| 1 | 1 | | Session of 2023 |
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| 2 | 2 | | SENATE BILL No. 28 |
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| 3 | 3 | | By Committee on Financial Institutions and Insurance |
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| 4 | 4 | | 1-11 |
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| 5 | 5 | | AN ACT concerning insurance; relating to certain group-funded insurance |
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| 6 | 6 | | pools; discontinuing payments paid to the group-funded pools fee fund |
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| 7 | 7 | | and the group-funded workers' compensation fee fund; transferring |
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| 8 | 8 | | such balances and abolishing such funds; establishing the group-funded |
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| 9 | 9 | | pools refund fund; refunding the balance thereof and abolishing such |
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| 10 | 10 | | fund on July 1, 2024; amending K.S.A. 44-588 and repealing the |
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| 11 | 11 | | existing section; also repealing K.S.A. 12-2623 and 44-587. |
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| 12 | 12 | | Be it enacted by the Legislature of the State of Kansas: |
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| 13 | 13 | | New Section 1. (a) There is hereby established in the state |
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| 14 | 14 | | treasury the group-funded pools refund fund. |
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| 15 | 15 | | (b) (1) Moneys in the group-funded pools refund fund shall be used |
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| 16 | 16 | | only for the purpose of refunding entities that have paid into the group- |
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| 17 | 17 | | funded pools fee fund, pursuant to K.S.A. 12-2623, prior to its repeal, and |
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| 18 | 18 | | the group-funded workers' compensation fee fund, pursuant to K.S.A. 44- |
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| 19 | 19 | | 587, prior to its repeal. |
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| 20 | 20 | | (2) Refunds shall be distributed on a pro-rata basis, based upon |
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| 21 | 21 | | premium taxes paid by each entity in the 2022 fiscal year. |
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| 22 | 22 | | (3) All expenditures from the group-funded pools refund fund shall |
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| 23 | 23 | | be made in accordance with appropriations acts upon warrants of the |
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| 24 | 24 | | director of accounts and reports issued pursuant to vouchers approved by |
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| 25 | 25 | | the commissioner of insurance or the commissioner's designee. |
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| 26 | 26 | | (c) On July 1, 2023: |
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| 27 | 27 | | (1) The director of accounts and reports shall transfer all moneys in |
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| 28 | 28 | | the group-funded pools fee fund, established pursuant to K.S.A. 12-2623, |
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| 29 | 29 | | prior to its repeal, and the group-funded workers' compensation fee fund, |
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| 30 | 30 | | established pursuant to K.S.A. 44-587, prior to its repeal, to the group- |
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| 31 | 31 | | funded pools refund fund; |
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| 32 | 32 | | (2) all liabilities of the group-funded pools fee fund and the group- |
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| 33 | 33 | | funded workers' compensation fee fund are hereby transferred to and |
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| 34 | 34 | | imposed on the group-funded pools refund fund; and |
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| 35 | 35 | | (3) the group-funded pools fee fund and the group-funded workers' |
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| 36 | 36 | | compensation fee fund are hereby abolished. |
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| 37 | 37 | | (d) On July 1, 2024, the group-funded pools refund fund is hereby |
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| 38 | 38 | | abolished. |
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| 39 | 39 | | Sec. 2. K.S.A. 44-588 is hereby amended to read as follows: 44-588. |
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| 75 | 75 | | 36 SB 28 2 |
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| 76 | 76 | | In addition to the fees required to be paid in K.S.A. 44-587, and |
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| 77 | 77 | | amendments thereto, and As a condition precedent to the continuation of |
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| 78 | 78 | | the certificate of authority provided in this act, all group-funded workers' |
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| 79 | 79 | | compensation funds shall pay no not later than 90 days after the end of |
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| 80 | 80 | | each fiscal year a tax upon the annual Kansas gross premium collected by |
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| 81 | 81 | | the pool at the rate of 1% per annum applied to the collective premium |
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| 82 | 82 | | relating to all Kansas members of the pool for the preceding fiscal year. In |
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| 83 | 83 | | the computation of the tax, all pools shall be entitled to deduct any annual |
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| 84 | 84 | | Kansas gross premiums returned on account of cancellation or dividends |
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| 85 | 85 | | returned to members of such pools or expenditures used for the purchase |
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| 86 | 86 | | of specific and aggregate excess insurance, as provided in subsection (a) of |
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| 87 | 87 | | K.S.A. 44-582(a), and amendments thereto. |
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| 88 | 88 | | Sec. 3. K.S.A. 12-2623, 44-587 and 44-588 are hereby repealed. |
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| 89 | 89 | | Sec. 4. This act shall take effect and be in force from and after its |
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| 90 | 90 | | publication in the statute book. |
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