Chairperson Smith opened the hearing for HB2430.
Adam Siebers, Kansas Office of Revisor of Statutes, provided an overview on HB2430 related to property and casualty insurance and taxation. The bill wold enact the insurance savings account act to allow individuals and corporations the ability to establish insurance savings accounts. Maximum contribution to the accounts per any tax year would be $6,000 for individuals, $12,000. married couple filing joint return, and $25,000 for corporations. If the limit is exceeded, then the interest and other income earned on the excess investment would be subject to income. (Attachment 1)
Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, noted HB2430 from two agencies, Department of Revenue and the Department of Insurance, have different estimates based on the assumption that were made about utilization. The Department of Revenue estimates the bill could decrease state revenues by approximately $73.1 million in FY2027 and up to $248.9 million per year thereafter. The Department of Revenue would require a total of $175,787 from the State General Fund in FY2027 to implement the bill and to modify the automated tax system. Ms. Smith stood for questions from Committee members.
Proponents (Speaking before the Committee.
Commissioner Vicki Schmidt, Kansas Department of Insurance, testified as a proponent for HB2430, that creates a new law concerning state income tax provisions through a new tax advantage and savings account known as a Insurance Savings Account (ISAs). Insurance Commissioner Schmidt introduced Erik Turek, Director, Government Affairs, Kansas Department of Insurance, who will provide more specific details of HB2430. (Attachment 2)
The bill is based off of the First-Time Home Buyer Savings Accounts and the Adoption Savings Account. The bill can also be utilized by Kansas businesses. Allowable expenses permitted from the savings accounts are limited to property and casualty insurance premiums and deductibles. The allowable contribution maximum limit per tax year is $6,000 for individual; $12,000 for married filing jointly; and $25,000 for corporate. Allowable expenses permitted from the savings accounts are limited to property and casualty insurance premiums and deductibles which would include homeowners, renters, auto, workers compensation, liability, etc. Mr. Turek provided an approximate utilization estimate and a fiscal note estimate noting the utilization will be relatively low with modest growth over time.
Commissioner of Insurance, Vicki Schmidt and Erik Turek stood for questions from Committee members.
Elizabeth Smoller, General Counsel, Kansas Association of Insurance Agents, testified as a proponent, noting it is a great idea to help incentivize Kansas consumers to save for their property and casualty insurance premiums and deductibles. (Attachment 3)
Ms. Smoller stood for questions from Committee members.
Proponent written only testimony for HB2430 was submitted by the following:
Cale Beam, Kansas Credit Union Association, (Attachment 4)
Proponent written only testimony for HB2430 was submitted by the following:
Marlee Carpenter, Kansas Association of Property and Casualty Insurance Companies, (Attachment 5)
William Wilk, Senior Director of Government Affairs, Kansas Chamber, (Attachment 6)
Travis Grauerholz, National Association of Insurance and Financial Advisors of Kansas, (Attachment 7)
Kelly VanZwoll, SVP Government Relations, Kansas Bankers Association, (Attachment 8)
Daniel Murray, Kansas State Director, National Federation of Independent Business, (Attachment 9)
Mark Tomb, Vice President of Governmental Affairs, Kansas Realtors, (Attachment 10)
Scott Kibbe, Vice President, State Government Relations, American Property Casualty Insurance Association, (Attachment 11)
The bill HB2430 did not have any opponents or neutral testimony submitted.
Chairperson Smith closed the hearing for HB2430.
Chairperson Smith adjourned the meeting at 4:20 p.m.
Next meeting scheduled is January 27, 2026.