SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2197
As Amended by House Committee on Financial
Institutions and Pensions
Brief*
HB 2197, as amended, would amend provisions in the
First-time Home Buyer Savings Account Act (Act) to clarify
the process for the designation and determination of an
account holder’s payable on death beneficiary. The bill would
also enact law supplemental to the Act to authorize the State
Treasurer to market the First-time Home Buyers Savings
Account Program (Program) to account holders and financial
institutions.
[Note: This act permits savings accounts to be used to
pay or reimburse a designated beneficiary’s eligible expenses
for the purchase or construction of a primary residence in the
state. The accounts are subject to maximum contribution
amounts per tax year and in aggregate.]
Program Marketing
The bill would grant non-exclusive authority to the State
Treasurer for the purpose of marketing the Program to
account holders and financial institutions throughout the
state. The State Treasurer would be permitted to include
these marketing initiatives in the office’s annual report.
Designated Beneficiaries
The bill would also update the Act to:
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org ●Add a provision stating the naming of a designated
beneficiary does not create a survivorship interest
in the account for the named designated
beneficiary. In the event of the account holder’s
death, the bill would provide the account balance
must be paid to the payable on death beneficiary
or, if there is no named payable on death
beneficiary, in accordance with provisions of the
Kansas probate code;
●Permit a financial institution to rely on its account
records for the determination of a payable on death
beneficiary for a first-time home buyer savings
account;
○If the payable on death beneficiary in the
institution’s account records conflicts with the
designated beneficiary on any form required
by the Secretary of Revenue, the bill would
provide the payable on death beneficiary in
such financial institution’s account records
shall control; and
●Update terminology applicable to beneficiaries
within the Act from “transfer on death” to “payable
on death.”
The bill would also make technical changes.
Background
The bill was introduced by the House Committee on
Financial Institutions and Pensions at the request of the
Kansas Bankers Association (KBA).
House Committee on Financial Institutions and Pensions
In the House Committee hearing, representatives of the
KBA and Kansas Association of Realtors (KAR) provided
2- 2197 proponent testimony, stating the use of the term “transfer on
death” is generally used for investment accounts while the
“payable on death” (POD) designation is used for bank
accounts. By adding a POD beneficiary, when the account
holder dies, any money in the account would bypass the
estate process and automatically go to the POD beneficiary
instead. The bill would also clarify the controlling document in
the event of a conflict. The KAR representative indicated the
amendments to the Act would make it easier for financial
institutions to administer the savings accounts.
No other testimony was provided.
The House Committee amended the bill to assign non-
exclusive account program marketing duties to the State
Treasurer.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of
Revenue indicates the bill would have no fiscal effect.
Financial Institutions; First-time Home Buyer Savings Account Act; account holder;
designated beneficiary; State Treasurer
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