Kansas 2025-2026 Regular Session

Kansas House Bill HB2334

Introduced
2/7/25  
Refer
2/7/25  
Report Pass
2/18/25  
Engrossed
2/25/25  
Refer
2/26/25  
Report Pass
3/18/25  
Enrolled
4/10/25  

Caption

Enacting the Kansas protected cell captive insurance company act, providing for the redomestication of a foreign or alien captive insurance company and updating certain terms, requirements and conditions of the captive insurance act, reducing insurance company premium tax rates, creating parity between the insurance agent and public adjuster licensing requirements, authorizing insurers to file certain travel insurance policies under the accident and health line of insurance and authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register not later than December 1 of the current year.

Impact

The bill includes significant changes to state insurance laws, specifically reducing the premium tax rates for captive insurance companies, thus encouraging their establishment in Kansas. Additionally, it allows the redomestication of foreign and alien captive insurance companies, effectively bringing them under Kansas jurisdiction and regulations without imposing premium taxes for an initial period and simplifying the licensing process for insurance agents and public adjusters. This could enhance the state's attractiveness as a domicile for insurance businesses and facilitate industry growth and development in this sector.

Summary

House Bill 2334 enacts the Kansas Protected Cell Captive Insurance Company Act, which introduces provisions for establishing incorporated and protected cell captive insurance companies in Kansas. A captive insurance company is an insurance entity created by a parent company to insure its own risks. This bill expands the jurisdiction of such companies by allowing them to offer various types of insurance, including travel insurance, under the designated accident and health line. It aims to provide more options and create a favorable environment for captive insurance in the state, reflecting a trend toward diversifying insurance offerings including innovative structures for risk management.

Sentiment

The sentiment surrounding HB 2334 appears largely positive from the perspectives of proponents in the insurance industry who foresee economic benefits and opportunities for innovation in captive insurance. Supporters argue that the bill enhances the business environment by reducing regulatory burdens and tax liabilities, which could potentially increase competition and attract a wider range of insurance participants to the state. Conversely, some concerns might arise regarding oversight and risk management standards and whether adequate protections are in place for consumers. Overall, the enthusiasm for the bill signifies a broader movement towards leveraging captive insurance as a strategic tool within the business landscape.

Contention

Notable points of contention may stem from the debate over the implications of reducing premium taxes and the potential impacts those reductions could have on the state's general revenue from insurance taxes. There could also be discussions about safeguards relating to the creation of these captive insurance structures, including consumer protections and the need for rigorous oversight by the insurance commissioner to ensure that captive arrangements do not lead to unintended consequences or financial instability in the insurance market. Ensuring a balance between encouraging business development and maintaining adequate regulatory oversight will be critical as the bill progresses through legislative discussions.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2002

Expanding medical assistance eligibility and enacting the cutting healthcare costs for all Kansans act.

KS HB2001

Authorizing the secretary of commerce to enter into agreements with major professional sports franchises to establish STAR bond projects for a major professional sports complex, providing for additional revenue sources, expanding the powers and discretion of the secretary and making other changes to the STAR bonds financing act to facilitate such projects, limiting the secretary’s authority to approve such projects to one year unless extended by the legislative coordinating council, authorizing the Kansas development finance authority to issue STAR bonds for such projects, transferring funds under certain circumstances from the state gaming revenues fund to the attracting professional sports to Kansas fund for the fiscal year ending June 30, 2025, and, if approved by the legislative coordinating council, for the fiscal year ending June 30, 2026.

KS HB2003

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

KS SB1

Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, increasing the income tax credit amount for household and dependent care expenses, decreasing the privilege tax normal tax, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value for property tax valuation purposes, increasing the extent of property tax exemption for residential property from the statewide school levy, providing for certain transfers to the state school district finance fund and abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund.

KS SB2

Eliminating the income limit to qualify for the subtraction modification exempting social security benefits, increasing the income tax credit amount for household and dependent care expenses, establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, citing the increased property tax homestead refund claim section as the homeowners' property tax freeze program, decreasing the normal privilege tax rate, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district; providing for certain transfers to the state school district finance fund, reducing the state rate of tax on sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS SCR1604

Proposing to amend section 1 of article 11 of the constitution of the state of Kansas to limit property tax valuation increases for real property and personal property mobile homes.

KS SB7

Authorizing federally licensed firearm dealers, in addition to county sheriffs, to receive applications for concealed carry licenses and forward such applications to the attorney general, prohibiting sheriffs from assessing any fee related to application services and allowing dealers to assess a fee related to application services not to exceed $20.

KS SCR1602

Approving the creation of a port authority in Wyandotte County Kansas.

KS SB5

Authorizing counties to impose an earnings tax.

KS HB2004

Authorizing counties to propose an earnings tax for ballot question.

Similar Bills

ME LD1865

Resolve, to Create a Tax Incentive Pilot Project to Encourage Businesses to Adopt a 4-day Workweek

CA AB378

Education finance: Classified School Employee Summer Assistance Program.

CA AB1054

Public employees’ retirement: deferred retirement option program.

CA AB266

An act to amend Section 2562.

DE SB147

An Act To Amend Title 24 Of The Delaware Code Relating To The Dentist And Dental Hygienist Compact.

NJ S2746

Establishes four-year "Rent for Credit Pilot Program" in Department of Community Affairs.

NJ A3564

Establishes four-year "Rent for Credit Pilot Program" in Department of Community Affairs.

FL S0538

Extracurricular Activities