Kansas 2025-2026 Regular Session

Kansas House Bill HB2417

Introduced

1/12/26

Refer

1/12/26

Caption

Authorizing the state bank commissioner to revoke a TEFFI charter, subject to approval by the legislative coordinating council.

Summary

HB 2417 amends Kansas law governing technology-enabled fiduciary financial institutions (TEFFIs), also referred to in the bill as fiduciary financial institutions. The bill gives the state bank commissioner authority to revoke a TEFFI charter if the institution fails to comply with the act or related regulations. However, that revocation is not final unless the legislative coordinating council approves it by majority vote, and the institution may appeal the commissioner’s order to that council. The council may consider the matter even while the legislature is in session. The bill also updates the statutory definition section for the TEFFI act, which is part of chapter 9 of the Kansas Statutes Annotated. It restates and expands definitions for terms such as alternative assets, custodial services, fidfin trusts, fidfin transactions, qualified investments, trust advisors, and economic growth zones. These definitions describe the structure and permitted activities of TEFFIs, including their ability to provide fiduciary services, custody of alternative assets, and financing or investment activities through fidfin trusts. The bill preserves the existing framework for TEFFIs while adding the new charter-revocation provision and conforming statutory references.

Impact

HB 2417 would directly amend K.S.A. 2025 Supp. 9-2301 and add a new section to the technology-enabled fiduciary financial institutions act. Its main legal effect is to create a formal enforcement mechanism allowing the bank commissioner to revoke a TEFFI charter for noncompliance, but only with legislative coordinating council approval. The bill therefore adds an extra layer of legislative oversight to charter revocations and affects TEFFIs, their owners, and the state banking regulatory structure. It also updates the act’s definitional provisions and repeals the existing version of K.S.A. 9-2301.

Sentiment

Based on the bill text and available context, the measure appears to be a targeted regulatory update rather than a controversial overhaul. The caption and structure suggest a policy consensus around giving the commissioner a stronger enforcement tool while preserving legislative oversight through the coordinating council. No committee transcript or recorded votes were provided, so there is no direct evidence of opposition or support beyond the bill’s formal introduction and drafting by the Joint Committee on Fiduciary Financial Institutions Oversight.

Contention

The main point of contention is likely the balance of power between the state bank commissioner and the legislative coordinating council. The bill lets the commissioner initiate revocation, but final action depends on approval by a majority of the council, which could be seen either as an important check on agency power or as a constraint that may slow enforcement. Another possible area of concern is the broader TEFFI framework itself, including the special treatment of qualified investments, economic growth zones, and alternative-asset custody activities, though no specific objections are documented in the provided materials.

Latest KS HB2417 Activity

View All Events: KS 2025-2026 Regular Session HB2417

Companion Bills

No companion bills found.

Previously Filed As

KS HB2001

Authorizing the secretary of commerce to enter into agreements with major professional sports franchises to establish STAR bond projects for a major professional sports complex, providing for additional revenue sources, expanding the powers and discretion of the secretary and making other changes to the STAR bonds financing act to facilitate such projects, limiting the secretary’s authority to approve such projects to one year unless extended by the legislative coordinating council, authorizing the Kansas development finance authority to issue STAR bonds for such projects, transferring funds under certain circumstances from the state gaming revenues fund to the attracting professional sports to Kansas fund for the fiscal year ending June 30, 2025, and, if approved by the legislative coordinating council, for the fiscal year ending June 30, 2026.

KS SB5

Authorizing counties to impose an earnings tax.

KS HB2004

Authorizing counties to propose an earnings tax for ballot question.

KS HB2002

Expanding medical assistance eligibility and enacting the cutting healthcare costs for all Kansans act.

KS SB1

Modifying income tax rates for individuals, exempting all social security benefits from Kansas income tax, increasing the Kansas standard deduction and the Kansas personal exemption, increasing the income tax credit amount for household and dependent care expenses, decreasing the privilege tax normal tax, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value for property tax valuation purposes, increasing the extent of property tax exemption for residential property from the statewide school levy, providing for certain transfers to the state school district finance fund and abolishing the local ad valorem tax reduction fund and the county and city revenue sharing fund.

KS SCR1602

Approving the creation of a port authority in Wyandotte County Kansas.

KS SB2

Eliminating the income limit to qualify for the subtraction modification exempting social security benefits, increasing the income tax credit amount for household and dependent care expenses, establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, citing the increased property tax homestead refund claim section as the homeowners' property tax freeze program, decreasing the normal privilege tax rate, increasing the extent of property tax exemption for residential property from the statewide school levy, decreasing the rate of ad valorem tax imposed by a school district; providing for certain transfers to the state school district finance fund, reducing the state rate of tax on sales of food and food ingredients and modifying the percent credited to the state highway fund from revenue collected.

KS SB7

Authorizing federally licensed firearm dealers, in addition to county sheriffs, to receive applications for concealed carry licenses and forward such applications to the attorney general, prohibiting sheriffs from assessing any fee related to application services and allowing dealers to assess a fee related to application services not to exceed $20.

KS SB6

Providing a sales tax exemption for sales of electricity to residential premises by municipally owned or operated utilities.

KS SB8

Exempting the sale of firearms, firearms accessories, ammunition, firearm safes and firearm safety devices from the retatilers' sales tax.

Similar Bills

KS HB2235

Updating provisions of the technology-enabled fiduciary financial institutions (TEFFI) act by making the act part of the state banking code, adjusting and providing certain definitions, reducing the TEFFI charter application fee, authorizing the issuance of certificates and trust certificates, providing for the supervision of TEFFIs by the state bank commissioner and including Kansas nonprofit corporations as qualified charities for the TEFFI income tax credit.

KS SB300

Providing for the apportionment of business income by manufacturers of alcoholic liquor depending on whether the taxpayer is a qualifying Kansas investor or a general manufacturer and removing obsolete reference to global intangible low-taxed income provided for under the federal internal revenue code in determining Kansas adjusted gross income.