Session of 1998
                   
HOUSE BILL No. 2909
         
By Representative Garner
         
2-12
            9             AN ACT concerning group-funded workers compensation pools; amend-
10             ing K.S.A. 1997 Supp. 44-581 and repealing the existing section.
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12       Be it enacted by the Legislature of the State of Kansas:
13           Section 1. K.S.A. 1997 Supp. 44-581 is hereby amended to read as
14       follows: 44-581. (a) Five or more employers, regardless of domicile, who
15       are members of the same bona fide trade, merchant or professional as-
16       sociation, regardless of domicile, which has been in existence for not less
17       than five years and who are engaged in the same, similar or closely related
18       type of business may enter into agreements to pool their liabilities for
19       Kansas workers compensation benefits and employers' liability.
20           (b) Five or more employers, regardless of domicile, who are members
21       of the same bona fide trade, merchant or professional association, re-
22       gardless of domicile, which has been in existence for not less than five
23       years and who are engaged in dissimilar types of businesses for which the
24       commissioner of insurance finds an accurate prediction of loss can be
25       made, may enter into agreements to pool their liabilities for Kansas work-
26       ers compensation benefits and employers' liability.
27           (c) Any one employer which has been in existence for not less than
28       five years and which has five or more operating locations within the state
29       may apply for authority to operate a pool for liabilities for Kansas workers
30       compensation benefits and employers' liability.
31           (d) All such arrangements shall be known as group-funded workers
32       compensation pools, which shall not be deemed to be insurance or in-
33       surance companies and shall not be subject to the provisions of chapter
34       40 of the Kansas Statutes Annotated, except as otherwise provided herein.
35             (d) (e) For purposes of this section:
36           (1) ``Same, similar or closely related type of business'' means, but is
37       not limited to, a business in which the principal payroll is in a manual
38       classification or combination of classifications representing occupations
39       which contribute to an essential part of the end product or service which
40       is the primary business interest of the membership of the bona fide trade,
41       merchant or professional association; and
42           (2) ``principal payroll'' means not less than 51% of the total payroll
43       for the preceding policy year or, in the case of an employer who has no

HB 2909

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  1       preceding full-year's payroll, not less than 51% of estimated annual pay-
  2       roll; principal payroll or estimated annual payroll shall not include the
  3       annual payroll of those employees set forth in the standard exceptions
  4       contained in the rules promulgated by the national council on compen-
  5       sation insurance.
  6           Sec. 2. K.S.A. 1997 Supp. 44-581 is hereby repealed.
  7           Sec. 3. This act shall take effect and be in force from and after its
  8       publication in the statute book.
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