The bill introduces new regulations for money transmitters in Kansas, establishing a fee structure for international wire transactions. A fee of $7.50 will apply to transactions of $500 or less, while those exceeding $500 will incur a fee of 1.5% of the total amount. Money transmitters must file monthly reports with the director of taxation detailing the fees collected and make electronic payments by the 25th of each month. The bill also delineates the roles of the secretary of revenue and the state bank commissioner in ensuring compliance, including the authority to impose penalties for nonpayment and assist in audits. Additionally, it criminalizes the unlawful transmission of wire transfers by individuals who are not U.S. citizens or lawfully present aliens, classifying such offenses as a class C nonperson misdemeanor.

Moreover, the bill creates three new funds aimed at supporting criminal investigations and law enforcement: the criminal litigation fund, the wire transfer fee fund, and the prosecutor and law enforcement grant fund. It introduces a tax credit for fees paid under the new regulations, applicable for taxable years starting after December 31, 2023. The definitions of "stored value" and "tangible net worth" are amended to clarify their meanings in the context of money transmission. The bill also revises confidentiality provisions regarding taxpayer information, specifying circumstances under which such information may be disclosed and establishing penalties for violations, classified as a class A nonperson misdemeanor. Lastly, it repeals certain existing statutes and will take effect upon publication in the statute book.

Statutes affected:
As introduced: 9-555, 75-5133