Insurance commissioner says governor’s veto violates state law

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State Insurance Commissioner Ken Selzer on Thursday accused Gov. Jeff Colyer of violating state law for effectively directing $8 million in insurance agency fees to the state general fund.

Selzer, who’s running against Colyer for the GOP gubernatorial nomination, criticized Colyer for vetoing part of the budget blocking  the transfer of $8 million from a fund that collects fees paid by insurance agencies across the state. The governor’s office declined comment.

Ken Selzer

Selzer said the veto violates a 2017 law prohibiting the transfer of the fees – intended to finance Insurance Department operations – to the state general fund.

“The cost of doing business in Kansas is higher than it needs to be when these sweeps happen,” Selzer said in an interview.

In a statement sent to reporters, Selzer struck a harsher tone, calling it “another example of the ongoing budget mismanagement by the governor’s office.”

“These funds are paid by Kansas licensed insurance agents and companies to support quality insurance regulation, not to fill budget holes,” Selzer said in the statement.

Jeff Colyer

In the veto message, the governor said the transfer of the money was approved by the 2017 Legislature. The governor’s office declined to comment further.

Selzer, in an interview, said he is hopeful that the governor’s office will recognize it made a mistake and figure out a way to reverse its action.

“It is so clear what the intent of (the law) is,” Selzer said.

Selzer said his comments were not political. He said the governor’s staff should have reached out to the Insurance Department to better understand why the money couldn’t be transferred.

“He didn’t consult with us. We could have explained it to him,” Selzer said. “It didn’t need to be in the press.”