Committee advances bill standardizing title-agent bonding, requiring audits be available for inspection

The Kansas Senate Committee on Financial Institutions and Insurance voted to advance House Bill 2,042 as amended. The bill, the House version of Senate Bill 22, would require title agents to make their audit reports available for inspection rather than submitting them annually, standardize the amount of surety bonds filed with the commissioner of insurance to $100,000, and eliminate the controlled-business exemption for real-estate transactions in counties described in the bill.

Committee staff said the House Committee on Insurance amended the bill at the department's request to set an effective date of Jan. 1, 2026. During the Senate committee’s consideration, members offered an amendment that changes the effective trigger from publication in the statute book to publication in the Kansas Register to accelerate the effective date when enacted.

Senator Fagg moved to advance HB 2,042 as amended; Senator Gossage seconded. The committee chair called the voice vote, which was recorded as passed by unanimous voice vote in committee.

"Requires title agents to make their audit reports available for inspection instead of submitting those reports annually," committee staff member Eileen summarized during her briefing to the panel. "It also standardizes the amount of surety bonds filed with the commissioner of insurance to be $100,000 across the board and would eliminate the controlled business exemption for real estate transactions in counties with populations less than 1, 10,000 people."

The committee approved the department-requested amendment changing the effective date mechanism and then voted to report the bill favorably to the full Senate as amended.

Background: The House Committee of the Whole previously passed the House version of the bill on Feb. 7 by a 103-to-8 margin, committee staff said.