SESSION OF 2024
CONFERENCE COMMITTEE REPORT BRIEF
SENATE BILL NO. 423
As Agreed to April 2, 2024
Brief*
SB 423 would transfer authority over the Kansas State Employee Health Plan and the
State Workers Compensation Self-Insurance Fund from the Department of Administration (DoA)
to the Department of Insurance (Department) and establish the Commissioner of Insurance
(Commissioner) as the Chairperson of the Kansas State Employees Health Care Commission.
The bill would also make conforming amendments in related statutes to reflect the transfer.
The bill would authorize the Commissioner to decrease the number of board members on
certain boards and reduce the frequency of meetings and to set the amount of fees and fines for
required filings by certain insurance entities and public adjusters under the jurisdiction of the
Commissioner and publish such fees and fines. The bill would also amend the definition of
“person” in law regarding violations of insurance law.
Additionally, the bill would make technical amendments to ensure consistency in statutory
phrasing and conforming changes to additional statutory sections.
[Note: References in the bill to the State Employee Health Care Benefits Program and the
State Employee Health Benefits Plan are referred to here collectively as the State Employee
Health Plan (SEHP).]
[Note: The section numbers throughout refer to the sections in the CCR.]
Transfer of Authority Over Kansas State Employee Health Plan and State Workers
Compensation Self-Insurance Fund
Kansas State Employee Health Plan
Transfer of authority (New Section 1). The bill would provide for all powers, duties, and
functions of the staff of the division of the SEHP to transfer from the DoA to the Department
under the direction of the Commissioner.
____________________
*Conference committee report briefs are prepared by the Legislative Research Department and do not express
legislative intent. No summary is prepared when the report is an agreement to disagree. Conference committee
report briefs may be accessed on the Internet at http://www.kslegislature.org/klrd
1 - 423 Transfer of employees (New Section 2). The bill would provide for all officers and
employees of the division of the SEHP of the DoA who, immediately prior to July 1, 2026, are
engaged in the exercise and performance of the powers, duties, and functions involved in the
administration of the SEHP, as well as officers and employees of the DoA who are determined
by the Commissioner 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
of the SEHP, to be transferred to the Department. All classified officers and employees so
transferred would retain their status as classified employees.
Officers and employees of the SEHP division of the DoA transferred by the bill would retain
all retirement benefits, leave balances, and rights that had accrued or vested prior to the date of
transfer. The service of each transferred officer and employee would be considered continuous.
Any subsequent transfers, layoffs, or abolition of classified service positions under the Kansas
Civil Service Act would be made in accordance with civil service laws and adopted rules and
regulations. Nothing in this section of the bill would affect the classified status of any transferred
person employed by the DoA division of the SEHP prior to the date of transfer.
Notwithstanding the effective date of the bill, the provisions of the bill prescribing the
transfer of officers and employees would commence at the start of a payroll period.
Department of Insurance (New Section 3). The bill would provide for the Department to
be the successor in every way to the powers, duties, and functions of the division of the SEHP
in the DoA involving administration of the SEHP.
Every act performed in the exercise of transferred powers, duties, and functions by or
under the authority of the Department and the Commissioner involving the administration of the
SEHP would be deemed to have the same force and effect as if performed by the division of the
SEHP, the Secretary of Administration (Secretary), or the Director of the SEHP prior to the
transfer.
The bill would provide for references to the division of the SEHP of the DoA or words of like
effect in statute, contract, memorandum of agreement, or other document in reference to the
powers, duties, and functions transferred to the Department to apply to the Department.
Additionally, all rules and regulations, orders, and directives of the division of the SEHP of
the DoA that relate to the powers, duties, and functions transferred under the bill would be in
effect on July 1, 2026, would continue to be effective, and would be deemed to be rules and
regulations, orders, and directives of the Commissioner until revised, amended, repealed, or
nullified.
Transfer of funds and accounts (New Section 4). The bill would provide for the balances
of all funds or accounts appropriated or reappropriated for the division of the SEHP of the DoA
relating to the powers, duties, and functions involving administration of the SEHP to be
transferred within the State Treasury to the Department and be used only for the purpose for
which the appropriation or reappropriation was originally made.
Liability for all accrued compensation or salaries of officers and employees who are
transferred to the Department would be assumed and paid by the Department.
2 - 423 Transfer of Property, Property Rights, Contracts, and Records
Transfer of property, property rights, contracts, and records (New Section 5). The bill
would provide for the Department to 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 SEHP that were transferred to the SEHP of the DoA.
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 the
result of any transfer made by or under the bill, the bill would provide for the conflict to be
resolved by the Commissioner, whose decision would be final.
Abatement (New Section 6). The bill would provide for no suit, action, or other
proceeding, judicial or administrative, lawfully commenced, or that could have been
commenced, by or against the division of the SEHP of the DoA or by or against the Secretary in
their official duties to abate by reason of the transfer effected under the bill. The court could
allow any such suit, action, or other proceeding to be maintained by or against the Department
or the Commissioner.
The transfer effected under the bill would not abate any criminal action commenced or that
could have been commenced by the State.
State Workers Compensation Self-Insurance Fund (New Section 7)
The bill would provide for all powers, duties, and functions of the staff of the division of the
SEHP of the DoA regarding the State Workers Compensation Self-Insurance Fund (Fund) to be
transferred and imposed upon the Department, under the discretion of the Commissioner.
The balances of all funds or accounts appropriated or reappropriated for the division of the
SEHP of the DoA or any state agency, department, board, commission, or council, relating to
the powers, duties, and functions of the administration of the Fund would be transferred within
the State Treasury to the Department, to be used only for the purpose originally designated by
the appropriation or reappropriation. Liability for all accrued compensation or salaries of officers
or employees who are transferred to the Department under the bill would be assumed and paid
by the Department.
The Commissioner would be the successor in every way to the powers, duties, and
functions vested prior to July 1, 2026, to the Secretary that relate to the Fund.
All orders and directives of the Secretary that relate to the Fund in existence immediately
prior to July 1, 2026, would continue to be effective and would be deemed the orders and
directives of the Commissioner until revised, amended, repealed, or nullified.
Transfer of property. The Commissioner would 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 Commissioner from the division of the SEHP of the DoA. Any
conflict as to the proper disposition of property, property rights, contracts, and records would be
resolved by the Commissioner, whose decision would be final.
3 - 423 Transfer of employees. The bill would provide for all officers and employees of the
division of the SEHP of the DoA who, immediately prior to July 1, 2026, are engaged in the
exercise and performance of the powers, duties, and functions involving the administration of
the Fund, as well as officers and employees of the DoA who are determined by the
Commissioner 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 of the
SEHP, to be transferred to the Department, under the direction of the Commissioner. All
classified officers and employees so transferred would retain their status as classified
employees.
Officers and employees of the division of the SEHP of the DoA transferred by the bill would
retain all retirement benefits, leave balances, and rights that had accrued or vested prior to the
date of transfer. The service of each transferred officer and employee would be considered
continuous. Any subsequent transfers, layoffs, or abolition of classified service positions under
the Kansas Civil Service Act would be made in accordance with civil service laws and adopted
rules and regulations. Nothing in this section of the bill would affect the classified status of any
transferred person employed by the division of the SEHP of the DoA prior to the date of transfer.
Other Authorities Related to the Fund (Sections 39–42)
The bill would transfer authority over workers compensation payments, the state
Workplace Health and Safety Program, claims for compensation under the Workers
Compensation Act, and rules and regulations related to the administration of the Fund from the
Department of Health and Environment, under the direction of the Secretary of Health and
Environment, to the Department, under the direction of the Commissioner.
Health Care Commission (Sections 45 and 46)
Under the bill, the Commissioner would be the Chairperson of the Health Care
Commission. The Commissioner would administer all budgeting, purchasing, and related
management functions of the Health Care Commission, except as otherwise provided. The
technical administrator for the State Health Benefits program would be appointed by and under
the direction and supervision of the Commissioner. The bill would require the Commissioner to
provide such additional assistance as may be requested by the Commission within the limits of
available appropriations.
Repeal of Statutes (Section 47)
The bill would repeal KSA 75-6506a, regarding a pilot program within SEHP, and KSA 75-
37,162 through KSA 75-37,171, regarding Executive Reorganization Order No. 45 (ERO 45),
which moved the SEHP from the Department of Health and Environment to the DoA in 2020.
Delayed Repeal of Statutes (Section 48)
The bill would delay to on and after July 1, 2026, the repeal of certain statutes to
correspond to the delay in transfer of authority over the SEHP and the State Workers
Compensation Self-Insurance Fund to the Commissioner.
4 - 423 Definition of “Person” for Violations of Insurance Law (Section 11)
The bill would amend the definition of “person” in law regarding violations of insurance law
to remove references to specific entities under the jurisdiction of the Commissioner for the
purpose of determining violations of Kansas insurance law.
Commissioner Authority for Reductions in Board Membership and Meeting
Requirements
The bill would authorize the Commissioner to decrease the number of appointed board
members on certain boards that fall under the Commissioner’s appointing authority. The bill
would also remove a requirement for the Committee on Surety Bonds and Insurance to meet at
least once per month and make technical changes.
Board Membership
The bill would provide for a reduction in membership for five governing boards under the
jurisdiction of the Commissioner, including:
●The governing board for the Kansas Automobile Insurance Plan;
●The Kansas Workers Compensation Insurance Plan Governing Board;
●The governing board for the Kansas Automobile Assigned Claims Plan;
●The Health Care Provider Insurance Availability Plan Board of Directors; and
●The Kansas Underground Storage Tank Liability Plan Board of Directors.
For each governing board, with the exception of the Kansas Automobile Assigned Claims
Plan, the bill would provide for the terms of members appointed and serving on the governing
board as of July 1, 2024, to expire on December 31, 2024.
Kansas Automobile Insurance Plan (Section 15). The bill would provide for a reduction
in membership for the governing board of the Kansas Automobile Insurance Plan from seven
members to five members.
The Commissioner would appoint a governing board for the plan, which would serve on
and after January 1, 2025, and would have the same duties and functions as its predecessor.
On and after January 1, 2025, the members of the governing board would serve three-year
terms, except that members would be removable by the Commissioner for inefficiency, neglect
of duty, or malfeasance. The governing board would consist of five members to be appointed as
follows:
●Three members would be representatives of insurers;
●One member would be a representative of independent insurance agents; and
●One member would be a representative of the general public.
In making appointments to the governing board, the Commissioner would consider if
foreign and domestic insurers are fairly represented.
5 - 423 Kansas Workers Compensation Insurance Plan Governing Board (Section 16). The
bill would provide for a reduction in membership for the Kansas Workers Compensation
Insurance Plan Governing Board from seven members to five members.
The Commissioner would appoint a governing board that would serve on and after January
1, 2025, and would have the same duties and functions as its predecessor. On and after
January 1, 2025, the members of the Kansas Workers Compensation Insurance Plan Governing
Board would serve three-year terms, except that members would be removable by the
Commissioner for inefficiency, neglect of duty, or malfeasance. The governing board would
consist of five members to be appointed as follows:
●Three members would be representatives of insurers;
●One member would be a representative of independent insurance agents; and
●One member would be a representative of the general public.
●In making appointments to the governing board, the Commissioner would consider if
foreign and domestic insurers are fairly represented.
Kansas Automobile Assigned Claims Plan (Section 20). The bill would state that on
and after January 1, 2025, the governing board for the Kansas Automobile Assigned Claims
Plan would consist of five members, who would be removable by the Commissioner for
inefficiency, neglect of duty, or malfeasance. Members would be appointed as follows:
●Three members would be representatives of insurers;
●One member would be a representative of independent insurance agents; and
●One member would be a representative of the general public.
The Commissioner would be required to consider whether foreign and domestic insurers
are fairly represented in selecting the members.
[Note: Effective January 1, 2024, the Kansas Automobile Assigned Claims Plan is now
managed by AIPSO, a national, not-for-profit corporation formed by the insurance industry to
provide services to automobile insurance residual markets throughout the country.]
Health Care Provider Insurance Availability Plan Board of Directors (Section 23). The
bill would provide for a reduction in membership for the Health Care Provider Insurance
Availability Plan Board of Directors from nine members to five members.
The Commissioner would appoint a governing board that would serve on and after January
1, 2025, and would have the same duties and functions as its predecessor. On and after
January 1, 2025, the members of the Health Care Provider Insurance Availability Plan Board of
Directors would serve four-year terms, except that members would be removable by the
Commissioner for inefficiency, neglect of duty, or malfeasance. The governing board would
consist of five members to be appointed as follows:
●One member would be a representative of foreign insurers;
●One member would be a representative of domestic insurers;
6 - 423 ●One member would be a health care provider;
●One member would be a licensed insurance agent engaged in the solicitation of
casualty insurance; and
●One member would be the chairperson of the Board of Directors or the chairperson’s
designee.
Kansas Underground Storage Tank Liability Plan Board of Directors (Section 43).
The bill would provide for a reduction in membership for the Kansas Underground Storage Tank
Liability Plan Board of Directors from five members to three members.
The Commissioner would appoint a governing board that would serve on and after January
1, 2025, and would have the same duties and functions as its predecessor. On and after
January 1, 2025, the members of the Kansas Underground Storage Tank Liability Plan Board of
Directors would serve three-year terms, except that members would be removable by the
Commissioner for inefficiency, neglect of duty, or malfeasance. The board would meet at least
annually to review and prescribe operating rules of the plan. The board would consist of three
members to be appointed as follows:
●One member would be a representative of domestic or foreign insurers;
●One member would be a representative of independent insurance agents; and
●One member would be a representative of underground storage tank owners and
operators.
Board Meetings (Section 44)
The bill would remove a requirement for the Committee on Surety Bonds and Insurance to
meet at least once per month. Meetings would remain at the call of the chair.
Setting of Fees and Fines for Required Filings by Insurance Entities and Public Adjusters
The bill would authorize the Commissioner to set the amounts of fees and fines for
applications, licenses, license renewals, certificates of authority, and other required filings by
certain insurance entities and public adjusters under the jurisdiction of the Commissioner. The
bill would set the fees and fines for insurance entities and public adjusters currently established
in statute as the fee and fine ceilings for the services outlined in the table that follows.
The bill would also require the Commissioner to set the fees and fines for the next
succeeding calendar year and publish those in the Kansas Register no later than December 1 of
each calendar year.
7 - 423 Modification of Fees and Fines for Certain Insurance Entities and Public Adjusters
CCR
Section
Statute Affected Fee or Fine
8 KSA 40-205a Application fee for license to engage in business of selling stock
9 KSA 40-218
Fee for insurance companies or fraternal benefit societies to file a
summons or order of garnishment
10 KSA 40-252
Admission and annual fees for the following entities organized
under Kansas law or under the laws of any other state, territory, or
country: capital stock insurance companies and mutual legal
reserve life insurance companies; mutual life, accident, and health
associations; mutual fire, hail, casualty, and multiple line insurers
and reciprocal or interinsurance exchanges; fraternal benefit
societies; mutual nonprofit hospital service corporations; nonprofit
medical service corporations; nonprofit dental service
corporations; nonprofit optometric service corporations; and
nonprofit pharmacy service corporations
12 KSA 40-2,133
Notification fee for utilizing the services of managing general
agents
13 KSA 40-504
Application fee for certificate of authority for life insurance
companies
14 KSA 40-956 Application fee for license as a rating organization
17 KSA 40-22a04
Application fee for certificate of authority for utilization review
organizations
18 KSA 40-2604 Continuation fee for license as a premium finance company
19 KSA 4-2702
Annual registration fee for certificate of authority to transact life,
accident, and health insurance business in the state
21 KSA 40-3213
Fees for filing an application for a certificate of authority, filing an
annual report, and for filing an amendment to the certificate of
authority for health maintenance organizations and Medicare
provider organizations
22 KSA 40-3304 Filing fee for transactions affecting control of domestic insurers
24 KSA 40-3812
Application fee for licensure as a home state third party
administrator (TPA)
25 KSA 40-3813 Application fee for licensure as a nonresident TPA
26 KSA 40-3814 Fee to file an annual report by a TPA
27
KSA 2023 Supp.
40-3823
Application fee for licensure as a pharmacy benefit manager
(PBM) and penalty fee for failure to timely inform the
Commissioner of a material change in the application information
28
KSA 2023 Supp.
40-3824
PBM license renewal fee and penalty fee for late license renewal
29 KSA 40-4103 Notification fee for risk retention groups to do business in the state
30 KSA 40-4116 Notification fee to do business in the state as a purchasing group
8 - 423 Modification of Fees and Fines for Certain Insurance Entities and Public Adjusters
31
KSA 2023 Supp.
40-4209
Annual continuation fee for certificate of registration as a prepaid
service plan
32
KSA 2023 Supp.
40-4302
Fees for certificate of authority and annual renewal for captive
insurance companies
33 KSA 40-4323 License renewal fee for dormant captive insurance companies
34 KSA 40-4334
Fees for application for certificate of authority and annual renewal
for special purpose insurance captive insurance companies
35 KSA 40-4503
Fees for application for licensure and annual continuation as a
reinsurance intermediary
36
KSA 2023 Supp.
40-4903
Continuing education credit qualification fee for all courses,
programs of study, or subjects submitted by a specific provider or
provider organization and an annual provider fee
37 KSA 40-5003
Fees for application for licensure and annual renewal to operate
as a viatical settlement provider or a viatical settlement broker
38 KSA 40-5509 Public adjuster license renewal fee
Conference Committee Action
The Conference Committee agreed to the provisions of SB 423, as recommended by the
Senate Committee on Financial Institutions and Insurance, pertaining to the Commissioner’s
authority to reduce the membership of certain boards and the frequency of certain meetings.
The Conference Committee also agreed to add the following provisions:
●HB 2834, as passed by the House, with a delay in the effective date of the transfer of
the SEHP and State Workers Compensation Self-Insurance Fund to the Department
and the corresponding changes to effectuate the transfer to July 1, 2026;
●HB 2530, as passed by the House, regarding the definition of “person” for violations
of insurance law; and
●HB 2715, as passed by the House, regarding fees and fines for required filings by
insurance entities and public adjusters.
The Conference Committee further agreed to restore the effective date of all bills to be
upon publication in the statute book.
Background
This Conference Committee report contains provisions of SB 423, HB 2530, HB 2715, and
HB 2834 with a delay in the transfer of the SEHP and State Workers Compensation Self-
Insurance Fund to the Department. The background information concerning these bills follows.
9 - 423 SB 423 (Commissioner Authority for Reductions in Board Membership and Meeting
Requirements)
The bill was introduced by the Senate Committee on Financial Institutions and Insurance at
the request of a representative of the Department.
[Note: A similar bill, HB 2714, has been introduced in the House. HB 2714 was stricken
from the House Calendar by Rule 1507 on February 23, 2024.]
Senate Committee on Financial Institutions and Insurance
In the Senate Committee hearing, a representative of the Department provided proponent
testimony, stating reductions in board membership under the Commissioner’s jurisdiction would
result in an immediate cost savings. The proponent also stated there is currently not a
mechanism for removal of board members other than their terms expiring, and the bill would
provide an appropriate level of oversight to the Commissioner.
Written-only neutral testimony was provided by a representative of Kansas Association of
Property and Casualty Insurance Companies.
No other testimony was provided.
The Senate Committee amended the bill to make a technical change. [Note: The
Conference Committee retained this amendment.]
House Committee on Insurance
In the House Committee hearing, a representative of the Department provided proponent
testimony, which mirrored the testimony provided during the Senate Committee hearing.
No other testimony was provided.
The House Committee amended the bill to take effect upon publication in the Kansas
Register. [Note: The Conference Committee did not retain this amendment.]
HB 2530 (Definition of “Person” for Violations of Insurance Law)
The bill was introduced by the House Committee on Insurance at the request of a
representative of the Department.
[Note: A companion bill, SB 340, was introduced in the Senate.]
House Committee on Insurance
In the House Committee hearing, proponent testimony was provided by a representative
of the Department. The proponent indicated the bill would eliminate the reference of “automobile
10 - 423 club” in the definition of “person,” as automobile clubs are no longer under the jurisdiction of the
Commissioner.
No other testimony was provided.
The House Committee amended the bill to remove all specific references to entities under
the jurisdiction of the Commissioner. [Note: The Conference Committee retained this
amendment.]
[Note: The bill, as introduced, would remove only “automobile club” from the definition of
“person.”]
Senate Committee on Financial Institutions and Insurance
In the Senate Committee hearing, a representative of the Department provided proponent
testimony, indicating the bill would eliminate the reference of “automobile club” in the definition
of “person,” as automobile clubs are no longer under the jurisdiction of the Commissioner. The
representative stated the House Committee on Insurance amended the bill to remove all entities
not under the jurisdiction of the Commissioner; however, the same amendment was not offered
when the companion bill, SB 340, was heard in the Senate Committee.
No other testimony was provided.
The Senate Committee amended the bill to change the effective date to be upon
publication in the Kansas Register. [Note: The Conference Committee did not retain this
amendment.]
HB 2715 (Setting of Fees and Fines for Required Filings by Insurance Entities and Public
Adjusters)
The bill was introduced in the House Committee on Insurance at the request of a
representative of the Department.
[Note: The bill was modeled after 2023 HB 2090, which was enacted to allow the
Commissioner to lower licensure fees for insurance agents and insurance agencies in Kansas.
A companion bill, SB 398, was introduced in the Senate.]
House Committee on Insurance
In the House Committee hearing, proponent testimony was provided by a representative
of the Department, who stated the bill would grant the Commissioner the flexibility to lower more
than 100 statutorily set fees and fines, in an amount not to exceed that currently established in
statute. The representative noted publishing the fees and fines for the next year in the Kansas
Register would provide the regulated entities time to plan their budgets for the next calendar
year. The representative noted similar legislation enacted in 2023 authorized the Commissioner
to reduce fees for insurance agents and insurance agencies, with anticipated savings to the
insurance industry of $1.2 million annually as a result of that change.
11 - 423 No other testimony was provided.
Senate Committee on Financial Institutions and Insurance
In the Senate Committee hearing, a representative of the Department provided proponent
testimony similar to the testimony that was provided to the House Committee.
No other testimony was provided.
The Senate Committee amended the bill to change the enactment date to be upon
publication in the Kansas Register. [Note: The Conference Committee did not retain this
amendment.]
HB 2834 (Transfer of Authority Over Kansas State Employee Health Plan and State
Workers Compensation Self-Insurance Fund)
The bill was introduced by the House Committee on Appropriations at the request of
Representative Sutton.
House Committee on Insurance
In the House Committee hearing, proponent testimony was provided by Representative
Wasinger and a representative of Valley Hope Association, who generally stated that the
Department would have the necessary knowledge to handle issues with the SEHP, such as prior
authorization and coverage parity.
Written-only proponent testimony was provided by a private citizen.
Opponent testimony was provided by a representative of the DoA, who stated separating
the SEHP from various centralized functions within the DoA, such as human resources, payroll,
procurement, and accounting, would introduce inefficiencies into the SEHP system. The
conferee cited a statewide efficiency study conducted in 2015 and released in 2016, which
prompted ERO 45 that placed the SEHP with the DoA in 2020.
The House Committee amended the bill to transfer the authority over the State Workers
Compensation Self-Insurance Fund from the division of the SEHP of the DoA to the
Department. [Note: The Conference Committee retained this amendment.]
House Committee of the Whole
The House Committee of the Whole amended the bill to make technical changes. [Note:
The Conference Committee retained these amendments.]
12 - 423 Fiscal Information
Fiscal information for provisions of the bill, as amended by Conference Committee action,
appears below.
SB 423 (Commissioner Authority for Reductions in Board Membership and Meeting
Requirements)
According to the fiscal note prepared by the Division of the Budget on SB 423, as
introduced, the Department states that enactment of the bill would have no fiscal effect.
HB 2530 (Definition of “Person” for Violations of Insurance Law)
According to the fiscal note prepared by the Division of the Budget on HB 2530, as
introduced, the Department indicates enactment of the bill would have no fiscal effect because
automobile clubs are no longer under the jurisdiction of the Department.
HB 2715 (Setting of Fees and Fines for Required Filings by Insurance Entities and Public
Adjusters)
According to the fiscal note prepared by the Division of the Budget on HB 2715, as
introduced, the Department states the bill could change agency revenues, which would depend
on the rates the Commissioner sets each year. The agency cannot estimate the changes in
revenue; however, any change would allow the agency to continue efficient agency operations.
Any fiscal effect associated with enactment of the bill is not reflected in The FY 2025 Governor’s
Budget Report.
HB 2834 (Transfer of Authority Over Kansas State Employee Health Plan and State
Workers Compensation Self-Insurance Fund)
According to the fiscal note prepared by the Division of the Budget on HB 2834, as
introduced, the Department indicates enactment of the bill would be net neutral, as all fund
balances, revenues, and expenditures from the DoA would be transferred to the Department.
The SEHP of the DoA indicates that additional staff would be needed to fill support roles
for the SEHP and to submit services currently provided through other DoA offices. The DoA is
not able to calculate the costs that may be incurred. The DoA states the SEHP and the State
Self Insurance Fund (SSIF) are currently procuring a new data warehouse to be implemented in
FY 2024. This project would need to be rebid as it was a joint program bid and both plans would
see additional costs to rebid, along with a delayed implementation. The DoA states that prior to
the SEHP moving into the DoA, it had a memorandum of understanding in place for the DoA to
handle payroll processing. At that time, the SEHP paid over $119,000 annually for this service.
The DoA also notes the SEHP and SSIF staff currently occupy the same building space. If
expenditures for rent are greater for the SEHP staff to be located at the Department, enactment
of the bill may increase expenditures for rent. Due to the variety of unknown factors, the DoA is
unable to estimate a precise fiscal effect.
13 - 423 The Division of the Budget notes that budgeted expenditures from the SEHP in the DoA
total $643.3 million in FY 2024 and $667.9 million in FY 2025, all from agency fee funds. These
amounts include $607.5 million in FY 2024 and $631.8 million in FY 2025 for employee health
care premium payroll deductions for payment of claims. Any fiscal effect associated with
enactment of the bill is not reflected in The FY 2025 Governor’s Budget Report.
Insurance; board membership; meetings; Commissioner of Insurance; duties and powers; fees; Kansas Insurance Department;
automobile club; State Employee Health Plan; Department of Administration; Kansas State Employees Health Care Commission
ccrb_sb423_01_04022024.odt
14 - 423