Kansas 2025-2026 Regular Session

Kansas House Bill HB2245 Compare Versions

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11 Session of 2025
22 HOUSE BILL No. 2245
33 By Committee on Insurance
44 Requested by Representative Sutton
55 2-4
66 AN ACT concerning the commissioner of insurance; relating to the
77 division of the state employee health benefits plan; transferring
88 officers, employees, powers, duties and functions relating to the state
99 health care benefits program and the state workers compensation self-
1010 insurance fund from the division of the state employee health benefits
1111 plan of the department of administration to the insurance department;
1212 establishing the commissioner of insurance as the chairperson of the
1313 Kansas state employees health care commission; providing that all
1414 management functions of such commission shall be administered by the
1515 commissioner of insurance; eliminating a pilot program regarding
1616 employer contributions for certain children; amending K.S.A. 44-575,
1717 44-577, 44-578 and 75-6503 and K.S.A. 2023 Supp. 75-6502 and
1818 K.S.A. 2024 Supp. 44-512 and repealing the existing sections.
1919 Be it enacted by the Legislature of the State of Kansas:
2020 New Section 1. All powers, duties and functions of the staff of the
2121 division of the state employee health benefits plan of the department of
2222 administration established in K.S.A. 75-6501 et seq. and 75-7405(c)(7),
2323 and amendments thereto, and any other statute involving the
2424 administration of the state health care benefits program are hereby
2525 transferred to and imposed upon the insurance department under the
2626 direction of the commissioner of insurance.
2727 New Sec. 2. (a) All officers and employees of the division of the state
2828 employee health benefits plan of the department of administration who,
2929 immediately prior to July 1, 2025, are engaged in the exercise and
3030 performance of the powers, duties and functions involving the
3131 administration of the state employee health benefits plan, as well as all
3232 officers and employees of the department of administration who are
3333 determined by the commissioner of insurance to be engaged in providing
3434 administrative, technical or other support services that are essential to the
3535 exercise and performance of the powers, duties and functions transferred
3636 by section 1, and amendments thereto, are hereby transferred to the
3737 insurance department. All classified officers and employees so transferred
3838 shall retain their status as classified employees.
3939 (b) Officers and employees of the division of the state employee
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7575 health benefits plan of the department of administration transferred by this
7676 section shall retain all retirement benefits and leave balances and rights
7777 that had accrued or vested prior to the date of transfer. The service of each
7878 such officer and employee so transferred shall be deemed to have been
7979 continuous. Any subsequent transfers, layoffs or abolition of classified
8080 service positions under the Kansas civil service act shall be made in
8181 accordance with the civil service laws and any rules and regulations
8282 adopted thereunder. Nothing in this section shall affect the classified status
8383 of any transferred person employed by the division of the state employee
8484 health benefits plan of the department of administration prior to the date of
8585 transfer.
8686 (c) Notwithstanding the effective date of this section, the provisions
8787 of this section prescribing the transfer of officers and employees from the
8888 division of the state employee health benefits plan of the department of
8989 administration to the insurance department shall commence at the start of a
9090 payroll period.
9191 New Sec. 3. (a) The insurance department shall be the successor in
9292 every way to the powers, duties and functions of the division of the state
9393 employee health benefits plan of the department of administration
9494 involving the administration of the state health care benefits program that
9595 were vested pursuant to K.S.A. 75-37,162 through 75-37,168, prior to their
9696 repeal.
9797 (b) Every act performed in the exercise of such transferred powers,
9898 duties and functions by or under the authority of the insurance department
9999 and the commissioner of insurance involving the administration of the
100100 state health care benefits program shall be deemed to have the same force
101101 and effect as if performed by the division of the state employee health
102102 benefits plan, the secretary of administration or the director of the state
103103 employee health benefits plan in which the same were vested pursuant to
104104 K.S.A. 75-37,162 through 75-37,168, prior to their repeal.
105105 (c) Whenever the division of the state employee health benefits plan
106106 of the department of administration or words of like effect are referred to
107107 or designated by a statute, contract, memorandum of agreement or other
108108 document and such reference is in regard to any of the powers, duties and
109109 functions transferred to the insurance department pursuant to section 1,
110110 and amendments thereto, such reference or designation shall be deemed to
111111 apply to the insurance department.
112112 (d) All rules and regulations, orders and directives of the division of
113113 the state employee health benefits plan of the department of administration
114114 that relate to the powers, duties and functions transferred by section 1, and
115115 amendments thereto, and are in effect on July 1, 2024, shall continue to be
116116 effective and shall be deemed to be rules and and regulations, orders and
117117 directives of the commissioner of insurance until revised, amended,
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161161 repealed or nullified pursuant to law.
162162 New Sec. 4. (a) The balances of all funds or accounts thereof
163163 appropriated or reappropriated for the division of the state employee health
164164 benefits plan of the department of administration relating to the powers,
165165 duties and functions involving the administration of the state health care
166166 benefits program are hereby transferred within the state treasury to the
167167 insurance department and shall be used only for the purpose for which the
168168 appropriation or reappropriation was originally made.
169169 (b) Liability for all accrued compensation or salaries of officers and
170170 employees who are transferred to the insurance department pursuant to
171171 section 2, and amendments thereto, shall be assumed and paid by the
172172 insurance department.
173173 New Sec. 5. (a) The insurance department shall succeed to all
174174 property, property rights, contracts and records that were used for or
175175 pertain to the performance of powers, duties and functions involving the
176176 administration of the state health care benefits program that were
177177 transferred to the division of the state employee health benefits plan of the
178178 department of administration pursuant to K.S.A. 75-37,162 through 75-
179179 37,168, prior to their repeal.
180180 (b) When any conflict arises as to the disposition of any personnel,
181181 property, property right, contract, record, power, duty, function or the
182182 unexpended balance of any appropriation as result of any transfer made by
183183 or under the provisions of sections 1 through 5, and amendments thereto,
184184 such conflict shall be resolved by the commissioner of insurance, whose
185185 decision shall be final.
186186 New Sec. 6. (a) No suit, action or other proceeding, judicial or
187187 administrative, lawfully commenced, or that could have been commenced,
188188 by or against the division of the state employee health benefits plan of the
189189 department of administration or by or against the secretary of
190190 administration in such secretary's official duties, shall abate by reason of
191191 the transfer effected under the provisions of sections 1 through 5, and
192192 amendments thereto. The court may allow any such suit, action or other
193193 proceeding to be maintained by or against the insurance department or the
194194 commissioner of insurance.
195195 (b) No criminal action commenced or that could have been
196196 commenced by the state shall abate by reason of the transfer effected under
197197 the provisions of sections 1 through 5, and amendments thereto.
198198 New Sec. 7. (a) All powers, duties and functions of the staff of the
199199 division of the state employee health benefits plan of the department of
200200 administration established in K.S.A. 44-575 through 44-580, and 75-
201201 7405(c)(8), and amendments thereto, and any other statute involving the
202202 administration of the state workers compensation self-insurance fund are
203203 hereby transferred to and imposed upon the insurance department, under
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247247 the direction of the commissioner of insurance.
248248 (b) The balances of all funds or accounts thereof appropriated or
249249 reappropriated for the division of the state employee health benefits plan
250250 of the department of administration or any state agency, department, board,
251251 commission or council, relating to the powers, duties and functions
252252 involving the administration of the state workers compensation self-
253253 insurance fund are hereby transferred within the state treasury to the
254254 insurance department and shall be used only for the purpose for which the
255255 appropriation or reappropriation was originally made. Liability for all
256256 accrued compensation or salaries of officers and employees who are
257257 transferred to the insurance department pursuant to this section shall be
258258 assumed and paid by the insurance department.
259259 (c) Except as provided in this section, the commissioner of insurance
260260 shall be the successor in every way to the powers, duties and functions of
261261 the secretary of administration that relate to the state workers
262262 compensation self-insurance fund, in which the same were vested prior to
263263 July 1, 2025.
264264 (d) All orders and directives of the secretary of administration that
265265 relate to the state workers compensation self-insurance fund in existence
266266 immediately prior to July 1, 2025, shall continue to be effective and shall
267267 be deemed to be the orders or directives of the commissioner of insurance,
268268 until revised, amended, repealed or nullified pursuant to law.
269269 (e) The commissioner of insurance shall succeed to all property,
270270 property rights, contracts and records that were used for or pertain to the
271271 performance of the powers, duties and functions transferred to the
272272 commissioner of insurance from the division of the state employee health
273273 benefits plan of the department of administration pursuant to this section.
274274 Any conflict as to the proper disposition of property, property rights,
275275 contracts and records arising under this section shall be resolved by the
276276 commissioner of insurance, whose decision shall be final.
277277 (f) All officers and employees of the division of the state employee
278278 health benefits plan of the department of administration who, immediately
279279 prior to July 1, 2024, are engaged in the exercise and performance of the
280280 powers, duties and functions involving the administration of the state
281281 workers compensation self-insurance fund and transferred by this section,
282282 as well as all officers and employees of the department of administration
283283 who are determined by the commissioner of insurance to be engaged in
284284 providing administrative, technical or other support services that are
285285 essential to the exercise and performance of the powers, duties and
286286 functions transferred by this section, are hereby transferred to the
287287 insurance department, under the direction of the commissioner of
288288 insurance. All classified officers and employees so transferred shall retain
289289 their status as classified employees.
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333333 (g) Officers and employees of the division of the state employee
334334 health benefits plan of the department of administration transferred by this
335335 section shall retain all retirement benefits and leave balances and rights
336336 that had accrued or vested prior to the date of transfer. The service of each
337337 such officer or employee so transferred shall be deemed to have been
338338 continuous. Any subsequent transfers, layoffs or abolition of classified
339339 service positions under the Kansas civil service act shall be made in
340340 accordance with the civil service laws and any rules and regulations
341341 adopted thereunder. Nothing in this section shall affect the classified status
342342 of any transferred person employed by the division of the state employee
343343 health benefits plan of the department of administration prior to the date of
344344 transfer.
345345 Sec. 8. K.S.A. 44-512 is hereby amended to read as follows: 44-512.
346346 Workers compensation payments shall be made at the same time, place and
347347 in the same manner as the wages of the worker were payable at the time of
348348 the accident, but upon the application of either party the administrative law
349349 judge may modify such requirements in a particular case as the
350350 administrative law judge deems just, except that: (a) Payments from the
351351 workers compensation fund established by K.S.A. 44-566a, and
352352 amendments thereto, shall be made in the manner approved by the
353353 commissioner of insurance; (b) payments from the state workers
354354 compensation self-insurance fund established by K.S.A. 44-575, and
355355 amendments thereto, shall be made in a manner approved by the secretary
356356 of health and environment commissioner of insurance; and (c) whenever
357357 temporary total disability compensation is to be paid under the workers
358358 compensation act, payments shall be made only in cash, by check or in the
359359 same manner that the employee is normally compensated for salary or
360360 wages and not by any other means, except that any such compensation
361361 may be paid by warrant of the director of accounts and reports issued for
362362 payment of such compensation from the workers compensation fund or the
363363 state workers compensation self-insurance fund under the workers
364364 compensation act.
365365 Sec. 9. K.S.A. 44-575 is hereby amended to read as follows: 44-575.
366366 (a) As used in K.S.A. 44-575 through 44-580, and amendments thereto,
367367 "state agency" means the state, or any department or agency of the state,
368368 but not including the Kansas turnpike authority, the university of Kansas
369369 hospital authority, any political subdivision of the state or the district court
370370 with regard to district court officers or employees whose total salary is
371371 payable by counties.
372372 (b) For the purposes of providing for the payment of compensation
373373 for claims arising on and after July 1, 1974, and all other amounts required
374374 to be paid by any state agency as a self-insured employer under the
375375 workers compensation act and any amendments or additions thereto, there
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419419 is hereby established the state workers compensation self-insurance fund
420420 in the state treasury. The name of the state workmen's compensation self-
421421 insurance fund is hereby changed to the state workers compensation self-
422422 insurance fund. Whenever the state workmen's compensation self-
423423 insurance fund is referred to or designated by any statute, contract or other
424424 document, such reference or designation shall be deemed to apply to the
425425 state workers compensation self-insurance fund.
426426 (c) The state workers compensation self-insurance fund shall be liable
427427 to pay: (1) All compensation for claims arising on and after July 1, 1974,
428428 and all other amounts required to be paid by any state agency as a self-
429429 insured employer under the workers compensation act and any
430430 amendments or additions thereto; (2) the amount that all state agencies are
431431 liable to pay of the "carrier's share of expense" of the administration of the
432432 office of the director of workers' compensation as provided in K.S.A. 74-
433433 712 through 74-719, and amendments thereto, for each fiscal year; (3) all
434434 compensation for claims remaining from the self-insurance program which
435435 existed prior to July 1, 1974, for institutional employees of the commission
436436 of community services and programs of the Kansas department for aging
437437 and disability services; (4) the cost of administering the state workers
438438 compensation self-insurance fund including the defense of such fund and
439439 any costs assessed to such fund in any proceeding to which it is a party;
440440 and (5) the cost of establishing and operating the state workplace health
441441 and safety program under subsection (f). For the purposes of K.S.A. 44-
442442 575 through 44-580, and amendments thereto, all state agencies are hereby
443443 deemed to be a single employer whose liabilities specified in this section
444444 are hereby imposed solely upon the state workers compensation self-
445445 insurance fund and such employer is hereby declared to be a fully
446446 authorized and qualified self-insurer under K.S.A. 44-532, and
447447 amendments thereto, but such employer shall not be required to make any
448448 reports thereunder.
449449 (d) The secretary of health and environment commissioner of
450450 insurance shall administer the state workers compensation self-insurance
451451 fund and all payments from such fund shall be upon warrants of the
452452 director of accounts and reports issued pursuant to vouchers approved by
453453 the secretary of health and environment commissioner of insurance or a
454454 person or persons designated by the secretary commissioner. The director
455455 of accounts and reports may issue warrants pursuant to vouchers approved
456456 by the secretary commissioner of insurance for payments from the state
457457 workers compensation self-insurance fund notwithstanding the fact that
458458 claims for such payments were not submitted or processed for payment
459459 from money appropriated for the fiscal year in which the state workers
460460 compensation self-insurance fund first became liable to make such
461461 payments.
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505505 (e) The secretary of health and environment commissioner of
506506 insurance shall remit all moneys received by or for the secretary
507507 commissioner in the capacity as administrator of the state workers
508508 compensation self-insurance fund, to the state treasurer in accordance with
509509 the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt
510510 of each such remittance, the state treasurer shall deposit the entire amount
511511 in the state treasury to the credit of the state workers compensation self-
512512 insurance fund.
513513 (f) There is hereby established the state workplace health and safety
514514 program within the state workers compensation self-insurance program of
515515 the insurance department of health and environment. The secretary of
516516 health and environment commissioner of insurance shall implement and
517517 the division of industrial health and safety of the Kansas department of
518518 labor shall assist in administering the state workplace health and safety
519519 program for state agencies. The state workplace health and safety program
520520 shall include, but not be limited to:
521521 (1) Workplace health and safety hazard surveys in all state agencies,
522522 including onsite interviews with employees;
523523 (2) workplace health and safety hazard prevention services, including
524524 inspection and consultation services;
525525 (3) procedures for identifying and controlling workplace hazards;
526526 (4) development and dissemination of health and safety informational
527527 materials, plans, rules and work procedures; and
528528 (5) training for supervisors and employees in healthful and safe work
529529 practices.
530530 Sec. 10. K.S.A. 44-577 is hereby amended to read as follows: 44-577.
531531 (a) All claims for compensation under the workers compensation act
532532 against any state agency for claims arising on and after July 1, 1974, and
533533 claims for compensation remaining from the self-insurance program which
534534 existed prior to July 1, 1974, for institutional employees of the commission
535535 of community services and programs of the Kansas department for aging
536536 and disability services shall be made against the state workers
537537 compensation self-insurance fund. Such claims shall be served upon the
538538 secretary of health and environment commissioner of insurance in the
539539 secretary's commissioner's capacity as administrator of the state workers
540540 compensation self-insurance fund in the manner provided for claims
541541 against other employers under the workers compensation act. The chief
542542 attorney for the insurance department of health and environment, or
543543 another attorney of the insurance department of health and environment
544544 designated by the chief attorney, shall represent and defend the state
545545 workers compensation self-insurance fund in all proceedings under the
546546 workers compensation act.
547547 (b) The secretary of health and environment commissioner of
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591591 insurance shall investigate, or cause to be investigated, each claim for
592592 compensation against the state workers compensation self-insurance fund.
593593 For the purposes of such investigations, the secretary of health and
594594 environment commissioner of insurance is authorized to obtain expert
595595 medical advice regarding the injuries, occupational diseases and
596596 disabilities involved in such claims. If, based upon such investigation and
597597 any other available information, the secretary of health and environment
598598 commissioner of insurance finds that there is no material dispute as to any
599599 issue involved in the claim, that the claim is valid and that the claim
600600 should be settled by agreement, the secretary of health and environment
601601 commissioner of insurance may proceed to enter into such an agreement
602602 with the claimant, for the state workers compensation self-insurance fund.
603603 Any such agreement may provide for lump-sum settlements subject to
604604 approval by the director and all such agreements shall be filed in the office
605605 of the director for approval as provided in K.S.A. 44-527, and amendments
606606 thereto. All other claims for compensation against such fund shall be paid
607607 in accordance with the workers compensation act pursuant to final awards
608608 or orders of an administrative law judge or the board or pursuant to orders
609609 and findings of the director under the workers compensation act.
610610 (c) For purposes of the workers compensation act, a volunteer
611611 member of a regional emergency medical response team as provided in
612612 K.S.A. 48-928, and amendments thereto, shall be considered a person in
613613 the service of the state in connection with authorized training and upon
614614 activation for emergency response, except when such duties arise in the
615615 course of employment or as a volunteer for an employer other than the
616616 state.
617617 Sec. 11. K.S.A. 44-578 is hereby amended to read as follows: 44-578.
618618 The secretary of health and environment commissioner of insurance may
619619 adopt rules and regulations necessary for the administration of the state
620620 workers compensation self-insurance fund, including the processing and
621621 settling of claims for compensation made against such fund.
622622 Sec. 12. K.S.A. 2023 Supp. 75-6502 is hereby amended to read as
623623 follows: 75-6502. (a) There is hereby established the Kansas state
624624 employees health care commission which is composed of seven members
625625 as follows: (1) The commissioner of insurance; (2) the secretary of
626626 administration; (3) a current state employee who is currently enrolled in
627627 the state healthcare benefits program group health insurance medical plan,
628628 appointed by the governor; (4) a person who retired from a position in
629629 state service and who is currently enrolled in the state healthcare benefits
630630 program group health insurance medical plan, appointed by the governor;
631631 (5) a representative of the general public, appointed by the governor; (6) a
632632 member of the senate ways and means committee, appointed by the
633633 president of the senate; and (7) a member of the house of representatives
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677677 appropriations committee, appointed by the speaker of the house of
678678 representatives. A state officer or employee may not be appointed as the
679679 member representative of the general public.
680680 (b) Each member appointed under this section by the governor shall
681681 serve at the pleasure of the governor. The member appointed by the
682682 president of the senate shall serve at the pleasure of the president of the
683683 senate, and the member appointed by the speaker of the house of
684684 representatives shall serve at the pleasure of the speaker of the house of
685685 representatives. Not more than five members of the commission shall be
686686 members of the same political party.
687687 (c) The chairperson of the commission shall be designated by the
688688 governor commissioner of insurance. The commission shall meet at least
689689 once each calendar quarter and at such other times as may be required on
690690 call of the chairperson or any three members thereof.
691691 (d) A quorum of the Kansas state employees health care commission
692692 shall be four. All actions of the commission shall be taken by a majority of
693693 all of the members of the commission.
694694 (e) Members of the Kansas state employees health care commission
695695 attending meetings of such commission, or attending a subcommittee
696696 meeting thereof authorized by such commission, shall be paid
697697 compensation, subsistence allowances, mileage and other expenses as
698698 provided in K.S.A. 75-3223, and amendments thereto.
699699 Sec. 13. K.S.A. 75-6503 is hereby amended to read as follows: 75-
700700 6503. (a) Except as otherwise provided by this act, all budgeting,
701701 purchasing and related management functions of the Kansas state
702702 employees health care commission shall be administered by the secretary
703703 of administration under the direction and supervision of the chairperson of
704704 the commission commissioner of insurance. All vouchers for expenditures
705705 and all payrolls of the Kansas state employees health care commission
706706 shall be approved by the chairperson of the commission or by a person or
707707 persons designated by the chairperson.
708708 (b) There is hereby created the position of technical administrator for
709709 the state health care benefit benefits program. Under the direction and
710710 supervision of the secretary of administration commissioner of insurance,
711711 the technical administrator shall provide primary staffing assistance to the
712712 commission and perform such other functions and duties as may be
713713 prescribed by the commission. The technical administrator shall be in the
714714 classified or unclassified service under the Kansas civil service act as
715715 specified by the secretary of administration and shall be appointed by the
716716 secretary of administration commissioner of insurance. Within the limits of
717717 available appropriations, the secretary of administration commissioner of
718718 insurance shall provide such additional assistance as may be requested by
719719 the commission.
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763763 Sec. 14. K.S.A. 44-575, 44-577, 44-578 and 75-6503 and K.S.A.
764764 2023 Supp. 75-6502 and K.S.A. 2024 Supp. 44-512 are hereby repealed.
765765 Sec. 15. This act shall take effect and be in force from and after its
766766 publication in the statute book.
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