The American Insurance Association (AIA) noted that the adjournment on May 8th of the Kansas legislature ended a 10-week session marked by several important victories for the associaiton.
Earlier in the week, Governor Bill Graves had signed all legislation of interest to insurers sent to his desk.
AIA stated it had successfully defended the state’s premium tax employee wage credit against several attempts at outright repeal. A bill, HB2065, which dealt with the issue, had been in development for more than a year. It includes revisions to the formula used to calculate the amount of tax credit allowed to insurers for the salaries paid to Kansas-based employees. Preserving the tax credit concept was a priority for AIA.
The cap on salary credits increased from 1 percent in 1998 to 1.25 percent in 1999. Because of the $206 million revenue shortfalls suffered by the state general fund and the impact of the post audit report, legislators realized that changes needed to be made. The revised formula is expected to reduce state revenues lost to salary credits by $9 million.
Another issue of significant interest to insurers was related to regulations governing the privacy of consumer financial and health information. AIA commended Commissioner Sebelius for introducing HB 2480, which closely tracks the model regulations developed by the National Association of Insurance Commissioners. The bill passed the House and Senate almost unanimously and will become law on December 31, 2001. It is consistent with the privacy protections in Title V of the Federal Gramm-Leach-Bliley Act of 1999. A bill designed to restrict workers’ compensation carriers from accessing certain health information of claimants was defeated.
For the AIA, another highlight of the Kansas legislative session was the enactment of stricter laws regarding driving under the influence (DUI). The new law proposed and adopted in SB 67 increases fines and prison time for DUI offenders. The bill also extends driver’s license suspension and revocation periods, streamlines administrative license hearings and strengthens the underage drinking and possession statutes. AIA applauds this measure as an important step in saving lives and protecting property across Kansas.
Topics Legislation Kansas
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