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