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Minutes for HB2790 - Committee on Commerce
Short Title
Transferring registration requirements and related compliance oversight and enforcement authority for professional employer organizations from the commissioner of insurance to the secretary of labor, granting the secretary responsibility over the professional employer organization fee fund and ensuring that welfare benefit plans offered by professional employer organizations to employees and covered employees are treated as a single employer welfare benefit plan for purposes of state law.
Minutes Content for Wed, Mar 6, 2024
Chair Erickson opened the hearing on HB 2790.
Staff provided an overview of the bill.
Proponent:
Bill Maness, President and CEO for Syndeo, testified in favor of the bill. (Attachment 1) For the transition to occur the Kansas Secretary of State has the authority to engage Employer Services Assurance Corporation (ESAC) and this bill does that.
Erica Brune, CEO for Lever I PEO, she also serves as the Leadership Council for the Heartlands Region for the National Association of Professional Employer Organizations, (NAPEO) spoke in favor of the bill. (Attachment 2) The bill updates the Kansas PEO Act to codify the existing practices that authorize PEOs to sponsor fully insured benefits as a single employer.
Clayton L. Barker, Deputy Secretary of State, General Counsel, Office of the Secretary of the Kansas Secretary of State, appeared in the support of the bill. (Attachment 3) The bill transfers the administrative registration tasks, fee fund, and regulation authority to the Secretary of State, without changing the substance of the PEO Registration Act.
Eric Turek, Director of Government and Public Affairs, Kansas Department of Insurance, testified in support of the bill. (Attachment 4) The bill transfers the regulatory authority for professional employer organizations (PEOs) from the Kansas Insurance Department to the Kansas Secretary of State's Office (KSOS).
Written in support of the bill:
The National Association of Professional Employer Organizations (NAPEO) provided a statement for the record. (Attachment 5)
Chair Erickson closed the hearing on HB 2790.
The next meeting is March 7, 2024. The meeting was adjourned at 10:56 am.
