SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2532
As Amended by Senate Committee on Financial
Institutions and Insurance

Brief*
HB 2532, as amended, would amend provisions
pertaining to certain financial reporting requirements on
group-funded liability and group-funded workers
compensation pools and would also remove a notification
requirement relating to termination or cancellation of a
member in a group-funded workers compensation pool.
Under current law, group-funded liability and group-
funded workers compensation pools must submit a certified,
independent financial statement within 150 days after the end
of the fiscal year whenever the Commissioner of Insurance
deems it necessary to examine the affairs and financial
condition of any pool. The bill would increase the time limit
specified to 180 days.
The bill would also remove a requirement on group-
funded workers compensation pools to provide notice to the
Commissioner of a cancellation or termination of an individual
member. Pool members would be required to maintain
coverage for 30 days or until the canceled or terminating
member has procured workers compensation and employer’s
liability coverage.
The bill would be in effect upon publication in the
Kansas Register.

____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
Background
The bill was introduced by the House Committee on
Insurance at the request of the Kansas Insurance Department
(Department). [Note: A companion bill, SB 338, has been
introduced in the Senate.]
House Committee on Insurance
In the House Committee hearing, a representative of the
Department provided proponent testimony stating the
Department submitted the bill after discussion with the pools
regarding the difficulty in finding an auditor to complete the
audit with the time frame specified in current law. The
representative noted the notification requirement placed on
group-funded workers compensation pools is no longer
necessary.
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, stating the
bill would address the present concerns regarding timing and
completion of pools’ audits and help ensure the pools can
remain in statutory compliance with reporting requirements.
No other testimony was provided.
The Senate Committee amended the bill to change its
effective date to upon publication in the Kansas Register.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department states
enactment of the bill would not have a fiscal effect on agency
operations.
Insurance; group-funded pools; reporting requirements

2- 2532


Statutes affected:
As introduced: 12-2620, 44-584, 44-590, 40-222b
As Amended by Senate Committee: 12-2620, 44-584, 44-590, 40-222b
Enrolled: 74-8823