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Minutes for HB2242 - Committee on Insurance and Pensions
Short Title
Increasing the percentage amount the state fire marshal may levy on fire insurance company premiums caused by fire business being transacted in Kansas.
Minutes Content for Wed, Feb 17, 2021
The Chairperson opened the hearing on HB2242 and asked Eileen Ma, Assistant Revisor, Office of the Revisor of Statutes, to provide an overview of the bill. (Attachment 5)
The Chairperson asked Melissa Renick, Assistant Director for Research, Kansas Legislative Research Department, to provide an overview of the fiscal note.
Doug Jorgensen, State Fire Marshal, provided testimony in support of the bill. Mr. Jorgensen explained that the State Fire Marshal is completely fee funded and receives no State General Funds. He went on to say that the majority of their funding comes form the Insurance Premium Levee that also supports the Board of Emergency Services and the Kansas Fire and Rescue Training Institute. He said that the amount his agency receives is not sufficient to fund the statutory and legislative responsibilities currently mandated to the agency. Mr. Jorgensen said that the last time there was an increase to the Insurance Premium Levee amount to the Fire Marshal's Office was in 1983. He concluded with a plea that the Committee seriously consider this increase in funding request so the State Fire Marshal can fulfill their statutory and legislative mandates and continue to provide for the safety of our state firefighters and our citizens. (Attachment 6)
William Sneed, Legislative Council for the State Farm Insurance Companies ("State Farm"), provided testimony in opposition to the bill. Mr. Sneed began by telling the Committee that State Farm is the largest insurer of homes and automobiles in Kansas, as they insure one out of every three cars and one out of every four homes in the United States. His client feels that this increase is an additional tax on their policyholders. He provided data that showed an annual increase in monies collected directly from fire premiums annually. Mr. Sneed responded to Committee questions. (Attachment 7)
Written testimony in opposition to the bill was submitted by:
Marlee Carpenter, Kansas Association of Property and Casualty Insurance Companies (KAPCIC)
Hilary Segura, Assistant Vice President, State Government Relations with American Property Casualty Insurance Association (APCIA) (Attachment 9)
After asking if there were any other conferees and seeing none, Chairperson Johnson closed the hearing on HB2242
