SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 28
As Amended by House Committee on Insurance
Brief*
SB 28, as amended, would establish the Group-funded
Pools Refund Fund and amend and repeal law to eliminate
assessments paid by municipal group-funded liability pools
and group-funded workers’ compensation pools in order to
refund existing balances in two associated fee funds and
wind down such funds.
The bill would specify that moneys in the Group-funded
Pools Refund Fund could be used only for the purpose of
refunding entities that have paid into the Group-funded Pools
Fee Fund (pursuant to KSA 12-2623) and the Group-funded
Workers’ Compensation Fee Fund (pursuant to KSA 44-587)
on a pro-rata basis based upon taxes paid by each entity in
fiscal year 2022. The bill would provide for a July 1, 2023,
transfer from the two existing fee funds into the Group-funded
Pools Refund Fund. On July 1, 2024, this fund would be
abolished.
The bill would also make a technical update to another
group-funded workers’ compensation statute to remove
reference to one of the fees being eliminated by this bill.
The bill would be in effect upon publication in the
Kansas Register.
____________________
*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 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, HB 2093, has been introduced.]
Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, a representative of
the Department provided proponent testimony, stating the
bill will repeal assessments that were established to cover the
necessary costs of the administration and supervision of
group-funded pools and group-funded workers’ compensation
pools. The Department has long determined this assessment
is not necessary, and the conferee noted, since 2015, Kansas
group-funded pools have not been assessed this supervisory
fee. As a result, the Group-funded Pools Fee Fund ($40,528
in balance) and Group-Funded Workers’ Compensation Pools
Fee Fund ($112,719) have been sitting idle. The bill would
transfer the balance into the new fund with a sum of
$153,247.
No other testimony was provided.
House Committee on Insurance
In the House Committee hearing, an overview of the bill
was provided and proponent testimony submitted by the
Department was made available.
The House Committee amended the bill to change its
effective date to upon publication in the Kansas Register.
2- 28 Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department states
the two funds set to be abolished currently have a combined
balance of $153,247 that would be deposited into the newly
created Group-Funded Pools Refund Fund, and then the
entire balance would be returned to the entities. Any fiscal
effect associated with the bill is not reflected in The FY 2024
Governor’s Budget Report.
Insurance; Group-funded Pools Refund Fund; group-funded insurance pools;
transfer of fund balances; refund; repeal
3- 28