Brief⁽¹⁾

H.B. 2637, as amended, concerns the movement of an insurance company's charter from one state to Kansas or from Kansas to another state (this process of charter movement is sometimes referred to as "redomestication"). The bill would clarify that upon relocation of the charter, the relocated company maintains the same authorizations and corporate purposes and is the same entity as it was before its relocation. Further, the bill would state that companies relocated to Kansas must file restated articles of incorporation and a certificate of domestication with the Secretary of State. Finally, the bill as amended would affirm that any company relocated prior to the imposition of this filing requirement is deemed in compliance with the provisions of Kansas law relative to redomestication.

Background

H.B. 2637 was requested by the Insurance Commissioner whose representative explained that the bill corrects an oversight in the law created by last year's rewriting of this statute. Specifically, the bill recognizes the authority of the Secretary of State to accept the restated articles of incorporation.

The amendment was proposed by a representative of a company relocated to Kansas in order to ensure that its relocation under prior law would be considered in compliance with the amended statute. The Commissioner supported the bill as amended.

A fiscal note was not available at the time of the Committee's action on the bill.

1. *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.ink.org/public/legislative/fulltext-bill.html.