Session of 1997
HOUSE BILL No. 2525
By Committee on Appropriations
9 AN ACT concerning the workers compensation board; relating to assess-
10 ments thereby; amending K.S.A. 1996 Supp. 44-566a and repealing
11 the existing section.
13 Be it enacted by the Legislature of the State of Kansas:
14 Section 1. K.S.A. 1996 Supp. 44-566a is hereby amended to read as
15 follows: 44-566a. (a) There is hereby created in the state treasury the
16 workers compensation fund. The commissioner of insurance shall be re-
17 sponsible for administering the workers compensation fund, and all pay-
18 ments from the workers compensation fund shall be upon warrants of the
19 director of accounts and reports issued pursuant to vouchers approved
20 by the commissioner of insurance or a person or persons designated by
21 the commissioner. The commissioner of insurance annually shall report
22 to the governor and the legislature the receipts and disbursements from
23 the workers compensation fund during the preceding fiscal year.
24 (b) (1) On June 1 of each year, the commissioner of insurance shall
25 impose an assessment against all insurance carriers, self-insurers and
26 group-funded workers compensation pools insuring the payment of com-
27 pensation under the workers compensation act, and the same shall be due
28 and payable to the commissioner on the following July 1, the proceeds of
29 which shall be credited to the workers compensation fund. The total
30 amount of each such assessment shall be equal to an amount sufficient,
31 in the opinion of the commissioner of insurance, to pay all amounts, in-
32 cluding attorney fees and costs, which may be required to be paid from
33 such fund during the current fiscal year, less the amount of the estimated
34 unencumbered balance in the workers compensation fund as of the June
35 30 immediately preceding the date the assessment is due and payable
36 under this section. The total amount of each such assessment shall be
37 apportioned among those upon whom it is imposed, such that each is
38 assessed an amount that bears the same relation to such total assessment
39 as the amount of
money paid or payable in workers compensation claims
40 total premiums collected by such insurance carrier , self-insurer or group-
41 funded workers compensation pool in the immediately preceding calen-
42 dar year bears to all such claims paid or payable premiums collected during
43 such calendar year and the commissioner shall develop an appropriate
1 assessment method to ensure self-insurers pay their apportioned share.
2 The commissioner of insurance may establish experience-based rates of
3 assessments under this subsection and make adjustments in the assess-
4 ments imposed under this subsection based on the success of accident
5 prevention programs under K.S.A. 44-5,104 and amendments thereto and
6 other employer safety programs.
7 (2) The commissioner of insurance shall remit all moneys received
8 by or for such commissioner under this subsection to the state treasurer.
9 Upon receipt of any such remittance the state treasurer shall deposit the
10 entire amount thereof in the state treasury to the credit of the workers
11 compensation fund.
12 (c) (1) Whenever the workers compensation fund may be made lia-
13 ble for the payment of any amounts in proceedings under the workers
14 compensation act, the commissioner of insurance, in the capacity of ad-
15 ministrator of such fund, shall be impleaded in such proceedings and shall
16 represent and defend the workers compensation fund. The commissioner
17 of insurance shall be deemed impleaded in any such proceedings when-
18 ever written notice of the proceedings setting forth the nature of the
19 liability asserted against the workers compensation fund, is given to the
20 commissioner of insurance. The commissioner of insurance may be made
21 a party in this manner by any party to the proceedings. A copy of the
22 written notice shall be given to the director and to all other parties to the
24 (2) The administrative law judge shall dismiss the workers compen-
25 sation fund from any proceeding where the administrative law judge has
26 determined that there is insufficient evidence to indicate involvement by
27 the workers compensation fund.
28 (3) In any case in which the workers compensation fund has been
29 impleaded, if the liability of the fund has not been established within five
30 years of the date of the employee filing a written notice of claim, the
31 commissioner of insurance may cause to be filed with an administrative
32 law judge a motion to dismiss the fund from the case. The administrative
33 law judge shall notify counsel of record not less than 10 days prior to
34 issuing any order dismissing the fund from a case. The administrative law
35 judge shall dismiss the fund from any such case absent a showing by one
36 of the parties that the case should be left open due to medical necessity
37 or other just cause.
38 (d) The commissioner of insurance, in the capacity of administrator
39 of the workers compensation fund, may make settlements of any amounts
40 which may be payable from the workers compensation fund with regard
41 to any claim under the workers compensation act, subject to the approval
42 of the director.
43 (e) The workers compensation fund shall be liable for:
1 (1) Payment of awards to handicapped employees in accordance with
2 the provisions of K.S.A. 44-569 and amendments thereto for claims aris-
3 ing prior to July 1, 1994;
4 (2) payment of workers compensation benefits to an employee who
5 is unable to receive such benefits from such employee's employer under
6 the conditions prescribed by K.S.A. 44-532a and amendments thereto;
7 (3) reimbursement of an employer or insurance carrier pursuant to
8 the provisions of K.S.A. 44-534a and amendments thereto, subsection (d)
9 of K.S.A. 44-556 and amendments thereto, subsection (c) of K.S.A. 44-
10 569 and amendments thereto and K.S.A. 44-569a and amendments
12 (4) payment of the actual expenses of the commissioner of insurance
13 which are incurred for administering the workers compensation fund,
14 subject to the provisions of appropriations acts; and
15 (5) any other payments or disbursements provided by law.
16 (f) If it is determined that the workers compensation fund is not liable
17 as described in subsection (e), attorney fees incurred by the workers com-
18 pensation fund may be assessed against the party who has impleaded the
19 workers compensation fund other than impleadings pursuant to K.S.A.
20 44-532a and amendments thereto.
21 (g) The commissioner of insurance shall provide for the implemen-
22 tation of the workers compensation fund as provided in this section and
23 shall be responsible for ensuring the fund's adequacy to meet and pay
24 claims awarded against it.
25 Sec. 2. K.S.A. 1996 Supp. 44-566a is hereby repealed.
26 Sec. 3. This act shall take effect and be in force from and after its
27 publication in the statute book.