SESSION OF 2024
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2663
As Amended by Senate Committee on Financial
Institutions and Insurance

Brief*
HB 2663, as amended, would permit title insurance
agents to deposit escrow, settlement, and closing funds for
real estate closings, including closings involving refinances of
existing mortgage loans, which exceed $2,500 to be in the
form of a real-time or instant payment through the FedNow
service operated by the federal reserve banks or The
Clearing House payment company’s Real-Time Payments
(RTP) system.
The bill would also make technical changes.
The bill would be in effect upon publication in the
Kansas Register.

Background
The bill was introduced by the House Committee on
Insurance at the request of a representative of the Kansas
Land Title Association.

House Committee on Insurance
In the House Committee hearing, proponent testimony
was provided by a representative of the Kansas Land Title
Association. The proponent indicated the bill would modify
Kansas law by adding two safe, secure, and fast real-time
payment options for individuals attempting to execute real
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
estate transactions. The proponent further explained these
payment options would guarantee funds received for closing
or escrow are “good funds,” or those that would be
irrevocable and available in the closing account.
Written-only proponent testimony was provided by
representatives of the Kansas Bar Association and Kansas
Association of Realtors.
No other testimony was provided.
Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, proponent testimony
was provided by a representative of Kansas Land Title
Association, who stated that the bill would provide for real-
time payment on real estate closings, which can sometimes
be delayed by the timing of wire transfers. The conferee
stated the bill would not alter access to any currently
available payment methods but would simply add another
payment option.
Written-only proponent testimony was provided by
representatives of Kansas Association of Realtors and the
Kansas Bar Association.
No other testimony was provided.
The Senate Committee amended the bill to change the
effective date to upon publication in the Kansas Register.
Fiscal Note
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Kansas Department
of Insurance, Office of the State Bank Commissioner, and
Department of Credit Unions all indicate enactment of the bill
would have no fiscal effect on agency operating expenditures.
Insurance; title insurance; title insurance agents; escrow; settlement; closing funds;
FedNow; real-time payment; instant payment; good funds

2- 2663


Statutes affected:
As introduced: 40-1137
As Amended by Senate Committee: 40-1137