3
repealed or nullified pursuant to law.
New Sec. 4. (a) The balances of all funds or accounts thereof
appropriated or reappropriated for the division of the state employee health
benefits plan of the department of administration relating to the powers,
duties and functions involving the administration of the state health care
benefits program are hereby transferred within the state treasury to the
insurance department and shall be used only for the purpose for which the
appropriation or reappropriation was originally made.
(b) Liability for all accrued compensation or salaries of officers and
employees who are transferred to the insurance department pursuant to
section 2, and amendments thereto, shall be assumed and paid by the
insurance department.
New Sec. 5. (a) The insurance department shall succeed to all
property, property rights, contracts and records that were used for or
pertain to the performance of powers, duties and functions involving the
administration of the state health care benefits program that were
transferred to the division of the state employee health benefits plan of the
department of administration pursuant to K.S.A. 75-37,162 through 75-
37,168, prior to their repeal.
(b) When any conflict arises as to the disposition of any personnel,
property, property right, contract, record, power, duty, function or the
unexpended balance of any appropriation as result of any transfer made by
or under the provisions of sections 1 through 5, and amendments thereto,
such conflict shall be resolved by the commissioner of insurance, whose
decision shall be final.
New Sec. 6. (a) No suit, action or other proceeding, judicial or
administrative, lawfully commenced, or that could have been commenced,
by or against the division of the state employee health benefits plan of the
department of administration or by or against the secretary of
administration in such secretary's official duties, shall abate by reason of
the transfer effected under the provisions of sections 1 through 5, and
amendments thereto. The court may allow any such suit, action or other
proceeding to be maintained by or against the insurance department or the
commissioner of insurance.
(b) No criminal action commenced or that could have been
commenced by the state shall abate by reason of the transfer effected under
the provisions of sections 1 through 5, and amendments thereto.
Sec. 7. K.S.A. 2023 Supp. 75-37,169 is hereby amended to read as
follows: 75-37,169. (a) All powers, duties and functions of the staff of the
department of health and environment established in K.S.A. 44-575
through 44-580, and amendments thereto, involving the administration of
the state workers compensation self-insurance fund are hereby transferred
to and imposed upon the department of administration, under the direction
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2834 4
of the secretary of administration, and its division of the state employee
health benefits plan, under the direction of the director of the state
employee health benefits plan.
(b) The secretary of administration shall administer the state workers
compensation self-insurance fund and all payments from such fund shall
be upon warrants of the director of accounts and reports issued pursuant to
vouchers approved by the secretary of administration or a person or
persons designated by the secretary. The director of accounts and reports
may issue warrants pursuant to vouchers approved by the secretary for
payments from the state workers compensation self-insurance fund not-
withstanding the fact that claims for such payments were not submitted or
processed for payment from money appropriated for the fiscal year in
which the state workers compensation self-insurance fund first became
liable to make such payments.
(c) The secretary of administration shall remit all moneys received by
or for the secretary in the capacity as administrator of the state workers
compensation self-insurance fund, to the state treasurer in accordance with
the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt
of each such remittance, the state treasurer shall deposit the entire amount
in the state treasury to the credit of the state workers compensation self-
insurance fund.
(d) The balances of all funds or accounts thereof appropriated or re-
appropriated for the division of health care finance of the department of
health and environment or any state agency, department, board,
commission or council, relating to the powers, duties and functions
involving the administration of the state workers compensation self-
insurance fund are hereby transferred within the state treasury to the
department of administration for the division of the state employee health
benefits plan and shall be used only for the purpose for which the
appropriation was originally made. Liability for all accrued compensation
or salaries of officers and employees who are transferred to the department
of administration and the division of the state employee health benefits
plan pursuant to this order shall be assumed and paid by the division of the
state employee health benefits plan of the department of administration.
(e) There is hereby established the state workplace health and safety
program within the state workers compensation self-insurance program of
the department of administration. The secretary of administration shall
implement and the division of industrial health and safety of the Kansas
department of labor shall assist in administering the state workplace health
and safety program for state agencies. The state workplace health and
safety program shall include, but not be limited to:
(1) Workplace health and safety hazard surveys in all state agencies,
including onsite interviews with employees;
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2834 5
(2) workplace health and safety hazard prevention services, including
inspection and consultation services;
(3) procedures for identifying and controlling workplace hazards;
(4) development and dissemination of health and safety informational
materials, plans, rules and work procedures; and
(5) training for supervisors and employees in healthful and safe work
practices.
(f) Except as provided in this order, the secretary of administration
shall be the successor in every way to the powers, duties and functions of
the secretary of health and environment that relate to the state workers
compensation self-insurance fund, in which the same were vested prior to
the effective date of this order.
(g) All orders and directives of the secretary of health and
environment that relate to the state workers compensation self-insurance
fund in existence immediately prior to the effective date of this order shall
continue to be effective and shall be deemed to be the orders or directives
of the secretary of administration, until revised, amended, repealed or
nullified pursuant to law.
(h) The secretary of administration shall succeed to all property,
property rights, contracts and records that were used for or pertain to the
performance of the powers, duties and functions transferred to the
secretary of administration from the division of the state workers
compensation self-insurance fund of the department of health and
environment pursuant to this order. Any conflicts as to the proper
disposition of property, property rights, contracts and records arising under
this section shall be resolved by the governor, whose decision shall be
final.
(i) All officers and employees of the division of the state workers
compensation self-insurance fund of the department of health and
environment who, immediately prior to the effective date of this order, are
engaged in the exercise and performance of the powers, duties and
functions involving the administration of the state workers compensation
self-insurance fund and transferred by this order, as well as all officers and
employees of the department of health and environment who are
determined by the secretary of administration to be engaged in providing
administrative, technical or other support services that are essential to the
exercise and performance of the powers, duties and functions transferred
by this order, are hereby transferred to the department of administration,
under the direction of the secretary of administration, and its division of
the state employee health benefits plan. All classified officers and
employees so transferred shall retain their status as classified employees.
(j) Officers and employees of the division of the state workers
compensation self-insurance fund of the department of health and
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2834 6
environment transferred by this order shall retain all retirement benefits
and leave balances and rights that had accrued or vested prior to the date
of transfer. The service of each such officer or employee so transferred
shall be deemed to have been continuous. Any subsequent transfers,
layoffs or abolition of classified service positions under the Kansas civil
service act shall be made in accordance with the civil service laws and any
rules and regulations adopted thereunder. Nothing in this order shall affect
the classified status of any transferred person employed by the division of
the state workers compensation self-insurance fund of the department of
health and environment prior to the date of transfer.
Sec. 8. K.S.A. 2023 Supp. 75-6502 is hereby amended to read as
follows: 75-6502. (a) There is hereby established the Kansas state
employees health care commission which is composed of seven members
as follows: (1) The commissioner of insurance; (2) the secretary of
administration; (3) a current state employee who is currently enrolled in
the state healthcare benefits program group health insurance medical plan,
appointed by the governor; (4) a person who retired from a position in
state service and who is currently enrolled in the state healthcare benefits
program group health insurance medical plan, appointed by the governor;
(5) a representative of the general public, appointed by the governor; (6) a
member of the senate ways and means committee, appointed by the
president of the senate; and (7) a member of the house of representatives
appropriations committee, appointed by the speaker of the house of
representatives. A state officer or employee may not be appointed as the
member representative of the general public.
(b) Each member appointed under this section by the governor shall
serve at the pleasure of the governor. The member appointed by the
president of the senate shall serve at the pleasure of the president of the
senate, and the member appointed by the speaker of the house of
representatives shall serve at the pleasure of the speaker of the house of
representatives. Not more than five members of the commission shall be
members of the same political party.
(c) The chairperson of the commission shall be designated by the
governor commissioner of insurance. The commission shall meet at least
once each calendar quarter and at such other times as may be required on
call of the chairperson or any three members thereof.
(d) A quorum of the Kansas state employees health care commission
shall be four. All actions of the commission shall be taken by a majority of
all of the members of the commission.
(e) Members of the Kansas state employees health care commission
attending meetings of such commission, or attending a subcommittee
meeting thereof authorized by such commission, shall be paid
compensation, subsistence allowances, mileage and other expenses as
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2834 7
provided in K.S.A. 75-3223, and amendments thereto.
Sec. 9. K.S.A. 75-6503 is hereby amended to read as follows: 75-
6503. (a) Except as otherwise provided by this act, all budgeting,
purchasing and related management functions of the Kansas state
employees health care commission shall be administered by the secretary
of administration under the direction and supervision of the chairperson of
the commission commissioner of insurance. All vouchers for expenditures
and all payrolls of the Kansas state employees health care commission
shall be approved by the chairperson of the commission or by a person or
persons designated by the chairperson.
(b) There is hereby created the position of technical administrator for
the state health care benefit program. Under the direction and supervision
of the secretary of administration commissioner of insurance, the technical
administrator shall provide primary staffing assistance to the commission
and perform such other functions and duties as may be prescribed by the
commission. The technical administrator shall be in the classified or
unclassified service under the Kansas civil service act as specified by the
secretary of administration and shall be appointed by the secretary of
administration commissioner of insurance. Within the limits of available
appropriations, the secretary of administration commissioner of insurance
shall provide such additional assistance as may be requested by the
commission.
Sec. 10. K.S.A. 75-6503 and 75-6506a and K.S.A. 2023 Supp. 75-
37,162, 75-37,163, 75-37,164, 75-37,165, 75-37,166, 75-37,167, 75-
37,168, 75-37,169 and 75-6502 are hereby repealed.
Sec. 11. This act shall take effect and be in force from and after its
publication in the statute book.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27