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Minutes for SB406 - Committee on Financial Institutions and Insurance
Short Title
Enacting the Kansas money transmission act.
Minutes Content for Wed, Feb 7, 2024
Chairperson Longbine opened the meeting, greeting members and staff, and welcoming conferees, guests, and visitors. It was noted that Tamera Lawrence, Sr. Assistant Revisor, Revisor of Statutes Office (ROS), attended the meeting virtually via Webex. The Chairperson recognized Senator Dietrich, who introduced her guests, Taber Remmert, Braxton Harvey, Nolan Un, and Graham Figuerres, who were acting as Senate Pages today.
Chairperson Longbine opened the hearing on SB406.
Eileen Ma, Assistant Revisor, ROS, presented the Revisor's Memorandum brief on the bill, and an attachment, which contained a chart outlining the sections and their provisions. (Attachment 1) (Attachment 2) Ms. Ma answered questions from Senators Fagg and Pittman.
Brock Roehler, General Counsel, Office of the State Bank Commissioner (OSBC), requested the bill and spoke in support of the bill. Mr. Roehler related that the OSBC has regulated money transmitters for over 50 years under the current Money Transmitter Act. The OSBC believed it was time to replace the old act with a new one that was more reflective of the industry today and codifies many changes in examination and licensing procedures. (Attachment 3) Mr. Roehler responded to questions from Senators Pittman and Fagg.
Kathy Tomasofsky, Executive Director, Money Services Business Association, Inc., Montvale, New Jersey, gave oral proponent testimony virtually via Webex. (Attachment 4) She related that SB406 would align Kansas money transmitter laws with the Money Transmission Model Act, an initiative spearheaded by regulators and industry to standardize state money transmitter laws. It creates a national standard for customer protections, clarifies and standardizes definitions of regulated activity, and streamlines states' abilities to license and examine money transmitters through the Nationwide Multistate Licensing System. It ensures customers are protected and payment companies are regulated in the same manner across all jurisdictions. There were no questions posed to Ms. Tomasofsky.
Chairperson Longbine pointed the members' attention to the written-only proponent testimony from Brian Yates, Sr. Director, State Government Affairs, Electronic Transmission Association, Washington, D.C. (Attachment 5)
There being no other proponent, opponent, or neutral testimony submitted at this time, Chairperson Longbine closed the hearing on SB406. The meeting adjourned at 9:56 am. The next scheduled meeting is Thursday, February 8, 2024 in Room 546-South of the Capitol.
Later the same day, after the hearing, late proponent written-only testimony was received from Adam J. Fleisher, Cooley, LLP, Counsel to the Money Services Round Table in Washington, D.C., who worked with Jim Payne, Assistant Commissioner, OSBC, on this bill. It was distributed via email to the committee members, staff, all interested third parties, and posted with the other testimony on the Financial Institutions and Insurance web page for this hearing. (Attachment 6)
