SESSION OF 2024
CONFERENCE COMMITTEE REPORT BRIEF
HOUSE BILL NO. 2560
As Agreed to April 2, 2024
Brief*
HB 2560 would repeal and replace the Kansas Money Transmitter Act with the Kansas
Money Transmission Act, enact the Kansas Earned Wage Access Services Act, and make
several amendments to the State Banking Code.
Provisions pertaining to the enactment of the Kansas Money Transmission Act would
become effective and be in force from and after January 1, 2025, and upon its publication in the
statute book.
Kansas Money Transmission Act (New Sections 1–42)
The bill would repeal and replace the Kansas Money Transmitter Act (KSA 9-508 et seq.)
with the Kansas Money Transmission Act (Act). The bill would require the State Bank
Commissioner (Commissioner) to provide oversight of the electronic transmission of money and
establish the powers, duties, and responsibilities of the Commissioner under the Act. The bill
would also establish a licensing and renewal process for persons licensed under the Act.
Additionally, the bill would establish penalties for violations of the Act.
Definitions (New Section 1)
The bill would define terms as used in the Act, including:
●“Money” would mean a medium of exchange that is authorized or adopted by the
United States or a foreign government. “Money” includes a monetary unit of account
established by an intergovernmental organization or by agreement between two or
more governments;
●“Money transmission” would mean any of the following:
○Selling or issuing payment instruments to a person located in Kansas;
○Selling or issuing stored value to a person located in Kansas;
○Receiving money for transmission from a person located in Kansas; or
○Payroll processing services.
____________________
*Conference committee report briefs are prepared by the Legislative Research Department and do not express
legislative intent. No summary is prepared when the report is an agreement to disagree. Conference committee
report briefs may be accessed on the Internet at http://www.kslegislature.org/klrd
1 - 2560 “Money transmission” would not include the provision of solely online or
telecommunications services or network access.
●“Person” would mean any individual, general partnership, limited partnership, limited
liability company, corporation, trust, association, joint stock corporation, or other
corporate entity identified or recognized by the Commissioner; and
●“Tangible net worth” would mean the aggregate assets of a licensee excluding all
intangible assets, less liabilities, as determined in accordance with United States
generally accepted accounting principles.
Exemptions (New Section 2)
The bill would provide a list of entities the Act would not apply to:
●An operator of a payment system to the extent that such operator provides
processing, clearing, or settlement services between persons exempted under this
subsection or licensees in connection with wire transfers, credit card transactions,
debit card transactions, stored value transactions, automated clearing house
transfers, or similar funds transfers;
●A person appointed as an agent of a payee to collect and process a payment from a
payor to the payee for goods or services other than money transmission provided to
the payor by the payee if:
○A written agreement exists between the payee and the agent directing the agent
to collect and process payments from payors on the payee’s behalf;
○The payee holds the agent out to the public as accepting payments for goods
and services on the payee’s behalf; and
○Payment for the goods and services is treated as received by the payee upon
receipt by the agent so that the payor’s obligation is extinguished and there is no
risk of loss to the payor if the agent fails to remit the funds to the payee;
●A person that acts as an intermediary by processing payments between an entity that
has directly incurred an outstanding money transmission obligation to a sender and
the sender’s designated recipient, if the entity:
○Is properly licensed or exempt from licensing requirements under this act;
○Provides a receipt, electronic record, or other written confirmation to the sender
identifying the entity as the provider of money transmission in the transaction;
and
○Bears sole responsibility to satisfy the outstanding money transmission
obligation to the sender, including the obligation to make the sender whole in
connection with any failure to transmit the funds to the sender’s designated
recipient;
●The U.S. government and any agency, bureau, department, office, or instrumentality,
corporate or otherwise, thereof, including any official, employee, or agent of any such
entity;
2 - 2560 ●Money transmission by the U.S. Postal Service (USPS) or by an agent of the USPS;
●Any state office or officer, department, board, commission, bureau, division, authority,
agency, or institution of this state, including any political subdivision thereof, and any
county, city, or other municipality;
●A federally insured depository financial institution, bank holding company, office of an
international banking corporation, foreign bank that establishes a federal branch
pursuant to federal law; a corporation organized pursuant to the federal Bank Service
Company Act, or a corporation organized to do foreign banking under federal law;
●Electronic funds transfer of governmental benefits for a federal, state, county, or
governmental agency or instrumentality thereof or on behalf of a state or
governmental subdivision, agency, or instrumentality thereof;
●A board of trade designated as a contract market under federal law or a person that in
the ordinary course of business provides clearance and settlement services for a
board of trade to the extent of the board of trade’s operation as or for such a board;
●A futures commission merchant registered under federal commodities law to the
extent of the registrant’s operation as such a futures commission merchant;
●A person registered as a securities broker-dealer under federal or state securities law
to the extent of such registrant’s operation as such a securities broker-dealer;
●An individual employed by a licensee, authorized delegate, or any person exempted
from the licensing requirements of the Act when acting within the scope of
employment and under the supervision of the licensee, authorized delegate, or
exempted person as an employee and not as an independent contractor;
●A person expressly appointed as a third-party service provider to or agent of a state
office or officer, department, board, commission, bureau, division, authority, agency,
or institution of this state, including any political subdivision thereof, and any county,
city, or other municipality, solely to the extent that:
○Such service provider or agent is engaging in money transmission on behalf of
and pursuant to a written agreement with the exempt entity that sets forth the
specific functions that the service provider or agent is to perform; and
○The exempt entity assumes all risk of loss and all legal responsibility for
satisfying the outstanding money transmission obligations owed to purchasers
and holders of the outstanding money transmission obligations upon receipt of
the purchaser’s or holder’s money or monetary value by the service provider or
agent;
●A person engaging in the practice of law, bookkeeping, accounting, real estate sales,
or brokerage;
●A person appointed as an agent of a payor for purposes of providing payroll
processing services for which such agent would otherwise need to be licensed if:
○There is a written agreement between the payor and the agent that directs the
agent to provide payroll processing services on the payor’s behalf;
3 - 2560 ○The payor holds the agent out to employees and other payees as providing
payroll processing services on the payor’s behalf; and
○The payor’s obligation to a payee, including an employee or any other party
entitled to receive funds via the payroll processing services provided by the
agent, is not extinguished if such agent fails to remit such funds to the payee;
and
●A person exempt by any rules or regulations adopted or by an order issued if the
Commissioner finds such exemption to be in the public interest and that the
regulation of such person is not necessary for the purposes of this Act.
The Commissioner would be permitted to require that any person claiming to be exempt
from licensing provide information and documentation to the Commissioner demonstrating that
such person qualifies for any claimed exemption.
Implementation—State Bank Commissioner (New Section 3)
To carry out the purposes of the Act, the Commissioner could:
●Enter into agreements or relationships with other government officials or federal and
state regulatory agencies and regulatory associations to improve efficiencies and
reduce regulatory burden by standardizing methods or procedures and sharing
resources, records, or related information under this act;
●Use, hire, contract, or employ analytical systems, methods, or software to examine or
investigate any person subject to this act;
●Accept from other state or federal government agencies or officials, licensing,
examination, or investigation reports made by such state or federal government
agencies or officials; and
●Accept audit reports made by an independent certified public accountant or other
qualified third-party auditor for an applicant or licensee and incorporate the audit
report in any report of examination or investigation.
The Commissioner would have the broad administrative authority to:
●Administer, interpret, and enforce this act;
●Promulgate rules and regulations necessary to implement this act; and
●Set proportionate and equitable fees and costs associated with applications,
examinations, investigations, and other actions required to provide sufficient funds to
meet the budget requirements of administering and enforcing the Act for each fiscal
year and to achieve the purposes of this act.
Confidentiality (New Section 4)
Except as otherwise provided, the following documents would be deemed confidential and
not subject to disclosure under the Kansas Open Records Act (KORA):
4 - 2560 ●All information or reports obtained by the Commissioner from an applicant, licensee,
or authorized delegate; and
●All information contained in or related to an examination, investigation, operating
report, or condition report prepared by, or on behalf of, or for use of the
Commissioner, or financial statements, balance sheets, or authorized delegate
information.
The provisions of this act providing for confidentiality of public records would expire on July
1, 2030, unless the Legislature reviewed and reenacted such provisions in accordance with
KORA prior to that date.
The Commissioner would be permitted to disclose information not otherwise subject to
disclosure to representatives of state or federal agencies who promise in a record that such
representatives will maintain the confidentiality of the information, or where the Commissioner
finds that the release is reasonably necessary for the protection and interest of the public in
accordance with KORA.
Public Information
The bill would state the following information contained in the records of the Office of the
State Bank Commissioner (OSBC) is not confidential and may be made available to the public:
●The name, business address, telephone number, and unique identifier of a licensee;
●The business address of a licensee’s registered agent for service;
●The name, business address, and telephone number of all authorized delegates;
●The terms of or a copy of any bond filed by a licensee, provided that confidential
information, including, but not limited to, prices and fees for such bond is redacted; or
●Copies of any orders of the OSBC relating to any violation of or regulations
implementing this act.
This section would not be construed to prohibit the Commissioner from disclosing to the
public a list of all licensees or the aggregated financial or transactional data concerning those
licensees.
Examination (New Section 5)
The bill would authorize the Commissioner to conduct an examination or investigation of a
licensee or authorized delegate or otherwise take independent action authorized by this act, by
any rules and regulations adopted, or by an order issued under this act as reasonably
necessary or appropriate to administer and enforce the Act, regulations implementing this act,
and other applicable federal law. Under this authority, the Commissioner could:
●Conduct an examination on-site or off-site as the Commissioner may reasonably
require;
5 - 2560 ●Conduct an examination in conjunction with an examination conducted by
representatives of other state agencies, agencies of another state, or the federal
government;
●Accept the examination report of another state agency, an agency of another state, or
the federal government, or a report prepared by an independent accounting firm,
which, on being accepted, would be considered an official report of the
Commissioner; and
●Summon and examine under oath or subpoena a key individual or employee of a
licensee or authorized delegate and require such individual or employee to produce
records regarding any matter related to the condition and business of the licensee or
authorized delegate.
Provision of Records
A licensee or authorized delegate would be required to provide the Commissioner with full
and complete access to all records the Commissioner would reasonably require to conduct a
complete examination. The records would be provided at the location and in the format specified
by the Commissioner. The Commissioner could utilize multistate record production standards
and examination procedures when such standards would reasonably achieve these
requirements.
Unless otherwise directed by the Commissioner, the licensee would be required to pay all
costs reasonably incurred in connection with an examination.
Multistate Supervision (New Section 6)
To administer and enforce the provisions of the Act and minimize the regulatory burden,
the Commissioner would be authorized to participate in multistate supervisory processes
established between states and coordinated through the Conference of State Bank Supervisors
(CSBS), money transmitter regulators associations, and affiliates and successors thereof for all
licensees that hold licenses in Kansas or other states. As a participant in such established
multistate supervisory processes, the Commissioner could:
●Cooperate, coordinate, and share information with other state and federal regulators
in accordance with examination provisions of the Act (New Section 5);
●Enter into written cooperation, coordination, or information-sharing contracts or
agreements with organizations, the membership of which is made up of state or
federal governmental agencies; and
●Cooperate, coordinate, and share information with organizations, the membership of
which is made up of state or federal governmental agencies, if the organizations
agree in writing to maintain the confidentiality and security of the shared information
in accordance with disclosure provisions of the Act (New Section 4).
The Commissioner could not waive, and nothing in the Act would constitute a waiver of, the
Commissioner’s authority to conduct an examination or investigation or otherwise take
6 - 2560 independent action authorized by the Act, rules and regulations adopted, or an order issued
under the Act to enforce compliance with applicable state or federal law.
A joint examination, investigation, or acceptance of an examination or investigative report
would not be construed to waive an examination assessment provided for in this act.
Relationship to Federal Law (New Section 7)
The bill would provide that if the jurisdiction of state money transmission is conditioned on
federal law, any inconsistencies between a provision of the Act and federal law governing
money transmission would be governed by the applicable federal law to the extent of the
inconsistency. If there are inconsistencies between the Act and any federal law that governs, the
Commissioner would be authorized to provide interpretive guidance that identifies the
inconsistency and appropriate means of compliance with federal law.
License Prohibitions (New Section 8)
A person would not be able to engage in the business of money transmission or advertise,
solicit, or hold itself out as providing money transmission unless the person is licensed under
the Act. This would not apply to a person that is:
●An authorized delegate of a person licensed under the Act acting within the scope of
authority conferred by a written contract with the licensee; or
●Exempt under provisions of the Act (New Section 2) and does not engage in money
transmission outside the scope of such exemption.
A license issued under the Act would not be transferable or assignable.
Licensing Practices (New Section 9)
To establish consistent licensing practices between Kansas and other states, the bill would
authorize the Commissioner to:
●Implement all licensing provisions in a manner consistent with other states that have
adopted the Act or multistate licensing processes; and
●Participate in nationwide protocols for licensing cooperation and coordination among
state regulators, if such protocols are consistent with the Act.
The Commissioner would be authorized to establish relationships or contracts with the
Nationwide Multistate Licensing System and Registry (NMLS or “registry”) or other entities
designated by the NMLS to:
●Collect and maintain records;
●Coordinate multistate licensing processes and supervision processes;
7 - 2560 ●Process fees; and
●Facilitate communication between the Commissioner and licensees or other persons
subject to the Act.
Under the bill, the Commissioner would be authorized to utilize the NMLS for all aspects of
licensing in accordance with the Act, including, but not limited to:
●License applications;
●Applications for acquisition of control;
●Surety bonds;
●Reporting;
●Criminal history background checks;
●Credit checks;
●Fee processing; and
●Examinations.
The Commissioner would be authorized to establish requirements or waive or modify, in
whole or in part, any or all of the existing requirements as reasonably necessary to participate in
the NMLS through the adoption of any rules and regulations adopted or an order issued or the
issuance of an order.
License Applications (New Section 10)
An applicant for a license would be required to submit a completed application in a form
and manner as prescribed by the Commissioner. The bill would require the application to
contain content as set forth by rules and regulations, instruction, or procedure of the
Commissioner and could be changed or updated by the Commissioner in accordance with
applicable law to carry out the purposes of the Act and maintain consistency with NMLS
licensing standards and practices. The application would state or contain, as applicable:
●The legal name and any fictitious or trade name used by the applicant in conducting
business and the residential and business address of the applicant;
●A list of any criminal convictions of the applicant and any material litigation in which
the applicant was involved in the ten-year period immediately preceding the
submission of the application;
●A description of any money transmission services previously provided by the
applicant and the money transmission services the applicant seeks to provide in
Kansas;
●A list of the applicant’s proposed authorized delegates and the locations in Kansas
where the applicant and the applicant’s authorized delegates proposed to engage in
money transmission;
●A list of all other states where the applicant is licensed to engage in money
transmission and any license revocations, suspensions, or other disciplinary action
taken against the applicant in other states;
8 - 2560 ●Information concerning any bankruptcy or receivership proceedings affecting the
licensee or person in control of a licensee;
●A sample form of the contract for authorized delegates, if applicable;
●A sample form of the payment instrument or stored value, as applicable;
●The name and address of any federally insured depository financial institution through
which the applicant plans to conduct money transmission; and
●Any other information the Commissioner or the NMLS reasonably requires regarding
the applicant.
If an applicant is a corporation, limited liability company, partnership, or other legal entity,
the applicant would also be required to provide:
●The date of the applicant’s incorporation or formation and state or country of
incorporation or formation;
●A certificate of good standing from the state or country where the applicant is
incorporated or formed, if applicable;
●A brief description of the business structure or organization of the applicant, including
any parents or subsidiaries of the applicant and whether any such parents or
subsidiaries are publicly traded;
●The legal name, any fictitious or trade name, all business and residential addresses,
and the employment, as applicable, for the ten-year period immediately preceding the
submission of the application for each key individual and person in control of the
applicant;
●For any person in control of the applicant, a list of any felony convictions and, for the
ten-year period immediately preceding the submission of the application, a list of any
criminal misdemeanor convictions of a crime of dishonesty, fraud, or deceit and any
material litigation in which the person involved is in control of an applicant that is not
an individual;
●A copy of the applicant’s audited financial statements for the most recent fiscal year
and for the two-year period immediately preceding the most recent fiscal year or, if
acceptable to the Commissioner, certified unaudited financial statements for the most
recent fiscal year or other period acceptable to the Commissioner;
●A certified copy of the applicant’s unaudited financial statements for the most recent
fiscal quarter;
●If the applicant is a publicly traded corporation, a copy of the most recent report filed
with the Securities and Exchange Commission;
●If the applicant is a wholly owned subsidiary of:
○A corporation publicly traded in the United States, a copy of the parent
corporation’s audited financial statements for the most recent fiscal year or a
9 - 2560 copy of the parent corporation’s most recent financial report filed with the
Securities and Exchange Commission; or
○A corporation publicly traded outside the United States, a copy of documentation
similar to the requirements for corporations publicly traded in the United States,
filed with the regulator of the parent corporation’s domicile outside the United
States;
●The name and address of the applicant’s registered agent in Kansas; and
●Any other information that the Commissioner reasonably requires regarding the
applicant.
The Commissioner would be required to set a nonrefundable new application fee each
year and could waive one or more requirements of application or permit an applicant to submit
other information in lieu of the required information.
Requirements for Applicants (New Section 11)
As part of any original application, the bill would require any individual in control of a
licensee, any applicant in control of a licensee, and each key individual to provide certain items
to the Commissioner through the NMLS. These items would include the following:
●The OSBC could require an individual to be fingerprinted and submit to a state and
national criminal history record check. The fingerprints would be used to identify the
individual and to determine whether the individual has a record of criminal history in
Kansas or other jurisdictions. The OSBC would be authorized to submit the
fingerprints to the Kansas Bureau of Investigation (KBI) and the Federal Bureau of
Investigation for a state and national criminal history record check. The OSBC would
be able to use the information obtained from fingerprinting and criminal history for
purposes of verifying the identification of the individual and in the official
determination of the qualifications and fitness of the individual to be issued or to
maintain a license;
●Local and state law enforcement would be required to assist the OSBC in taking and
processing of fingerprints of applicants for and holders of any license, registration,
permit, or certificate;
●The KBI would be required to release all records of adult convictions and
nonconvictions in Kansas and adult convictions, adjudications, and nonconvictions of
another state or country to the OSBC. Disclosure or use of any information received
for any purpose other than provided in the bill would be a class A misdemeanor and
would constitute grounds for removal from office or termination of employment;
●Any individual that currently resides and has continuously resided outside the United
States for the past ten years would not be required to comply with these provisions;
and
●A description of the individual’s personal history and experience provided in a form
and manner prescribed by the Commissioner to obtain the following:
10 - 2560 ○An independent credit report from a consumer reporting agency. This
requirement would be waived if the individual does not have a Social Security
number;
○Information related to any criminal convictions or pending charges; and
○Information related to any regulatory or administrative action and any civil
litigation involving claims of fraud, misrepresentation, conversion,
mismanagement of funds, breach of fiduciary duty, or breach of contract.
If the individual has resided outside of the United States at any time during the ten-year
period immediately preceding the individual’s application, the individual would also be required
to provide an investigative background report prepared by an independent search firm.
At a minimum, the search firm would be required to:
●Demonstrate that it has sufficient knowledge and resources and that the firm employs
accepted and reasonable methodologies to conduct the research of the background
report; and
●Not be affiliated with or have an interest with the individual it is researching.
The investigative background report would be provided in English and, at a minimum,
contain the following:
●A comprehensive credit report or any equivalent information obtained or generated by
the independent search firm to accomplish such report, including a search of the
court data in the countries, provinces, states, cities, towns, and contiguous areas
where the individual resided and worked if the report is available in the individual’s
current jurisdiction of residency;
●Criminal records information for the ten-year period immediately preceding the
individual’s application, including, but not limited to, felonies, misdemeanors, or
similar convictions for violations of law in the countries, provinces, states, cities,
towns, and contiguous areas where the individual resided and worked;
●Employment history;
●Media history, including an electronic search of national and local publications, wire
services, and business applications; and
●Financial services-related regulatory history, including, but not limited to, money
transmission, securities, banking, insurance, and mortgage-related industries.
Under the bill, any information required could be used by the Commissioner in making an
official determination of the qualifications and fitness of the person in control or that seeks to
gain control of the licensee.
Acquisition of Control (New Section 12)
A person would be presumed to exercise a controlling influence when the person holds the
power to vote, directly or indirectly, at least 10 percent of the outstanding voting shares or voting
11 - 2560 interests of a licensee or person in control of a licensee. The bill would authorize a person
presumed to exercise a controlling influence to rebut the presumption of control if the person is
a passive investor.
For purposes of determining the percentage of a person controlled by any individual, the
individual’s interest would be aggregated with the interest of any other immediate family
member, including the individual’s spouse, parents, children, siblings, mothers-in-law and
fathers-in-law, sons-in-law and daughters-in-law, brothers-in-law and sisters-in-law, and any
other person who shares the individual’s home.
Application Approval; Denial; Licensure of (New Section 13)
When an application for an original license under the Act appears to include all the items
and addresses all of the matters that are required, the application would be deemed complete,
and the Commissioner would promptly notify the applicant of the date the application is deemed
complete. The Commissioner would approve or deny the application within 120 days after the
completion date.
If the application has not been approved or denied within 120 days after the completion
date:
●The application would be considered approved; and
●The license would take effect as of the first business day after expiration of the 120-
day period.
The bill would allow the Commissioner to extend the application period for good cause.
A determination by the Commissioner that an application is complete and accepted for
processing would mean that the application, on its face, appears to include all of the items,
including the criminal history background check response from the KBI, and that such
application addresses all of the required matters. A determination of completion by the
Commissioner would not be deemed to be an assessment of the substance of the application or
of the sufficiency of the information provided.
When an application is filed and considered complete under the bill, the Commissioner
would be required to investigate the applicant’s financial condition and responsibility, financial
and business experience, and character and general fitness. The Commissioner would be
authorized to conduct an on-site investigation of the applicant at the applicant’s expense. The
Commissioner would issue a license to an applicant under the bill if the Commissioner finds that
the following conditions have been fulfilled:
●The applicant has complied with the provisions of the bill related to applications; and
●The financial condition and responsibility, financial and business experience,
competence, and character and general fitness of the applicant and key individuals
and persons in control of the applicant indicate that it is in the interest of the public to
permit the applicant to engage in money transmission.
12 - 2560 If an applicant avails itself or is otherwise subject to a multistate licensing process:
●The Commissioner would be authorized to accept the investigation results of a lead
investigative state to satisfy the requirements of investigation if such lead
investigative state has sufficient staffing, expertise, and minimum standards; or
●If Kansas is the lead investigative state, the Commissioner would be authorized to
investigate the applicant utilizing the time frames established by agreement through
the multistate licensing process. No such time frames would be considered
noncompliant with the application period described in the bill.
The Commissioner would issue a formal written notice of the denial of a license application
within 14 days of the decision to deny the application. The Commissioner would state in the
notice of denial the specific reasons for the denial of the application. An applicant whose
application is denied by the Commissioner could appeal within 14 days of receiving the notice
and request a hearing in accordance with the Kansas Administrative Procedure Act (KSA 77-
501 et seq.).
The initial license term would begin on the day the application is approved. The license
would expire on December 31 of the year in which the license term began, unless the initial
license date is between November 1 and December 31, in which case the initial license term
would run through December 31 of the following year.
Renewal of Licenses (New Section 14)
A license issued under the Act would be renewed annually. An annual renewal fee set by
the Commissioner would be paid not more than 60 days before the license expiration. The bill
would specify the renewal term would be for a period of one year and would begin on January 1
of each year after the initial license term and expire on December 31 of the year the renewal
term begins.
A licensee would submit a complete renewal report with the renewal fee, in a form and
manner determined by the Commissioner. The renewal report would contain a description of
each material change in information submitted by the licensee in the licensee’s original license
application that has not been reported to the Commissioner.
Renewal applications received within 30 days of the expiration of the license and
incomplete applications as of 30 days prior to the expiration of the license would be subject to a
late fee set by the Commissioner. The Commissioner would be able to grant an extension of the
renewal date for good cause.
The Commissioner would be authorized to utilize the NMLS to process license renewals, if
the utilization satisfies the requirements of the bill.
Renewal applications submitted between November 1, 2024, and December 31, 2024, and
considered complete pursuant to the current Kansas Money Transmitter Act requirements (KSA
9-509) would be considered complete.
13 - 2560 Revocation of Licenses (New Section 15)
The bill would provide that if a licensee does not continue to meet the qualifications or
satisfy the requirements of an applicant for a new money transmission license, the
Commissioner could suspend or revoke the licensee’s license in accordance with the
procedures established by the Act or other applicable state law for such suspension and
revocation.
An applicant for a money transmission license would be required to demonstrate that it
meets or will meet the requirements of the Act.
Completeness of Applications (New Section 16)
The Commissioner would have the discretion to determine the completeness of any
application submitted pursuant to the Act. In making such a determination, the Commissioner
would consider the applicant’s compliance with the requirements of the Act and any other facts
and circumstances the Commissioner deems appropriate.
If an applicant fails to complete the application for a new license or for a change of control
of a license within 60 days after the Commissioner provides written notice of an incomplete
application, the application would be deemed abandoned and the application fee would be
nonrefundable. An applicant whose application is abandoned under the Act could reapply to
obtain a new license.
Transfer of License Control (New Section 17)
When any person or group of persons acting in concert are seeking to acquire control of a
licensee, the bill would require the licensee to obtain the written approval of the Commissioner
prior to the change of control. An individual would not be deemed to acquire control of a
licensee and would not be subject to this section when that individual becomes a key individual
in the ordinary course of business.
A person or group of persons acting in concert that seeks to acquire control of a licensee in
cooperation with such licensee would submit an application in the form and manner prescribed
by the Commissioner. The application would be accompanied by a nonrefundable fee set by the
Commissioner.
Upon request, the Commissioner could permit a licensee, the person, or group of persons
acting in concert to submit some or all information required by the Commissioner without using
the NMLS. The required application would include all required information for any new key
individuals who have not previously completed the requirements of the application.
When an application for acquisition of control appears to include all the items and
addresses all of the required matters, the application would be deemed complete and the
Commissioner would promptly notify the applicant of the date on which the application was so
deemed, and the Commissioner would approve or deny the application within 60 days after the
completion date.
14 - 2560 If the application is not approved or denied within 60 days after the completion date:
●The application would be deemed approved; and
●The person or group of persons acting in concert would not be prohibited from
acquiring control.
The Commissioner could extend the application period for good cause.
A determination by the Commissioner that an application is complete and is accepted for
processing would mean only that the application, on its face, appears to include all of the items
and addresses all required matters. A determination of completion by the Commissioner would
not be deemed to be an assessment of the substance of the application or the sufficiency of the
information provided.
When an application is filed and considered complete, the Commissioner would investigate
the financial condition and responsibility, financial and business experience, and character and
general fitness of the person or group of persons acting in concert that seek to acquire control.
The Commissioner would approve an acquisition of control pursuant to the Act if the
Commissioner finds that all of the following conditions have been fulfilled:
●The requirements of the Act have been met, as applicable; and
●The financial condition and responsibility, financial and business experience,
competence, and character and general fitness of the person or group of persons
acting in concert seeking to acquire control and the key individuals and persons that
would be in control of the licensee after the acquisition of control indicate that it is in
the interest of the public to permit the person or group of persons acting in concert to
control the licensee.
If the applicant avails itself or is otherwise subject to a multistate licensing process:
●The Commissioner would be authorized to accept the investigation results of a lead
investigative state for the purposes of the Act if the lead investigative state has
sufficient staffing, expertise, and minimum standards; or
●If Kansas is a lead investigative state, the Commissioner would be authorized to
investigate the applicant pursuant to the Act and the time frames established by
agreement through the multistate licensing process.
The Commissioner would issue a formal written notice of the denial of an application to
acquire control within 30 days of the decision to deny the application. The Commissioner would
state in the notice of denial the specific reasons for the denial. An applicant whose application is
denied by the Commissioner could appeal within 14 days and request a hearing in accordance
with the Kansas Administrative Procedure Act.
Requirements in the Act to obtain the written approval of the Commissioner or submit an
application to the Commissioner prior to change of control (New Section 17) would not apply to
any of the following:
15 - 2560 ●A person that acts as a proxy for the sole purpose of voting at a designated meeting
of the shareholders or holders of the voting shares or voting interests of a licensee or
a person in control of a licensee;
●A person that acquires control of a licensee by devise or descent;
●A person that acquires control of a licensee as a personal representative, custodian,
guardian, conservator, or trustee or as an officer appointed by a court of competent
jurisdiction or by operation of law;
●A person that has complied with and received approval to engage in money
transmission under this Act or was identified as a person in control in a prior
application filed with and approved by the Commissioner or by a money service
business-accredited state pursuant to a multistate license process, if:
○The person has not had a license revoked or suspended or controlled a licensee
that has had a license revoked or suspended while the person was in control of
the licensee in the previous five years;
○The person is a licensee, the person is well-managed and has received at least
a satisfactory rating for compliance at the person’s most recent examination by a
money service business accredited state if such rating was given;
○The licensee to be acquired is expected to meet the requirements regarding
prudential standards (New Sections 32, 33, and 34), after the acquisition of
control is completed. If the person acquiring control is a licensee, the licensee
would also be expected to meet the requirements of the prudential standards
outlined in the bill after the acquisition of control is completed;
○The licensee to be acquired could not implement any material changes to the
licensee’s business plan as a result of the acquisition of control. If the person
acquiring control is a licensee, the licensee would not implement any material
changes to the licensee’s business plan as a result of the acquisition of control;
and
○The person provides notice of the acquisition in cooperation with the licensee
and attests to the provisions of this subsection in a form and manner prescribed
by the Commissioner;
●A person that the Commissioner determines is not subject to written approval of the
Commissioner based on the public interest;
●A public offering of securities of a licensee or a person in control of a licensee; or
●An internal reorganization of a person in control of the licensee if the ultimate person
in control of the licensee remains the same.
Persons meeting the following requirements in cooperation with the licensee would notify
the Commissioner within 15 days after the acquisition of control:
●A person that acquires control of a licensee by devise or descent;
●A person that acquires control of a licensee as a personal representative, custodian,
guardian, conservator, or trustee or as an officer appointed by a court of competent
jurisdiction or by operation of law;
16 - 2560 ●A person that has complied with and received approval to engage in money
transmission under this Act or was identified as a person in control in a prior
application filed with and approved by the Commissioner or by a money service
business-accredited state pursuant to a multistate license process and has met
certain requirements;
●A public offering of securities of a licensee or a person in control of a licensee; or
●An internal reorganization of a person in control of the licensee if the ultimate person
in control of the licensee remains the same.
If notice is not disapproved within 30 days after the date on which the notice was
determined to be complete, the notice would be deemed approved.
Before filing an application for approval to acquire control of a licensee, a person could
request in writing a determination from the Commissioner as to whether such person would be
considered a person in control of a licensee upon consummation of a proposed transaction. If
the Commissioner determines that the person would not be a person in control of a licensee, the
person and the proposed transaction would not be subject to requirements in the Act to obtain
the written approval of the Commissioner or submit an application to the Commissioner prior to
change of control.
If a multistate licensing process includes a prior determination from the Commissioner and
an applicant avails itself or is otherwise subject to the multistate licensing process:
●The Commissioner would be authorized to accept the control determination of a lead
investigative state with sufficient staffing, expertise, and minimum standards for the
purpose of prior determination from the Commissioner; or
●If Kansas is a lead investigative state, the Commissioner would be authorized to
investigate the applicant to make a prior determination pursuant to the Act and the
time frames established by agreement through the multistate licensing process.
Replacement of Key Individual (New Section 18)
Under the bill, a license adding or replacing a key individual would be required to provide:
●Notice in the manner prescribed by the Commissioner within 15 days after the
effective date of the appointment of the new key individual; and
●Information as required by the bill within 45 days of the effective date of the
appointment of the new key individual.
Within 90 days of the date on which the notice provided was determined to be complete,
the Commissioner could issue a notice of disapproval of a key individual if the competence,
experience, character, or integrity of the individual would not be in the best interest of the public
or the customers of the licensee.
17 - 2560 A notice of disapproval would be required to state the basis for disapproval and would be
sent to the licensee and the disapproved individual. A licensee would be able to appeal a notice
of disapproval pursuant to the Kansas Administrative Procedure Act within 14 days.
If the notice provided is not disapproved within 90 days after the date when the notice was
determined to be complete, the key individual would be considered approved.
If a multistate licensing process includes a key individual notice review and disapproval
process and the licensee avails itself or is otherwise subject to the multistate license process:
●The Commissioner would be authorized to accept the determination of another state
if the investigating state has sufficient staffing, expertise, and minimum standards for
investigation; or
●If Kansas is a lead investigative state, the Commissioner would be authorized to
investigate the applicant pursuant to the Act and the time frames established by
agreement through the multistate licensing process.
Report of Condition (New Section 19)
Each licensee would be required to submit a report of condition within 45 days of the end
of the calendar quarter or within any extended time as the Commissioner may prescribe.
The bill would require the report of condition to include:
●Financial information at the licensee level;
●Nationwide and state-specific money transmission transaction information in every
jurisdiction in the United States where the licensee is licensed to engage in money
transmission;
●The permissible investments report;
●Transaction destination country reporting for money received for transmission, if
applicable; and
●Any other information the Commissioner reasonably requires regarding the licensee.
The bill would authorize the Commissioner to utilize the NMLS for the submission of the
report and would be authorized to change or update as necessary the requirements of this
section to carry out the purposes of the Act and maintain consistency with NMLS.
The information required regarding transaction destination country reporting for money
received for transmission would only be included in a report of condition submitted within 45
days of the end of the fourth calendar quarter.
18 - 2560 Fiscal Year Reporting (New Section 20)
Within 90 days after the end of each fiscal year or within any extended time prescribed by
the Commissioner through rules and regulations, every licensee would file with the
Commissioner:
●An audited financial statement of the licensee for the fiscal year prepared in
accordance with United States generally accepted accounting principles; and
●Any other information as the Commissioner may reasonably require.
The audited financial statements would include or be accompanied by a certificate of
opinion of the independent certified public accountant or independent public accountant in a
form and manner determined by the Commissioner. If the certificate or opinion is qualified, the
Commissioner would be authorized to order the licensee to take any action as the
Commissioner may find necessary to enable the accountant to remove the qualification.
Report of Authorized Delegates (New Section 21)
Each licensee would be required to submit a report of authorized delegates within 45 days
of the end of each calendar quarter. The Commissioner would be authorized to utilize the NMLS
for the submission of the required report if such utilization is consistent with the requirements of
this section.
The bill would require the authorized delegate report to include, at a minimum, each
authorized delegate’s:
●Company legal name;
●Taxpayer employer identification number;
●Principal provider identifier;
●Physical address;
●Mailing address;
●Any business conducted in other states;
●Any fictitious or trade name;
●Contact person’s name, phone number, and email;
●Start date as the licensee’s authorized delegate;
●End date acting as the licensee’s authorized delegate, if applicable; and
●Any other information the Commissioner reasonably requires regarding the
authorized delegate.
Reports of Action Against the Licensee (New Section 22)
The bill would require a licensee to file a report with the Commissioner within one business
day after the licensee has reason to know of the:
●Filing of a bankruptcy or reorganization petition by or against the licensee;
19 - 2560 ●Filing of a petition by or against the licensee for receivership, the commencement of
any other judicial or administrative proceeding for the licensee’s dissolution or
reorganization, or the making of a general assignment for the benefit of the licensee’s
creditors; or
●Commencement of a proceeding to revoke or suspend the licensee’s license in a
state or country where the licensee engages in business or is licensed.
A licensee would be required to file a report with the Commissioner within three business
days after the licensee has reason to know of a felony conviction of the licensee, a key
individual or person in control of the licensee, or an authorized delegate.
Reports of Money Laundering (New Section 23)
The bill would require a licensee and an authorized delegate to file all reports required by
federal currency reporting, recordkeeping, and suspicious activity reporting requirements in
federal and state laws that pertain to money laundering. The bill would deem a timely filing of
such complete and accurate report with the appropriate agency to be in compliance with the
requirements of this section.
Maintenance of Records (New Section 24)
Under the bill, every licensee would be required to maintain the following records for at
least three years:
●A record of each outstanding money transmission obligation sold;
●A general ledger posted at least monthly containing all assets, liability, capital,
income, and expense accounts;
●Bank statements and bank reconciliation records;
●Records of all outstanding money transmission obligations;
●Records of each outstanding money transmission obligation paid within the three-
year period the records are maintained;
●A list of the last-known names and addresses of all the licensee’s authorized
delegates; and
●Any other records the Commissioner reasonably requires in rules and regulations.
The bill would allow the above-listed records to be maintained in any form and maintained
outside the state, if the records are made accessible to the Commissioner on seven business
day’s notice. These required records maintained by the licensee would be open to inspection by
the Commissioner pursuant to provisions that detail the examination options available to the
Commissioner (New Section 5).
20 - 2560 Requirements to Conduct Business Through an Authorized Delegate (New Section 25)
As it pertains to the requirements of this section regarding business conducted through an
authorized delegate, the bill would define “remit” to mean making direct payments of money to a
licensee or the licensee’s representative authorized to receive money or to deposit money in a
bank in an account specified by the licensee.
The bill would require a licensee to comply with the following requirements before being
authorized to conduct business through an authorized delegate or allowing a person to act as
the licensee’s authorized delegate:
●Adopt and update as necessary all written policies and procedures reasonably
designed to ensure that the licensee’s authorized delegates comply with applicable
state and federal law;
●Enter into a written contract that complies with the contract requirements outlined
below; and
●Conduct a reasonable risk-based background investigation sufficient for the licensee
to determine if the authorized delegate has complied and will likely comply with
applicable state and federal law.
The bill would require an authorized delegate to comply with the Act.
Written Contract Requirements
The bill would require the written contract required to do business through an authorized
delegate to be signed by the licensee and the authorized delegate and, at a minimum, do the
following:
●Appoint the person signing the contract as the licensee’s authorized delegate with the
authority to conduct money transmission on behalf of the licensee;
●Set forth the nature and scope of the relationship between the licensee and the
authorized delegate and the respective rights and responsibilities of each party;
●Require the authorized delegate to agree to fully comply with all applicable state and
federal laws and rules and regulations pertaining to money transmission;
●Require the authorized delegate to remit and handle money and any monetary value
according to the terms of the contract between the licensee and the authorized
delegate;
●Impose a trust on money and any monetary value net of fees received for money
transmission for the benefit of the licensee;
●Require the authorized delegate to prepare and maintain records as required by the
Act or rules and regulations adopted pursuant to this Act or as reasonably required by
the Commissioner;
21 - 2560 ●Acknowledge that the authorized delegate consents to examination or investigation
by the Commissioner;
●State that the licensee is subject to regulation by the Commissioner and, as part of
such regulation, the Commissioner may suspend or revoke an authorized delegate
designation or require the licensee to terminate an authorized delegate designation;
and
●Acknowledge receipt of the written policies and procedures designed to ensure that
the licensee’s authorized delegates comply with applicable state and federal law as
required when conducting business with an authorized delegate.
Notice of Licensee’s License Status
Within five business days after the suspension, revocation, surrender, or expiration of a
licensee’s license, a licensee would be required to provide documentation to the Commissioner
that the licensee notified all of the licensee’s applicable authorized delegates who are in the
record filed with the Commissioner of such action on the licensee’s license. All applicable
authorized delegates would be required to immediately cease to provide money transmission as
an authorized delegate of the licensee upon the suspension, revocation, surrender, or expiration
of a licensee’s license.
Funds Held in Trust by Authorized Delegate
The bill would require all money net fees received from money transmission to be held in
trust by an authorized delegate for the benefit of the licensee. If an authorized delegate
commingles any funds received from money transmission with any other funds or property
owned or controlled by the authorized delegate, the bill would require that all commingled funds
and other property be considered held in trust in favor of the licensee in an amount equal to the
amount of money net fees received from money transmission.
An authorized delegate would be prohibited from using a subdelegate to conduct money
transmission on behalf of a licensee.
Money Transmission on Behalf of an Unlicensed or Nonexempt Person (New Section 26)
The bill would prohibit a person from engaging in the business of money transmission on
behalf of a person that is not licensed or exempt from licensing under the Act. A person that
engages in such activity would be deemed to have provided money transmission to the same
extent that such person were a licensee and would be jointly and severably liable with the
unlicensed or nonexempt person.
Forwarding of Money Received for Transmission (New Section 27)
The bill would require every licensee to forward all moneys received for transmission in
accordance with the terms of the agreement between the licensee and the sender unless the
licensee reasonably believes or has a reasonable basis to believe the sender may be a victim of
22 - 2560 fraud or that a crime or violation of law or any rules and regulations has occurred, is occurring,
or may occur.
If a licensee fails to forward money received for transmission in accordance with this
section, the bill would require the licensee to respond to inquiries by the sender with the reason
for the failure unless providing a response would violate a state or federal law or rules and
regulations.
Exceptions to the Refund of Money Received for Transmission (New Section 28)
The following exceptions would not apply to moneys received for transmission subject to
federal law pertaining to the requirements for remittance transfers or pursuant to a written
agreement between the licensee and payee to process payments for goods or services
provided by the payee.
Refund Exceptions
Within ten days of receipt of the sender’s written request for a refund of all money received
for transmission, the licensee would be required to refund such money to the sender, unless:
●The money has been forwarded within ten days of the date when the money was
received for transmission;
●Instructions have been given committing an equivalent amount of money to the
person designated by the sender within ten days of the date when the money was
received for transmission;
●The agreement between the licensee and the sender instructs the licensee to forward
the money after ten days of the date when the money was received for transmission.
If funds have not yet been forwarded in accordance with the terms of the agreement
between the licensee and the sender, the bill would require the licensee to issue a
refund in accordance with this section; or
●The refund is requested for a transaction that the licensee has not completed based
on a reasonable belief or a reasonable basis to believe that a crime or violation of law
or rules and regulations has occurred, is occurring, or may occur.
The refund request would not be construed to enable the licensee to identify the sender’s
name and address or telephone number or the particular transaction to be refunded if the
sender has multiple outstanding transactions.
Receipt for Money Received for Transmission (New Section 29)
The requirement that a receipt for money received for transmission be provided to the
sender would not apply to:
●Money received for transmission subject to federal law pertaining to the requirements
for remittance transfers;
23 - 2560 ●Money received for transmission that is not primarily for personal, family, or
household purposes;
●Money received for transmission pursuant to a written agreement between the
licensee and payee to process payments for goods or services provided by the
payee; or
●Payroll processing services.
Receipt Requirements
For purposes of this section, the bill would define “receipt” to mean a paper or electronic
receipt.
For a transaction conducted in person, the bill would allow the receipt to be provided
electronically if the sender requests or agrees to receive the receipt in such manner. For a
transaction conducted electronically or by telephone, the bill would allow the receipt to be
provided electronically. The bill would require all electronic receipts to be provided in retainable
form.
Every licensee or the licensee’s authorized delegate would be required to provide the
sender a receipt for money received for transmission. The bill would require the receipt to
contain the:
●Name of the sender;
●Name of the designated recipient;
●Date of the transaction;
●Unique transaction or identification number;
●Name of the licensee, the licensee’s NMLS unique identification number, the
licensee’s business address, and the licensee’s customer service telephone number;
●Amount of the transaction in U.S. dollars;
●Fee charged, if any, by the licensee to the sender for the transaction; and
●Taxes collected, if any, by the licensee from the sender for the transaction.
The bill would require the receipt to be written in English and in the language principally
used by the licensee or authorized delegate to advertise, solicit, or negotiate, either orally or in
writing, for a transaction conducted in person, electronically, or by telephone, if other than
English.
State Bank Commissioner Contact Information (New Section 30)
Every licensee or authorized delegate would be required to include on a receipt or disclose
on the licensee’s website or mobile application the name of the Office of the State Bank
24 - 2560 Commissioner and a statement that the licensee’s Kansas customers could contact the OSBC
with questions or complaints about the licensee’s money transmission services.
Payroll Processing Services (New Section 31)
A licensee that provides payroll processing services would be required to issue reports to
clients detailing client payroll obligations in advance of the payroll funds being deducted from an
account and make available worker pay stubs or an equivalent statement to workers.
These provisions would not apply to a licensee providing payroll processing services
where the licensee’s client designates the intended recipients to the licensee and is responsible
for providing the disclosures.
Tangible Net Worth Requirement (New Section 32)
The bill would require every licensee to maintain at all times a tangible net worth of:
●The greater of $100,000 or 3 percent of such licensee’s total assets, up to $100.0
million;
●2 percent of such licensee’s additional assets of $100.0 million to $1.0 billion; and
●0.5 percent of such licensee’s additional assets of over $1.0 billion.
The bill would require the licensee’s tangible net worth to be demonstrated at initial
application by the applicant’s most recent audited or unaudited financial statements pursuant to
application requirements for a license to engage in money transmission (New Section 10).
Despite the provisions of this section, the bill would grant the Commissioner the authority
to exempt any applicant or licensee, in part or in whole, from the requirements of this section.
Security Requirement (New Section 33)
The bill would require an applicant for a money transmission license to provide and a
licensee at all times to maintain security consisting of a surety bond in a form satisfactory to the
Commissioner or, with the Commissioner’s approval, a deposit instead of a bond in accordance
with this section.
The following amount of security would be required:
●The greater of $200,000 or an amount equal to 100.0 percent of the licensee’s
average daily money transmission liability in Kansas calculated for the most recently
completed three-month period, up to a maximum of $1.0 million; or
●$200,000, if the licensee’s tangible net worth exceeds 10.0 percent of total assets.
25 - 2560 If a licensee maintains a bond in the maximum amount provided for above, the licensee
would not be required to calculate its average daily money transmission liability in Kansas for
purposes of this section.
The bill would allow a licensee to exceed the maximum required bond amount pursuant to
New Section 35, which lists the types of permissible investments a licensee may hold.
Permissible Investment Requirements (New Section 34)
The bill would require a licensee to maintain permissible investments with a market value
computed according to United States generally accepted accounting principles of not less than
the aggregate amount of the total of the licensee’s outstanding money transmission obligations.
With the exception of the permissible investments (outlined in New Section 35), the bill
would allow the Commissioner, by rules and regulations or order, to limit the extent to which a
specific investment maintained by a licensee within a class of permissible investments may be
considered a permissible investment, if the specific investment represents undue risk to
customers not reflected in the market value of investments.
The bill would authorize the Commissioner, by rules and regulations or by order, to allow
other types of investments that are of sufficient liquidity and quality to be a permissible
investment. The bill would also authorize the Commissioner to participate in efforts with other
state regulators to determine which other types of investments are of sufficient liquidity and
quality to be a permissible investment.
Permissible Investment Held in Trust
The bill would require permissible investments, even if commingled with other assets of the
licensee, to be held in trust for the benefit of the purchasers and holders of the licensee’s
outstanding money transmission obligations in the following circumstances:
●The event of insolvency;
●The filing of a petition by or against the licensee under general provisions in federal
law pertaining to bankruptcy or reorganization;
●The filing of a petition by or against the licensee for receivership;
●The commencement of any other judicial or administrative proceeding for such
licensee’s dissolution or reorganization; or
●The event of an action by a creditor against the licensee who is not a beneficiary of
this statutory trust.
The bill would prohibit permissible investments impressed with a trust, as described above
in this subsection, to be subject to attachment, levy of execution, or sequestration by order of
any court, except for a beneficiary of this statutory trust.
26 - 2560 When a statutory trust is established in accordance with the above subsection or when any
funds are drawn on a letter of credit (New Section 35), the bill would require the Commissioner
to notify the applicable regulator of each state where the licensee is licensed to engage in
money transmission, if any, that a trust has been established or the funds drawn on the letter of
credit, as applicable. If performed pursuant to a multistate agreement or through the NMLS, the
bill would deem the notice requirement satisfied. Funds drawn on a letter of credit and any other
permissible investments held in trust for the benefit of the purchasers and holders of the
licensee’s outstanding money transmission obligations would be deemed by the bill to be held in
trust for the benefit of such purchasers and holders on a pro rata and equitable basis in
accordance with statutes pursuant to which permissible investments are required to be held in
Kansas and other states, as applicable. The bill would require any statutory trust established
under this section to be terminated when all of the licensee’s outstanding money transmission
obligations have been extinguished.
Types of Permissible Investments (New Section 35)
The following investments would be considered permissible under this section:
●Cash, including demand deposits, savings deposits, and funds in accounts held for
the benefit of the licensee’s customers in a federally insured depository financial
institution and cash equivalents, including automated clearing house items in transit
to the licensee and automated clearing house items or international wires in transit to
a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned
locations, or debit card- or credit card-funded transmission receivables owed by any
bank or money market mutual funds rated AAA by Standard & Poor or the equivalent
from any eligible rating service;
●Certificates of deposit or senior debt obligations of a federally insured depository
institution;
●An obligation of the United States or a commission, agency, or instrumentality of the
United States, an obligation that is guaranteed fully as to principal and interest by the
United States, or an obligation of a state or a governmental subdivision, agency or
instrumentality of a state;
●The full drawable amount of an irrevocable standby letter of credit for which the
stated beneficiary is the Commissioner that stipulates that the beneficiary need only
draw a sight draft under the letter of credit and present it to obtain funds up to the
letter of credit amount within seven days of presentation of the required items listed in
this section of the bill.
With regard to the line of credit, the bill would provide:
○The required elements of the letter of credit;
○If any notice of expiration or non-extension of a letter of credit is issued when an
irrevocable letter of credit is not being extended, the bill would provide the
procedure to be followed, licensee requirements, and action that could be taken
by the Commissioner to maintain the licensee’s permissible investments. The bill
would provide that the drawn funds would be held in trust by the Commissioner
or the Commissioner’s designated agent, to the extent authorized by law, as
27 - 2560 agent for the benefit of the purchasers and holders of the licensee’s outstanding
money transmission obligations;
○The issuer of such letter of credit would be required to honor, at sight, a
presentation made of the following required documents by the beneficiary to the
issuer on or prior to the expiration date of the letter of credit:
- The original letter of credit, including any amendments; and
- A written statement from the beneficiary stating that any of the following events
have occurred: the filing of a bankruptcy or reorganization petition by or against
the licensee; the filing of a petition by or against the licensee for receivership or
the commencement of any other judicial or administrative proceeding for such
licensee’s dissolution or reorganization; the seizure of assets of a licensee by a
Commissioner pursuant to an emergency order issued in accordance with
applicable law, on the basis of an action, violation, or condition that has caused
or is likely to cause the insolvency of the licensee; or the beneficiary has
received notice of expiration or non-extension of a letter of credit and the
licensee failed to demonstrate to the satisfaction of the beneficiary that the
licensee would maintain the required permissible investments, upon the
expiration or non-extension of the letter of credit;
○The Commissioner could designate an agent to serve on the Commissioner’s
behalf as beneficiary to a letter of credit if the agent and letter of credit meet
requirements established by the Commissioner. The Commissioner’s agent
could serve as agent for multiple licensing authorities for a single irrevocable
letter of credit if the proceeds of the drawable amount for the purposes outlined
in the bill (New Section 35) are assigned to the Commissioner; and
○The Commissioner could participate in multistate processes designed to
facilitate the issuance and administration of letters of credit, including, but not
limited to, services provided by the NMLS and registry and state regulatory
registry, LLC; and
●100 percent of the surety bond provided for under New Section 33 that exceeds the
average daily money transmission liability in Kansas.
Permissible Investments to the Extent Specified
Unless permitted by the Commissioner by rules and regulations adopted or by order issued
to exceed the limit as set forth below, the bill would provide that the following investments would
be permissible to the extent specified:
●Receivables payable to a licensee from the licensee’s authorized delegates in the
ordinary course of business that are less than seven days old up to 50 percent of the
aggregate value of the licensee’s total permissible investments; and
●Of the receivables permissible above, receivables payable to a licensee from a single
authorized delegate in the ordinary course of business could not exceed 10 percent
of the aggregate value of the licensee’s total permissible investments.
Under the bill, the following investments would be permissible up to 20 percent per
category and up to 50 percent combined of the aggregate value of the licensee’s total
permissible investments:
28 - 2560 ●A short-term investment of up to six months, bearing an eligible rating;
●Commercial paper bearing an eligible rating;
●A bill, note, bond, or debenture bearing an eligible rating;
●U.S. tri-party repurchase agreements collateralized at 100 percent or more with U.S.
government or agency securities, municipal bonds, or other securities bearing an
eligible rating;
●Money market mutual funds rated less than AAA and equal to or higher than A- by
Standard & Poor or the equivalent from any other eligible rating service; and
●A mutual fund or other investment fund composed solely and exclusively of one or
more permissible investments listed in subsection (a) (1) through (3) (i.e. cash,
certain certificates of deposit, or an obligation of a U.S. government entity), which
would not include the full drawable amount of an irrevocable standby letter of credit
for which the stated beneficiary is the Commissioner.
Cash, including demand deposits, savings deposits, and funds in such accounts held for
the benefit of the licensee’s customers, at foreign depository institutions would be permissible
up to 10 percent of the aggregate value of the licensee’s total permissible investments if the
licensee has received a satisfactory rating in the licensee’s most recent examination and the
foreign depository institution:
●Has an eligible rating;
●Is registered under the Foreign Account Tax Compliance Act;
●Is not located in any country subject to sanctions from the Office of Foreign Assets
Control; and
●Is not located in a high-risk or non-cooperative jurisdiction as designated by the
Financial Action Task Force.
Process for Suspension or Revocation of a Licensee’s License (New Section 36)
After notice and an opportunity for a hearing under the Kansas Administrative Procedure
Act, the bill would authorize the Commissioner to suspend or revoke a license or order a
licensee to revoke the designation of an authorized delegate if any of the 13 violations listed
occur.
In determining whether a licensee is engaging in an unsafe or unsound practice, the
Commissioner could consider the size and condition of the licensee’s money transmission, the
magnitude of the loss, the gravity of the violation of the Act, and the previous conduct of the
person involved.
29 - 2560 Suspension or Revocation of the Designation of an Authorized Delegate (New Section
37)
The bill would authorize the Commissioner to issue an order suspending or revoking the
designation of an authorized delegate if the Commissioner finds the:
●Authorized delegate violated the Act or any rules and regulations adopted or an order
issued under the Act;
●Authorized delegate did not cooperate with an examination or investigation by the
Commissioner;
●Authorized delegate engaged in fraud, intentional misrepresentation, or gross
negligence;
●Authorized delegate is convicted of a violation of a state or federal anti-money
laundering statute;
●Competence, experience, character, or general fitness of the authorized delegate or a
person in control of the authorized delegate indicates that it is not in the public
interest to permit the authorized delegate to provide money transmission; or
●Authorized delegate is engaging in an unsafe or unsound practice as determined by
the Commissioner.
In determining whether an authorized delegate is engaging in an unsafe or unsound
practice, the Commissioner could consider the size and condition of the authorized delegate’s
provision of money transmission, the magnitude of the loss, the gravity of the violation of this act
or any rules and regulations adopted or an order issued under this act, and the previous
conduct of the authorized delegate.
An authorized delegate could apply for relief from a suspension or revocation of
designation as an authorized delegate according to procedures prescribed by the Commissioner
in rules and regulations.
Issuance of Cease-and-Desist Order (New Section 38)
Under provisions of the bill, if the Commissioner determines that a violation of the Act or of
any rules and regulations adopted or an order issued under the Act by a licensee that a person
required to be licensed, or authorized delegate, is likely to cause immediate and irreparable
harm to the licensee, the licensee’s customers, or the public as a result of the violation or cause
insolvency or significant dissipation of assets of the licensee, the Commissioner could issue an
order requiring the licensee or authorized delegate to cease and desist from the violation. The
order would become effective upon service of the order on the licensee or authorized delegate.
The Commissioner could issue an order against a licensee to cease and desist from
providing money transmission through an authorized delegate that is the subject of a separate
order by the Commissioner.
30 - 2560 An order to cease and desist would remain effective and enforceable pending the
completion of an administrative proceeding pursuant to the Kansas Administrative Procedure
Act. Additionally, an order to cease and desist would be considered a final order unless the
licensee or authorized delegate requests a hearing within 14 days after the cease and desist
order is issued.
Consent Orders (New Section 39)
The bill would authorize the Commissioner to enter into a consent order at any time with a
person to resolve a matter arising under the Act or any rules and regulations adopted or order
issued under the Act. The bill would require a consent order to be signed by the person to whom
such consent order is issued or by the person’s authorized representative and indicate
agreement with the terms contained in the order. A consent order could provide that the consent
order would not constitute an admission by a person that the Act or rules and regulations
adopted or an order issued under the Act had been violated.
Criminal Penalties (New Section 40)
The following actions would result in the criminal penalties listed:
●Any person that intentionally makes a false statement, misrepresentation, or false
certification in a record filed or required to be maintained under this act or that
intentionally makes a false entry or omits a material entry in such a record would be
guilty of a severity level 9 nonperson felony;
●Any person that knowingly engages in an activity for which a license is required under
the Act without being licensed under the Act and that receives more than $500 in
compensation within a 30-day period from this activity would be guilty of a severity
level 9 nonperson felony; and
●Any person that knowingly engages in an activity for which a license is required under
the Act without being licensed under the Act and that receives not more than $500 in
compensation within a 30-day period from this activity would be guilty of a class A
nonperson misdemeanor.
Civil Penalties (New Section 41)
The bill would would authorize the Commissioner, as part of any summary order or consent
order, to impose the following civil penalties:
●Assess a fine against any person that violates the Act or any rules and regulations
adopted pursuant to the Act in an amount not to exceed $5,000 per violation. The bill
would allow the Commissioner to designate any fine collected pursuant to this section
be used for consumer education;
●Assess the agency’s operating costs and expenses for investigating and enforcing the
Act;
31 - 2560 ●Require the person to pay restitution for any loss arising from the violation or
requiring the person to reimburse any profits arising from the violation;
●Prohibit the person from future application for licensure pursuant to the Act; and
●Require such affirmative action as determined by the Commissioner to carry out the
purposes of the Act.
Informal Agreement
The bill would authorize the Commissioner to enter into an informal agreement at any time
with a person to resolve a matter arising under the Act, rules and regulations adopted under the
Act, or an order issued pursuant to the Act. Any informal agreement authorized by this
subsection would be considered confidential examination material.
Adoption of an informal agreement authorized by this subsection would not be:
●Subject to the provisions of the Kansas Administrative Procedure Act or the Kansas
Judicial Review Act;
●Considered an order or other agency action;
●Subject to KORA; or
●Discovery or be admissible in evidence in any private civil action.
The provisions of this subsection providing for the confidentiality of public records would
expire on July 1, 2030, unless the Legislature reviews and reenacts such provisions in
accordance with KORA prior to July 1, 2030.
Penalties from an Examination Finding
The bill would allow the Commissioner, through an examination finding, to impose the
following penalties:
●Assess a fine against any licensee who violates the Act or rules and regulations
adopted thereto, in an amount not to exceed $5,000 per violation. The Commissioner
could designate any fine collected pursuant to this section be used for consumer
education; or
●Require the licensee to pay restitution for any loss arising from the violation or require
the person to reimburse any profits arising from the violation.
Severability of Provisions (New Section 42)
The provisions of the Act would be severable. If any portion of the Act would be declared
unconstitutional or invalid, or the application of any portion of the Act to any person or
circumstance would be held unconstitutional or invalid, the invalidity would not affect other
portions of the Act that could be given effect without the invalid portion or application, and the
32 - 2560 applicability of such other portions of the Act to any person or circumstance would remain valid
and enforceable.
Earned Wage Access Services Act (New Sections 43–58)
The bill would also create the Kansas Earned Wage Access Services Act (EWA Act) and
authorize the OSBC to regulate earned wage access services providers. The bill would
establish registration criteria, including annual reporting and business records requirements, as
well as assign powers and duties to the Commissioner, including examination and enforcement,
to ensure compliance with the Act. [Note: “Earned Wage Access” is often abbreviated as
“EWA.”]
Designation, Applicability, and Definitions (New Sections 43–44)
The bill would designate sections 43–44 of the bill as the Kansas Earned Wage Access
Services Act. The bill would further specify the EWA Act would not apply to a bank holding
company regulated by the Federal Reserve, a depository institution regulated by a federal
banking agency, or a subsidiary of either the holding company or depository institution that
directly owns 25 percent of the common stock.
Definitions
The bill would create several definitions for terminology used in the EWA Act. Among the
definitions established in the bill:
●“Consumer” would mean an individual who is a resident of the state. (Under the bill, a
provider may use the mailing address provided by a consumer to determine a
consumer’s residency.);
●“Earned wage access services” would mean the business of providing consumer-
directed wage access services or employer-integrated wage access services, or both;
●“Consumer directed wage access services” would mean offering or providing earned
wage access services directly to consumers based on the consumer’s
representations and the provider’s reasonable determination of the consumer’s
earned but unpaid income;
●“Employer-integrated wage access services” would mean the business of delivering
to consumers access to earned but unpaid income that is based on employment,
income, and attendance data obtained directly or indirectly from the employer;
●“Fee” would mean a fee imposed by a provider for delivery or expedited delivery of
proceeds to a consumer or a subscription or a membership fee imposed by a provider
for a bona fide group of services that include EWA services;
○A voluntary tip, gratuity, or donation would not be deemed a fee;
33 - 2560 ●“Non-mandatory payment” would mean an amount paid by a consumer or an obligor
to a provider that does not meet the definition of a fee; an example of permissible
mandatory payment would be:
○A charge imposed by a provider for delivery or expedited delivery of proceeds to
a consumer so long as the provider offers the consumer at least one option to
receive proceeds at no cost to the consumer;
●“Obligor” would mean an employer or other person who employs a consumer or any
other person who is contractually obligated to pay a consumer earned but unpaid
income in exchange for a consumer’s provision of services to the employer or on
behalf of the employer on an hourly, project-based, piecework, or other basis, and
including where the consumer is acting as an independent contractor;
●“Person” would mean any individual, corporation, partnership, association, or other
commercial entity; and
●“Provider” would mean a person who is in the business of offering earned wage
access services to consumers.
The bill would also create definitions for the terms act, commissioner, director, earned but
unpaid income, member, Nationwide Multistate Licensing System and Registry, nonrecourse,
officer, outstanding proceeds, owner, partner, principal, proceeds, and registrant.
Registration for Persons Engaging in Earned Wage Access Services Business (New
Section 45)
The bill would require persons engaging in or willing to engage in any EWA services
business with a consumer to register with the Commissioner. Such persons would be required
to submit a registration application on forms prescribed and provided by the Commissioner. The
application would be required to include:
●The applicant’s name; business address; telephone number; and, if any, website
address;
●The name and address of each owner, officer, director, member, partner, or principal
of the applicant;
●A description of the ownership interest of any officer, director, member, agent, or
employee of the applicant in any affiliate or subsidiary of the applicant or any entity
that provides any service to the applicant or any consumer relating to the applicant’s
EWA services business; and
●Any other information the Commissioner may deem necessary to evaluate the
financial responsibility, financial condition, character, qualifications, and fitness of the
applicant.
34 - 2560 Application for, Approval, and Issuance of Registration
The bill would also require the Commissioner to approve an application and issue a
nontransferable and nonassignable registration to the applicant once the Commissioner
receives the complete application and application fee and determines the financial responsibility,
financial condition, character, qualifications, and fitness warrants a belief that the applicant’s
business will be conducted competently, honestly, fairly, and in accordance with applicable state
and federal laws.
Registration Expiration; Renewal; Failure to Issue
The bill would provide the earned wage access services registration would expire on
December 31 each year. A registration would be renewed if the person files a complete renewal
application with the Commissioner at least 30 calendar days prior to the registration’s expiration.
The renewal application would be required to contain all information the Commissioner requires
to determine the existence and effect of any material change from the information contained in
the applicant’s original application, annual reports, or prior renewal applications. A
nonrefundable renewal fee would also be charged.
The bill would further provide, if the Commissioner fails to issue a registration within 60
calendar days after a filed application is deemed complete, the applicant is permitted to make a
written request for a hearing. Upon receipt of this request, the Commissioner would be required
to conduct a hearing in accordance with the Kansas Administrative Procedure Act (KAPA).
Registration, Processing of; Exceptions to
The bill would also require the Commissioner, no later than January 1, 2025, to prescribe
the form and content of an application for registration to provide EWA.
The bill would allow a person who, as of January 1, 2024, was engaged in the business of
providing EWA services to continue to engage in this business until the Commissioner has
processed the person’s application if such person has submitted an application within three
months after the Commissioner has prescribed the application’s form and content and the
person has complied with the EWA Act.
The bill would also provide that the Act’s registration requirements would not apply to
individuals acting as employees or independent contractors of business entities required to
register.
Surety Requirement on Applicants and Registrants (New Section 46)
The bill would require each applicant or registrant to file with the Commissioner a surety
bond in a form acceptable to the Commissioner. The surety bond would be required to be
issued by a surety or insurance company authorized to conduct business in this state, securing
the applicant’s or registrant’s faithful performance of all duties and obligations. The surety bond
would be required to:
35 - 2560 ●Be payable to the OSBC;
●Provide that the bond may not be terminated without 30 calendar days’ prior written
notice to the Commissioner, that such termination will not affect the surety’s liability
for violations of the Act occurring prior to the effective date of cancellation, and
principal and surety must be and remain liable for a period of two years from the date
of any action or inaction of principal that gives rise to a claim under the bond;
●Provide that the bond shall not expire for two years after the date of surrender,
revocation, or expiration of the applicant’s or registrant’s registration, whichever
occurs first;
●Be available for the recovery of expenses, fines, and fees levied by the
Commissioner and payment of losses or damages that are determined by the
Commissioner to have been incurred by any consumer as a result of the applicant’s
or registrant’s failure to comply with requirements of the EWA Act; and
●Be in the amount of $100,000.
Registration Requirements of Registered Providers (New Section 47)
The bill would subject providers registered in the state (“registrants”) to the following
requirements:
●A registrant must provide all proceeds on a non-recourse basis, and all fees and non-
mandatory payments would be treated as non-recourse payment obligations;
●A registrant must develop and implement policies and procedures to respond to
questions raised by consumers and address consumer complaints in an expedient
manner;
●Before providing a consumer with EWA services, the registrant would be required to
inform the consumer of their rights under the agreement, fully and clearly disclose all
fees associated with EWA services, and clearly and conspicuously describe how the
consumer may obtain proceeds at no cost to such consumer;
●A registrant must inform the consumer of any material changes to the terms and
conditions of the EWA services before implementing any changes;
●The registrant must provide proceeds to a consumer via any means mutually agreed
upon;
●The registrant must allow a consumer to cancel the use of the provider’s EWA
services at any time, without incurring a cancellation fee or penalty imposed by the
provider;
●The registrant is required to comply with all applicable federal, state, and local privacy
and information security laws;
●If a registrant solicits, charges, or receives a tip, gratuity, or other donation from a
consumer, the registrant must disclose:
36 - 2560 ○To the consumer immediately prior to each transaction that a tip, gratuity, or
other donation amount may be zero and is voluntary; and
○In its agreement with the consumer that tips, gratuities, or other donations are
voluntary and that the offering of EWA services is not contingent on whether the
consumer pays any, nor the size of, tips, gratuities, or other donations; and
●If a registrant seeks repayment of outstanding proceeds or payment of fees or other
amounts owed, in connection with EWA services from a consumer’s depository
institution, including by means of electronic funds transfer, the registrant must:
○Inform the consumer when the provider will make each attempt;
○Comply with applicable provisions of the federal Electronic Fund Transfer Act
(EFTA) [15 USC 1693 et seq.] and any adopted EFTA regulations; and
○Reimburse the consumer for the full amount of any overdraft or nonsufficient
funds fees imposed on a consumer by the consumer’s depository institution that
were caused by the provider attempting to seek payment of any outstanding
proceeds, fees, or other payments in connection with EWA services on a date
before, or in an incorrect amount from, the date or amount disclosed to the
consumer. (A provider would not be subject to this reimbursement requirement
with respect to payments incurred by a consumer through fraudulent or other
unlawful means.)
Prohibitions and Restrictions on Registrants (New Section 48)
The bill would impose certain restrictions and prohibitions on persons registered under the
EWA Act, including:
●Compelling or attempting to compel repayment of outstanding proceeds or payments
owed by a consumer through civil suit brought against the consumer, use of a third
party to pursue collection, use of outbound telephone calls to attempt collection, or
sale of an outstanding amount to a third-party debt collector or debt purchaser;
●Charging a late fee, deferral fee, interest, or any other penalty or charge for failure to
repay outstanding proceeds;
●Charging interest or finance charges or charging an unreasonable fee to provide
expedited delivery of proceeds to a consumer;
●Misleading or deceiving consumers about the voluntary nature of tips, gratuities, or
other donations, or making representation that such contributions will benefit any
specific individuals if the registrant solicits, charges, or receives these from a
consumer; and
●Reporting a consumer’s payment or failed repayment of outstanding proceeds to a
consumer credit reporting agency or debt collector.
37 - 2560 Applicability of EWA Act with State Law (New Section 49)
The bill would provide that EWA services provided by a registrant in accordance with the
EWA Act shall not be considered to be:
●A loan or other form of credit, nor would the registrant be considered a creditor or
lender;
●In violation of or noncompliant with the laws of Kansas governing the sale or
assignment of, or an order for, earned but unpaid income; or
●Money transmission, nor would the registrant be considered a money transmitter.
The bill would also provide that fees, voluntary tips, gratuities, or other donations paid to a
registrant would not be considered interest or finance charges. The bill would further specify that
a registrant that provides proceeds to a consumer in accordance with this act would not be
subject to provisions of the Uniform Consumer Credit Code (UCCC) in connection with the
registrant’s EWA services.
Conflict with Law
For any conflict between provisions of this act and any other state statute, the bill would
provide that its provisions control.
Annual Reporting Requirement; Confidential Information; Maintenance of Business
Records (New Sections 50–51)
The bill would require registrants to file an annual report, on or before April 1 of each year,
with the Commissioner relating to earned wage access services provided by the registrant in
Kansas during the proceeding year.
Confidential Information; Legislative Review; Written Reports
The bill would provide the information contained in the registrant’s annual report is
confidential and not subject to KORA. This provision would expire on July 1, 2029, unless the
Legislature reviews and acts to continue such exception under KORA.
The bill would require a written report detailing an event and its expected impact on the
registrant’s business be made to the Commissioner within 15 days of the occurrence of one of
the following events:
●Filing for bankruptcy or reorganization by the registrant;
●Institution of a revocation, suspension, or other proceeding against the registrant by a
governmental authority that is related to the registrant’s EWA services business in
any state;
38 - 2560 ●Addition or loss of any owner, officer, partner, member, principal, or director of the
registrant;
●A felony conviction of the registrant or the registrant’s owners, officers, members,
principals, directors, or partners;
●A change in the registrant’s name or legal entity status; or
●The closing or relocation of the registrant’s principal place of business.
Failure to Report
The bill would provide that the failure to make any required report to the Commissioner
may subject the registrant to a late penalty of $100 for each day such report is overdue.
Business Records
The bill would require registrants to maintain and preserve complete and adequate
business records, including a general ledger containing all assets, liabilities, capital, income,
and expense accounts for a period of three years. Additional recordkeeping requirements would
include:
●Maintaining and preserving complete and adequate records of each EWA services
contract during the contract’s term and for a period of five years from the date on
which the registrant last provides proceeds to the consumer; and
●Providing records to the Commissioner within three business days of the
Commissioner’s request or, at the Commissioner’s discretion, pay reasonable and
necessary expenses for the Commissioner to examine them at the place where such
records are maintained. The bill would also permit records to be submitted
electronically in a manner prescribed by the Commissioner.
Registration Denial, Suspension, or Revocation; Opportunity for Hearing (New Section
52)
The bill would establish criteria in which the Commissioner may deny, suspend, revoke, or
refuse to renew a registration if the Commissioner makes such finding, after notice and
opportunity for a hearing in accordance with the provisions of KAPA. Among the criteria, the
Commissioner could take action if or when:
●The applicant or registrant has repeatedly or willfully violated any provision, any
adopted rules and regulations, or any order lawfully issued by the Commissioner
pursuant to the Act;
●The applicant or registrant has failed to file and maintain the required surety;
●The applicant or registrant is insolvent;
39 - 2560 ●The applicant, registrant, or an employee of the applicant or registrant has been the
subject of any disciplinary action by the Commissioner or any other state or federal
regulatory agency; or
●Facts or conditions exist that would have justified the denial of the registration or
renewal had such facts or conditions existed or been known to exist at the time the
application for registration or renewal was made.
Administration of the Act; Powers Granted to Commissioner (New Section 53)
The bill would authorize the Commissioner to administer the provisions of the EWA Act and
would authorize the Commissioner to exercise powers as designated, including:
●Adopting, amending, and revoking rules and regulations as necessary to carry out the
intent of the EWA Act;
●Investigating and examining the operations, books, and records of an EWA services
provider as the Commissioner deems necessary;
●Establishing, charging, and collecting fees from applicants or registrants for
reasonable costs of investigation, examination, and administration of the EWA Act, in
such amounts as the Commissioner may determine sufficient to meet the agency’s
budget requirements;
●Exchanging information regarding the administration of this act with any federal
agency or any state that regulates the applicant or registrant or to any attorney
general or district attorney with jurisdiction to enforce criminal violations of this act;
and
●Requiring fingerprinting of any officer, partner, member, owner, principal, or director of
an applicant or registrant. Such fingerprints may be submitted to the Kansas Bureau
of Investigation (KBI) and the Federal Bureau of Investigation for a state and criminal
history record check to be submitted to the OSBC.
Records and Information Release
The bill would also specify the KBI must release all records of adult convictions,
adjudications, and juvenile adjudications in Kansas and of another state or country to the
OSBC. The bill would provide that state and national history record checks would be considered
confidential and subject to KORA and its disclosure and legislative review provisions.
The bill would further specify examination reports and correspondence regarding such
reports would be considered confidential and not subject to disclosure provisions of KORA. The
Commissioner would be permitted to release examination reports and correspondence in
connection with a disciplinary proceeding conducted by the Commissioner, a liquidation
proceeding, or a criminal investigation of a proceeding. The bill would further specify actions the
Commissioner would be permitted to take in order to conduct examinations, investigations, and
proceedings under the EWA Act, and also provide for confidential information contained in
informal agreements.
40 - 2560 Nationwide Multistate Licensing System and Registry
The bill would also require using of the NMLS for processing applications, renewals,
amendments, surrenders, and any other activity the Commissioner deems appropriate. The bill
would permit the Commissioner to establish relationships or contracts with the NMLS, to report
violations of the law as well as enforcement actions to the NMLS, and to require any applicant
or licensee to file reports to the NMLS in the form prescribed by the Commissioner.
Violations of the Act; Enforcement Actions (New Section 54)
The bill would also prescribe enforcement actions the Commissioner could take in the
event the Commissioner determines, after notice and opportunity for a hearing pursuant to
KAPA, that a person has engaged, is engaging in, or is about to engage in an act or practice
constituting a violation of any provision of this act, adopted rules and regulations, or issued
order. These actions would include requiring:
●The person cease and desist from the unlawful act or practice;
●The person pay a fine not to exceed $5,000 per incident for the unlawful act or
practice, and further, in the instance such violation is committed against elder or
disabled persons (as defined in consumer protection law), the Commissioner may
impose an additional penalty not to exceed $5,000 for each violation in addition to
any other civil penalty provided by law;
○The bill would specify that any collected fines and penalties associated with the
above violations must be designated for use by the Commissioner for consumer
education;
●The person pay restitution for any loss arising from the violation or requiring the
person to disgorge any profits arriving from such violation;
●The person take such action as in the judgment of the Commissioner that will carry
out the purposes of this act; and
●The person be barred from subsequently applying for registration under this act;
○The bill would further specify actions that could require issuance of an
emergency cease-and-desist order and notification requirements, including an
opportunity for a hearing.
Failure to Obey a Subpoena; Permissible Actions (New Section 55)
The bill would also establish requirements for cases of failure or refusal to obey a
subpoena and would permit a court to issue an order requiring a person to appear before the
Commissioner or the Commissioner’s designee. Failure to appear could be punished by the
court as contempt of court. The bill would further specify that no person could be excused from
attending, testifying, or producing any document or record before the Commissioner or in
obedience to the subpoena or any proceeding initiated by the Commissioner.
41 - 2560 Criminal Penalties; Intentional Violations of the Act; Actions in District Court (New
Sections 56–57)
The bill would state it is unlawful for any person to violate the provisions of, any rules or
regulations adopted under, or any order issued under the Act. A conviction for an intentional
violation would be a class A nonperson misdemeanor. A second or subsequent conviction would
be a severity level 7 nonperson felony.
The bill would permit the Commissioner, Attorney General, or a county or district attorney
to bring an action in a district court to enjoin any violation of this act or rules and regulations
adopted thereunder.
Fees Collected by the Commissioner (New Section 58)
The bill would provide that all fees collected by the Commissioner would be subject to the
provisions requiring 10 percent of fees collected be deposited to the credit of the State General
Fund.
Banking Code Amendments
The bill would amend the State Banking Code and provisions pertaining to trust companies
to address the abandonment or expiration of certain applications; permit any person, regardless
of age, to become a depositor in a bank and to enter into an agreement with a bank for the
lease of a safe deposit box; and allow an originating trustee to have its principal place of
business outside of Kansas.
Abandonment and Expiration of Applications (Sections 59–60)
The bill would provide that, if an applicant fails to complete any application under the State
Banking Code within 60 days after being notified that the application is incomplete, such
application would be considered abandoned and the application fee would not be refunded. The
bill would permit such applicant to reapply at any time.
The bill would also require a bank or trust company to engage in the activity requiring an
application and approval by the Commissioner or the State Banking Board within 18 months
from the date of approval. If the bank or trust company fails to comply with this activity deadline,
the bill would require the application to be deemed expired and a new application, application
fee, and approval to be required.
Extension of Deadline
The bill would permit the Commissioner to extend the application deadline indefinitely, if
approval from another state or federal regulator is necessary for the bank or trust company to
engage in the activity, or up to 180 days for good cause. The State Banking Board would be
permitted to designate the Commissioner to determine the completeness of any application
requiring Board approval or deem as expired any Board-approved application.
42 - 2560 Bank Depositors; Acceptance of Deposits from Certain Minors (Section 61)
The bill would also amend the State Banking Code to allow any person, regardless of
age, to become a depositor in a bank and to enter into an agreement with a bank for the lease
of a safe deposit box. The bill would also specify that any bank that accepts deposits from
certain minors ages 16 or older cannot require a cosigner or the consent of a custodian for
deposit of the minor’s funds.
Deposits; Instruments for Withdrawal
The bill would provide that any person, regardless of age, may become a depositor in any
bank and will be subject to the same duties and liabilities respecting that person’s deposits. The
bill would also provide that when the deposit is accepted, it may be withdrawn by the depositor
by any of these methods:
●Check or instrument in writing;
○The bill would further specify the check or other instrument in writing would
constitute a receipt or acquittance, if the check or other instrument is signed by
the depositor, and constitutes a valid release and discharge to the bank for all
payments so made; or
●Electronic means through:
○Preauthorized direct withdrawal;
○An automatic teller machine (ATM);
○A debit card;
○A transfer by telephone;
○A network, including the internet; or
○Any electronic terminal, computer, magnetic tape, or other electronic means.
Minors in Custody
The bill would provide that any bank that accepts deposits from certain minors cannot
require a cosigner or the consent of a custodian for the funds to be deposited. Specifically,
these deposit requirements on banks would apply to minors in the custody of the Secretary for
Children and Families, a federally recognized Indian tribe in Kansas, or the Secretary of
Corrections. Under the bill, these minors would be responsible for banking costs or penalties
associated with the deposits. The bill would also provide the Secretary or designee, or any
foster or biological parent, would not be responsible for banking costs or penalties associated
with a deposit.
Safety Deposit Boxes
The bill would also provide that any person, either as an individual or with others, may
enter into an agreement with a bank for the lease of a safe deposit box and will be bound by the
terms of this agreement.
43 - 2560 Electronic Funds Transfer Participants
The bill would also state the provisions of the bill shall not be construed to affect the rights,
liabilities, or responsibilities of participants in an electronic funds transfer under the Federal
Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.), as in effect on July 1, 2024, and shall not
affect the legal relationship between a minor and any person other than the bank.
Change of Control or Merger—Applications (Section 62)
The bill would modify an application provision for a person acquiring control or a bank or
trust company undertaking a merger transaction to provide that, if the Commissioner does not
act on the complete application within the 60-day period prior to the proposed change of control
or merger and the applicant has received approval from all other applicable federal and state
agencies, the application will stand approved.
Trust Companies—Definitions (Section 63)
The bill would amend the definition of “originating trustee” to remove language requiring
such trustee (e.g., trust company, bank, national banking association, savings and loan
association, or savings bank) to have its principal place of business in this state. The bill would
further permit either the contracting trustee or the originating trustee to have its principal place
of business in this state.
Conference Committee Action
The Conference Committee agreed to the House Committee amendments to HB 2560
(further modified by the Conference Committee to restore the effective date to publication in the
statute book), and agreed to add the following provisions:
●Enacting the Kansas Money Transmission Act and replacing the Kansas Money
Transmitter Act (SB 406, as amended by House Committee on Financial Institutions
and Pensions);
●Amending the State Banking Code to allow any person, regardless of age, to become
a depositor in a bank and to enter into an agreement with a bank for the lease of a
safe deposit box (HB 2247, as amended by House Committee on Financial
Institutions and Pensions); and
●Enacting the Kansas Earned Wage Access Services Act and authorizing the OSBC to
regulate earned wage access services providers (HB 2105, as amended by Senate
Committee on Financial Institutions and Insurance);
○The Conference Committee further amended this act to restore prior language
relating to “non-mandatory payments” (does not meet the definition of a fee) and
treatment of such payments as non-recourse payment obligations, require a
clear and conspicuous consumer notification, and make technical amendments.
44 - 2560 Background
This conference committee report contains provisions from House Bills 2560, 2105, 2247,
and SB 406. The background information concerning these bills follows.
HB 2560 (State Banking Code—Applications and Trust Company Provisions)
The bill was introduced by the House Committee on Financial Institutions and Pensions at
the request of a representative of the Office of the State Bank Commissioner (OSBC).
House Committee on Financial Institutions and Pensions
In the House Committee hearing, a representative of the OSBC provided proponent
testimony, stating the bill would allow the agency to abandon incomplete applications and
declare approved applications expired. The conferee noted a handful of incomplete and
unimplemented applications tie up a substantial amount of time for the OSBC’s Applications and
Statistics Manager and leadership and on the State Banking Board. A representative of Midwest
Trust also appeared as a proponent, stating the bill would allow Kansas trust companies to bring
in many accounts from out of state in an efficient manner by creating a legal mechanism that
permits the irrevocable transfer of fiduciary accounts to another trust company or bank.
Written-only proponent testimony was submitted by a representative of the Trust Division
of the Kansas Bankers Association.
No other testimony was provided.
Senate Committee on Financial Institutions and Insurance
In the Senate Committee hearing, a representative of the OSBC provided proponent
testimony, outlining the change in the Banking Code to allow the agency to abandon incomplete
applications and declare approved applications expired. A representative of Midwest Trust also
appeared as a proponent, addressing amendments to trust company statutes and describing
the legal mechanism that would allow the bulk transfer of out-of-state fiduciary accounts to
Kansas banks and trust companies.
Written-only proponent testimony was submitted by a representative of the Trust Division
of the Kansas Bankers Association (KBA).
The Senate Committee amended the bill to change its effective date to upon publication in
the Kansas Register. [Note: The Conference Committee did not retain this amendment.]
HB 2105 (Kansas Earned Wage Access Services Act)
The bill was introduced by the House Committee on Financial Institutions and Pensions at
the request of a representative of EarnIn.
45 - 2560 House Committee on Financial Institutions and Pensions
In the House Committee hearing on January 30, 2023, a representative of EarnIn provided
proponent testimony, describing its business as an Earned Wage Access (EWA) provider,
which gives customers access to their earnings as they are earned and before they are paid.
The conferee stated access to “pay-on-demand” reduces financial anxiety by allowing
individuals to spend, transfer, and save their money as they choose. The conferee outlined
EarnIn’s presence in Kansas (more than 22,000 unique users) and noted EWA is currently
unregulated in the state and its business model does not fit easily into existing regulatory
frameworks. The conferee noted the bill provides the framework that protects consumers and
gives businesses certainty to invest and grow, regardless of the EWA business model.
Representatives of Payactiv, an EWA provider, and Kansans for Payday Loan Reform
provided neutral testimony. The Payactiv representative encouraged amendments to the bill to
split regulation of the two different EWA models – the employer integrated earned wage access
model and the direct-to-consumer advance model, given the differences in how these models
operate. Written-only neutral testimony submitted by the OSBC noted concerns with the bill, as
introduced, and support for an amendment that was to be offered by the proponent.
Opponent testimony was provided by a representative of DailyPay, Inc., (employer-
integrated EWA provider) who noted Kansas would be the first in the country, if the bill is
enacted, to have an earned wage access services law. The conferee shared concerns about the
need to include the entire industry within the scope of regulation and addressed changes
needed in the bill, as introduced, including the licensing criteria, different standards to govern
the various EWA models, and clear disclosure requirements for all fees.
On February 8, 2023, the House Committee adopted several amendments incorporating
recommendations from the OSBC, in consultation with other parties to the bill. The amendments
would incorporate the business models associated with the provisions of EWA services. The
amendments would also:
●Add and clarify existing defined terms;
●Update the registration expiration date;
●Increase the surety requirement from $25,000 to $100,000;
●Remove language applicable to finance charges and specific lending act
requirements;
●Clarify information required to be contained in a registrant’s written report following
certain reportable events and reduce the filing requirement timeline from 30 days to
15 days;
●Modify the powers assigned to the Commissioner to clarify an access requirement
and add additional requirements regarding information obtained from fingerprinting
and criminal history record checks; and
●Increase, from $2,000 to $5,000, the per-incident fine maximum on persons
committing an unlawful act or practice and the fine maximum associated with
violations committed against elders or disabled persons (as defined in consumer
46 - 2560 protection law). Further, any fines collected for either of these violations would be
required to be designated for the purpose of consumer education.
On February 23, 2023, the bill, as amended by the House Committee, was withdrawn from
the House Calendar and referred to the House Committee on Appropriations. On March 1,
2023, the bill was withdrawn from the House Committee on Appropriations and rereferred to the
House Committee on Financial Institutions and Pensions.
On March 13, 2023, the House Committee recommended further amendments to the bill.
The amendments clarify the term “commissioner” to mean only the State Bank Commissioner,
add a disclosure requirement on the registrant regarding changes to the terms and conditions of
the EWA services, remove language pertaining to compliance with National Automated
Clearinghouse Association rules, modify participant cancellation provisions, remove disclosure
requirements relating to nonpublic personal information, and remove language regarding
applicability to the Uniform Consumer Credit Code.
Senate Committee on Financial Institutions and Insurance
In the Senate Committee hearing on February 8, 2024, representatives of EarnIn and Daily
Pay, Inc., provided proponent testimony, outlining the need for separate and distinct regulation
of EWA in Kansas and efforts to work with regulators, EWA providers, and other stakeholders to
craft model legislation to fit all EWA business models. Written-only proponent testimony was
submitted by representatives of the American Fintech Council and the Chamber of Progress.
In the Senate hearing, a balloon amendment to the bill, as it passed the House, was
distributed and discussed.
A representative of the OSBC appeared as an opponent to the bill, as it passed the
House. The conferee indicated if the balloon amendment was adopted, the agency would take a
neutral position on the bill, provided certain provisions in the amendment were retained.
The Senate Committee adopted several amendments, including technical and clarifying
language. The amendments would also [Note: Section numbers are applicable to the Senate
version of HB 2105]:
●Add language to clarify the Act would not apply to certain financial institutions
(Section 1);
●Modify several definitions of terms, including “Commissioner,” “consumer directed
wage access services,” “earned but unpaid income,” “earned wage access services,”
“obligor,” “outstanding proceeds,” and “person”; replace the definition of “employer-
integrated wage access services,” restore a definition for “nationwide multistate
licensing system and registry”; remove definitions (and references to, throughout the
bill) for “mandatory payment” and “non-mandatory payment”; and add definitions for
“fee,” “member,” and “principal” (Section 2);
●Update provisions to include reference to principals; remove language requiring
application and renewal fees to be established by rules and regulation, and change
the expiration date of a license from April 30 to December 31; require the
Commissioner to prescribe the application form within six months; provide for
47 - 2560 registration for persons engaged in EWA services; and exempt from registration
requirements individuals acting as employees or independent contractors of business
entities required to register (Section 3);
●Update provisions from reference of mandatory and non-mandatory payments to
fees; clarify and reorganize specified criteria for information to be presented to a
consumer before providing EWA services; and include new criteria relating to
cancellation, compliance, disclosure, and repayment (Section 5);
●Replace a prohibition on the imposing of a mandatory payment on a consumer with a
prohibition on compelling or attempting to compel repayment and identifying those
means of repayment; adding deferral fee to prohibited charges for failure to repay
outstanding proceeds; remove three prohibitions pertaining to offering EWA services
and insert five prohibitions, including charging interest or an unreasonable fee and
misleading or deceiving consumers about the voluntary nature of tips, gratuities, or
other donations (Section 6);
●Replace language stating non-mandatory payments paid by a consumer to the
registrant would not be considered finance charges with provisions stating EWA
services: would not be considered a loan or money transmission, fees would not be
considered interest or finance charges, and registrants would not be subject to the
UCCC; provide the new Act’s provisions control when in conflict with other state law
(Section 7);
●Add member and principal to one of the events required to be reported by registrants,
and add member to another reported event, felony conviction (Section 8);
●Add clarifying language to reference applicable federal law as it applies to
recordkeeping (Section 10), and add language to include the Attorney General or
district Attorney General in provisions applying to enforcement of criminal violation in
the administration of this act (Section 11);
●Update fingerprinting requirements to include member, owner, and principal; modify
background check provisions to require a request be submitted to the Commissioner;
replace language pertaining to the Commissioner’s authorization and receipt of
checks from a private entity with a provision allowing KBI records be released to the
OSBC; and update legislative review provisions from July 1, 2028, to July 1, 2029
(Section 11); and
●Add a requirement for use of the NMLS or registry for processing applications,
renewals, amendments, surrenders, and other activity; permit contracts with,
reporting violations of the law and other actions, and requiring filing of reports by
applicants and licensees with the NMLS (Section 11).
[Note: The Conference Committee retained the Senate Committee amendments and
agreed to further amendments previously described.]
HB 2247 (State Banking Code—Depositors and Safety Deposit Boxes; Minors in Custody)
The bill was introduced by the House Committee on Child Welfare and Foster Care at the
request of the Secretary for Children and Families. The bill was referred to the House
48 - 2560 Committee on Financial Institutions and Pensions on January 31, 2023, rereferred to the House
Committee on Appropriations on February 15, and withdrawn from that committee and referred
to the House Committee on Financial Institutions and Pensions on March 1.
House Committee on Financial Institutions and Pensions
In the House Committee hearing on March 6, 2023, the Deputy Director of Youth
Programs, Department for Children and Families (DCF), provided proponent testimony, stating
DCF believes it is important that youth placed in the custody of the child welfare or juvenile
justice systems have the opportunity to participate in activities like that of their non-system-
involved peers. The DCF official further noted that providing a statutory pathway that allows
system-involved youth to open checking and savings accounts without co-signors also helps
mitigate fraud and potential theft of a young person’s money by biological or non-related
caregivers. Written-only proponent testimony was submitted by the Children’s Alliance of
Kansas and a former foster care youth.
Neutral testimony provided by a representative of the KBA, who indicated clarifying
language was needed regarding deposit accounts created with minors. The representative
presented an amendment to address concerns about the ability of a minor to void an account
and the minor’s liability for associated banking costs. The proposed amendment also addressed
safe deposit boxes.
The House Committee amended the bill to allow any person, regardless of age, to become
a depositor and subject these persons to the same duties and liabilities for the person’s
deposits. The amendment would also provide for the methods by which a deposit may be
withdrawn. The House Committee also amended the bill to add similar provisions (to deposit
permissions) pertaining to the lease of safe deposit boxes. The House Committee also revised
language relating to certain deposits by minors to specify these requirements would apply to
banks accepting such deposits. As introduced, the bill would have prohibited banks from
denying deposits without a cosigner for certain minors. The amendment also updated the bill’s
title to reflect the expanded language pertaining to financial institutions and deposits. [Note: The
Conference Committee retained these amendments.]
Senate Committee on Financial Institutions and Insurance
The bill was referred to the Senate Committee on March 21, 2023. On February 20, 2024,
the Senate Committee removed the contents of HB 2247, inserted contents pertaining to
amendments and updates to the Kansas Mortgage Business Act, the Uniform Consumer Credit
Code, and mortgage business provisions (SB 495), and recommended Senate Sub. for HB
2247. [Note: This conference committee report includes the original provisions of HB 2247,
pertaining to depositors, safety boxes, and minors in custody.]
SB 406 (Kansas Money Transmission Act)
The bill was introduced by the Senate Committee on Financial Institutions and Insurance at
the request of a representative of the OSBC.
49 - 2560 [Note: The current Kansas Money Transmitter Act was created by 2006 HB 2874 and is
codified in the State Banking Code at KSA 9-508 et seq.
This bill largely incorporates the CSBS Model Money Transmission Modernization Act
(“Money Transmitter Model Act” or MTMA) into Kansas law. According to the CSBS, 14 states
have adopted the MTMA in full or in part and another 17 are expected to pursue its adoption in
2024.]
Senate Committee on Financial Institutions and Insurance
In the Senate Committee hearing, proponent testimony was provided by representatives
of the OSBC and Money Services Business Association. The representatives generally stated
the new act would better reflect the industry today and codifies many changes in examination
and licensing procedures that have occurred in the past few years. The representatives stated
the proposed revisions and additions would modernize existing Kansas regulations by
increasing efficiency in the licensing and ongoing supervision of money transmitter licensees
operating in multiple jurisdictions.
Written-only proponent testimony was provided by representatives of the Electronic
Transactions Association and The Money Services Round Table.
No other testimony was provided.
The Senate Committee amended the bill to add a person engaging in the practice of law,
bookkeeping, accounting, real estate sales, or brokerage to the list of entities exempted from
the Act. [Note: The Conference Committee retained this amendment.]
House Committee on Financial Institutions and Pensions
In the House Committee hearing, proponent testimony was provided by a representative
of the OSBC, who stated that this modernization bill would codify certain practices that are
already in place and would help make the regulation of money transmission consistent across
state lines.
Neutral testimony was provided by a representative of the Independent Payroll Providers
Association and The Payroll Group, who requested an amendment to exempt certain payroll
processors.
No other testimony was provided.
The House Committee amended the bill to add a person appointed as an agent of a payor
(i.e., agency payroll processors) to the list of entities exempted from the Act. [Note: The
Conference Committee retained this amendment.]
Fiscal Information
Fiscal information for provisions of the bill, as amended by Conference Committee action,
appears below.
50 - 2560 HB 2560 (State Banking Code—Applications and Trust Company Provisions)
According to the fiscal note prepared by the Division of the Budget, the OSBC estimates
the bill, as amended, would increase revenues in the Bank Commissioner Fee Fund by $500 in
FY 2025. Under the provisions of the bill, the agency would be authorized to charge an
application fee when an applicant with a previously abandoned or expired application reapplies.
The OSBC notes its Consumer and Mortgage Lending (CML) Division currently has this
authority, and approximately 2.5 percent of CML applications are considered abandoned. The
Banking Division receives approximately 40 to 45 applications each year. Assuming the Banking
Division would have 2.5 percent of its applications abandoned, the OSBC estimates at least one
application will be abandoned each year beginning in FY 2025 and that one application would
be reinstated with a fee of $500. Any fiscal effect associated with enactment of the bill is not
reflected in The FY 2025 Governor’s Budget Report.
HB 2105 (Kansas Earned Wage Access Services Act)
According to the fiscal note prepared by the Division of the Budget on the bill, as
introduced, the OSBC indicates it would require an additional 1.0 FTE position for an Examiner,
at a cost of $70,200 from the Bank Commissioner Fee Fund for salaries and wages and an
additional $1,200 for information technology licenses and other operating expenses for FY
2024. Any fees collected under the bill would be remitted to the State Treasury with 10 percent
credited to the SGF, and the remaining balance would be credited to the Bank Commissioner
Fee Fund. However, the OSBC cannot estimate the amount of revenues the bill could generate.
The Kansas Sentencing Commission estimates enactment of the bill could have an effect
on prison admissions, bed space, and workload; however, it anticipates any fiscal effect to be
negligible. The Kansas Department of Corrections indicates the bill would have no fiscal effect.
The Office of Attorney General indicates that costs associated with any increase in cases or
complaints as a result of the bill’s enactment would be absorbed within existing resources. The
Kansas Judicial Branch indicates the bill would increase the number of cases filed in district
courts because the bill would allow court actions to be filed to enforce the Act and the bill would
create a new crime. The bill could result in the collection of additional docket fees, fines, and
supervision fees, most of which would be deposited in the SGF.
The Kansas Association of Counties indicates that the fiscal effect of the bill would be
negligible unless the number of violations would require additional court and staff time than
could be absorbed within counties’ current resources.
Any fiscal effect associated with enactment of the bill is not reflected in The FY 2024
Governor’s Budget Report.
51 - 2560 HB 2247 (State Banking Code—Depositors and Safety Deposit Boxes; Minors in Custody)
According to the fiscal note prepared by the Division of the Budget on the bill, as
introduced, the Kansas Department of Corrections, DCF, and the OSBC indicate the bill would
not have a fiscal effect on the agencies. In testimony presented to the House Committee on
Financial Institutions and Pensions, the DCF official indicated the bill would have minimal fiscal
impact, as there could be costs associated with creating awareness, printing, posting, and
potential training. The official also indicated in oral testimony that as of December 31, 2022, the
number of youth in custody and care that could be impacted was 1,219.
SB 406 (Kansas Money Transmission Act)
According to the fiscal note prepared by the Division of the Budget on the bill, as
introduced, the OSBC indicates the bill only modernizes the Kansas Money Transmitter Act, and
the agency would use existing resources to implement the bill. The Sentencing Commission
indicates the bill could have an effect on prison admissions, bed space, and workload of the
Commission; however, any fiscal effect would be negligible. Based on the Kansas Sentencing
Commission estimates, the Department of Corrections indicates that any increase in the prison
population resulting from the bill would be absorbed within the Department’s existing resources.
The Office of Judicial Administration indicates it would implement the bill using existing
resources.
The Kansas Association of Counties and the League of Kansas Municipalities state the bill
would not have a fiscal effect on the counties and cities.
Any fiscal effect associated with enactment of the bill is not reflected in The FY 2025
Governor’s Budget Report.
Financial institutions; financial services; Kansas Money Transmission Act; Kansas Earned Wage Access Services Act; EWA; fees;
rules and regulations; State Banking Code; State Bank Commissioner; State Banking Board; application abandonment and
expiration; banks; deposits and withdrawals; minors and cosigners; trust companies; originating trustee
ccrb_hb2560_01_0000.odt
52 - 2560