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Minutes for SB345 - Committee on Financial Institutions and Insurance
Short Title
Enacting the commercial financing disclosure act.
Minutes Content for Wed, Jan 24, 2024
The Chairperson opened the hearing on SB345. Eileen Ma, Assistant Revisor, Office of Revisor of Statutes (ROS), presented the Revisor's Memorandum brief explaining the bill. (Attachment 1) Ms. Ma answered questions from Senators Warren and Pittman.
Oral testimony was heard from Kate Fisher, the sole proponent testifying, with the Hudson Cook law firm, on behalf of Deveron Gibbons, Executive Director of the Revenue Based Coalition in Washington, D.C. Ms. Fisher told members that SB345 would standardize disclosures for non-bank financing provided to Kansas small businesses. She related that responsible providers already relay this information to help compare providers to find the most advantageous commercial financing for their business. (Attachment 2) Ms. Fisher also pointed to a handout she provided entitled, "The Clear Cost of Capital: An Analysis of Revenue Based Financing Transactions," dated February 2023, which was e-mailed to each member and staff member, also posted on the Financial Institutions and Insurance Committee's web page with the other testimony from this hearing, and is included herein. (Attachment 3)
Ms. Fisher responded to questions from Senators Pittman, Fagg, Olson, Gossage, Holscher, Kloos. Senator Warren, who noted that the conferees today were from out-of-state, asked for follow-up with some Kansas stakeholders who provided input and could be impacted by the provisions of the bill.
Chairperson Longbine pointed the members' attention to the written-only opponent testimony:
Miles Zeller, Policy and Advocacy Coordinator, AltCap, Kansas City, Missouri (Attachment 4)
Awesta Sarkash, Vice Chair, The Responsible Business Lending Coalition; [email protected] (Attachment 5)
Also attached is an e-mail dated January 30, 2024, from John Monroe, with CATALYST, Strategic Government Affairs, addressed to the Committee following up on a question from Senator Warren during discussion of the bill, asking whether any stakeholders from Kansas had been contacted about this bill and any potential impact it might have on Kansas businesses. (Attachment 6)
There being no further questions or discussion, and no other proponent, opponent, or neutral testimony submitted, the Chairperson closed the hearing on SB345.
The meeting adjourned at 10:00 am. The next scheduled meeting is Thursday, January 25, 2024, in Room 546-South of the Capitol.
