Kansas Senate Bill SB406

Kansas 2023-2024 Regular Session

• Introduced: 1/29/24
• Refer: 1/30/24
• Report Pass: 2/19/24
• Engrossed: 2/28/24
• Refer: 2/28/24
• Report Pass: 3/19/24
• Failed: 4/30/24

Caption

Enacting the Kansas money transmission act.

Impact

If enacted, SB406 is expected to significantly impact current state laws regarding financial transactions by consolidating and updating the regulatory approach to money transmissions. It seeks to replace outdated provisions with a more comprehensive structure that reflects modern electronic transaction needs. The bill's measures, including the necessity for a license and adherence to specific compliance standards, aim to prevent fraudulent activities and ensure that consumers are adequately protected when using electronic money services. This will likely contribute to a more secure financial environment in Kansas.

Summary

Senate Bill 406 enacts the Kansas Money Transmission Act, establishing regulatory frameworks for electronic money transactions. This bill is designed to govern how financial institutions manage, transmit, and oversee money transmission processes within the state. It outlines the responsibilities and powers of the state bank commissioner while also detailing the licensing and renewal processes that institutions must follow in order to legally operate. The Act emphasizes consumer protections in financial transactions, mandating that licensees maintain accurate records and comply with federal money transmission laws, thus enhancing the regulatory oversight of financial activities in Kansas.

Contention

Discussion around the bill noted various points of contention among stakeholders. Critics raised concerns that the regulations could impose burdensome compliance costs on smaller financial institutions, potentially limiting competition in the market. Proponents, however, argued that the regulations are essential to protect consumers and maintain the integrity of the financial system. Debates centered on the appropriate balance between enabling innovation in financial services through technology while ensuring rigorous oversight to prevent fraud and protect consumers.