Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor
Division of the Budget
March 12, 2025
The Honorable Brenda Dietrich, Chairperson
Senate Committee on Financial Institutions and Insurance
300 SW 10th Avenue, Room 546-S
Topeka, Kansas 66612
Dear Senator Dietrich:
SUBJECT: Fiscal Note for SB 16 by Senate Committee on Federal and State Affairs
In accordance with KSA 75-3715a, the following fiscal note concerning SB 16 is
respectfully submitted to your committee.
SB 16 would prohibit a financial service company with total assets of $20.0 billion or more
from discriminating against a person based on a person’s credit score. The bill would prohibit a
financial service company from denying services based on non-financial criteria or ideological
criteria or coordinating with other companies to discriminate against clients. A financial services
company would be required to provide a written explanations in 14-point bold font when denying
services, detailing the specific data and criteria used for the denial.
The bill would require a registered investment adviser to obtain written consent from
clients before investing their money in mutual funds, equity funds, or companies that engage in
ideological boycotts. The bill defines these boycotts as actions taken without ordinary business
purpose to penalize companies that engage in fossil fuel production, nuclear energy, agriculture,
lumber, mining, firearms, or those that do not meet certain environmental standards or diversity
criteria. The Attorney General could enforce this consent requirement and also investigate any
violations.
A financial service company that commits a deceptive act or practice would be subject to
enforcement of the Attorney General. A financial services company that is a credit union and
commits an unsound practice would be subject to civil enforcement by the Credit Union
Administrator. An insurance company that commits an unsound practice would be subject to
penalties by the Insurance Commissioner. A company with five or more violations would be guilty
of a class C nonperson misdemeanor. The Honorable Brenda Dietrich, Chairperson
Page 2—SB 16
The bill would require the State Bank Commissioner, the Insurance Commissioner, and the
Credit Union Administrator to adopt rules and regulations to enforce the provisions of the bill no
later than July 1, 2026. The bill would also prevent a public agency or official from modifying the
$20.0 billion asset threshold that determines which financial institutions would be subject to the
provisions of the bill.
The Office of Judicial Administration states that the bill could increase the number of cases
filed in district court because the bill creates a new crime and authorizes the Attorney General to
investigate and enforce violations. This would increase the time spent by district court judicial
and nonjudicial personnel in processing, researching, and hearing cases. Because the bill creates
a new crime that carries a class C misdemeanor penalty, there could also be more supervision of
offenders required to be performed by court services officers. The bill could increase the collection
of docket fees, fines, and supervision fees that would be deposited into the State General Fund.
However, the Office cannot determine a precise fiscal effect of the bill.
The Insurance Department states that the bill would require the agency to hire additional
employees and would also increase fee fund expenditures by an unknown amount for those
employees and related operating expenditures. The additional employees would create the
regulatory framework to monitor and enforce the provisions of the bill; however, the agency cannot
estimate a precise fiscal effect.
The Office of the Attorney General states that any additional expenditures to investigate
and enforce deceptive acts and practices could be absorbed within existing resources. The Office
of the State Bank Commissioner and the Kansas Department of Credit Unions state that the bill
would not affect agency expenditures or revenues. Any fiscal effect associated with SB 16 is not
reflected in The FY 2026 Governor’s Budget Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Kyle Strathman, Insurance Department
Jesse Becker, Office of the State Bank Commissioner
Julie Murray, Department of Credit Unions