Kansas 2025-2026 Regular Session

Kansas House Bill HB2418

Introduced
1/12/26  

Caption

Prohibiting the office of the state bank commissioner or any other state agency from becoming a receiver for a technology-enabled fiduciary financial institution that becomes insolvent or declares bankruptcy.

Impact

The passage of HB 2418 will significantly influence the regulatory environment for fiduciary financial institutions in Kansas. By prohibiting state agencies from stepping in during financial distress, the bill aims to encourage innovation and confidence among technology-enabled financial service providers. This change may also compel fiduciary institutions to reevaluate their risk management strategies and operational structures, given the reduced oversight during financial difficulties. As a result, it may lead to an increase in such institutions operating under their own governance without direct state intervention.

Summary

House Bill 2418 concerns fiduciary financial institutions, specifically focusing on the prohibition of the state's involvement as a receiver for technology-enabled fiduciary financial institutions that become insolvent or declare bankruptcy. The bill establishes that the state bank commissioner and other state agencies will not take over these institutions when facing financial failure. This legislative approach is part of wider efforts to regulate financial institutions in a modern context, especially amid technological advancements, and supports a shift towards enhanced financial autonomy for such entities.

Sentiment

The sentiment around HB 2418 appears mixed, with proponents arguing that it fosters innovation and supports the growth of technology-enabled financial services. They believe reducing state intervention during insolvency might lead to more responsible practice and proactive management within these institutions. Conversely, critics might view the bill as a potential risk, fearing that it could lead to inadequate protections for investors and clients if financial facilitation fails without state oversight.

Contention

Notable points of contention concerning HB 2418 center on the implications of reduced state oversight of financial institutions. Opponents may worry that weakening direct control during insolvency could lead to detrimental financial practices, potentially jeopardizing stakeholders’ investments. Advocates for the bill counter these concerns by emphasizing the need for evolving regulatory frameworks that reflect the dynamism of contemporary finance, stressing that the bill supports a more flexible and innovative marketplace.

Companion Bills

No companion bills found.

Previously Filed As

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 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 SB3

Clarifying the procedures and restrictions on accepting a nomination for an elected office.

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 SB8

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

KS HB2003

Establishing the veterans' valor property tax relief act providing for an income tax credit or refund for eligible individuals, modifying the definition of household income and increasing the appraised value threshold for eligibility of seniors and disabled veterans related to increased property tax claims and citing the section as the homeowners' property tax freeze program, providing property tax exemptions for certain personal property including watercraft, marine equipment, off-road vehicles, motorized bicycles and certain trailers, excluding internal revenue code section 1031 exchange transactions as indicators of fair market value, providing for certain exclusions from the prohibition of paying taxes under protest after a valuation notice appeal and providing four prior years' values on the annual valuation notice.

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 SB6

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

KS HB2002

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

KS SCR1601

Informing the Governor that the two houses of the Legislature are organized and ready to receive communications.

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.

KS SB301

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

KS HB2417

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

HI SB3184

Relating To Digital Assets.

MD SB0753

Fiduciary Institutions - Exploitation of Seniors and Vulnerable Adults - Protections and Required Referral (Vulnerable Adult Banking Protection Act)

WV HB4791

Relating to joint accounts in banking institutions and eliminating the requirement that the commissioner approve joint account forms to be used by banking institutions

WV SB581

Eliminating requirement that commissioner approve joint account forms used by banking institutions