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Committee hears bill to add earned-wage-access firms to Kansas information-security law
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Summary
Senate Bill 410 would extend the Kansas Financial Institutions Information Security Act to include earned-wage-access (EWA) registrants and clarify internal citations to the Kansas Money Transmission Act, allowing state IT examiners to review EWA cybersecurity practices, proponents said at the hearing.
The Senate Committee on Financial Institutions and Insurance heard testimony on Senate Bill 410, a measure that would amend KSA 9-5-51 to include earned-wage-access (EWA) registrants among entities subject to the Kansas Financial Institutions Information Security Act. Eileen, the reviser, told the committee the bill updates internal citations and clarifies which financial institutions that engage in money transmission are covered.
Proponent Luis Solorio, assistant general counsel for the Office of the State Bank Commissioner, said the office’s IT examiners already enforce Federal Trade Commission standards under state law and asked the committee to include EWA registrants so those entities can be examined at the state level. “The OSBC requests to include EWA registrants as a covered entity because EWA service providers are already subject to the FTC standards,” Solorio said.
The reviser explained the technical changes: the bill replaces older internal references (KSA 9-5-08) with KSA 9-5-55, incorporates the money-transmission definition in KSA 9-5-55(b), and applies the act to entities that engage in money transmission and are not subject to licensure under KSA 9-5-56. Solorio told the committee the change would use existing state IT examiners and have a neutral fiscal impact and that no additional regulatory burden would be placed on institutions expected to follow federal law.
Committee members asked whether the bill is simply a follow-up to the earlier earned-wage-access statute; Solorio confirmed the bill’s purpose is to bring EWA registrants explicitly within the state information-security examination framework. Chairwoman Dietrich noted there were no written opponents or neutral testimony on file and described the measure as technical and "clean." The committee closed the hearing on SB 410 without a recorded vote.
The next procedural step was the close of the hearing; the transcript records no committee vote or formal action on the bill at that session.
