Session of 2025
HOUSE BILL No. 2245
By Committee on Insurance
Requested by Representative Sutton
2-4
AN ACT concerning the commissioner of insurance; relating to the
division of the state employee health benefits plan; transferring
officers, employees, powers, duties and functions relating to the state
health care benefits program and the state workers compensation self-
insurance fund from the division of the state employee health benefits
plan of the department of administration to the insurance department;
establishing the commissioner of insurance as the chairperson of the
Kansas state employees health care commission; providing that all
management functions of such commission shall be administered by the
commissioner of insurance; eliminating a pilot program regarding
employer contributions for certain children; amending K.S.A. 44-575,
44-577, 44-578 and 75-6503 and K.S.A. 2023 Supp. 75-6502 and
K.S.A. 2024 Supp. 44-512 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. All powers, duties and functions of the staff of the
division of the state employee health benefits plan of the department of
administration established in K.S.A. 75-6501 et seq. and 75-7405(c)(7),
and amendments thereto, and any other statute involving the
administration of the state health care benefits program are hereby
transferred to and imposed upon the insurance department under the
direction of the commissioner of insurance.
New Sec. 2. (a) All officers and employees of the division of the state
employee health benefits plan of the department of administration who,
immediately prior to July 1, 2025, are engaged in the exercise and
performance of the powers, duties and functions involving the
administration of the state employee health benefits plan, as well as all
officers and employees of the department of administration who are
determined by the commissioner of insurance 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 transferred
by section 1, and amendments thereto, are hereby transferred to the
insurance department. All classified officers and employees so transferred
shall retain their status as classified employees.
(b) Officers and employees of the division of the state employee
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health benefits plan of the department of administration transferred by this
section shall retain all retirement benefits and leave balances and rights
that had accrued or vested prior to the date of transfer. The service of each
such officer and employee so transferred shall be deemed to have been
continuous. Any subsequent transfers, layoffs or abolition of classified
service positions under the Kansas civil service act shall be made in
accordance with the civil service laws and any rules and regulations
adopted thereunder. Nothing in this section shall affect the classified status
of any transferred person employed by the division of the state employee
health benefits plan of the department of administration prior to the date of
transfer.
(c) Notwithstanding the effective date of this section, the provisions
of this section prescribing the transfer of officers and employees from the
division of the state employee health benefits plan of the department of
administration to the insurance department shall commence at the start of a
payroll period.
New Sec. 3. (a) The insurance department shall be the successor in
every way to the powers, duties and functions of the division of the state
employee health benefits plan of the department of administration
involving the administration of the state health care benefits program that
were vested pursuant to K.S.A. 75-37,162 through 75-37,168, prior to their
repeal.
(b) Every act performed in the exercise of such transferred powers,
duties and functions by or under the authority of the insurance department
and the commissioner of insurance involving the administration of the
state health care benefits program shall be deemed to have the same force
and effect as if performed by the division of the state employee health
benefits plan, the secretary of administration or the director of the state
employee health benefits plan in which the same were vested pursuant to
K.S.A. 75-37,162 through 75-37,168, prior to their repeal.
(c) Whenever the division of the state employee health benefits plan
of the department of administration or words of like effect are referred to
or designated by a statute, contract, memorandum of agreement or other
document and such reference is in regard to any of the powers, duties and
functions transferred to the insurance department pursuant to section 1,
and amendments thereto, such reference or designation shall be deemed to
apply to the insurance department.
(d) All rules and regulations, orders and directives of the division of
the state employee health benefits plan of the department of administration
that relate to the powers, duties and functions transferred by section 1, and
amendments thereto, and are in effect on July 1, 2024, shall continue to be
effective and shall be deemed to be rules and and regulations, orders and
directives of the commissioner of insurance until revised, amended,
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repealed or nullified pursuant to law.
New Sec. 4. (a) The balances of all funds or accounts thereof
appropriated or reappropriated for the division of the state employee health
benefits plan of the department of administration relating to the powers,
duties and functions involving the administration of the state health care
benefits program are hereby transferred within the state treasury to the
insurance department and shall be used only for the purpose for which the
appropriation or reappropriation was originally made.
(b) Liability for all accrued compensation or salaries of officers and
employees who are transferred to the insurance department pursuant to
section 2, and amendments thereto, shall be assumed and paid by the
insurance department.
New Sec. 5. (a) The insurance department shall 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 state health care benefits program that were
transferred to the division of the state employee health benefits plan of the
department of administration pursuant to K.S.A. 75-37,162 through 75-
37,168, prior to their repeal.
(b) 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 result of any transfer made by
or under the provisions of sections 1 through 5, and amendments thereto,
such conflict shall be resolved by the commissioner of insurance, whose
decision shall be final.
New Sec. 6. (a) No suit, action or other proceeding, judicial or
administrative, lawfully commenced, or that could have been commenced,
by or against the division of the state employee health benefits plan of the
department of administration or by or against the secretary of
administration in such secretary's official duties, shall abate by reason of
the transfer effected under the provisions of sections 1 through 5, and
amendments thereto. The court may allow any such suit, action or other
proceeding to be maintained by or against the insurance department or the
commissioner of insurance.
(b) No criminal action commenced or that could have been
commenced by the state shall abate by reason of the transfer effected under
the provisions of sections 1 through 5, and amendments thereto.
New Sec. 7. (a) All powers, duties and functions of the staff of the
division of the state employee health benefits plan of the department of
administration established in K.S.A. 44-575 through 44-580, and 75-
7405(c)(8), and amendments thereto, and any other statute involving the
administration of the state workers compensation self-insurance fund are
hereby transferred to and imposed upon the insurance department, under
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the direction of the commissioner of insurance.
(b) The balances of all funds or accounts thereof appropriated or
reappropriated for the division of the state employee health benefits plan
of the department of administration or any state agency, department, board,
commission or council, relating to the powers, duties and functions
involving the administration of the state workers compensation self-
insurance fund are hereby transferred within the state treasury to the
insurance department and shall 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 insurance department pursuant to this section shall be
assumed and paid by the insurance department.
(c) Except as provided in this section, the commissioner of insurance
shall be the successor in every way to the powers, duties and functions of
the secretary of administration that relate to the state workers
compensation self-insurance fund, in which the same were vested prior to
July 1, 2025.
(d) All orders and directives of the secretary of administration that
relate to the state workers compensation self-insurance fund in existence
immediately prior to July 1, 2025, shall continue to be effective and shall
be deemed to be the orders or directives of the commissioner of insurance,
until revised, amended, repealed or nullified pursuant to law.
(e) The commissioner of insurance shall 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 of insurance from the division of the state employee health
benefits plan of the department of administration pursuant to this section.
Any conflict as to the proper disposition of property, property rights,
contracts and records arising under this section shall be resolved by the
commissioner of insurance, whose decision shall be final.
(f) All officers and employees of the division of the state employee
health benefits plan of the department of administration who, immediately
prior to July 1, 2024, are engaged in the exercise and performance of the
powers, duties and functions involving the administration of the state
workers compensation self-insurance fund and transferred by this section,
as well as all officers and employees of the department of administration
who are determined by the commissioner of insurance 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 transferred by this section, are hereby transferred to the
insurance department, under the direction of the commissioner of
insurance. All classified officers and employees so transferred shall retain
their status as classified employees.
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(g) Officers and employees of the division of the state employee
health benefits plan of the department of administration transferred by this
section shall retain all retirement benefits and leave balances and rights
that had accrued or vested prior to the date of transfer. The service of each
such officer or employee so transferred shall be deemed to have been
continuous. Any subsequent transfers, layoffs or abolition of classified
service positions under the Kansas civil service act shall be made in
accordance with the civil service laws and any rules and regulations
adopted thereunder. Nothing in this section shall affect the classified status
of any transferred person employed by the division of the state employee
health benefits plan of the department of administration prior to the date of
transfer.
Sec. 8. K.S.A. 44-512 is hereby amended to read as follows: 44-512.
Workers compensation payments shall be made at the same time, place and
in the same manner as the wages of the worker were payable at the time of
the accident, but upon the application of either party the administrative law
judge may modify such requirements in a particular case as the
administrative law judge deems just, except that: (a) Payments from the
workers compensation fund established by K.S.A. 44-566a, and
amendments thereto, shall be made in the manner approved by the
commissioner of insurance; (b) payments from the state workers
compensation self-insurance fund established by K.S.A. 44-575, and
amendments thereto, shall be made in a manner approved by the secretary
of health and environment commissioner of insurance; and (c) whenever
temporary total disability compensation is to be paid under the workers
compensation act, payments shall be made only in cash, by check or in the
same manner that the employee is normally compensated for salary or
wages and not by any other means, except that any such compensation
may be paid by warrant of the director of accounts and reports issued for
payment of such compensation from the workers compensation fund or the
state workers compensation self-insurance fund under the workers
compensation act.
Sec. 9. K.S.A. 44-575 is hereby amended to read as follows: 44-575.
(a) As used in K.S.A. 44-575 through 44-580, and amendments thereto,
"state agency" means the state, or any department or agency of the state,
but not including the Kansas turnpike authority, the university of Kansas
hospital authority, any political subdivision of the state or the district court
with regard to district court officers or employees whose total salary is
payable by counties.
(b) For the purposes of providing for the payment of compensation
for claims arising on and after July 1, 1974, and all other amounts required
to be paid by any state agency as a self-insured employer under the
workers compensation act and any amendments or additions thereto, there
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is hereby established the state workers compensation self-insurance fund
in the state treasury. The name of the state workmen's compensation self-
insurance fund is hereby changed to the state workers compensation self-
insurance fund. Whenever the state workmen's compensation self-
insurance fund is referred to or designated by any statute, contract or other
document, such reference or designation shall be deemed to apply to the
state workers compensation self-insurance fund.
(c) The state workers compensation self-insurance fund shall be liable
to pay: (1) All compensation for claims arising on and after July 1, 1974,
and all other amounts required to be paid by any state agency as a self-
insured employer under the workers compensation act and any
amendments or additions thereto; (2) the amount that all state agencies are
liable to pay of the "carrier's share of expense" of the administration of the
office of the director of workers' compensation as provided in K.S.A. 74-
712 through 74-719, and amendments thereto, for each fiscal year; (3) all
compensation for claims remaining from the self-insurance program which
existed prior to July 1, 1974, for institutional employees of the commission
of community services and programs of the Kansas department for aging
and disability services; (4) the cost of administering the state workers
compensation self-insurance fund including the defense of such fund and
any costs assessed to such fund in any proceeding to which it is a party;
and (5) the cost of establishing and operating the state workplace health
and safety program under subsection (f). For the purposes of K.S.A. 44-
575 through 44-580, and amendments thereto, all state agencies are hereby
deemed to be a single employer whose liabilities specified in this section
are hereby imposed solely upon the state workers compensation self-
insurance fund and such employer is hereby declared to be a fully
authorized and qualified self-insurer under K.S.A. 44-532, and
amendments thereto, but such employer shall not be required to make any
reports thereunder.
(d) The secretary of health and environment commissioner of
insurance shall administer the state workers compensation self-insurance
fund and all payments from such fund shall be upon warrants of the
director of accounts and reports issued pursuant to vouchers approved by
the secretary of health and environment commissioner of insurance or a
person or persons designated by the secretary commissioner. The director
of accounts and reports may issue warrants pursuant to vouchers approved
by the secretary commissioner of insurance for payments from the state
workers compensation self-insurance fund notwithstanding the fact that
claims for such payments were not submitted or processed for payment
from money appropriated for the fiscal year in which the state workers
compensation self-insurance fund first became liable to make such
payments.
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(e) The secretary of health and environment commissioner of
insurance shall remit all moneys received by or for the secretary
commissioner in the capacity as administrator of the state workers
compensation self-insurance fund, to the state treasurer in accordance with
the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt
of each such remittance, the state treasurer shall deposit the entire amount
in the state treasury to the credit of the state workers compensation self-
insurance fund.
(f) There is hereby established the state workplace health and safety
program within the state workers compensation self-insurance program of
the insurance department of health and environment. The secretary of
health and environment commissioner of insurance shall implement and
the division of industrial health and safety of the Kansas department of
labor shall assist in administering the state workplace health and safety
program for state agencies. The state workplace health and safety program
shall include, but not be limited to:
(1) Workplace health and safety hazard surveys in all state agencies,
including onsite interviews with employees;
(2) workplace health and safety hazard prevention services, including
inspection and consultation services;
(3) procedures for identifying and controlling workplace hazards;
(4) development and dissemination of health and safety informational
materials, plans, rules and work procedures; and
(5) training for supervisors and employees in healthful and safe work
practices.
Sec. 10. K.S.A. 44-577 is hereby amended to read as follows: 44-577.
(a) All claims for compensation under the workers compensation act
against any state agency for claims arising on and after July 1, 1974, and
claims for compensation remaining from the self-insurance program which
existed prior to July 1, 1974, for institutional employees of the commission
of community services and programs of the Kansas department for aging
and disability services shall be made against the state workers
compensation self-insurance fund. Such claims shall be served upon the
secretary of health and environment commissioner of insurance in the
secretary's commissioner's capacity as administrator of the state workers
compensation self-insurance fund in the manner provided for claims
against other employers under the workers compensation act. The chief
attorney for the insurance department of health and environment, or
another attorney of the insurance department of health and environment
designated by the chief attorney, shall represent and defend the state
workers compensation self-insurance fund in all proceedings under the
workers compensation act.
(b) The secretary of health and environment commissioner of
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insurance shall investigate, or cause to be investigated, each claim for
compensation against the state workers compensation self-insurance fund.
For the purposes of such investigations, the secretary of health and
environment commissioner of insurance is authorized to obtain expert
medical advice regarding the injuries, occupational diseases and
disabilities involved in such claims. If, based upon such investigation and
any other available information, the secretary of health and environment
commissioner of insurance finds that there is no material dispute as to any
issue involved in the claim, that the claim is valid and that the claim
should be settled by agreement, the secretary of health and environment
commissioner of insurance may proceed to enter into such an agreement
with the claimant, for the state workers compensation self-insurance fund.
Any such agreement may provide for lump-sum settlements subject to
approval by the director and all such agreements shall be filed in the office
of the director for approval as provided in K.S.A. 44-527, and amendments
thereto. All other claims for compensation against such fund shall be paid
in accordance with the workers compensation act pursuant to final awards
or orders of an administrative law judge or the board or pursuant to orders
and findings of the director under the workers compensation act.
(c) For purposes of the workers compensation act, a volunteer
member of a regional emergency medical response team as provided in
K.S.A. 48-928, and amendments thereto, shall be considered a person in
the service of the state in connection with authorized training and upon
activation for emergency response, except when such duties arise in the
course of employment or as a volunteer for an employer other than the
state.
Sec. 11. K.S.A. 44-578 is hereby amended to read as follows: 44-578.
The secretary of health and environment commissioner of insurance may
adopt rules and regulations necessary for the administration of the state
workers compensation self-insurance fund, including the processing and
settling of claims for compensation made against such fund.
Sec. 12. K.S.A. 2023 Supp. 75-6502 is hereby amended to read as
follows: 75-6502. (a) There is hereby established the Kansas state
employees health care commission which is composed of seven members
as follows: (1) The commissioner of insurance; (2) the secretary of
administration; (3) a current state employee who is currently enrolled in
the state healthcare benefits program group health insurance medical plan,
appointed by the governor; (4) a person who retired from a position in
state service and who is currently enrolled in the state healthcare benefits
program group health insurance medical plan, appointed by the governor;
(5) a representative of the general public, appointed by the governor; (6) a
member of the senate ways and means committee, appointed by the
president of the senate; and (7) a member of the house of representatives
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appropriations committee, appointed by the speaker of the house of
representatives. A state officer or employee may not be appointed as the
member representative of the general public.
(b) Each member appointed under this section by the governor shall
serve at the pleasure of the governor. The member appointed by the
president of the senate shall serve at the pleasure of the president of the
senate, and the member appointed by the speaker of the house of
representatives shall serve at the pleasure of the speaker of the house of
representatives. Not more than five members of the commission shall be
members of the same political party.
(c) The chairperson of the commission shall be designated by the
governor commissioner of insurance. The commission shall meet at least
once each calendar quarter and at such other times as may be required on
call of the chairperson or any three members thereof.
(d) A quorum of the Kansas state employees health care commission
shall be four. All actions of the commission shall be taken by a majority of
all of the members of the commission.
(e) Members of the Kansas state employees health care commission
attending meetings of such commission, or attending a subcommittee
meeting thereof authorized by such commission, shall be paid
compensation, subsistence allowances, mileage and other expenses as
provided in K.S.A. 75-3223, and amendments thereto.
Sec. 13. K.S.A. 75-6503 is hereby amended to read as follows: 75-
6503. (a) Except as otherwise provided by this act, all budgeting,
purchasing and related management functions of the Kansas state
employees health care commission shall be administered by the secretary
of administration under the direction and supervision of the chairperson of
the commission commissioner of insurance. All vouchers for expenditures
and all payrolls of the Kansas state employees health care commission
shall be approved by the chairperson of the commission or by a person or
persons designated by the chairperson.
(b) There is hereby created the position of technical administrator for
the state health care benefit benefits program. Under the direction and
supervision of the secretary of administration commissioner of insurance,
the technical administrator shall provide primary staffing assistance to the
commission and perform such other functions and duties as may be
prescribed by the commission. The technical administrator shall be in the
classified or unclassified service under the Kansas civil service act as
specified by the secretary of administration and shall be appointed by the
secretary of administration commissioner of insurance. Within the limits of
available appropriations, the secretary of administration commissioner of
insurance shall provide such additional assistance as may be requested by
the commission.
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Sec. 14. K.S.A. 44-575, 44-577, 44-578 and 75-6503 and K.S.A.
2023 Supp. 75-6502 and K.S.A. 2024 Supp. 44-512 are hereby repealed.
Sec. 15. This act shall take effect and be in force from and after its
publication in the statute book.
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