CBAK Legislative Update Dec. 3, 2025

Community Bankers Association of Kansas

Kansas Legislative and Policy Report

December 3rd, 2025 

Overview

The 2026 Session begins in just over a month on Monday, January 12^th. We previously reported that the Legislature was attempting to return for a special session to address mid-decade redistricting, but ultimately those efforts were unsuccessful. We suspect redistricting will of course be back on the table for discussion during the regular session, but how exactly that plays out remains to be seen. For now, our brief November report includes a few highlights from the month, and we will be back in early January with a December recap and pre-Session memo.

Updates of Interest

• Redistricting: Following legislative leadership’s failed attempt to convene the Legislature for a special session to redraw congressional maps to favor a Republican winning the third district, a handful of Republicans lost their leadership positions, including committee chairs and vice chairs. Those Republicans—both moderate and conservative—who refused to sign the petition calling the Legislature to a special session, faced consequences from leadership that included losing their positions as chairs and vice chairs on various committees. Overall, ten Republicans refused to sign the petition; three of those were committee chairs that were then removed of their committee leadership.
• State Budget: The Special Legislative Budget Committee held its second round of meetings to review agency budgets. Thus far, it appears agencies have prepared conservative budgets, anticipating a similar session to last year, with few enhancements, and fighting fiercely for the few additional funding items they choose to pursue. Additionally, the state’s economists met in early November to update the state’s economic outlook. The latest economic forecast for the State is not as bleak as previously anticipated, though economists cautioned against the State spending more than it receives in tax revenue. Officials projected an ending balance of $1.2 billion in fiscal year 2030, which is in stark contrast to previous estimates of hundreds of millions in the red. Nevertheless, the 2026 Legislature, similar to 2025, is likely to take a very fiscally conservative approach to next year’s budget and will be looking for ways to trim the budget.

Financial Institutions Updates

Crypto Kiosks & Consumer Protection

• An emerging issue the Kansas Legislature intends to address in 2026 is gaining increasing attention. The rise of incidents involving crypto kiosks has prompted the Legislature to take action in when it returns in 2026 to protect consumers. An incident in Salina involving a crypto kiosk scam recently made the news and illustrates the need for state involvement to attempt to protect consumers from scammers.
• On a related note, regarding consumer protection, the Kansas Credit Union Association recently announced its “Fight the Fraud” campaign to increase awareness of digital frauds and scams.

TEFFI

• The TEFFI Oversight Committee met in early November to continue discussions about the current status of Beneficient and the future of TEFFI in Kansas. The Committee met just days after former Beneficient CEO Brad Heppner was indicted on securities and wire fraud charges.
• The Committee has made multiple recommendations regarding the TEFFI Act, including the following:
  • Encourage the OSBC to engage with Beneficient to create rules and regulations pertaining to TEFFI.
  • Recommendation for legislation stating that Kansas will not accept receivership if any TEFFI becomes insolvent or declares bankruptcy.
  • Recommendation for legislation to allow OSBC to revoke a TEFFI charter if the rules/regs (once promulgated) are not carried out by a TEFFI.
• The Chairman stated that his Committee would be looking into the TEFFI Act during Session and sought OSBC’s further feedback regarding any changes needed in the TEFFI Act to allow the agency to adopt rules and regs.

Upcoming Activities

December 10^th-11^th.

Special Committee on State Budget. Agenda TBD.

Wrap Up

Let me know if you have any questions. 

To Read Past Issues, Click Here

Shawn P. Mitchell, President

Community Bankers Association of KS                               

5897 SW 29^th Street                                                               

Topeka, KS 66614                                                                 

785-271-1404 Office                                                             

shawn@cbak.com                                                                  

www.cbak.com