Brief ⁽¹⁾

HB 2263 amends the law governing group funded workers compensation pools regarding refunds. This provision would allow for a declaration of dividend of profits of a fund earlier than 12 months after the end of the fund year. Current law mandates the declaration of refundability be made not less than 12 months after the end of the fund year. As a result, federal taxes must be paid on the money that is to be refunded.

Background

The Senate Committee held a hearing on HB 2263, at which time a representative of the Kansas Building Industry Association testified in favor of the bill. It was noted that the Insurance Department suggested two amendments. The first amendment would extend the time for declaring a refund of surplus moneys by allowing trustees to declare a refund of any surplus at the end of a fund year "or anytime thereafter." (Previous language had specified that the refund be declared at the end of a fund year.) The second amendment replaced the word "fund" with "pool" in the portion of the bill requiring that notice of the declaration be sent to the Insurance Commissioner. The Senate Committee adopted these amendments.

At the House Committee hearing on HB 2263, a conferee with the Kansas Building Industry Workers Compensation Fund spoke in support of the bill.

According to the Division of the Budget, passage of HB 2263 would have no fiscal effect on the state.

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.cgi