Kansas 2025-2026 Regular Session

Kansas Senate Bill SB16

Introduced
1/16/25  

Caption

Prohibiting discrimination by financial services companies on the basis of social credit score and requiring registered investment advisers to obtain written consent from clients prior to investing client moneys in mutual funds, equity funds, companies and financial institutions that engage in ideological boycotts.

Impact

The introduction of SB16 will modify various components of existing state laws pertaining to financial practices. By legislating against discrimination based on social credit scores, the bill seeks to influence how financial institutions assess clients. This could result in a significant shift in the operational policies of banks and investment firms, as they will need to revise their criteria for customer evaluation. Furthermore, the bill creates a disclosure requirement, necessitating that clients be informed if their financial service access is denied, including the rationale behind such decisions.

Summary

Senate Bill 16 aims to prohibit discrimination by financial services companies based on a person's social credit score. It defines a social credit score broadly, incorporating various factors such as environmental compliance, support for certain corporate diversity standards, and lifestyle choices, among others. The bill is designed to ensure that individuals are granted access to financial services regardless of their personal beliefs or business affiliations. Under this bill, financial services companies are expected to provide services on a nondiscriminatory basis without imposing standards that extend beyond typical financial assessments.

Contention

Despite its intent to provide equity in financial access, the bill has faced criticism from various groups, particularly from those concerned about the broader implications of enforcing social credit systems. Opponents argue that the social credit score concept could unfairly stigmatize individuals based on non-financial criteria, potentially leading to economic discrimination. Moreover, the language around ideological boycotts triggers debates about freedom of expression and the ethics of corporate governance, highlighting a potential battleground between financial services and political or social values.

Enforcement

Enforcement of the provisions in SB16 places requirements on financial services companies with total assets exceeding $20 billion. If violations occur, penalties include being classified as engaging in deceptive practices, with the Attorney General empowered to pursue investigations and impose sanctions. These measures underscore the state's commitment to maintaining an equitable financial ecosystem while closely monitoring adherence to the law.

Companion Bills

No companion bills found.

Previously Filed As

KS SB224

Enacting the Kansas protection of pensions and businesses against ideological interference act, relating to ideological boycotts involving environmental, social or governance standards, requiring KPERS to divest from and prohibiting state contracts or the deposit of state moneys with entities engaged in such boycotts as determined by the state treasurer and prohibiting discriminatory practices in the financial services industry based on such boycotts.

KS HB2404

Enacting the Kansas protection of pensions and businesses against ideological interference act, relating to ideological boycotts involving environmental, social or governance standards, requiring KPERS to divest from and prohibiting state contracts or the deposit of state moneys with entities engaged in such boycotts as determined by the state treasurer and prohibiting discriminatory practices in the financial services industry based on such boycotts.

KS HB2100

Enacting the Kansas public investments and contracts protection act concerning environmental, social and governance (ESG) criteria, prohibiting the state and political subdivisions from giving preferential treatment to or discriminating against companies based on such ESG criteria in procuring or letting contracts, requiring KPERS fiduciaries to act solely in the financial interest of the participants and beneficiaries of the system, indemnifying KPERS with respect to actions taken in compliance with such act, restricting state agencies from adopting ESG criteria or requiring any person or business to operate in accordance with such criteria and providing for enforcement of such act by the attorney general.

KS HB2436

Senate Substitute for HB 2436 by Committee on Federal and State Affairs - Creating the crime of coercion to obtain an abortion and providing enhanced criminal penalties for offenses committed with the intent to coerce a woman to obtain an abortion.

KS SB291

House Substitute for SB 291 by Committee on Legislative Modernization - Transferring all cybsersecurity services under the chief information technology officer of each branch of government, creating chief information security officers within the judicial and legislative branches, requiring a chief information security officer to be appointed by the attorney general, Kansas bureau of investigation, secretary of state, state treasurer and insurance commissioner and requiring the chief information security officers to implement certain minimum cybersecurity standards, requiring the information technology executive council to develop a plan to integrate executive branch information technology services under the executive chief information technology officer, making and concerning appropriations for the fiscal years ending June 30, 2025, and June 30, 2026, for the office of information technology, Kansas information security office and the adjutant general, authorizing certain transfers and imposing certain limitations and restrictions and directing or authorizing certain disbursements and procedures for all state agencies and requiring legislative review of state agencies not in compliance with this act.

KS SB512

Prohibiting insurance companies from using environmental, social and governance criteria in the process of writing contracts of insurance, indemnity or suretyship, authorizing the attorney general or the county attorney or district attorney where a violation occurred to enforce such prohibition and providing a civil penalty for violations thereof.

KS HB2103

Substitute for HB 2103 by Committee on Financial Institutions and Pensions - Eliminating the statutory 15% alternative investment limit for the KPERS fund and requiring the KPERS board to establish an alternative investment percentage limit.

KS HB2722

Enacting the second amendment financial privacy act, prohibiting financial institutions from using a firearms code to engage in certain discriminatory conduct and surveilling, reporting or tracking the purchase of firearms and ammunition, authorizing the attorney general to investigate and enforce violations of such act and providing a civil penalty for violations thereof.

KS SB306

Including losses from investments in technology-enabled fiduciary financial institutions in Kansas adjusted gross income for income tax purposes.

KS SB245

Enacting the commercial financing disclosure act, requiring certain disclosures when making commercial financing product transactions, requiring registration with state bank commissioner, obtaining a surety bond, providing for civil penalties and rules and regulations by the commissioner and authorizing enforcement of such act by the attorney general.

Similar Bills

CA AB684

Building standards: electric vehicle charging infrastructure.

CA AB1239

Building standards: electric vehicle charging infrastructure.

CA AB306

Building regulations: state building standards.

CA AB2075

Energy: electric vehicle charging standards.

CA AB965

Gambling: licenses: gambling establishments.

CA AB336

Contractors: workers’ compensation insurance.

CA AB69

Help Homeowners Add New Housing Program: accessory dwelling unit financing.

CA AB835

State Fire Marshal: building standards: single-exit, single stairway apartment houses: report.