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Insurance department seeks authority to shrink certain boards and reduce meeting frequency

2167241 · January 29, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

House Bill 2045 would let the insurance commissioner reduce the size of certain advisory boards and change meeting frequency and term dates; the department said the proposal addresses board vacancies and administrative efficiency.

House Bill 2045 would give the commissioner of insurance authority to reduce the number of appointed board members on certain insurance‑related boards, adjust meeting frequency for some bodies (notably removing a monthly meeting requirement for the committee on surety bonds and insurance), and reset terms for newly constituted boards beginning Jan. 1, 2026.

Eileen, the reviser, described the bill as similar to legislation considered last year with the Kansas underground storage tank liability board language removed from the current draft. The bill would allow the commissioner to appoint new, smaller boards with three‑year terms beginning Jan. 1, 2026, and provide that members could be removed for inefficiency, neglect of duty or malfeasance. Section 5 removes a requirement that the committee on surety bonds and insurance meet monthly and instead lets the chair call meetings as needed.

Kyle Strafman, deputy chief of staff for the Kansas Department of Insurance, told the committee the department has struggled to fill board vacancies. He said the number of vacancies has grown (he cited seven current vacancies at the time of testimony) and that the reduced membership is intended to make boards easier to staff while preserving their duties and authorities. The department removed an earlier proposal to reduce the underground storage tank liability board from five to three members after quorum concerns were raised last year.

The committee heard the department's explanation and closed the hearing on HB 2045; no opponents or neutral witnesses appeared on the record in the transcript.

Why it matters: The measure affects administrative governance of several insurance‑related boards; supporters said it would improve the department's ability to maintain functioning boards and reduce scheduling burdens.

What's next: The committee closed the hearing; the transcript does not show a committee vote on HB 2045.