SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 19
As Amended by House Committee on Insurance

Brief*
SB 19, as amended, would amend provisions pertaining
to premium taxes paid by municipal group-funded liability
pools and group-funded workers’ compensation pools to
change the basis upon which the premium taxes for these
pools are calculated.
The bill would change, from fiscal year to calendar year,
the basis upon which the 1.0 percent annual premium tax is
paid. (Under both the bill and current law, the premium tax is
based on the annual gross premium collected by the pool for
the preceding year. Payment must made no later than 90
days after the conclusion of each year.)
The bill would also make technical changes.
The bill would be in effect upon publication in the
Kansas Register.

Background
The bill was introduced by the Senate Committee on
Financial Institutions and Insurance at the request of the
Kansas Insurance Department (Department). [Note: A
companion bill, HB 2096, has been introduced in the House.]


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*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
Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, a representative of
the Department provided proponent testimony, stating the
bill would better align the statute with the Department’s
business practices and eliminate the ambiguity concerning
the definition of “fiscal year.” The representative noted, of the
17 group-funded pools transacting business in Kansas, 12
pools conclude their respective fiscal years on December 31.
Consistent with a filing date of 90 days after the end of the
reporting year, the filing date would become March 31.
No other testimony was provided.

House Committee on Insurance
In the House Committee hearing, an overview of the bill
was provided and proponent testimony submitted by the
Department was made available.
The House 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
the bill would shift when these premium taxes are collected,
which could affect the total amount collected in the first years
as those pools make payment adjustments. The Department
indicates it cannot estimate the net change because each
company’s fiscal year is different. Any fiscal effect associated
with the bill is not reflected in The Governor’s FY 2024
Report.
Insurance; group-funded pools; premium tax collection


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Statutes affected:
As introduced: 12-2624, 44-588, 12-2618, 44-582
As Amended by House Committee: 12-2624, 44-588, 12-2618, 44-582