March 26, 2026 0

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2068 submits the following report:

The House accedes to all Senate amendments to the bill, and your committee on conference further agrees to amend the bill as printed with Senate Committee amendments, as follows:

On page 1, by striking all in lines 8 through 35;

By striking all on pages 2 through 41;

On page 42, by striking all in lines 1 through 31; following line 31 by inserting:

"New Section 1. (a) As used in this section:

(1) "Employ" means the same as defined in K.S.A. 44-1202, and amendments thereto.

(2) "Employing pharmacy" means a pharmacy that employs a remote worker and receives tangible work product from such remote worker.

(3) "Remote practice of pharmacy" or "remote practice" means the practice of pharmacy conducted at any location other than an employing pharmacy.

(4) "Remote worker" means a pharmacist, pharmacist intern or pharmacy technician who is engaged in the remote practice of pharmacy.

(5) "Pharmacy intern" means the same as defined in K.S.A. 65-1626(zz), and amendments thereto.

(b) Any pharmacy may employ a remote worker to engage in the remote practice of pharmacy, provided that all requirements of this act are met.

(1) The pharmacist-in-charge shall ensure that the pharmacy displays a notice of remote work on the premises of the pharmacy if such pharmacy employs remote workers.

(2) Each pharmacy owner and pharmacist-in-charge shall ensure that all records required by the pharmacy act of the state of Kansas are maintained for a period of five years by the employing pharmacy and that such records are stored under the employing pharmacy's direct control.

(3) Each pharmacy owner and pharmacist-in-charge shall maintain a record of each remote worker that was engaged in the remote practice of pharmacy for the last two years. The record shall include the following:

(A) The first and last name of the remote worker;

(B) the license, registration or permit number of such remote worker;

(C) each address where the remote worker is located when engaged in remote practice; and

(D) the current contact information of the remote worker.

(4) Personally identifying information collected under paragraph (3), such as a remote worker's address and phone number, shall be confidential and not be subject to the open records act, K.S.A. 45-215 et seq., and amendments thereto. The provisions of this paragraph shall expire on July 1, 2031, unless the legislature reviews and reenacts this provision pursuant to K.S.A. 45-229, and amendments thereto, prior to July 1, 2031.

(5) Each pharmacy owner, pharmacist-in-charge and remote worker engaged in the remote practice of pharmacy shall ensure the following:

(A) Each remote practice area is free from third-party interference or observation;

(B) each remote work device used to engage in the remote practice of pharmacy shall:

(i) be provided and maintained by the employing pharmacy;

(ii) be configured and properly equipped to engage in the remote practice of pharmacy and be secure from unauthorized access; and

(iii) have the ability to maintain all prescription and patient information in a manner that protects the integrity and confidentiality of such information; and

(C) all communication to any third-party outside the employing pharmacy is made on a remote work device that complies with paragraph (B).

(c) Each pharmacy owner and pharmacist-in-charge of a pharmacy that employs remote workers shall maintain a written policy and procedure manual. Each pharmacist-in-charge shall review, update and revise such manual, at minimum, annually and as necessary to ensure the manual remains up-to-date. Documentation of such review shall be maintained at the pharmacy.

(1) The policy and procedure manual shall include the following:

(A) Procedures for the operation of the remote practice of pharmacy;

(B) maintenance of security for remote work devices;

(C) procedures to ensure that the remote practice of pharmacy is conducted in a manner in which patient privacy and confidentiality are maintained, including provisions that patient information shall not:

(i) Be printed at a remote practice area;

(ii) exist in any nonelectronic format at a remote practice area; and

(iii) exist in any electronic format except on a remote work device that complies with subsection (b)(4)(B);

(D) an acknowledgment that a physical or virtual inspection may be conducted by the board or the employing pharmacy at any location where each remote worker engages in remote practice;

(E) procedures for routine audits of a remote worker's activity;

(F) procedures to ensure compliance with an ongoing continuous quality improvement program pursuant to K.S.A. 65-1695, and amendments thereto, review of incident reports and necessary training or education of remote workers in response to any incident;

(G) procedures to ensure that the employing pharmacy maintains an updated list of each remote worker engaged in the remote practice of pharmacy. The list shall include each remote worker's name and current contact information;

(H) procedures for any pharmacist intern or pharmacy technician engaged in the remote practice of pharmacy to contact a supervising pharmacist;

(I) procedures for any pharmacist intern or pharmacy technician to follow if a supervising pharmacist is no longer able to supervise.

(2) Before engaging in the remote practice of pharmacy, each pharmacist intern, shall complete the first year of pharmacy school and be in good standing.

(3) Each pharmacy technician shall complete the following education, experience and training before engaging in the remote practice of pharmacy:

(A) At least 240 clock hours of training in the pharmacy either with the current pharmacist-in-charge or the pharmacist-in-charge's designee;

(B) an acknowledgment of understanding of the policy and procedure manual for the remote practice of pharmacy; and

(C) documentation of passing a certification examination approved by the board.

(4) Each pharmacist-in-charge shall ensure that each pharmacist intern has completed the requirements in subsection (c)(2) before engaging in the remote practice of pharmacy.

(5) The pharmacy owner and the pharmacist-in-charge shall ensure that documentation of the requirements of subsection (b)(2) through (3) is maintained at the pharmacy for each pharmacist intern and pharmacy technician engaged in remote practice. Each pharmacist intern or pharmacy technician engaged in remote practice shall be supervised by a pharmacist working in the pharmacy's physical location or a pharmacist engaged in remote practice.

(6) Supervision conducted in accordance with this subsection shall constitute direct supervision.

(d) A pharmacist actively engaged in the remote practice of pharmacy shall not perform any of the following:

(1) Handling or possessing any drug or device owned by the pharmacy;

(2) packaging or prepackaging; and

(3) compounding, dispensing or labeling.

(e) Any pharmacist intern or pharmacy technician engaged in the remote practice of pharmacy may perform the following:

(1) The prescription process; and

(2) send communications and requests to prescribers through automated methods.

(f) Any pharmacist intern or pharmacy technician engaged in the remote practice of pharmacy may, if supervised, perform the following:

(1) Contact prescribers or prescriber offices;

(2) contact patients for clarification of personal data and payment processing information; and

(3) transfer a prescription.

(g) A pharmacist engaged in the remote practice of pharmacy may supervise a pharmacist intern or pharmacy technician engaged in the remote practice of pharmacy in accordance with the technician-to-pharmacist ratio specified by K.A.R. 68-5-16, but shall not supervise any pharmacist intern or pharmacy technician located in the pharmacy.

(h) This section shall not apply to medical care facility pharmacies or medical care facility pharmacy personnel.

(i) Nothing in this act shall affect the requirements or allowances in K.A.R. 68-22-1 through 68-22-5.

(j) Hours spent in the remote practice of pharmacy by a pharmacist intern shall not count towards the intern hours required by the board unless the supervising pharmacist is continuously present and observing the intern by video and audio link.

(k) This section shall be a part of and supplemental to the pharmacy act of the state of Kansas.;

Sec. 2. K.S.A. 40-3402 is hereby amended to read as follows: 40-3402. (a) Prior to January 1, 2022, a policy of professional liability insurance approved by the commissioner and issued by an insurer duly authorized to transact business in this state in which the limit of the insurer's liability is not less than $200,000 per claim, subject to not less than a $600,000 annual aggregate for all claims made during the policy period, shall be maintained in effect by each resident healthcare provider as a condition of active licensure or other statutory authorization to render professional service as a healthcare provider in this state, unless such healthcare provider is a self-insurer. For all new policies and policies that renew on and after January 1, 2022, a policy of professional liability insurance approved by the commissioner and issued by an insurer duly authorized to transact business in this state in which the limit of the insurer's liability is not less than $500,000 per claim, subject to not less than a $1,500,000 annual aggregate for all claims made during the policy period, shall be maintained by each resident healthcare provider as a condition of active licensure or other statutory authorization to render professional service as a healthcare provider in this state, unless such healthcare provider is a self-insurer. This provision shall not apply to optometrists and pharmacists, except as provided in subsection (f), on and after July 1, 1991, to physical therapists on and after July 1, 1995, or to health maintenance organizations on and after July 1, 1997. Such policy shall provide as a minimum coverage for claims made during the term of the policy that were incurred during the term of such policy or during the prior term of a similar policy. Any insurer offering such policy of professional liability insurance to any healthcare provider may offer to such healthcare provider a policy as prescribed in this section with deductible options. Such deductible shall be within such policy limits.

(1) Each insurer providing basic coverage shall, within 30 days after the effective date of any policy issued in accordance with this subsection, notify the board of governors that such coverage is or will be in effect. Such notification shall be on a form approved by the board of governors and shall include information identifying the professional liability policy issued or to be issued, the name and address of all healthcare providers covered by the policy, the amount of the annual premium, the effective and expiration dates of the coverage and such other information as the board of governors shall require. A copy of the notice required by this subsection shall be furnished to the named insured.

(2) In the event of termination of basic coverage by cancellation, nonrenewal, expiration or otherwise by either the insurer or named insured, notice of such termination shall be furnished by the insurer to the board of governors, the state agency which licenses, registers or certifies the named insured and the named insured. Such notice shall be provided no less than 30 days prior to the effective date of any termination initiated by the insurer or within 10 business days after the date coverage is terminated at the request of the named insured and shall include the name and address of the healthcare provider or providers for whom basic coverage is terminated and the date basic coverage will cease to be in effect. No basic coverage shall be terminated by cancellation or failure to renew by the insurer unless such insurer provides a notice of termination as required by this subsection.

(3) Any professional liability insurance policy issued, delivered or in effect in this state on and after July 1, 1976, shall contain or be endorsed to provide basic coverage as required by subsection (a). Notwithstanding any omitted or inconsistent language, any contract of professional liability insurance shall be construed to obligate the insurer to meet all the mandatory requirements and obligations of this act. The liability of an insurer for claims made prior to July 1, 1984, shall not exceed those limits of insurance provided by such policy prior to July 1, 1984.

(b) A nonresident healthcare provider shall not be licensed to actively render professional service as a healthcare provider in this state unless such healthcare provider maintains continuous coverage in effect as prescribed by subsection (a), except such coverage may be provided by a nonadmitted insurer who has filed the form required by subsection (b)(1). This provision shall not apply to optometrists and pharmacists on and after July 1, 1991, or to physical therapists on and after July 1, 1995.

(1) Every insurance company authorized to transact business in this state, that is authorized to issue professional liability insurance in any jurisdiction, shall file with the commissioner, as a condition of its continued transaction of business within this state, a form prescribed by the commissioner declaring that its professional liability insurance policies, wherever issued, shall be deemed to provide at least the insurance required by this subsection when the insured is rendering professional services as a nonresident healthcare provider in this state. Any nonadmitted insurer may file such a form.

(2) Every nonresident healthcare provider that is required to maintain basic coverage pursuant to this subsection shall pay the surcharge levied by the board of governors pursuant to K.S.A. 40-3404(a), and amendments thereto, directly to the board of governors and shall furnish to the board of governors the information required in subsection (a)(1).

(c) Every healthcare provider that is a self-insurer, the university of Kansas medical center for persons engaged in residency training, as described in K.S.A. 40-3401(r)(1), and amendments thereto, the employers of persons engaged in residency training, as described in K.S.A. 40-3401(r)(2), and amendments thereto, the private practice corporations or foundations and their full-time physician faculty employed by the university of Kansas medical center or a medical care facility or mental health center for self-insurers under K.S.A. 40-3414(e), and amendments thereto, shall pay the surcharge levied by the board of governors pursuant to K.S.A. 40-3404(a), and amendments thereto, directly to the board of governors and shall furnish to the board of governors the information required in subsections (a)(1) and (a)(2).

(d) In lieu of a claims made policy otherwise required under this section, a person engaged in residency training who is providing services as a healthcare provider but, while providing such services, is not covered by the self-insurance provisions of K.S.A. 40-3414(d), and amendments thereto, may obtain basic coverage under an occurrence form policy, if such policy provides professional liability insurance coverage and limits that are substantially the same as the professional liability insurance coverage and limits required by K.S.A. 40-3402(a), and amendments thereto. Where such occurrence form policy is in effect, the provisions of the healthcare provider insurance availability act referring to claims made policies shall be construed to mean occurrence form policies.

(e) In lieu of a claims made policy otherwise required under this section, a nonresident healthcare provider employed pursuant to a locum tenens contract to provide services in this state as a healthcare provider may obtain basic coverage under an occurrence form policy, if such policy provides professional liability insurance coverage and limits that are substantially the same as the professional liability insurance coverage and limits required by K.S.A. 40-3402, and amendments thereto. Where such occurrence form policy is in effect, the provisions of the healthcare provider insurance availability act referring to claims made policies shall be construed to mean occurrence form policies.

(f) (1) A pharmacist shall be subject to the professional liability insurance requirements of subsection (a) if such pharmacist independently initiates therapy pursuant to K.S.A. 2025 Supp. 65-16,131, and amendments thereto.

(2) This subsection shall take effect on and after January 1, 2028.

Sec. 3. K.S.A. 2025 Supp. 65-1626a is hereby amended to read as follows: 65-1626a. (a) For the purpose of the pharmacy act of the state of Kansas, the following individuals shall be deemed to be engaged in the practice of pharmacy:

(1) Individuals who publicly profess to be a pharmacist, or publicly profess to assume the duties incident to being a pharmacist and their knowledge of drugs or drug actions, or both; and

(2) individuals who attach to their name any words or abbreviation indicating that they are a pharmacist licensed to practice pharmacy in Kansas.

(b) As used in this section:

(1) "Practice of pharmacy" means:

(A) The interpretation and evaluation of prescription orders;

(B) the compounding, dispensing and labeling of drugs and devices pursuant to prescription orders;

(C) the administering of vaccine pursuant to a vaccination protocol;

(D) the participation in drug selection according to state law and participation in drug utilization reviews;

(E) the proper and safe storage of prescription drugs and prescription devices and the maintenance of proper records thereof in accordance with law;

(F) consultation with patients and other health care practitioners about the safe and effective use of prescription drugs and prescription devices;

(G) performance of collaborative drug therapy management pursuant to a written collaborative practice agreement with one or more physicians who have an established physician-patient relationship;

(H) participation in the offering or performing of those acts, services, operations or transactions necessary in the conduct, operation, management and control of a pharmacy; and

(I) initiation of therapy for the conditions specified in K.S.A. 2025 Supp. 65-16,131, and amendments thereto; and

(J) dispensing a one-time emergency refill of a noncontrolled prescription drug for up to a 90-day supply when no refills remain and, in the pharmacists' professional judgment, continuation of therapy is necessary to prevent interruption of care.

(2) "Collaborative drug therapy management" means a practice of pharmacy where a pharmacist performs certain pharmaceutical-related patient care functions for a specific patient which have been delegated to the pharmacist by a physician through a collaborative practice agreement. A physician who enters into a collaborative practice agreement is responsible for the care of the patient following initial diagnosis and assessment and for the direction and supervision of the pharmacist throughout the collaborative drug therapy management process. Nothing in this subsection shall be construed to permit a pharmacist to alter a physician's orders or directions, diagnose or treat any disease, independently prescribe drugs or independently practice medicine and surgery.

(3) "Collaborative practice agreement" means a written agreement or protocol between one or more pharmacists and one or more physicians that provides for collaborative drug therapy management. Such collaborative practice agreement shall contain certain specified conditions or limitations pursuant to the collaborating physician's order, standing order, delegation or protocol. A collaborative practice agreement shall be: (A) Consistent with the normal and customary specialty, competence and lawful practice of the physician; and (B) appropriate to the pharmacist's training and experience.

(4) "Physician" means a person licensed to practice medicine and surgery in this state.

(c) Nothing in this section shall be construed to:

(1) Add any additional requirements for registration or for a permit under the pharmacy act of the state of Kansas or for approval under K.S.A. 65-1643(g), and amendments thereto;

(2) prevent persons other than pharmacists from engaging in drug utilization review;

(3) require persons lawfully in possession of prescription drugs or prescription devices to meet any storage or record keeping requirements except such storage and record keeping requirements as may be otherwise provided by law; or

(4) affect any person consulting with a healthcare practitioner about the safe and effective use of prescription drugs or prescription devices.

Sec. 4. K.S.A. 65-1637e is hereby amended to read as follows: 65-1637e. (a) The compounding standards established by the general chapters 795 pharmaceutical compounding - nonsterile preparations; 797 pharmaceutical compounding - sterile preparations; and 825 radiopharmaceuticals - preparation, compounding, dispensing and repackaging published by the United States pharmacopeia and its referenced companion documents in effect on the effective date of this section are hereby adopted.

(b) The board shall may adopt rules and regulations governing proper compounding practices and distribution of compounded drugs by pharmacists and pharmacies and establishing exemptions or waivers from the requirements set forth in subsection (a).

(b)(c) This section shall be a part of and supplemental to the pharmacy act of the state of Kansas.

(d) This section shall take effect and be in force on and after July 1, 2027.

Sec. 5. K.S.A. 2025 Supp. 65-1682 is hereby amended to read as follows: 65-1682. As used in this act, unless the context otherwise requires:

(a) "Audit trail information" means information produced regarding requests for prescription monitoring program data that the board and advisory committee use to monitor compliance with this act.

(b) "Board" means the state board of pharmacy.

(c) "Delegate" means:

(1) A registered nurse, licensed practical nurse, respiratory therapist, emergency medical responder, paramedic, dental hygienist, pharmacy technician or pharmacy intern who has registered for access to the program database as an agent of a practitioner or pharmacist to request program data on behalf of the practitioner or pharmacist; or

(2) a death investigator who has registered for limited access to the program database as an agent of a medical examiner, coroner or another person authorized under law to investigate or determine causes of death; or

(3) an individual authorized to access the program database by the board in rules and regulations.

(d) "Dispenser" means a practitioner, pharmacy or pharmacist who delivers a scheduled substance or drug of concern to an ultimate user, but does not include:

(1) A licensed hospital pharmacy that distributes such substances for the purpose of inpatient hospital care;

(2) a medical care facility as defined in K.S.A. 65-425, and amendments thereto, practitioner or other authorized person who administers such a substance;

(3) a registered wholesale distributor of such substances;

(4) a veterinarian licensed by the Kansas board of veterinary examiners who dispenses or prescribes a scheduled substance or drug of concern; or

(5) a practitioner who has been exempted from the reporting requirements of this act in rules and regulations promulgated adopted by the board.

(e) "Drug of concern" means any drug that demonstrates a potential for abuse and is designated as a drug of concern in rules and regulations promulgated by the board.

(f) "Patient" means the individual who is the ultimate user of a drug for whom a prescription is issued or for whom a drug is dispensed.

(g) "Pharmacist" means an individual currently licensed by the board to practice the profession of pharmacy in this state.

(h) "Pharmacy" means a premises, laboratory, area or other place currently registered with the board where scheduled substances or drugs of concern are offered for sale or dispensed in this state.

(i) "Practitioner" means an individual licensed to practice medicine and surgery, dentist, podiatrist, optometrist or other individual authorized by law to prescribe or dispense scheduled substances and drugs of concern.

(j) "Program" means the prescription monitoring program.

(k) "Scheduled substance" means controlled substances included in schedules II, III or IV of the schedules designated in K.S.A. 65-4107, 65-4109 and 65-4111, and amendments thereto, respectively, or the federal controlled substances act, 21 U.S.C. § 812.

Sec. 6. K.S.A. 2025 Supp. 65-16,131 is hereby amended to read as follows: 65-16,131. (a) (1) Notwithstanding the provisions of subsections (b) through (d), a pharmacist may initiate therapy for a condition consisting of medications and durable medical equipment if such condition:

(A) Does not require a new diagnosis;

(B) is minor and generally self-limiting;

(C) has a test that is used to guide diagnosis or clinical decision-making that is waived under the federal clinical laboratory improvement amendments of 1988; or

(D) in the professional judgment of the pharmacist, constitutes a patient emergency that threatens the health or safety of the patient if the prescription is not immediately dispensed. In such cases, only the sufficient quantity shall be provided until the patient is able to consult with or be seen by the patient's personal physician or other primary care provider.

(2) Nothing in subsection (a) shall be construed to authorize a pharmacist to prescribe a controlled substance, except for a medication prescribed for the treatment of opioid use disorder or for medication-assisted treatment.

(3) To determine whether a specific act is within the scope of practice of pharmacy for the purposes of the pharmacy act of the state of Kansas, a pharmacist shall independently determine whether such act is:

(A) Expressly prohibited by the pharmacy act of the state of Kansas or other law;

(B) consistent with the pharmacist's education, training and experience; and

(C) within the accepted standard of care that would be provided in a similar setting by a reasonable and prudent pharmacist with similar education, training and experience.

(b) A pharmacist may initiate therapy within the framework of a statewide protocol for the following health conditions:

(1) Influenza;

(2) streptococcal pharyngitis; or

(3) urinary tract infection.

(b)(c) The collaborative drug therapy management advisory committee established pursuant to K.S.A. 65-1677, and amendments thereto, may adopt a statewide protocol for each condition listed in subsection (a)(b). In establishing such statewide protocols, the committee shall specify:

(1) The medications or categories of medications included in the protocol for each health condition;

(2) the training or qualifications required for pharmacists to implement the protocols;

(3) requirements for documentation and maintenance of records, including patient inclusion and exclusion criteria, medical referral criteria, patient assessment tools based on current clinical guidelines, follow-up monitoring or care plans and the pharmacist's adherence to the applicable protocols; and

(4) communication requirements, including, but not limited to, notification to the patient's personal or primary care provider.

(c)(d) The board may deny an application or renewal or revoke or suspend the license of a pharmacist upon a finding that the pharmacist has violated the provisions of this section or failed to practice within the framework of statewide protocols established pursuant to this section by the collaborative drug therapy management advisory committee.

(d)(e) This section shall take effect and be in force on and after July 1, 2022The amendments to this section by this act shall be known and may be cited as the pharmacist practice authority act.

Sec. 7. K.S.A. 40-3402, and 65-1637e and K.S.A. 2025 Supp. 65-1626a, 65-1682 and 65-16,131 are hereby repealed.";

Also on page 42, in line 33, by striking "statute book" and inserting "Kansas register";

And by renumbering sections accordingly;

On page 1, in the title, in line 1, by striking all after "concerning"; by striking all in lines 2 through 4; in line 5, by striking all before the period and inserting "pharmacists and pharmacy; allowing a pharmacy to employ certain remote workers to engage in the remote practice of pharmacy; providing for the supervision and duties of remote pharmacy workers; permitting a pharmacist to initiate therapy for certain conditions consistent with the pharmacist's education, training and experience; adding pharmacists who initiate such therapy to the healthcare stabilization fund; allowing for a 90-day emergency supply of a noncontrolled prescription drug to be filled when no refills remain; adopting the United States pharmacopeia compounding standards under the pharmacy act of the state of Kansas; removing the authority of the state board of pharmacy to authorize individuals to access the program database as delegates by rules and regulations; amending K.S.A. 40-3402 and 65-1637e and K.S.A. 2025 Supp. 65-1626a, 65-1682 and 65-16,131 and repealing the existing sections";

And your committee on conference recommends the adoption of this report.

Beverly Gossage

William Clifford

Cindy Holscher

Conferees on part of Senate

Will Carpenter

Ron Bryce

Susan Ruiz

Conferees on part of House

On motion of Rep. W. Carpenter, to adopt the conference committee report on HB 2068, Rep. Oropeza offered a substitute motion to not adopt the conference committee report and that a new conference committee be appointed.

The substitute motion of Rep. Oropeza did not prevail and the question reverted back to the original motion of Rep. W. Carpenter to adopt the conference committee report.

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2250 submits the following report:

The House accedes to all Senate amendments to the bill, and your committee on conference further agrees to amend the bill as printed as Substitute for House Bill No. 2250 with Senate Committee amendments, as follows:

On page 1, following line 8, by inserting:

"New Section 1. (a) As used in this section:

(1) "Department" means the department of health and environment.

(2) "Expedited partner therapy" means to prescribe, administer, dispense or otherwise provide antimicrobial drugs to a sexual partner of a patient clinically diagnosed by a healthcare provider as infected with a sexually transmitted disease without a physical examination of such sexual partner.

(3) "Healthcare provider" means a practitioner or mid-level practitioner as those terms are defined in K.S.A. 65-1626, and amendments thereto.

(4) "Pharmacist" means a person licensed by the state board of pharmacy to practice pharmacy.

(5) "Secretary" means the secretary of health and environment or the secretary's designee.

(6) "Sexually transmitted disease" means any disease transmitted through sexual contact, defined by rules and regulations adopted by the secretary as a reportable infectious disease under K.S.A. 65-118, and amendments thereto, and designated as appropriate for expedited partner therapy by rules and regulations adopted by the secretary.

(b) (1) A healthcare provider who clinically diagnoses a patient with a sexually transmitted disease may provide expedited partner therapy if, in the professional judgment of the healthcare provider, the patient's sexual partner is unlikely or unable to present for examination, testing and treatment.

(2) A healthcare provider who provides expedited partner therapy shall provide counseling to the patient, including distributing written materials developed and provided by the department to be given by the patient to the patient's sexual partner.

(3) A healthcare provider shall use expedited partner therapy only for a patient's sexual partner who may have been exposed to a sexually transmitted disease within 60 days immediately prior to the patient's clinical diagnosis and who is able to be contacted and identified by the patient.

(4) A child who is 16 years of age or older may consent to receive expedited partner therapy when no parent or guardian is immediately available.

(c) (1) No healthcare provider or pharmacist shall be liable for civil damages resulting from any act or omission in good faith compliance with the provisions of this section, including civil damages for refusing to provide expedited partner therapy, other than an act or omission constituting gross negligence or intentional or reckless misconduct.

(2) No healthcare provider or pharmacist shall be subject to disciplinary action by the state board of healing arts, the board of nursing or the state board of pharmacy, as applicable, on the basis of an act or omission in good faith compliance with the provisions of this section, other than an act or omission constituting gross negligence or intentional or reckless misconduct.

(d) The department shall include the following information in written materials developed and provided for distribution as required by subsection (b)(2):

(1) A warning that a woman who is pregnant or might be pregnant should not take certain antibiotics and should immediately contact a healthcare provider for an examination;

(2) information about the antimicrobial drug and dosage provided or prescribed, including a warning that a sexual partner who has a history of allergy to the drug or the pharmaceutical class of drug should not take the drug and should immediately contact a healthcare provider for examination;

(3) information about the treatment and prevention of sexually transmitted diseases;

(4) the requirement of sexual abstinence until a period of time after treatment to prevent infecting other sexual partners;

(5) notification of the importance of the sexual partners receiving examination and testing for human immunodeficiency virus and other sexually transmitted diseases and information about available resources;

(6) notification of the risk to the patient, the patient's sexual partner and the general public if the sexually transmitted disease is not completely and successfully treated;

(7) the responsibility of the sexual partner to inform the sexual partner's own sexual partners of the risk of sexually transmitted disease and the importance of prompt examination and treatment by a healthcare provider; and

(8) such other information deemed necessary by the secretary.

(e) The secretary shall adopt rules and regulations as necessary to implement and administer this section.

New Sec. 2. (a) A licensed private psychiatric hospital that utilizes the services of a pharmacist may stock and maintain an emergency medication kit approved by such hospital's medical staff and pharmacist.

(b) The emergency medication kit shall be used only in emergency cases under the supervision and direction of a prescriber and a pharmacist who shall have supervisory responsibility of maintaining such kit.

(c) Drugs in an emergency medication kit shall be maintained under the control of the pharmacist-in-charge of the pharmacy from which the kit came until administered to the patient upon the proper order of a practitioner.

(d) Drugs contained within the emergency medication kit may include controlled substances, but in such a case, a pharmaceutical services committee shall be responsible for specifically limiting the type and quantity of controlled substance to be placed in each emergency kit.

(e) Administration of controlled substances contained within the emergency medication kit shall be in compliance with the provisions of the uniform controlled substances act.

(f) The pharmacist-in-charge of the licensed private psychiatric hospital shall be responsible for developing procedures, proper control and accountability for the emergency kit and maintain complete and accurate records.

(g) The secretary and the state board of pharmacy shall jointly adopt such rules and regulations that are necessary to effectuate the provisions of this act. Such rules and regulations shall include, but not be limited to, the contents of the emergency medication kit, procedures for the control and accountability of the emergency medication kit, recordkeeping and storage of the emergency medication kit.

(h) As used in this section:

(1) "Emergency medication kit" means a stock supply of such drugs as are required to meet the immediate therapeutic needs of patients when the drug is not available from another source in sufficient time to prevent harm;

(2) "licensed private psychiatric hospital" means an institution, excluding state institutions as defined in K.S.A. 76-12a01, and amendments thereto, that is primarily engaged in providing services, by and under the supervision of qualified professionals, for the diagnosis and treatment of mentally ill individuals that is licensed pursuant to K.S.A. 39-2008, and amendments thereto;

(3) "pharmacist" means the same as defined in K.S.A. 65-1626, and amendments thereto;

(4) "pharmacist-in-charge" means the same as defined in K.S.A. 65-1626, and amendments thereto;

(5) "practitioner" means the same as defined in K.S.A. 65-1626, and amendments thereto;

(6) "prescriber" means the same as defined in K.S.A. 65-1626, and amendments thereto; and

(7) "secretary" means the secretary of health and environment.";

Also on page 1, in line 9, by striking "Section 1." and inserting "Sec. 3";

On page 5, following line 30, by inserting:

"Sec. 5. K.S.A. 2025 Supp. 65-1680 is hereby amended to read as follows: 65-1680. (a) A pharmacist may distribute a stock supply of standard-dose and pediatric-dose epinephrine auto-injectors delivery systems to a school pursuant to a prescription made pursuant to K.S.A. 72-6283, and amendments thereto, from a physician or mid-level practitioner in the name of the school. A pharmacist who distributes a stock supply of standard-dose or pediatric-dose epinephrine auto-injectors delivery systems to a school shall not be liable for civil damages resulting from the administration of such medication pursuant to this section, K.S.A. 65-2872b or 72-6283, and amendments thereto.

(b) A pharmacist may distribute a stock supply of albuterol metered-dose inhalers, albuterol solution and spacers to a school pursuant to a prescription made pursuant to K.S.A. 72-6283, and amendments thereto, from a physician or mid-level practitioner in the name of the school. A pharmacist who distributes a stock supply of albuterol metered-dose inhalers, albuterol solution or spacers to a school shall not be liable for civil damages resulting from the administration of such medication pursuant to this section, K.S.A. 65-2872b or 72-6283, and amendments thereto.

(c) The terms used in this section mean the same as defined in K.S.A. 72-6283, and amendments thereto.

Sec. 6. K.S.A. 72-6282 is hereby amended to read as follows: 72-6282. (a) As used in this section:

(1) "Medication" means a medicine prescribed by a health care healthcare provider for the treatment of anaphylaxis or asthma, including, but not limited to, any medicine defined in section 201 of the federal food, drug and cosmetic act, inhaled bronchodilators and auto-injectible epinephrine delivery systems.

(2) "Health careHealthcare provider" means:

(A) A physician licensed by the state board of healing arts to practice medicine and surgery; or

(B) an advanced practice registered nurse issued a license pursuant to K.S.A. 65-1131, and amendments thereto, who has authority to prescribe drugs as provided by K.S.A. 65-1130, and amendments thereto; or (C) a physician assistant licensed pursuant to the physician assistant licensure act who has authority to prescribe drugs prior to January 11, 2016, pursuant to a written protocol with a responsible physician under K.S.A. 65-28a08, and amendments thereto, and on and after January 11, 2016, pursuant to a written agreement with a supervising physician under K.S.A. 65-28a08, and amendments thereto a mid-level practitioner as such term is defined in K.S.A. 65-1626, and amendments thereto.

(3) "School" means any public or accredited nonpublic school.

(4) "Self-administration" means a student's discretionary use of such student's medication pursuant to a prescription or written direction from a health care healthcare provider.

(b) Each school district shall adopt a policy authorizing the self-administration of medication by students enrolled in kindergarten or any of the grades one through 12. A student shall meet all requirements of a policy adopted pursuant to this subsection. Such policy shall include:

(1) A requirement of a written statement from the student's health care healthcare provider stating the name and purpose of the medication;, the prescribed dosage;, the time the medication is to be regularly administered, and any additional special circumstances under which the medication is to be administered;, and the length of time for which the medication is prescribed;

(2) a requirement that the student has demonstrated to the health care healthcare provider or such provider's designee and the school nurse or such nurse's designee the skill level necessary to use the medication and any device that is necessary to administer such medication as prescribed. If there is no school nurse, the school shall designate a person for the purposes of this subsection;

(3) a requirement that the health care healthcare provider has prepared a written treatment plan for managing asthma or anaphylaxis episodes of the student and for medication use by the student during school hours;

(4) a requirement that the student's parent or guardian has completed and submitted to the school any written documentation required by the school, including the treatment plan prepared as required by paragraph (3) and documents related to liability;

(5) a requirement that all teachers responsible for the student's supervision shall be notified that permission to carry medications and self-medicate has been granted; and

(6) any other requirement imposed by the school district pursuant to this section and K.S.A. 72-1138(e), and amendments thereto.

(c) A school district shall require annual renewal of parental authorization for the self-administration of medication.

(d) A school district, and its officers, employees and agents, which that authorizes the self-administration of medication in compliance with the provisions of this section shall not be held liable in any action for damage, injury or death resulting directly or indirectly from the self-administration of medication.

(e) A school district shall provide written notification to the parent or guardian of a student that the school district and its officers, employees and agents are not liable for damage, injury or death resulting directly or indirectly from the self-administration of medication. The parent or guardian of the student shall sign a statement acknowledging that the school district and its officers, employees or agents incur no liability for damage, injury or death resulting directly or indirectly from the self-administration of medication and agreeing to release, indemnify and hold the school and its officers, employees and agents, harmless from and against any claims relating to the self-administration of such medication.

(f) A school district shall require that any back-up medication provided by the student's parent or guardian be kept at the student's school in a location to which the student has immediate access in the event of an asthma or anaphylaxis emergency.

(g) A school district shall require that information described in subsection (b)(3) and (4) be kept on file at the student's school in a location easily accessible in the event of an asthma or anaphylaxis emergency.

(h) An authorization granted pursuant to subsection (b) shall allow a student to possess and use such student's medication at any place where a student is subject to the jurisdiction or supervision of the school district or its officers, employees or agents.

(i) A board of education may adopt a policy pursuant to K.S.A. 72-1138(e), and amendments thereto, which that:

(1) Imposes requirements relating to the self-administration of medication which that are in addition to those required by this section; and

(2) establishes a procedure for, and the conditions under which, the authorization for the self-administration of medication may be revoked.

Sec. 7. K.S.A. 2025 Supp. 72-6283 is hereby amended to read as follows: 72-6283. (a) As used in this section, K.S.A. 65-1680 and 65-2872b, and amendments thereto:

(1) "Albuterol" means a short-acting beta-2 agonist-inhaled medication, otherwise known as a bronchodilator, that is prescribed by a physician or mid-level practitioner for the treatment of respiratory distress.

(2) "Albuterol metered-dose inhaler" means a portable drug delivery system containing a canister of multiple premeasured doses of albuterol in a device actuator.

(3) "Albuterol solution" means a liquid form of albuterol for use with a nebulizer.

(4) "Anaphylaxis" or "anaphylactic reaction" means a sudden, severe and potentially life-threatening multi-system allergic reaction.

(5) "Designated school personnel" means an employee, officer, agent or volunteer of a school who has completed training, documented by the school nurse, a physician or a mid-level practitioner, to administer emergency medication on a voluntary basis outside of the scope of employment.

(6) "Emergency medication" means epinephrine or albuterol.

(7) "Epinephrine" means a medication prescribed by a physician or mid-level practitioner for the emergency treatment of anaphylaxis prior to the arrival of emergency medical system responders.

(8) "Epinephrine auto-injector delivery system" means a device that automatically injects is approved by the federal food and drug administration, contains a premeasured dose of epinephrine and is used to administer epinephrine into the human body.

(9) "Mid-level practitioner" means the same as such term is defined in K.S.A. 65-1626, and amendments thereto.

(10) "Nebulizer" means a device that is used to change a liquid medication to a fine spray of liquid or mist for the administration of the medication through inhalation.

(11) "Pharmacist" means the same as such term is defined in K.S.A. 65-1626, and amendments thereto.

(12) "Physician" means any person licensed by the state board of healing arts to practice medicine and surgery.

(13) "Respiratory distress" means impaired ventilation of the respiratory system or impaired oxygenation of the blood.

(14) "School" means any school operated by a school district organized under the laws of this state or any accredited nonpublic school that provides education to elementary or secondary students.

(15) "School nurse" means a registered nurse licensed by the board of nursing to practice nursing in Kansas or a licensed practical nurse working under a registered nurse who is employed by a school to perform nursing services in a school setting.

(16) "Spacer" means a holding chamber that is used to optimize the delivery of aerolized albuterol from an albuterol metered-dose inhaler.

(17) "Stock supply" means an appropriate quantity of emergency medication as recommended by a physician or mid-level practitioner.

(b) (1) A school may maintain a stock supply of emergency medication upon obtaining a prescription from a physician or mid-level practitioner in the name of the school. A physician or mid-level practitioner shall review the school's policies and procedures established pursuant to subsection (c) prior to prescribing such emergency medication.

(2) A stock supply of epinephrine may consist of one or more standard-dose or pediatric-dose epinephrine auto-injectors delivery systems. A school nurse or designated school personnel may administer such epinephrine in an emergency situation to any individual who displays the signs and symptoms of anaphylaxis at school, on school property or at a school-sponsored event if such school nurse or designated school personnel reasonably believes that an individual is exhibiting the signs and symptoms of an anaphylactic reaction.

(3) A stock supply of albuterol may consist of one or more albuterol metered-dose inhalers, one or more doses of albuterol solution and one or more spacers or nebulizers. A school nurse or designated school personnel may administer such albuterol in an emergency situation to any individual who displays the signs and symptoms of respiratory distress at school, on school property or at a school-sponsored event if such school nurse or designated school personnel reasonably believes that an individual is exhibiting the signs and symptoms of respiratory distress.

(c) A school that maintains a stock supply of emergency medication shall establish school policies and procedures relating to:

(1) Storage of the emergency medication, which shall require that the emergency medication is stored:

(A) In a safe location that is readily accessible to the school nurse or designated school personnel; and

(B) in accordance with manufacturer temperature recommendations;

(2) periodic monitoring of the inventory and expiration dates of emergency medication;

(3) administration of emergency medication by designated school personnel; and

(4) training requirements for designated school personnel, which shall be conducted by a school nurse, physician or mid-level practitioner on not less than on an annual basis for such designated school personnel. Such training shall include, but not be limited to, the following:

(A) Recognition of the symptoms of anaphylaxis and respiratory distress;

(B) administration of emergency medication;

(C) calling for emergency medical system responders;

(D) monitoring the condition of an individual after emergency medication has been administered;

(E) notification of the parent, guardian or next of kin; and

(F) safe disposal and sanitation of used equipment.

(d) A school shall publish information related to the school's emergency medication policies and procedures and shall maintain records of the training provided to designated school personnel.

(e) A school may accept monetary gifts, grants and donations to carry out the provisions of this section or may accept epinephrine auto-injectors delivery systems, albuterol metered-dose inhalers, albuterol solution, spacers or nebulizers from a manufacturer or wholesaler.";

Also on page 5, in line 31, before "K.S.A" by inserting "K.S.A. 72-6282 and"; also in line 31, by striking "and" and inserting ", 65-1680,"; also in line 31, after "65-16,127" by inserting "and 72-6283"; in line 33, by striking "4";

And by renumbering sections accordingly;

On page 1, in the title, in line 1, by striking all after "to"; in line 2, by striking "assistance" and inserting "certain medications; relating to treatment of sexually transmitted infection treatment; permitting the use of expedited partner therapy for the treatment thereof; authorizing a licensed private psychiatric hospital to maintain a stock supply of emergency medication kits for pharmaceutical emergencies"; in line 4, after the semicolon by inserting "permitting a pharmacist to distribute epinephrine delivery systems to a school for emergency medication kits; amending definitions related to medication in schools to allow for use of epinephrine delivery systems;";

Also on page 1, in the title, in line 5, after "amending" by inserting "K.S.A. 72-6282 and"; also in line 5, by striking the first "and" and inserting ", 65-1680,"; also in line 5, after "65-16,127" by inserting "and 72-6283";

And your committee on conference recommends the adoption of this report.

Beverly Gossage

William Clifford

Cindy Holscher

Conferees on part of Senate

Will Carpenter

Ron Bryce

Susan Ruiz

Conferees on part of House

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2533 submits the following report:

The House accedes to all Senate amendments to the bill, and your committee on conference further agrees to amend the bill as printed with Senate Committee amendments, as follows:

On page 20, following line 2, by inserting:

"Sec. 2. This section shall be known and may be cited as the respiratory care interstate compact.

ARTICLE 1 – TITLE AND PURPOSE

(a) The purpose of this compact is to facilitate the interstate practice of respiratory therapy with the goal of improving public access to respiratory therapy services by providing respiratory therapists licensed in a member state the ability to practice in other member states. The compact preserves the regulatory authority of states to protect public health and safety through the current system of state licensure.

(b) This compact is designed to achieve the following objectives:

(1) Increase public access to respiratory therapy services by creating a responsible, streamlined pathway for licensees to practice in member states with the goal of improving outcomes for patients;

(2) enhance states' ability to protect the public's health and safety;

(3) promote the cooperation of member states in regulating the practice of respiratory therapy within those member states;

(4) ease administrative burdens on states by encouraging the cooperation of member states in regulating multi-state respiratory therapy practice;

(5) support relocating active military members and their spouses; and

(6) promote mobility and address workforce shortages.

ARTICLE 2 – DEFINITIONS

As used in this compact, unless the context requires otherwise, the following definitions shall apply:

(a) "Active military member" means any person with a full-time duty status in the armed forces of the United States, including members of the national guard and reserve.

(b) "Adverse action" means any administrative, civil, equitable or criminal action permitted by a state's laws that is imposed by any state authority with regulatory authority over respiratory therapists, such as license denial, censure, revocation, suspension, probation, monitoring of the licensee or restriction on the licensee's practice, not including participation in an alternative program.

(c) "Alternative program" means a non-disciplinary monitoring or practice remediation process applicable to a respiratory therapist approved by any state authority with regulatory authority over respiratory therapists. This includes, but is not limited to, programs to which licensees with substance abuse or addiction issues are referred in lieu of adverse action.

(d) "Charter member states" means those member states that were the first seven states to enact the compact into the laws of their state.

(e) "Commission" or "respiratory care interstate compact commission" means the governmental instrumentality and body politic whose membership consists of all member states that have enacted the compact.

(f) "Commissioner" means the individual appointed by a member state to serve as the member of the commission for that member state.

(g) "Compact" means the respiratory care interstate compact.

(h) "Compact privilege" means the authorization granted by a remote state to allow a licensee from another member state to practice as a respiratory therapist in the remote state under the remote state's laws and rules. The practice of respiratory therapy occurs in the member state where the patient is located at the time of the patient encounter.

(i) "Criminal background check" means the submission by the member state of fingerprints or other biometric-based information on license applicants at the time of initial licensing for the purpose of obtaining that applicant's criminal history record information, as defined in 28 C.F.R. § 20.3(d) or successor provision, from the federal bureau of investigation and the state's criminal history record repository, as defined in 28 C.F.R. § 20.3(f) or successor provision.

(j) "Data system" means the commission's repository of information about licensees as further set forth in article 8.

(k) "Domicile" means the jurisdiction that is the licensee's principal home for legal purposes.

(l) "Encumbered license" means a license that a state's respiratory therapy licensing authority has limited in any way.

(m) "Executive committee" means a group of directors elected or appointed to act on behalf of and within the powers granted to them by the commission.

(n) "Home state" except as set forth in article 5, means the member state that is the licensee's primary domicile.

(o) "Home state license" means an active license to practice respiratory therapy in a home state that is not an encumbered license.

(p) "Jurisprudence requirement" means an assessment of an individual's knowledge of the state laws and regulations governing the practice of respiratory therapy in such state.

(q) "Licensee" means an individual who currently holds an authorization from the state to practice as a respiratory therapist.

(r) "Member state" means a state that has enacted the compact and been admitted to the commission in accordance with the provisions in this compact and commission rules.

(s) "Model compact" means the model for the respiratory care interstate compact on file with the council of state governments or other entity as designated by the commission.

(t) "Remote state" means a member state where a licensee is exercising or seeking to exercise the compact privilege.

(u) "Respiratory therapist" or "respiratory care practitioner" means an individual who holds a credential issued by the national board for respiratory care or its successor and a license in a state to practice respiratory therapy. For purposes of this compact, any other title or status adopted by a state to replace the term "respiratory therapist" or "respiratory care practitioner" shall be deemed synonymous with "respiratory therapist" and shall confer the same rights and responsibilities to the licensee under the provisions of this compact at the time of enactment.

(v) "Respiratory therapy," "respiratory therapy practice," "respiratory care," "the practice of respiratory care" and "the practice of respiratory therapy" mean the care and services provided by or under the direction and supervision of a respiratory therapist or respiratory care practitioner.

(w) "Respiratory therapy licensing authority" means the agency, board or other body of a state that is responsible for licensing and regulation of respiratory therapists.

(x) "Rule" means a regulation promulgated by an entity that has the force and effect of law.

(y) "Scope of practice" means the procedures, actions and processes a respiratory therapist licensed in a state or practicing under a compact privilege in a state is permitted to undertake in that state and the circumstances under which the respiratory therapist is permitted to undertake those procedures, actions and processes. Such procedures, actions, processes and the circumstances under which they may be undertaken may be established through means, including, but not limited to, statute, regulations, case law and other processes available to the state respiratory therapy licensing authority or other governmental agency.

(z) "Significant investigative information" means information, records and documents received or generated by a state respiratory therapy licensing authority pursuant to an investigation for which a determination has been made that there is probable cause to believe that the licensee has violated a statute or regulation that is considered more than a minor infraction for which the state respiratory therapy licensing authority could pursue adverse action against the licensee.

(aa) "State" means any state, commonwealth, district or territory of the United States.

ARTICLE 3 – STATE PARTICIPATION IN THIS COMPACT

(a) In order to participate in this compact and thereafter continue as a member state, a member state shall:

(1) Enact a compact that is not materially different from the model compact;

(2) license respiratory therapists;

(3) participate in the commission's data system;

(4) have a mechanism in place for receiving and investigating complaints against licensees and compact privilege holders;

(5) notify the commission, in compliance with the terms of this compact and commission rules, of any adverse action against a licensee, a compact privilege holder or a license applicant;

(6) notify the commission, in compliance with the terms of this compact and commission rules, of the existence of significant investigative information;

(7) comply with the rules of the commission;

(8) grant the compact privilege to a holder of an active home state license and otherwise meet the applicable requirements of article 4 in a member state; and

(9) complete a criminal background check for each new licensee at the time of initial licensure. If expressly authorized or permitted by federal law, whether such federal law is in effect prior to, at or after the time of a member state's enactment of this compact, a member state's enactment of this compact shall hereby authorize the member state's respiratory therapy licensing authority to perform criminal background checks as defined in this compact. The absence of such a federal law as described in this subsection shall not prevent or preclude such authorization if it may be derived or granted through means other than the enactment of this compact.

(b) Nothing in this compact prohibits a member state from charging a fee for granting and renewing the compact privilege.

ARTICLE 4 – COMPACT PRIVILEGE

(a) To exercise the compact privilege under the terms and provisions of the compact, the licensee shall:

(1) Hold and maintain an active home state license as a respiratory therapist;

(2) hold and maintain an active credential from the national board for respiratory care or its successor that would qualify such licensee for licensure in the remote state where they are seeking the privilege;

(3) have not had any adverse action against a license within the previous two years;

(4) notify the commission that the licensee is seeking the compact privilege within a remote state;

(5) pay any applicable fees, including any state fees, commission fees and renewal fees, for the compact privilege;

(6) meet any jurisprudence requirements established by the remote state where the licensee is seeking a compact privilege;

(7) report to the commission adverse action taken by any non-member state within 30 days from the date that the adverse action is taken;

(8) report to the commission, when applying for a compact privilege, the address of the licensee's domicile and thereafter promptly report to the commission any change in the address of the licensee's domicile within 30 days of the effective date of the change in address; and

(9) consent to accept service of process by mail at the licensee's domicile on record with the commission with respect to any action brought against the licensee by the commission or a member state and consent to accept service of a subpoena by mail at the licensee's domicile on record with the commission with respect to any action brought or investigation conducted by the commission or a member state.

(b) The compact privilege is valid until the expiration date or revocation of the home state license unless terminated pursuant to adverse action. The licensee shall comply with all of the requirements of subsection (a) to maintain the compact privilege in a remote state. If such requirements are met, no adverse actions are taken and the licensee has paid any applicable compact privilege renewal fees, then the licensee shall maintain the licensee's compact privilege.

(c) A licensee providing respiratory therapy in a remote state under the compact privilege shall function within the scope of practice authorized by the remote state for the type of respiratory therapist license the licensee holds. Such procedures, actions, processes and the circumstances under which they may be undertaken may be established through means, including, but not limited to, statute, regulations, case law and other processes available to the state respiratory therapy licensing authority or other government agency.

(d) If a licensee's compact privilege in a remote state is removed by the remote state, the individual shall lose or be ineligible for the compact privilege in that remote state until the compact privilege is no longer limited or restricted by that state.

(e) If a home state license is encumbered, the licensee shall lose the compact privilege in all remote states until the following occur:

(1) The home state license is no longer encumbered; and

(2) two years have elapsed from the date that the license is no longer encumbered due to the adverse action.

(f) Once a licensee with a restricted or limited license meets the requirements of subsection (e)(1) and (2), the licensee shall also meet the requirements of subsection (a) to obtain a compact privilege in a remote state.

ARTICLE 5 – ACTIVE MILITARY
MEMBER OR THEIR SPOUSE

(a) An active military member or their spouse shall designate a home state where the individual has a current license in good standing. The individual may retain the home state designation during the period that the service member is on active duty.

(b) An active military member and their spouse shall not be required to pay to the commission for a compact privilege any fee that may otherwise be charged by the commission. If a remote state chooses to charge a fee for a compact privilege, such state may choose to charge a reduced fee or no fee to an active military member and their spouse for a compact privilege.

ARTICLE 6 – ADVERSE ACTIONS

(a) A member state where a licensee is licensed shall have authority to impose adverse action against the license issued by that member state.

(b) A member state may take adverse action based on significant investigative information of a remote state or the home state, so long as the member state follows its own procedures for imposing adverse action.

(c) Nothing in this compact shall override a member state's decision that participation in an alternative program may be used in lieu of adverse action and that such participation shall remain nonpublic if required by the member state's laws.

(d) A remote state shall have the authority to:

(1) Take adverse actions as set forth in this compact against a licensee's compact privilege in that state;

(2) issue subpoenas for both hearings and investigations that require the attendance and testimony of witnesses and the production of evidence:

(A) Subpoenas may be issued by a respiratory therapy licensing authority in a member state for the attendance and testimony of witnesses and the production of evidence.

(B) Subpoenas issued by a respiratory therapy licensing authority in a member state for the attendance and testimony of witnesses shall be enforced in the latter state by any court of competent jurisdiction in the latter state, according to the practice and procedure of that court applicable to subpoenas issued in proceedings pending before it.

(C) Subpoenas issued by a respiratory therapy licensing authority in a member state for production of evidence from another member state shall be enforced in the latter state, according to the practice and procedure of that court applicable to subpoenas issued in the proceedings pending before it.

(D) The issuing authority shall pay any witness fees, travel expenses, mileage and other fees required by the service statutes of the state where the witnesses or evidence are located;

(3) unless otherwise prohibited by state law, recover from the licensee the costs of investigations and disposition of cases resulting from any adverse action taken against that licensee;

(4) notwithstanding subsection (d)(2), a member state shall not issue a subpoena to gather evidence of conduct in another member state that is lawful in such other member state for the purpose of taking adverse action against a licensee's compact privilege or application for a compact privilege in that member state; and

(5) nothing in this compact authorizes a member state to impose discipline against a respiratory therapist's compact privilege in that member state for the individual's otherwise lawful practice in another state.

(e) Joint investigations:

(1) In addition to the authority granted to a member state by its respective respiratory therapy practice act or other applicable state law, a member state may participate with other member states in joint investigations of licensees, except that a member state receiving such a request has no obligation to respond to any subpoena issued regarding an investigation of conduct or practice that was lawful in a member state at the time it was undertaken.

(2) Member states shall share any significant investigative information, litigation or compliance materials in furtherance of any joint or individual investigation initiated under the compact. In sharing such information among member state respiratory therapy licensing authorities, all information obtained shall be kept confidential, except as otherwise mutually agreed upon by the sharing and receiving member states.

(f) Nothing in this compact shall be construed to permit a member state to take any adverse action against a licensee or holder of a compact privilege for conduct or practice that was legal in the member state at the time such conduct or practice was undertaken.

(g) Nothing in this compact shall be construed to permit a member state to take disciplinary action against a licensee or holder of a compact privilege for conduct or practice that was legal in the member state at the time such conduct or practice was undertaken.

ARTICLE 7 – ESTABLISHMENT OF THE RESPIRATORY
CARE INTERSTATE COMPACT COMMISSION

(a) The compact member states hereby create and establish a joint governmental agency whose membership consists of all member states that have enacted the compact known as the respiratory care interstate compact commission. The commission is an instrumentality of the compact member states acting jointly and not an instrumentality of any one state. The commission shall come into existence on or after the effective date of the compact, as set forth in article 11.

(b) Membership, voting and meetings:

(1) Each member state shall have and be limited to one commissioner selected by that member state's respiratory therapy licensing authority.

(2) The commissioner shall be an administrator or their designated staff member of the member state's respiratory therapy licensing authority.

(3) The commission shall by rule or bylaw establish a term of office for commissioners and may by rule or bylaw establish term limits.

(4) The commission may recommend to a member state the removal or suspension any commissioner from office.

(5) A member state's respiratory therapy licensing authority shall fill any vacancy of its commissioner occurring on the commission within 60 days of the vacancy.

(6) Each commissioner shall be entitled to one vote on all matters before the commission requiring a vote by commissioners.

(7) A commissioner shall vote in person or by such other means as provided in the bylaws. The bylaws may provide for commissioners to meet by telecommunication, videoconference or other means of communication.

(8) The commission shall meet at least once during each calendar year. Additional meetings may be held as set forth in the bylaws.

(c) The commission shall have the following powers:

(1) Establish and amend the fiscal year of the commission;

(2) establish and amend bylaws and policies, including, but not limited to, a code of conduct and conflict of interest;

(3) establish and amend rules that shall be binding in all member states;

(4) maintain its financial records in accordance with the bylaws;

(5) meet and take such actions as are consistent with the provisions of this compact, the commission's rules and the bylaws;

(6) initiate and conduct legal proceedings or actions in the name of the commission, except that the standing of any respiratory therapy licensing authority to sue or be sued under applicable law shall not be affected;

(7) maintain and certify records and information provided to a member state as the authenticated business records of the commission and designate an agent to do so on the commission's behalf;

(8) purchase and maintain insurance and bonds;

(9) accept or contract for services of personnel, including, but not limited to, employees of a member state;

(10) conduct an annual financial review;

(11) hire employees, elect or appoint officers, fix compensation, define duties, grant such individuals appropriate authority to carry out the purposes of the compact and establish the commission's personnel policies and programs relating to conflicts of interest, qualifications of personnel and other related personnel matters;

(12) assess and collect fees;

(13) accept, receive, utilize and dispose of the same, any and all appropriate gifts, donations, grants of money, other sources of revenue, equipment, supplies, materials and services, except that at all times:

(A) The commission shall avoid any appearance of impropriety; and

(B) the commission shall avoid any appearance of conflict of interest;

(14) lease, purchase, retain, own, hold, improve or use any property, real, personal or mixed or any undivided interest therein;

(15) sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of any property real, personal or mixed;

(16) establish a budget and make expenditures;

(17) borrow money in a fiscally responsible manner;

(18) appoint committees, including standing committees, composed of commissioners state regulators, state legislators or their representatives and consumer representatives and such other interested persons as may be designated in this compact and the bylaws;

(19) provide and receive information from and cooperate with law enforcement agencies;

(20) establish and elect an executive committee, including a chairperson, vice chairperson, secretary, treasurer and such other offices as the commission shall establish by rule or bylaw;

(21) enter into contracts or arrangements for the management of the affairs of the commission;

(22) determine whether a state's adopted language is materially different from the model compact language such that the state would not qualify for participation in the compact; and

(23) perform such other functions as may be necessary or appropriate to achieve the purposes of this compact.

(d) The executive committee:

(1) The executive committee shall have the power to act on behalf of the commission according to the terms of this compact. The powers, duties and responsibilities of the executive committee shall include:

(A) Overseeing the day-to-day activities of the administration of the compact, including enforcement and compliance with the provisions of the compact, its rules and bylaws and other such duties as deemed necessary;

(B) recommending to the commission changes to the rules or bylaws, changes to this compact legislation, fees charged to compact member states, fees charged to licensees and other fees;

(C) ensuring compact administration services are appropriately provided, including by contract;

(D) preparing and recommending the budget;

(E) maintaining financial records on behalf of the commission;

(F) monitoring compact compliance of member states and providing compliance reports to the commission;

(G) establishing additional committees as necessary;

(H) exercising the powers and duties of the commission during the interim between commission meetings, except for adopting or amending rules, adopting or amending bylaws and exercising any other powers and duties expressly reserved to the commission by rule or bylaw; and

(I) performing other duties as provided in the rules or bylaws of the commission.

(2) The executive committee shall be composed of up to nine members, as further set forth in the bylaws of the commission:

(A) Seven voting members who are elected by the commission from the current membership of the commission; and

(B) two ex officio, nonvoting members.

(3) The commission may remove any member of the executive committee as provided in the commission's bylaws.

(4) The executive committee shall meet at least annually.

(A) Executive committee meetings shall be open to the public, except that the executive committee may meet in a closed, nonpublic meeting as provided in subsection (f)(4) below;

(B) the executive committee shall give advance notice of its meetings, posted on its website and as determined to provide notice to persons with an interest in the business of the commission; and

(C) the executive committee may hold a special meeting in accordance with subsection (f)(2) below.

(e) The commission shall adopt and provide to the member states an annual report.

(f) Meetings of the commission:

(1) All meetings of the commission that are not closed pursuant to paragraph (4) shall be open to the public. Notice of public meetings shall be posted on the commission's website at least 30 days prior to the public meeting.

(2) Notwithstanding paragraph (1), the commission may convene an emergency public meeting by providing at least 24 hours' prior notice on the commission's website and any other means as provided in the commission's rules, for any of the reasons it may dispense with notice of proposed rulemaking under article 9(g). The commission's legal counsel shall certify that one of the reasons justifying an emergency public meeting has been met.

(3) Notice of all commission meetings shall provide the time, date and location of the meeting, and if the meeting is to be held or accessible via telecommunication, video conference or other electronic means, the notice shall include the mechanism for access to the meeting.

(4) The commission or the executive committee may convene in a closed, nonpublic meeting for the commission or executive committee to receive or solicit legal advice or to discuss:

(A) Noncompliance of a member state with its obligations under the compact;

(B) the employment, compensation, discipline or other matters, practices or procedures related to specific employees;

(C) current or threatened discipline of a licensee or compact privilege holder by the commission or by a member state's respiratory therapy licensing authority;

(D) current, threatened or reasonably anticipated litigation;

(E) negotiation of contracts for the purchase, lease or sale of goods, services or real estate;

(F) accusing any person of a crime or formally censuring any person;

(G) trade secrets or commercial or financial information that is privileged or confidential;

(H) information of a personal nature where disclosure would constitute a clearly unwarranted invasion of personal privacy;

(I) investigative records compiled for law enforcement purposes;

(J) information related to any investigative reports prepared by or on behalf of or for use of the commission or other committee charged with responsibility of investigation or determination of compliance issues pursuant to the compact;

(K) legal advice;

(L) matters specifically exempted from disclosure by federal or member state law; or

(M) other matters as promulgated by the commission by rule.

(5) If a meeting or a portion of a meeting is closed, the presiding officer shall state that the meeting will be closed and reference each relevant exempting provision and such reference shall be recorded in the minutes.

(6) The commission shall keep minutes in accordance with commission rules and bylaws. All documents considered in connection with an action shall be identified in such minutes. All minutes and documents of a closed meeting shall remain under seal, subject to release only by a majority vote of the commission or order of a court of competent jurisdiction.

(g) Financing of the commission:

(1) The commission shall pay or provide for the payment and reasonable expenses of its establishment organization and ongoing activities.

(2) The commission may accept any and all appropriate revenue sources as provided in this compact.

(3) The commission may levy on and collect an annual assessment from each member state and impose fees on licensees of member states to whom it grants a compact privilege to cover the cost of the operations and activities of the commission and its staff. The aggregate annual assessment amount for member states, if any, shall be allocated based upon a formula that the commission shall promulgate by rule.

(4) The commission shall not incur obligations of any kind prior to securing the funds or a loan adequate to meet such obligations nor shall the commission pledge the credit of any of the member states, except by and with the authority of the member state.

(5) The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the financial review and accounting procedures established under its bylaws. However, all receipts and disbursements of funds handled by the commission shall be subject to an annual financial review by a certified or licensed public accountant, and the report of the financial review shall be included in and become part of the annual report of the commission.

(h) Qualified immunity, defense and indemnification:

(1) The provisions of this compact shall not be construed as a limitation on the liability of any licensee for professional malpractice or misconduct, which shall be governed solely by any other applicable state laws.

(2) The member states, commissioners, officers, executive directors, employees and agents of the commission shall be immune from suit and liability, both personally and in their official capacity, for any claim for damage to or loss of property or personal injury or other civil liability caused by or arising out of any actual or alleged act, error or omission that occurred or that the person against whom the claim is made had a reasonable basis for believing occurred within the scope of commission employment, duties or responsibilities, except that nothing in this subsection shall be construed to protect any such person from suit or liability for any damage, loss, injury or liability caused by the intentional or willful or wanton misconduct of such person. The procurement of insurance of any type by the commission shall not in any way compromise or limit the immunity granted hereunder.

(3) The commission shall defend any commissioner, officer, executive director, employee and agent of the commission in any civil action seeking to impose liability arising out of any actual or alleged act, error or omission that occurred within the scope of commission employment, duties or responsibilities or as determined by the commission that the person against whom the claim is made had a reasonable basis for believing occurred within the scope of commission employment, duties or responsibilities, except that nothing in this compact shall be construed to prohibit such person from retaining their own counsel at their own expense and that the actual or alleged act, error or omission did not result from such person's intentional or willful or wanton misconduct.

(4) The commission shall indemnify and hold harmless any commissioner, member, officer, executive director, employee and agent of the commission for the amount of any settlement or judgment obtained against that person arising out of any actual or alleged act, error or omission that occurred within the scope of commission employment, duties or responsibilities or that such person had a reasonable basis for believing occurred within the scope of commission employment, duties or responsibilities if that the actual or alleged act, error or omission did not result from the intentional or willful or wanton misconduct of such person.

(5) Nothing in this compact shall be interpreted to waive or otherwise abrogate a member state's state action immunity or state action affirmative defense with respect to antitrust claims under the Sherman act, Clayton act or any other state or federal antitrust or anticompetitive law or regulation.

(6) Nothing in this compact shall be construed to be a waiver of sovereign immunity by the member states or by the commission.

ARTICLE 8 – DATA SYSTEM

(a) The commission shall provide for the development, maintenance, operation and utilization of a coordinated database and reporting system containing licensure, adverse action and the presence of significant investigative information.

(b) Notwithstanding any other provision of state law to the contrary, a member state shall submit a uniform data set to the data system as required by the rules of the commission, including, but not limited to:

(1) Identifying information;

(2) licensure data;

(3) adverse actions against a licensee, license applicant or compact privilege holder and information related thereto;

(4) nonconfidential information related to alternative program participation, the beginning and ending dates of such participation and other information related to such participation not made confidential under member state law;

(5) any denial of application for licensure and the reason or reasons for such denial;

(6) the presence of current significant investigative information; and

(7) other information that may facilitate the administration of this compact or the protection of the public, as determined by the rules of the commission.

(c) A member state shall not submit any information that constitutes criminal history record information, as defined by applicable federal law, to the data system established hereunder.

(d) The records and information provided to a member state pursuant to this compact or through the data system, when certified by the commission or an agent thereof, shall constitute the authenticated business records of the commission and shall be entitled to any associated hearsay exception in any relevant judicial, quasi-judicial or administrative proceedings in a member state.

(e) Significant investigative information pertaining to a licensee in any member state shall only be available to other member states.

(f) It shall be the responsibility of the member states to report any adverse action against a licensee and to monitor the database to determine whether adverse action has been taken against a licensee. Adverse action information pertaining to a licensee in any member state shall be available to any other member state.

(g) Member states contributing information to the data system may designate information that shall not be shared with the public without the express permission of the contributing state.

(h) Any information submitted to the data system that is subsequently expunged pursuant to federal law or the laws of the member state contributing the information shall be removed from the data system.

ARTICLE 9 – RULEMAKING

(a) The commission shall promulgate reasonable rules in order to effectively and efficiently implement and administer the purposes and provisions of the compact. A rule shall be invalid and have no force and effect only if a court of competent jurisdiction holds that the rule is invalid because the commission exercised its rulemaking authority in a manner that is beyond the scope and purposes of the compact or the powers granted hereunder or based upon another applicable standard of review.

(b) For purposes of the compact, the rules of the commission shall have the force of law in each member state.

(c) The commission shall exercise its rulemaking powers pursuant to the criteria set forth in this section and the rules adopted thereunder. Rules shall become binding as of the date specified in each rule.

(d) If a majority of the legislatures of the member states rejects a rule or portion of a rule, by enactment of a statute or resolution in the same manner used to adopt the compact within four years of the date of adoption of the rule, then such rule shall have no further force and effect in any member state.

(e) Rules shall be adopted at a regular or special meeting of the commission.

(f) Prior to adoption of a proposed rule, the commission shall hold a public hearing and allow persons to provide oral and written comments, data, facts, opinions and arguments.

(g) Prior to adoption of a proposed rule by the commission and at least 30 days in advance of the meeting where the commission will hold a public hearing on the proposed rule, the commission shall provide a notice of proposed rulemaking:

(1) On the website of the commission or other publicly accessible platform;

(2) to persons who have requested notice of the commission's notices of proposed rulemaking; and

(3) in such other ways as the commission may specify by rule.

(h) The notice of proposed rulemaking shall include:

(1) The time, date and location of the public hearing where the commission will hear public comments on the proposed rule and, if different, the time, date and location of the meeting where the commission will consider and vote on the proposed rule;

(2) if the hearing is held via telecommunication, video conference or other electronic means, the commission shall include the mechanism for access to the hearing in the notice of proposed rulemaking;

(3) the text of the proposed rule and the reason therefor;

(4) a request for comments on the proposed rule from any interested person; and

(5) the manner in which interested persons may submit written comments.

(i) All hearings will be recorded. A copy of the recording and all written comments and documents received by the commission in response to the proposed rule shall be available to the public.

(j) Nothing in this section shall be construed as requiring a separate hearing on each rule. Rules may be grouped for the convenience of the commission at hearings required by this section.

(k) The commission shall, by majority vote of all commissioners, take final action on the proposed rule based on the rulemaking record and the full text of the rule.

(1) The commission may adopt changes to the proposed rule if the changes are consistent with the original purpose of the proposed rule.

(2) The commission shall provide an explanation of the reasons for substantive changes made to the proposed rule as well as reasons for substantive changes not made that were recommended by commenters.

(3) The commission shall determine a reasonable effective date for the rule. Except for an emergency as provided in subsection (l), the effective date of the rule shall be not earlier than 30 days after issuing the notice that it adopted or amended the rule.

(l) Upon determination that an emergency exists, the commission may consider and adopt an emergency rule with 24 hours' notice and an opportunity to comment, provided that the usual rulemaking procedures provided in the compact and in this section shall be retroactively applied to the rule as soon as reasonably possible but in no event later than 90 days after the effective date of the rule. For the purposes of this provision, an emergency rule is one that shall be adopted immediately in order to:

(1) Meet an imminent threat to public health, safety or welfare;

(2) prevent a loss of commission or member state funds;

(3) meet a deadline for the promulgation of a rule that is established by federal law or rule; or

(4) protect public health and safety.

(m) The commission or an authorized committee of the commission may direct revisions to a previously adopted rule for purposes of correcting typographical errors, errors in format, errors in consistency or grammatical errors. Public notice of any revisions shall be posted on the website of the commission. The revision shall be subject to challenge by any person for a period of 30 days after posting. The revision may be challenged only on grounds that the revision results in a material change to a rule. A challenge shall be made in writing and delivered to the commission prior to the end of the notice period. If no challenge is made, the revision shall take effect without further action. If the revision is challenged, the revision may not take effect without the approval of the commission.

(n) A member state's rulemaking process or procedural requirements shall not apply to the commission. The commission shall have no authority over any member state's rulemaking process or procedural requirements that do not pertain to the compact.

(o) The provisions of this compact and any rule or regulation of the commission shall not be construed to limit, restrict or in any way reduce the ability of a member state to enact and enforce laws, regulations or other rules related to the practice of respiratory therapy in that state, where those laws, regulations or other rules are not inconsistent with the provisions of this compact.

ARTICLE 10 – OVERSIGHT, DISPUTE
RESOLUTION AND ENFORCEMENT

(a) Oversight:

(1) The executive and judicial branches of state government in each member state shall enforce this compact and take all actions necessary and appropriate to implement the compact.

(2) Venue is proper, and judicial proceedings by or against the commission shall be brought solely and exclusively in a court of competent jurisdiction where the principal office of the commission is located. The commission may waive venue and jurisdictional defenses to the extent it adopts or consents to participate in alternative dispute resolution proceedings. The provisions of this compact shall not affect or limit the selection or propriety of venue in any action against a licensee for professional malpractice, misconduct or any such similar matter.

(3) The commission shall be entitled to receive service of process in any proceeding regarding the enforcement or interpretation of the compact and have standing to intervene in such a proceeding for all purposes. Failure to provide the commission service of process shall render a judgment or order void as to the commission, this compact or promulgated rules.

(b) Default, technical assistance and termination.

(1) If the commission determines that a member state has defaulted in the performance of its obligations or responsibilities under this compact or the promulgated rules, the commission shall provide written notice to the defaulting state. The notice of default shall describe the default, the proposed means of curing the default and any other action that the commission may take and shall offer training and specific technical assistance regarding the default.

(2) The commission shall provide a copy of the notice of default to the other member states.

(c) If a state in default fails to cure the default, the defaulting state may be terminated from the compact upon an affirmative vote of a majority of the commissioners of the member states and all rights, privileges and benefits conferred on that state by this compact may be terminated on the effective date of termination. A cure of the default shall not relieve the offending state of obligations or liabilities incurred during the period of default.

(d) Termination of membership in the compact shall be imposed only after all other means of securing compliance have been exhausted. Notice of intent to suspend or terminate shall be given by the commission to the governor, the majority and minority leaders of the defaulting state's legislature, the defaulting state's respiratory therapy licensing authority and each of the member states' respiratory therapy licensing authorities.

(e) A state that has been terminated shall be responsible for all assessments, obligations and liabilities incurred through the effective date of termination, including obligations that extend beyond the effective date of termination, if necessary.

(f) Upon the termination of a state's membership from this compact, that state shall immediately provide notice of such termination to all licensees and compact privilege holders, of which the commission has a record, within that state. The terminated state shall continue to recognize all licenses granted pursuant to this compact for a minimum of 180 days after the date of such notice of termination.

(g) The commission shall not bear any costs related to a state that is found to be in default or that has been terminated from the compact unless agreed upon in writing between the commission and the defaulting state.

(h) The defaulting state may appeal the action of the commission by petitioning the United States district court for the District of Columbia or the federal district where the commission has its principal offices. The prevailing party shall be awarded all costs of such litigation, including reasonable attorney fees.

(i) Dispute resolution:

(1) Upon request by a member state, the commission shall attempt to resolve disputes related to the compact that arise among member states and between member and nonmember states.

(2) The commission shall promulgate a rule providing for both mediation and binding dispute resolution for disputes, as appropriate.

(j) Enforcement:

(1) By majority vote, as may be further provided by rule, the commission may initiate legal action against a member state in default in the United States district court for the District of Columbia or the federal district where the commission has its principal offices to enforce compliance with the provisions of the compact and its promulgated rules. A member state by enactment of this compact consents to venue and jurisdiction in such court for the purposes set forth in this compact. The relief sought may include both injunctive relief and damages. In the event that judicial enforcement is necessary, the prevailing party shall be awarded all costs of such litigation, including reasonable attorney fees. The remedies in this compact shall not be the exclusive remedies of the commission. The commission may pursue any other remedies available under federal or the defaulting member state's law.

(2) A member state may initiate legal action against the commission in the United States district court for the District of Columbia or the federal district where the commission has its principal offices to enforce compliance with the provisions of the compact and its promulgated rules. The relief sought may include both injunctive relief and damages. In the event that judicial enforcement is necessary, the prevailing party shall be awarded all costs of such litigation, including reasonable attorney fees.

(3) No person other than a member state shall enforce this compact against the commission.

ARTICLE 11 – EFFECTIVE DATE,
WITHDRAWAL AND AMENDMENT

(a) Effective date means the date that the compact statute is enacted into law in the seventh member state. The compact shall come into effect on the effective date.

(1) On or after the effective date of the compact, the commission shall convene and review the enactment of each of the first seven member states, charter member states, to determine if the statute enacted by each such charter member state is materially different than the model compact.

(A) A charter member state whose enactment is found to be materially different from the model compact shall be entitled to the default process set forth in article 10.

(B) If any member state is later found to be in default or is terminated or withdraws from the compact, the commission shall remain in existence and the compact shall remain in effect even if the number of member states should be fewer than seven.

(2) Member states enacting the compact subsequent to the seven initial charter member states shall be subject to the process set forth in this compact and commission rule to determine if such states' enactments are materially different from the model compact and whether such states qualify for participation in the compact.

(3) All actions taken for the benefit of the commission or in furtherance of the purposes of the administration of the compact prior to the effective date of the compact or the commission coming into existence shall be considered to be actions of the commission unless specifically repudiated by the commission. The commission shall own and have all rights to any intellectual property developed on behalf or in furtherance of the commission by individuals or entities involved in organizing or establishing the commission, as may be further set forth in rules of the commission.

(4) Any state that joins the compact subsequent to the commission's initial adoption of the rules and bylaws shall be subject to the rules and bylaws as they exist on the date that the compact becomes law in that state. Any rule that has been previously adopted by the commission shall have the full force and effect of law on the date that the compact becomes law in that state.

(b) Any member state may withdraw from such compact by enacting a statute repealing the same.

(1) A member state's withdrawal shall not take effect until 180 days after enactment of the repealing statute.

(2) Withdrawal shall not affect the continuing requirement of the withdrawing state's respiratory therapy licensing authority to comply with the investigative and adverse action reporting requirements of this compact prior to the effective date of withdrawal.

(3) Upon the enactment of a statute withdrawing from this compact, a state shall immediately provide notice of such withdrawal to all licensees and compact privilege holders, of which the commission has a record, within that state. Notwithstanding any subsequent statutory enactment to the contrary, such withdrawing state shall continue to recognize all licenses granted pursuant to this compact for a minimum of 180 days after the date of such notice of withdrawal.

(c) The provisions of this compact shall not be construed to invalidate or prevent any licensure agreement or other cooperative arrangement between a member state and a nonmember state that does not conflict with the provisions of this compact.

(d) This compact may be amended by the member states. No amendment to this compact shall become effective and binding upon any member state until it is enacted into the laws of all member states.

ARTICLE 12 – CONSTRUCTION AND SEVERABILITY

(a) This compact and the commission's rulemaking authority shall be liberally construed so as to effectuate the purposes and the implementation and administration of the compact. Provisions of the compact expressly authorizing or requiring the promulgation of rules shall not be construed to limit the commission's rulemaking authority solely for those purposes.

(b) The provisions of this compact shall be severable, and if any phrase, clause, sentence or provision of this compact is held by a court of competent jurisdiction to be contrary to the constitution of any member state, a state seeking participation in the compact or of the United States or the applicability thereof to any government, agency, person or circumstance is held to be unconstitutional by a court of competent jurisdiction, the validity of the remainder of this compact and the applicability thereof to any other government, agency, person or circumstance shall not be affected thereby.

(c) Notwithstanding subsection (b), the commission may deny a state's participation in the compact or, in accordance with the requirements of article 10, terminate a member state's participation in the compact if the commission determines that a constitutional requirement of a member state is a material departure from the compact. If this compact shall be held to be contrary to the constitution of any member state, the compact shall remain in full force and effect as to the remaining member states and in full force and effect as to the member state affected as to all severable matters.

ARTICLE 13 – CONSISTENT EFFECT AND
CONFLICT WITH OTHER STATE LAWS

(a) Nothing in this compact shall prevent or inhibit the enforcement of any other law of a member state that is not inconsistent with the compact.

(b) Any laws, statutes, regulations or other legal requirements in a member state in conflict with the compact are superseded to the extent of the conflict, including any subsequently enacted state laws.

(c) All permissible agreements between the commission and the member states shall be binding in accordance with their terms.

(d) Except as expressly set forth in this compact, nothing in this compact shall impact initial licensure.

Sec. 3. This section shall be known and may be cited as the esthetics licensure compact.

ARTICLE 1—PURPOSE

(a) The purpose of this compact is to facilitate the interstate practice and regulation of esthetics with the goal of improving public access thereto, the safety of esthetics services and reducing barriers related to esthetician licensure. Through this compact the member states seek to establish a regulatory framework that provides for a new multistate licensing program. Through this new licensing program, the member states seek to provide increased value and mobility to licensed estheticians in the member states, while ensuring the provision of safe, effective and reliable services to the public.

(b) This compact is designed to achieve the following objectives, which are ratified by the member states to this compact:

(1) Provide opportunities for interstate practice by estheticians who meet uniform requirements for multistate licensure;

(2) enhance the abilities of member states to protect public health and safety and prevent fraud and unlicensed activity within the profession;

(3) ensure and encourage cooperation between member states in the licensure and regulation of the practice of esthetics;

(4) support relocating military members and their spouses;

(5) facilitate the exchange of information between member states related to the licensure, investigation and discipline of the practice of esthetics; and

(6) provide for the licensure and mobility of the workforce in the profession.

ARTICLE 2—DEFINITIONS

As used in this compact and except as otherwise provided, the following definitions shall apply:

(a) "Active duty military" means any individual in full-time duty status in the active uniformed service of the United States, including members of the national guard and reserve.

(b) "Adverse action" means any administrative, civil, equitable or criminal action permitted by a member state's laws that is imposed by a licensing authority or other regulatory body against an esthetician, including actions against an individual's license or authorization to practice such as revocation, suspension, probation, monitoring of the licensee, limitation of the licensee's practice or any other encumbrance on a license affecting an individual's ability to participate in the esthetics industry, including the issuance of a cease and desist order.

(c) "Authorization to practice" means a legal authorization associated with a multistate license permitting the practice of esthetics in that remote state, which shall be subject to the enforcement jurisdiction of the licensing authority in that remote state.

(d) "Alternative program" means a nondisciplinary monitoring or prosecutorial diversion program approved by a member state's licensing authority.

(e) "Background check" means the submission of information for an applicant for the purpose of obtaining that applicant's criminal history record information, as further defined in C.F.R. § 20.3(d), from the federal bureau of investigation and the agency responsible for retaining state criminal or disciplinary history in the applicant's home state.

(f) "Charter member state" means a member state that has enacted legislation to adopt this compact where such legislation predates the effective date of this compact as defined in article 13.

(g) "Commission" means the joint government agency whose membership consists of all states that have enacted this compact, known as the esthetics licensure compact commission, as defined in article 9, and shall operate as an instrumentality of the member states.

(h) "Current significant investigative information" means investigative information that:

(1) A licensing authority, after an inquiry or investigation that complies with a member state's due process requirements, has reason to believe is not groundless and, if proved true, would indicate a violation of that state's laws regarding fraud or the practice of esthetics; or

(2) indicates that a licensee has engaged in fraud or represents an immediate threat to public health and safety, regardless of whether the licensee has been notified and has had an opportunity to respond.

(i) "Data system" means a repository of information about licensees, including, but not limited to, license status, investigative information and adverse actions.

(j) "Disqualifying event" means any event that shall disqualify an individual from holding a multistate license under this compact, which the commission may by rule or order specify.

(k) "Encumbered license" means a license in which an adverse action restricts the practice of esthetics by a licensee or in which such adverse action has been reported to the commission.

(l) "Encumbrance" means a revocation or suspension of or any limitation on the full and unrestricted practice of esthetics by a licensing authority.

(m) "Esthetician" means an individual licensed in such individual's home state to engage in the practice of esthetics as defined in this article.

(n) "Esthetics" means the skin care and services for cosmetic purposes provided by an esthetician in a member state as set forth in the relevant statutes and regulations of a member state. The practice of esthetics occurs in the member state where the client is located at the time of service.

(o) "Executive committee" means a group of delegates elected or appointed to act on behalf of and within the powers granted to them by the commission.

(p) "Home state" means the member state that is a licensee's primary state of residence and where that licensee holds an active and unencumbered license to practice esthetics.

(q) "Investigative information" means information, records or documents received or generated by a licensing authority pursuant to an investigation or other inquiry.

(r) "Jurisprudence requirement" means the assessment of an individual's knowledge of the laws and rules governing the practice of esthetics in a state.

(s) "Licensee" means an individual who currently holds a license from a member state to practice as an esthetician.

(t) "Licensing authority" means a state's administrative or regulatory body responsible for regulating the practice of esthetics or that is responsible for issuing licenses to estheticians or otherwise overseeing the practice of esthetics in that state.

(u) "Member state" means any state that has adopted this compact.

(v) "Multistate license" means a license issued and subject to the enforcement jurisdiction of the licensing authority in a licensee's home state that authorizes the practice of esthetics in member states and includes authorizations to practice esthetics in all remote states pursuant to this compact.

(w) "Remote state" means any member state other than the licensee's home state.

(x) "Rule" means any rule or regulation adopted by the commission under this compact, or an authorized entity, that has the force of law.

(y) "Single-state license" means a license issued by a member state that authorizes the practice of esthetics only within the issuing state and does not include any authorization outside of the issuing state.

(z) "State" means a state, commonwealth, territory or possession of the United States and the District of Columbia.

ARTICLE 3—MEMBER STATE REQUIREMENTS

(a) To be eligible to join this compact and to maintain eligibility as a member state, a state shall:

(1) License estheticians and regulate esthetics;

(2) have a mechanism or entity in place to receive and investigate complaints about licensees practicing in that state;

(3) require that licensees within the state pass a competency examination prior to being licensed to provide esthetics services to the public in that state;

(4) require that licensees satisfy educational or training requirements prior to being licensed to provide esthetics services to the public in that state;

(5) implement procedures for considering one or more of the following categories of information from applicants for licensure: Criminal history, disciplinary history or background check. Such procedures may include the submission of information by applicants for the purpose of obtaining an applicant's background check as defined in this compact;

(6) participate in the data system, including through the use of unique identifying numbers;

(7) share information related to adverse actions with the commission and other member states, both through the data system and otherwise;

(8) notify the commission and other member states, in compliance with the terms of the compact and rules of the commission, of the existence of investigative information or current significant investigative information in the state's possession regarding a licensee practicing in that state;

(9) comply with such rules as may be enacted by the commission to administer the compact; and

(10) accept licensees from other member states as established in this compact.

(b) Member states may charge a fee for granting a multistate license to practice esthetics.

(c) Individuals not residing in a member state shall continue to be able to apply for a member state's single-state license as provided under the laws of each member state. However, the single-state license granted to these individuals shall not be recognized as granting a multistate license to provide services in any other member state.

(d) Nothing in this compact shall affect the requirements established by a member state for the issuance of a single-state license.

(e) A multistate license issued to a licensee by a home state to a resident of that state shall be recognized by each member state as authorizing a licensee to practice esthetics in each member state.

(f) The commission shall not have the power to define the educational or professional requirements for a license to practice esthetics. The member states shall retain sole jurisdiction over the provision of these requirements.

ARTICLE 4—MULTISTATE LICENSE

(a) To be eligible to apply to their home state's licensing authority for an initial multistate license under this compact, a licensee shall hold an active and unencumbered single-state license to practice esthetics in their home state.

(b) Upon the receipt of an application for a multistate license, according to the rules of the commission, a member state's licensing authority shall ascertain whether the applicant meets the requirements for a multistate license under this compact.

(c) If an applicant meets the requirements for a multistate license under this compact and any applicable rules of the commission, the licensing authority in receipt of the application shall, within a reasonable time, grant a multistate license to that applicant and inform all member states of the grant of such multistate license.

(d) A multistate license to practice esthetics issued by a member state's licensing authority shall be recognized by each member state as authorizing the practice thereof as though that licensee held a single-state license to do so in each member state, subject to the restrictions in this compact.

(e) A multistate license granted pursuant to this compact may be effective for a definite period of time, concurrent with the licensure renewal period in the home state.

(f) To maintain a multistate license under this compact, a licensee shall:

(1) Agree to abide by the rules of the licensing authority and the state scope of practice laws governing the practice of esthetics of any member state where the licensee provides services;

(2) pay all required fees related to the application and process and any other fees that the commission may provide by rule; and

(3) comply with any and all other requirements regarding multistate licenses that the commission may provide by rules.

(g) A licensee practicing in a member state shall be subject to all scope of practice laws governing esthetics services in that state.

(h) The practice of esthetics under a multistate license granted pursuant to this compact shall subject the licensee to the jurisdiction of the licensing authority, the courts and the laws of the member state where the esthetics services are provided.

ARTICLE 5—REISSUANCE OF A MULTISTATE LICENSE
BY A NEW HOME STATE

(a) A licensee may hold a multistate license, issued by their home state, in only one member state at any given time.

(b) If a licensee changes their home state by moving between two member states:

(1) The licensee shall immediately apply for the reissuance of their multistate license in their new home state. The licensee shall pay all applicable fees and notify the prior home state in accordance with the rules of the commission;

(2) upon receipt of an application to reissue a multistate license, the new home state shall verify that the multistate license is active, unencumbered and eligible for reissuance under the terms of the compact and the rules of the commission. The multistate license issued by the prior home state shall be deactivated and all member states notified in accordance with the applicable rules adopted by the commission;

(3) if required for initial licensure, the new home state may require a background check as specified in the laws of the new home state or compliance with any jurisprudence requirements of the new home state; and

(4) notwithstanding any other provision of this compact, if a licensee does not meet the requirements set forth in this compact for the reissuance of a multistate license by the new home state, then the licensee shall be subject to the new home state requirements for the issuance of a single-state license in that state.

(c) If a licensee changes their primary state of residence by moving from a member state to a nonmember state, or from a nonmember state to a member state, then the licensee shall be subject to the state requirements for the issuance of a single-state license in the new home state.

(d) Nothing in this compact shall interfere with a licensee's ability to hold a single-state license in multiple states, except that, for the purposes of this compact, a licensee shall have only one home state and only one multistate license.

(e) Nothing in this compact shall interfere with the requirements established by a member state for the issuance of a single-state license.

ARTICLE 6—AUTHORITY OF THE COMPACT COMMISSION
AND MEMBER STATE LICENSING AUTHORITIES

(a) Nothing in this compact, nor any rules or regulation of the commission, shall be construed to limit, restrict or in any way reduce the ability of a member state to enact and enforce laws, rules or regulations related to the practice of esthetics in that state where those laws, rules or regulations are not inconsistent with the provisions of this compact.

(b) Insofar as practicable, a member state's licensing authority shall cooperate with the commission and with each entity exercising independent regulatory authority over the practice of esthetics according to the provisions of this compact.

(c) Discipline shall be the sole responsibility of the state where esthetics services are provided. Accordingly, each member state's licensing authority shall be responsible for receiving complaints about individuals practicing esthetics in that state and for communicating all relevant investigative information about any such adverse action to the other member states through the data system in addition to any other methods the commission may require by rule.

ARTICLE 7— ADVERSE ACTIONS

(a) A licensee's home state shall have exclusive power to impose an adverse action against a licensee's multistate license issued by the home state.

(b) A home state may take adverse action on a multistate license based on the investigative information, current significant investigative information or adverse action of a remote state.

(c) In addition to the powers conferred by state law, each remote state's licensing authority shall have the power to:

(1) Take adverse action against a licensee's authorization to practice esthetics through the multistate license in that member state, except that:

(A) Only the licensee's home state shall have the power to take adverse action against the multistate license issued by the home state; and

(B) for the purpose of taking an adverse action, the home state's licensing authority shall give the same priority and effect to reported conduct received from a remote state as it would if such conduct had occurred within the home state. In so doing, the home state shall apply its own state laws to determine the appropriate action;

(2) issue cease and desist orders or impose an encumbrance on a licensee's authorization to practice within that member state;

(3) complete any pending investigations of a licensee who changes their primary state of residence during the course of such an investigation. The licensing authority shall also be empowered to report the results of such an investigation to the commission through the data system as described in this compact;

(4) issue subpoenas for both hearings and investigations that require the attendance and testimony of witnesses, as well as the production of evidence. Subpoenas issued by a licensing authority in a member state for the attendance and testimony of witnesses or the production of evidence from another member state shall be enforced in the latter. State by any court of competent jurisdiction, according to the practice and procedure of that court applicable to subpoenas issued in proceedings before it. The issuing licensing authority shall pay any witness fees, travel expenses, mileage and other fees required by the service statutes of the state where the witnesses or evidence are located;

(5) if otherwise permitted by state law, recover from the affected licensee the costs of investigations and disposition of cases resulting from any adverse action taken against that licensee; and

(6) take adverse action against the licensee's authorization to practice in that state based on the factual findings of another remote state.

(d) A licensee's home state shall complete any pending investigation of an esthetician who changes their primary state of residence while the investigation is pending. The home state shall also have the authority to take appropriate action and shall promptly report the conclusions of the investigations to the data system.

(e) If an adverse action is taken by the home state against a licensee's multistate license, the licensee's authorization to practice in all other member states shall be deactivated until all encumbrances have been removed from the home state license. All home state disciplinary orders that impose an adverse action against a licensee's multistate license shall include a statement that the esthetician's authorization to practice is deactivated in all member states during the pendency of the order.

(f) Nothing in this compact shall override a member state's authority to accept a licensee's participation in an alternative program in lieu of adverse action. A licensee's multistate license shall be suspended for the duration of the licensee's participation in any alternative program.

(g) Joint investigations.

(1) In addition to the authority granted to a member state by its respective scope of practice laws or other applicable state law, a member state may participate with other member states in joint investigations of licensees.

(2) Member states shall share any investigative, litigation or compliance materials in furtherance of any joint or individual investigation initiated under the compact.

ARTICLE 8—ACTIVE DUTY MILITARY AND THEIR SPOUSES

An active duty military service member or their spouse shall designate a home state where the individual has a current license in good standing. The individual or spouse may retain their home state designation during any period of service when that individual is on active duty.

ARTICLE 9—ESTABLISHMENT AND OPERATION OF
THE ESTHETICS LICENSURE COMPACT COMMISSION

(a) The compact member states create and establish a joint government agency whose membership consists of all member states that have enacted the compact known as the esthetics licensure compact commission. The commission is an instrumentality of the compact states acting jointly and not an instrumentality of any one state. The commission shall come into existence on or after the effective date of the compact as set forth in article 13.

(b) Membership, voting and meetings.

(1) Each member state shall have and be limited to one delegate selected by that member state's licensing authority.

(2) The delegate shall be an administrator of the licensing authority of the member state or their designee.

(3) The commission shall by rule or bylaw establish a term of office for delegates and may by rule or bylaw establish term limits.

(4) The commission may recommend removal or suspension of any delegate from office.

(5) A member state's licensing authority shall fill any vacancy of its delegate occurring on the commission within 60 days of the vacancy.

(6) Each delegate shall be entitled to one vote on all matters that are voted on by the commission.

(7) The commission shall meet at least once during each calendar year. Additional meetings may be held as set forth in the bylaws. The commission may meet by telecommunication, video conference or other similar electronic means.

(c) The commission shall have the following powers:

(1) Establish the fiscal year of the commission;

(2) establish code of conduct and conflict of interest policies;

(3) adopt rules and bylaws;

(4) maintain its financial records in accordance with the bylaws;

(5) meet and take such actions as are consistent with the provisions of this compact, the commission's rules and the bylaws;

(6) initiate and conclude legal proceedings or actions in the name of the commission, provided that the standing of any licensing authority to sue or be sued under applicable law shall not be affected;

(7) maintain and certify records and information provided to a member state as the authenticated business records of the commission and designate an agent to do so on the commission's behalf;

(8) purchase and maintain insurance and bonds;

(9) borrow, accept or contract for services of personnel, including, but not limited to, employees of a member state;

(10) conduct an annual financial review;

(11) hire employees, elect or appoint officers, fix compensation, define duties, grant such individuals appropriate authority to carry out the purposes of the compact and establish the commission's personnel policies and programs relating to conflicts of interest, qualifications of personnel and other related personnel matters;

(12) as set forth in the commission rules, charge a fee to a licensee for the grant of a multistate license and thereafter, as may be established by commission rule, charge the licensee a multistate license renewal fee for each renewal period. Nothing in this compact shall be construed to prevent a home state from charging a licensee a fee for a multistate license or renewals of a multistate license or a fee for the jurisprudence requirement if the member state imposes such a requirement for the grant of a multistate license;

(13) assess and collect fees;

(14) accept any and all appropriate gifts, donations, grants of money, other sources of revenue, equipment, supplies, materials and services and receive, utilize and dispose of the same, except that, at all times the commission shall avoid any appearance of impropriety or conflict of interest;

(15) lease, purchase, retain, own, hold, improve or use any property, real, personal or mixed, or any undivided interest therein;

(16) sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of any property real, personal or mixed;

(17) establish a budget and make expenditures;

(18) borrow money;

(19) appoint committees, including standing committees, composed of members, state regulators, state legislators or their representatives, consumer representatives and such other interested persons as may be designated in this compact and the bylaws;

(20) provide and receive information from and cooperate with law enforcement agencies;

(21) elect a chair, vice chair, secretary, treasurer and such other officers of the commission as provided in the commission's bylaws;

(22) establish and elect an executive committee, including a chair and a vice chair;

(23) adopt and provide to the participating states an annual report;

(24) determine whether a state's adopted language is materially different from the model compact language such that the state would not qualify for participation in the compact; and

(25) perform such other functions as may be necessary or appropriate to achieve the purposes of this compact.

(d) The executive committee shall have the power to act on behalf of the commission according to the terms of this compact. The powers, duties and responsibilities of the executive committee shall include:

(1) Overseeing the day-to-day activities of the administration of the compact, including compliance with the provisions of the compact, the commission's rules and bylaws and other such duties as deemed necessary;

(2) recommending to the commission changes to the rules or bylaws, changes to this compact legislation, fees charged to compact member states, fees charged to licensees and other fees;

(3) ensuring compact administration services are appropriately provided, including by contract;

(4) preparing and recommending the budget;

(5) maintaining financial records on behalf of the commission;

(6) monitoring compact compliance of member states and providing compliance reports to the commission;

(7) establishing additional committees as necessary;

(8) exercise the powers and duties of the commission during the interim between commission meetings, except for adopting or amending rules, adopting or amending bylaws and exercising any other powers and duties expressly reserved to the commission by rule or bylaw; and

(9) other duties as provided in the rules or bylaws of the commission.

(A) The executive committee shall be composed of up to seven voting members:

(i) The chair and vice chair of the commission and any other members of the commission who serve on the executive committee shall be voting members of the executive committee.

(ii) Other than the chair, vice chair, secretary and treasurer, the commission shall elect three voting members from the current membership of the commission.

(iii) The commission may elect ex officio, nonvoting members from a recognized national organization as approved by the commission. The commission's bylaws shall identify qualifying organizations and the manner of appointment if the number of organizations seeking to appoint an ex officio member exceeds the number of members specified in this article.

(B) The commission may remove any member of the executive committee as provided in the commission's bylaws.

(C) The executive committee shall meet at least annually.

(i) Annual executive committee meetings, as well as any executive committee meeting at which it does not take or intend to take formal action on a matter for which a commission vote would otherwise be required, shall be open to the public, except that the executive committee may meet in a closed, non-public session of a public meeting when dealing with any of the matters covered under article 9(f)(4).

(ii) The executive committee shall give five business days advance notice of its public meetings, posted on its website and as determined to provide notice to persons with an interest in the public matters the executive committee intends to address at those meetings.

(D) The executive committee may hold an emergency meeting when acting for the commission to:

(i) Meet an imminent threat to public health, safety or welfare;

(ii) prevent a loss of commission or participating state funds; or

(iii) protect public health and safety.

(e) The commission shall adopt and provide an annual report to the member states.

(f) Meetings of the commission.

(1) All meetings of the commission that are not closed pursuant to this subsection shall be open to the public. Notice of public meetings shall be posted on the commission's website at least 30 days prior to the public meeting.

(2) Notwithstanding article 9(f)(1), the commission may convene an emergency public meeting by providing at least 24 hours prior notice on the commission's website and any other means as provided in the commission's rules, for any of the reasons it may dispense with notice of proposed rulemaking under article 11(l). The commission's legal counsel shall certify one of the reasons justifying an emergency public meeting has been met.

(3) Notice of all commission meetings shall provide the time, date and location of the meeting and if the meeting is to be held or accessible via telecommunication, video conference or other electronic means, the notice shall include the mechanism for access to the meeting.

(4) The commission may convene in a closed, nonpublic meeting for the commission to discuss:

(A) Noncompliance of a member state with its obligations under the compact;

(B) the employment, compensation, discipline or other matters, practices or procedures related to specific employees or other matters related to the commission's internal personnel practices and procedures;

(C) current or threatened discipline of a licensee by the commission or by a member state's licensing authority;

(D) current, threatened or reasonably anticipated litigation;

(E) negotiation of contracts for the purchase, lease or sale of goods, services or real estate;

(F) accusing any person of a crime or formally censuring any person;

(G) trade secrets or commercial or financial information that is privileged or confidential;

(H) information of a personal nature where disclosure would constitute a clearly unwarranted invasion of personal privacy;

(I) investigative records compiled for law enforcement purposes;

(J) information related to any investigative reports prepared by or on behalf of or for use of the commission or other committee charged with responsibility of investigation or determination of compliance issues pursuant to the compact;

(K) legal advice;

(L) matters specifically exempted from disclosure to the public by federal or member state law; or

(M) other matters as adopted by the commission by rule.

(5) If a meeting, or portion of a meeting, is closed, the presiding officer shall state that the meeting shall be closed and reference each relevant exempting provision and such reference shall be recorded in the minutes.

(6) The commission shall keep minutes that fully and clearly describe all matters discussed in a meeting and shall provide a full and accurate summary of actions taken and the reasons therefor, including a description of the views expressed. All documents considered in connection with an action shall be identified in such minutes. All minutes and documents of a closed meeting shall remain under seal, subject to release only by a majority vote of the commission or order of a court of competent jurisdiction.

(g) Financing the commission.

(1) The commission shall pay or provide for the payment of the reasonable expenses of its establishment, organization and ongoing activities.

(2) The commission may accept any and all appropriate sources of revenue, donations and grants of money, equipment, supplies, materials and services.

(3) The commission may levy on and collect an annual assessment from each member state and impose fees on licensees of member states to whom it grants a multistate license to cover the cost of the operations and activities of the commission and its staff, which shall be in a total amount sufficient to cover its annual budget as approved each year for which revenue is not provided by other sources. The aggregate annual assessment amount for member states shall be allocated based upon a formula that the commission shall adopt by rule.

(4) The commission shall not incur obligations of any kind prior to securing the funds adequate to meet the same, nor shall the commission pledge the credit of any member states, except by and with the authority of the member state.

(5) The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the financial review and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be subject to an annual financial review by a certified or licensed public accountant, and the report of the financial review shall be included in and become part of the annual report of the commission.

(h) Qualified immunity, defense and indemnification.

(1) The members, officers, executive director, employees and representatives of the commission shall be immune from suit and liability, both personally and in their official capacity, for any claim for damage to or loss of property or personal injury or other civil liability caused by or arising out of any actual or alleged act, error or omission that occurred or that the person against whom the claim is made had a reasonable basis for believing occurred within the scope of commission employment, duties or responsibilities, provided that nothing in this paragraph shall be construed to protect any such person from suit or liability for any damage, loss, injury or liability caused by the intentional or willful or wanton misconduct of that person. The procurement of insurance of any type by the commission shall not in any way compromise or limit the immunity granted under this compact.

(2) The commission shall defend any member, officer, executive director, employee and representative of the commission in any civil action seeking to impose liability arising out of any actual or alleged act, error or omission that occurred within the scope of commission employment, duties or responsibilities or as determined by the commission that the person against whom the claim is made had a reasonable basis for believing occurred within the scope of commission employment, duties or responsibilities, provided that nothing in this compact shall be construed to prohibit that person from retaining their own counsel at their own expense, and provided further, that the actual or alleged act, error or omission did not result from that person's intentional or willful or wanton misconduct.

(3) The commission shall indemnify and hold harmless any member, officer, executive director, employee and representative of the commission for the amount of any settlement or judgment obtained against that person arising out of any actual or alleged act, error or omission that occurred within the scope of commission employment, duties or responsibilities or that such person had a reasonable basis for believing occurred within the scope of commission employment, duties or responsibilities, provided that the actual or alleged act, error or omission did not result from the intentional or willful or wanton misconduct of that person.

(4) Nothing shall be construed as a limitation on the liability of any licensee for professional malpractice or misconduct, which shall be governed solely by any other applicable state laws.

(5) Nothing in this compact shall be interpreted to waive or otherwise abrogate a member state's state action immunity or state action affirmative defense with respect to antitrust claims under the Sherman act, Clayton act or any other state or federal antitrust or anticompetitive law or regulation.

(6) Nothing in this compact shall be construed to be a waiver of sovereign immunity by the member states or by the commission.

ARTICLE 10—DATA SYSTEM

(a) The commission shall provide for the development, maintenance, operation and utilization of a coordinated database and reporting system.

(b) The commission shall assign each applicant for a multistate license a unique identifier, as determined by the rules of the commission.

(c) Notwithstanding any other provision of state law to the contrary, a member state shall submit a uniform data set to the data system on all individuals to whom this compact is applicable as required by the rules of the commission, including:

(1) Identifying information;

(2) licensure data;

(3) adverse actions against a license and information related thereto;

(4) nonconfidential information related to alternative program participation, the beginning and ending dates of such participation and other information related to such participation;

(5) any denial of application for licensure and the reason for such denial, excluding the reporting of any criminal history record information where prohibited by law;

(6) the existence of investigative information;

(7) the existence of current significant investigative information; and

(8) other information that may facilitate the administration of this compact or the protection of the public, as determined by the rules of the commission.

(d) The records and information provided to a member state pursuant to this compact or through the data system, when certified by the commission or an agent thereof, shall constitute the authenticated business records of the commission and shall be entitled to any associated hearsay exception in any relevant judicial, quasi-judicial or administrative proceedings in a member state.

(e) The existence of current significant investigative information and the existence of investigative information pertaining to a licensee in any member state shall only be available to other member states.

(f) It is the responsibility of the member states to monitor the database to determine whether adverse action has been taken against such a licensee or license applicant. Adverse action information pertaining to a licensee or license applicant in any member state shall be available to any other member state.

(g) Member states contributing information to the data system may designate information that shall not be shared with the public without the express permission of the contributing state.

(h) Any information submitted to the data system that is subsequently expunged pursuant to federal law or the laws of the member state contributing the information shall be removed from the data system.

ARTICLE 11— RULEMAKING

(a) The commission shall adopt reasonable rules to effectively and efficiently implement and administer the purposes and provisions of the compact. A rule shall be invalid and have no force or effect only if a court of competent jurisdiction holds that such rule is invalid because the commission exercised its rulemaking authority in a manner that is beyond the scope and purposes of the compact, the powers granted in this compact or based upon another applicable standard of review.

(b) The rules of the commission shall have the force of law in each member state, provided, however, that where the rules of the commission conflict with the laws of the member state that establish the member state's scope of practice laws governing the practice of esthetics as held by a court of competent jurisdiction, the rules of the commission shall be ineffective in that state to the extent of the conflict.

(c) The commission shall exercise its rulemaking powers pursuant to the criteria set forth in this article and the rules adopted thereunder. Rules shall become binding as of the date specified by the commission for each rule.

(d) If a majority of the legislatures of the member states rejects a rule or portion of a rule by enactment of a statute or resolution in the same manner used to adopt the compact within four years of the date of adoption of the rules, then such rules shall have no further force and effect in any member state or to any state applying to participate in the compact.

(e) Rules shall be adopted at a regular or special meeting of the commission.

(f) Prior to adoption of a proposed rule, the commission shall hold a public hearing and allow persons to provide oral and written comments, data, facts, opinions and arguments.

(g) Prior to adoption of a proposed rule by the commission and at least 30 days in advance of the meeting where the commission will hold a public hearing on the proposed rules, the commission shall provide a notice of proposed rulemaking:

(1) On the website of the commission or other publicly accessible platform;

(2) to persons who have requested notice of the commission's notices of proposed rulemaking; and

(3) in such other ways as the commission may specify by rule.

(h) The notice of proposed rulemaking shall include:

(1) The time, date and location of the public hearing where the commission will hear public comments on the proposed rules and, if different, the time, date and location of the meeting where the commission will consider and vote on the proposed rules;

(2) if the hearing is held via telecommunication, video conference or other electronic means, the commission shall include the mechanism for access to the hearing in the notice of proposed rulemaking;

(3) the text of the proposed rules and the reason therefor;

(4) a request for comments on the proposed rules from any interested person; and

(5) the manner in which interested persons may submit written comments.

(i) All hearings shall be recorded. A copy of the recording and all written comments and documents received by the commission in response to the proposed rule shall be available to the public.

(j) Nothing in this article shall be construed as requiring a separate hearing on each rule. Rules may be grouped for the convenience of the commission at hearings required by this article.

(k) The commission shall, by majority vote of all members, take final action on the proposed rules based on the rulemaking record and the full text of the rules.

(1) The commission may adopt changes to the proposed rules provided the changes do not enlarge the original purpose of the proposed rules.

(2) The commission shall provide an explanation of the reasons for substantive changes made to the proposed rules as well as reasons for substantive changes not made that were recommended by commenters.

(3) The commission shall determine a reasonable effective date for the rules. Except for an emergency as provided in subsection (l), the effective date of the rules shall not be earlier than 45 days after the commission adopted or amended the rules.

(l) Upon determination that an emergency exists, the commission may consider and adopt an emergency rule with five days' notice, with opportunity to comment, provided that the usual rulemaking procedures provided in the compact and in this article shall be retroactively applied to the rules as soon as reasonably possible, in no event later than 90 days after the effective date of the rules. For the purposes of this provision, an emergency rule is one that shall be adopted immediately to:

(1) Meet an imminent threat to public health, safety or welfare;

(2) prevent the loss of commission or member state funds;

(3) meet a deadline for the adoption of a rule that is established by federal law or rule; or

(4) protect public health and safety.

(m) The commission or an authorized committee of the commission may direct revisions to a previously adopted rule for purposes of correcting typographical errors, errors in format, errors in consistency or grammatical errors. Public notice of any revisions shall be posted on the website of the commission. The revision shall be subject to challenge by any person for a period of 30 days after posting. The revision may be challenged only on grounds that the revision results in a material change to a rule. A challenge shall be made in writing and delivered to the commission prior to the end of the notice period. If no challenge is made, the revision shall take effect without further action. If the revision is challenged, the revision shall not take effect without the approval of the commission.

(n) No member state's rulemaking requirements shall apply under this compact.

ARTICLE 12—OVERSIGHT, DISPUTE RESOLUTION AND ENFORCEMENT

(a) Oversight.

(1) The executive and judicial branches of state government in each member state shall enforce this compact and take all actions necessary and appropriate to implement the compact.

(2) Venue is proper and judicial proceedings by or against the commission shall be brought solely and exclusively in a court of competent jurisdiction where the principal office of the commission is located. The commission may waive venue and jurisdictional defenses to the extent it adopts or consents to participate in alternative dispute resolution proceedings. Nothing in this compact shall affect or limit the selection or propriety of venue in any action against a licensee for professional malpractice, misconduct or any such similar matter.

(3) The commission shall be entitled to receive service of process in any proceeding regarding the enforcement or interpretation of the compact and shall have standing to intervene in such a proceeding for all purposes. Failure to provide the commission service of process shall render a judgment or order void as to the commission, this compact or adopted rules.

(b) Default, technical assistance and termination.

(1) If the commission determines that a member state has defaulted in the performance of its obligations or responsibilities under this compact or the adopted rules, the commission shall provide written notice to the defaulting state. The notice of default shall describe the default, the proposed means of curing the default and any other action that the commission may take, and shall offer training and specific technical assistance regarding the default.

(2) The commission shall provide a copy of the notice of default to the other member states.

(3) If a state in default fails to cure the default, the defaulting state may be terminated from the compact upon an affirmative vote of a majority of the delegates of the member states, and all rights, privileges and benefits conferred on that state by this compact may be terminated on the effective date of termination. A cure of the default does not relieve the offending state of obligations or liabilities incurred during the period of default.

(4) Termination of membership in the compact shall be imposed only after all other means of securing compliance have been exhausted. Notice of intent to suspend or terminate shall be given by the commission to the governor, the majority and minority leaders of the defaulting state's legislature, the defaulting state's licensing authority and each of the member state's licensing authority.

(5) A state that has been terminated is responsible for all assessments, obligations and liabilities incurred through the effective date of termination, including obligations that extend beyond the effective date of termination.

(6) Upon the termination of a state's membership from this compact, that state shall immediately provide notice to all licensees who hold a multistate license within that state of such termination. The terminated state shall continue to recognize all licenses granted pursuant to this compact for a minimum of 180 days after the date of such notice of termination.

(7) The commission shall not bear any costs related to a state that is found to be in default or that has been terminated from the compact, unless agreed upon in writing between the commission and the defaulting state.

(8) The defaulting state may appeal the action of the commission by petitioning the United States District Court for the District of Columbia or the federal district where the commission has its principal offices. The prevailing party shall be awarded all costs of such litigation, including reasonable attorney fees.

(c) Dispute resolution.

(1) Upon request by a member state, the commission shall attempt to resolve disputes related to the compact that arise among member states and between member and nonmember states.

(2) The commission shall adopt a rule providing for both mediation and binding dispute resolution for disputes as appropriate.

(d) Enforcement.

(1) The commission, in the reasonable exercise of its discretion, shall enforce the provisions of this compact and the commission's rules.

(2) By majority vote as provided by commission rules, the commission may initiate legal action against a member state in default in the United States District Court for the District of Columbia or the federal district where the commission has its principal offices to enforce compliance with the provisions of the compact and its adopted rules. The relief sought may include both injunctive relief and damages. In the event that judicial enforcement is necessary, the prevailing party shall be awarded all costs of such litigation, including reasonable attorney fees. The remedies in this compact shall not be the exclusive remedies of the commission. The commission may pursue any other remedies available under federal or the defaulting member state's laws.

(3) A member state may initiate legal action against the commission in the United States District Court for the District of Columbia or the federal district where the commission has its principal offices to enforce compliance with the provisions of the compact and its adopted rules. The relief sought may include both injunctive relief and damages. In the event judicial enforcement is necessary, the prevailing party shall be awarded all costs of such litigation, including reasonable attorney fees.

(4) No individual or entity other than a member state shall enforce this compact against the commission.

ARTICLE 13—EFFECTIVE DATE, WITHDRAWAL AND AMENDMENT

(a) The compact shall come into effect on the date when the compact statute is enacted into law in the seventh member state. On or after the effective date of the compact, the commission shall convene and review the enactment of each of the charter member states to determine if the statute enacted by each such charter member state is materially different than the model compact statute.

(1) A charter member state whose enactment is found to be materially different from the model compact statute shall be entitled to the default process set forth in article 12.

(2) If any member state is later found to be in default or is terminated or withdraws from the compact, the commission shall remain in existence, and the compact shall remain in effect even if the number of member states should be less than seven.

(3) Member states enacting the compact after the charter member states shall be subject to the process set forth in article 9(c)(21) to determine if their enactments are materially different from the model compact statute and whether they qualify for participation in this compact.

(4) All actions taken for the benefit of the commission or in furtherance of the purposes of the administration of the compact prior to the effective date of the compact or the commission coming into existence shall be considered actions of the commission unless specifically repudiated by the commission.

(5) Any state that joins the compact shall be subject to the commission's rules and bylaws as they exist on the date that the compact becomes law in that state. Any rules that have been previously adopted by the commission shall have the full force and effect of law on the day the compact becomes law in that state.

(b) Any member state may withdraw from this compact by enacting a statute repealing that state's enactment of the compact.

(1) A member state's withdrawal shall not take effect until 180 days after the enactment of the repealing statute.

(2) Withdrawal shall not affect the continuing requirement of the withdrawing state's licensing authority to comply with the investigative and adverse action reporting requirements of this compact prior to the effective date of withdrawal.

(3) Upon the enactment of a statute withdrawing from this compact, a state shall immediately provide notice of such withdrawal to all licensees within that state. Notwithstanding any subsequent statutory enactment to the contrary, such withdrawing state shall continue to recognize all licenses granted pursuant to this compact for a minimum of days after the date of such notice of withdrawal.

(c) Nothing contained in this compact shall be construed to invalidate or prevent any licensure agreement or other cooperative arrangement between a member state and a non-member state that does not conflict with the provisions of this compact.

(d) This compact may be amended by the member states. No amendment to this compact shall become effective and binding upon any member state until it is enacted into the laws of all member states.

ARTICLE 14—CONSTRUCTION AND SEVERABILITY

(a) This compact and the commission's rulemaking authority shall be liberally construed to effectuate the purposes and the implementation and administration of the compact. The provisions of the compact expressly authorizing or requiring the adoption of rules shall not be construed to limit the commission's rulemaking authority solely for those purposes.

(b) The provisions of this compact shall be severable and if any phrase, clause, sentence or provision of this compact is held by a court of competent jurisdiction to be contrary to the constitution of any member state, a state seeking participation in the compact or the United States, or the applicability thereof to any government, agency, person or circumstance is held to be unconstitutional by a court of competent jurisdiction, the validity of the remainder of this compact and the applicability thereof to any other government, agency, person or circumstance shall not be affected thereby.

(c) Notwithstanding article 14(b), the commission may deny a state's participation in the compact or, in accordance with the requirements of article 12, terminate a member state's participation in the compact if it determines that a constitutional requirement of a member state is a material departure from the compact. Otherwise, if this compact shall be held to be contrary to the constitution of any member state, the compact shall remain in full force and effect as to the remaining member states and in full force and effect as to the member state affected as to all severable matters.

ARTICLE 15—CONSISTENT EFFECT AND conflict WITH
OTHER STATE LAWS

(a) Nothing in this compact shall prevent or inhibit the enforcement of any other law of a member state that is not inconsistent with the compact.

(b) Any laws, statutes, rules and regulations or other legal requirements in a member state in conflict with the compact are superseded to the extent of the conflict.

(c) All permissible agreements between the commission and the member states are binding in accordance with their terms.

(d) The purpose of this compact is to facilitate multistate licensure for estheticians. Nothing in this compact shall subject a member state to any laws, regulations, rules or policies from any other member state beyond the intended purpose of this compact.

(e) Nothing in this compact shall require any member state to adopt additional laws, regulations, rules or policies beyond the intended purpose of this compact.

Sec. 4. This section shall be known and may be cited as the athletic trainer licensure compact.

ARTICLE 1—PURPOSE

(a) The purpose of this compact is to expand mobility of athletic training practice and improve public access to services by providing athletic trainers licensed in a member state the ability to practice in other member states. This compact preserves the regulatory authority of states to protect public health and safety through the current system of state licensure, while also providing for expanded interstate mobility through a compact privilege granted to qualifying professionals.

(b) This compact is designed to achieve the following objectives:

(1) Increase public access to athletic training by providing for the mutual recognition of other member state licenses;

(2) provide opportunities for interstate practice by licensed athletic trainers who meet uniform licensure requirements;

(3) promote mobility and workforce development by eliminating the necessity for licenses in multiple states by providing for the mutual recognition of other member state licenses;

(4) reduce administrative burden on applicants and member states;

(5) enhance the states' ability to protect the public's health and safety;

(6) encourage the cooperation of member states in regulating multistate practice of licensed athletic trainers;

(7) support relocating active military and their spouses;

(8) enhance the exchange of licensure, investigative and disciplinary information among member states;

(9) support the uniformity of licensed athletic trainer licensure requirements throughout the states;

(10) affirm the authority of all member states to hold a licensed athletic trainer accountable for meeting all state practice laws in the state where the patient is located at the time care is rendered to allow for continuity of competent care through the mutual recognition of member state licenses; and

(11) adhere to the substantive language in the model compact language in order to promote uniformity and ensure that all member states have accepted and are mutually obligated to the same terms.

ARTICLE 2—DEFINITIONS

As used in this compact:

(a) "Active military member" means any individual with full-time duty status in the active armed forces of the United States, including members of the national guard and reserve.

(b) "Adverse action" means any administrative, civil, equitable or criminal action permitted by a state's laws that is imposed by a licensing authority or other authority against a licensee, including actions against an individual's license or compact privilege such as revocation, suspension, probation, monitoring of the licensee, limitation on the licensee's practice or any other encumbrance on licensure affecting a licensee's authorization to practice.

(c) "Alternative program" means a non-disciplinary monitoring or practice remediation process applicable to an athletic trainer approved by a state licensing authority of a member state in which the athletic trainer is licensed. This includes, but is not limited to, programs to which licensees with substance use, addiction or mental health conditions are referred in lieu of adverse action.

(d) "Athletic training" means the prevention, examination, assessment, treatment and rehabilitation of emergent, acute or chronic injuries and medical conditions as defined by applicable member state laws and regulations.

(e) "Athletic training compact commission" or "commission" means the government agency whose membership consists of all states that have enacted this compact, which is known as the athletic trainer licensure compact commission, as described herein, and which shall operate as an instrumentality of the member states to administer and implement the compact according to its terms.

(f) "BOC" means the board of certification, inc. or any successor organization thereto.

(g) "CAATE" means the commission on accreditation of athletic training education or any successor organization thereto.

(h) "Charter member state" means any member state which enacted this compact by law before the effective date specified in this compact.

(i) "Commissioner" means the individual appointed by a member state to serve as the member of the commission for that member state.

(j) "Compact" means this athletic trainer compact.

(k) "Compact privilege" means the authorization granted by a remote state, equivalent to a license, allowing a licensee from another member state to provide athletic training services in a remote state.

(l) "Compact qualifying license" means a license that is not an encumbered license issued by a member state to practice athletic training that qualifies the licensee to exercise a compact privilege pursuant to article 4 of this compact.

(m) "Continuing competence" means a requirement, as a condition of license renewal, to provide evidence of successful participation, and completion of, educational and professional activities relevant to practice or area of work. for purposes of this compact, evidence of active BOC certification may satisfy the meaning of continuing competence as set forth in this compact.

(n) "Current significant investigative information" means:

(1) Investigative information that a licensing authority, after a preliminary inquiry that includes notification and an opportunity for the subject licensee to respond, if required by state law, has reason to believe is not groundless and, if proved true, would indicate more than a minor infraction; or

(2) investigative information that indicates that the subject licensee represents an immediate threat to public health and safety, regardless of whether the subject licensee has been notified and had an opportunity to respond.

(o) "Criminal background check" means the submission of fingerprints or other biometric-based information for a license applicant for the purpose of obtaining that applicant's criminal history record information, as defined in 28 C.F.R. § 20.3(d) from the federal bureau of investigation and the state's criminal history record repository as defined in 28 C.F.R. § 20.3(f).

(p) "Data system" means the commission's repository of information about licensees, including, but not limited to, examination, licensure, investigative, compact privilege, adverse action and alternative program.

(q) "Encumbrance" or "encumbered" means a revocation or suspension of, or any limitation or condition on, the full and unrestricted practice of athletic training licensed and regulated by a licensing authority.

(r) "Executive committee" means a group of commissioners elected or appointed to act on behalf of and within the powers granted to them by the compact and the commission.

(s) "Investigative information" means information, records and documents received or generated by a licensing authority pursuant to an investigation.

(t) "Jurisprudence requirement" means the assessment of an individual's knowledge of the laws and rules governing the practice of athletic training, as applicable, in a state.

(u) "License" means current authorization by a member state to engage in the practice of athletic training.

(v) "Licensee" or "licensed athletic trainer" means an individual who currently holds an active, unrestricted license and who meets all of the requirements outlined in article 4 of this compact.

(w) "Licensing authority" means the board or agency of a state, or equivalent, that is responsible for the licensing and regulation of athletic trainers.

(x) "Model compact language" means the model language for the athletic trainer compact on file with the council of state governments or other entity as designated by the commission to which all member states shall substantively adhere and adopt.

(y) "Member state" means a state that has enacted the compact.

(z) "Remote state" means a member state other than the state of qualifying licensure.

(aa) "Rule" means a regulation adopted by an entity that has the force of law.

(bb) "Scope of practice" means the procedures, actions and processes an athletic trainer licensed in a state is permitted to undertake in that state and the circumstances under which the licensee is permitted to undertake those procedures, actions and processes. Such procedures, actions and processes and the circumstances under which they may be undertaken may be established through means, including, but not limited to, statute, regulations, case law and other processes available to the state licensing authority or other government agency. "Scope of practice" includes any state requirements regarding supervision or direction, if required by such state and as further defined by such state's statutes and regulations.

(cc) "Single state license" means a license issued by any state that authorizes practice only within the issuing state.

(dd) "State" means any state, commonwealth, district or territory of the United States of America.

(ee) "State of qualifying licensure" means the member state that has issued a compact qualifying license to a licensee.

(ff) "Unencumbered license" means a license that authorizes a licensee to engage in the full and unrestricted practice of athletic training.

ARTICLE 3—STATE PARTICIPATION IN THE COMPACT

(a) To be eligible to join this compact and to maintain eligibility as a member state, a state shall:

(1) Enact and maintain a statute that is not materially different from the model compact language;

(2) license and regulate the practice of athletic training;

(3) require that licensees in that state maintain continuing competence standards as part of their state practice act or rules;

(4) have a mechanism in place for receiving and investigating complaints about licensees;

(5) grant the compact privilege to a licensee who meets all the requirements outlined in article 4 in accordance with the terms of the compact and any rules adopted under this compact;

(6) participate fully in the compact commission's data system, including using the unique identifier as defined in rules;

(7) notify the compact commission, in compliance with the terms of the compact and rules, of any adverse action or the availability of current significant investigative information regarding a licensee;

(8)  within a time frame established by rule, implement or utilize procedures for considering the criminal history records of applicants for a compact qualifying license, which includes receiving the results of the federal bureau of investigation record search and shall use those results in making licensure decisions. These procedures shall include the submission of fingerprints or other biometric-based information by applicants for the purpose of obtaining an applicant's criminal history record information from the federal bureau of investigation and the agency responsible for retaining that state's criminal records:

(A) Fully implement a criminal background check requirement, in order to participate in the issuance and acceptance of compact privileges; and

(B) communication between a member state and the compact commission or among member states regarding the verification of eligibility for licensure through the compact shall not include any information received from the federal bureau of investigation relating to a federal criminal records check performed by a member state; and

(9) comply with and enforce the rules of the compact commission.

(b) Member states may set and collect a fee for issuance and renewal of a compact privilege to applicants.

(c) Individuals without a compact qualifying license shall continue to be able to apply for a member state's single state license as provided under the laws of each member state.

(d) Nothing in this compact shall affect the requirements established by a member state for the issuance of a single state license.

(e) A compact qualifying license issued to a licensee by a member state shall be recognized by each remote state as authorizing that licensee to engage in the practice of athletic training, under a compact privilege, in another member state in accordance with the requirements in article 4.

ARTICLE 4—COMPACT PRIVILEGE

(a) To be eligible for a compact privilege under the terms and provisions of the compact, the licensee shall complete a criminal background check performed by the licensing authority in the state of qualifying licensure prior to entry in the compact and shall:

(1) Satisfy one of the two following pathways:

(A) Hold a valid, current and active certification through the BOC or its successor organization; or

(B) if a licensee does not meet the requirements of subparagraph (A), complete all of the following:

(i) An education program that is:

(a) at least a bachelor's degree with a major course of study in athletic training or an equivalent course of study from a college or university accredited at the time of graduation by CAATE or its successor organization;

(b) an academic degree from a college or university in a foreign country equivalent to the degree described in subclause (a) with a major course of study as described in subclause (a) that is accredited by CAATE or its successor organization; or

(c) the substantial equivalent of the foregoing that the commission may determine by rule; and

(ii) successful completion of the comprehensive exam administered by the BOC or its successor organization preceding the date of the licensee's application for licensure in the licensee's state of qualifying licensure, or the substantial equivalent of the foregoing requirement, which the commission may determine by rule;

(2) hold a compact qualifying license;

(3) have not had any encumbrance or restriction against any license or compact privilege to practice athletic training within the previous two years;

(4) be eligible for a compact privilege in any member state in accordance with article 4;

(5) notify the compact commission that the licensee is seeking the compact privilege within a remote state;

(6) pay any applicable fees, including any state fee, for the compact privilege;

(7) meet any continuing competence requirements established by the state of qualifying licensure;

(8) comply with any requirements of the state of qualifying licensure as set forth in article 3;

(9) meet any jurisprudence requirements established by the remote state where the licensee is seeking a compact privilege; and

(10) report to the compact commission any adverse action, encumbrance or restriction on a license taken by any non-member state within 30 days from the date that the action is taken.

(b) The compact privilege is valid until the expiration date of the compact qualifying license. To maintain a compact privilege, renewal of the compact privilege shall be congruent with the renewal of the compact qualifying license as the compact commission may define by rule. The licensee shall comply with the requirements of this article to maintain the compact privilege in the remote state. A licensee may apply for and hold compact privileges in multiple member states.

(c) A licensed athletic trainer shall follow the scope of practice of the member state where the patient is located. A licensee engaging in the practice of athletic training in a remote state under the compact privilege shall adhere to the scope of practice laws and regulations of the remote state. Licensees shall be responsible for educating themselves on and complying with any and all state laws relating to the remote practice of athletic training, as applicable.

(d) A licensee engaging in the practice of athletic training in a remote state is subject to that state's regulatory authority. A remote state may, in accordance with due process and that state's laws, remove a licensee's compact privilege in the remote state for a specific period of time, impose fines, or take any other necessary actions to protect the health and safety of its citizens. Any member state which undertakes such an action shall promptly notify the member state and the commission as specified in the rules. The licensee may be deemed to be ineligible to exercise the compact privilege by any member state until the specific time for removal has passed and all fines are paid.

(e) All member state disciplinary orders that impose adverse action against a compact qualifying licensee shall result in deactivation of the licensee's compact privilege in all member states during the pendency of the order. If a compact qualifying license is encumbered, the licensee shall lose the compact privilege in any remote state until the following occur:

(1) The compact qualifying license is no longer encumbered; and

(2) the licensee has not had any encumbrance or restriction against any license, compact qualifying license or compact privilege within the previous two years.

(f) Once an encumbered license is restored to good standing as a compact qualifying license as certified by the licensing authority, the licensee shall meet the requirements of this article to obtain a compact privilege in any remote state.

(g) If a licensee's compact privilege in any remote state is removed, that licensee may also lose the compact privilege in other remote states, as each member state shall determine in its sole authority, until the following occur:

(1) The specific period of time for which the compact privilege was removed has ended;

(2) all fines have been paid; and

(3) have not had any encumbrance or restriction against any license or compact privilege within the previous two years.

(h) Once the requirements of article 4(g) have been met, the licensee shall meet the requirements in article 4(a) to obtain a compact privilege in a remote state.

ARTICLE 5—COMPACT QUALIFYING LICENSE

(a) A licensee may hold only one compact qualifying license at a time. The procedures for such designation may be further defined by the compact commission by rule.

(b) Nothing in this article shall require that the state of qualifying licensure be the state of primary residence or state of primary practice for the licensee.

(c) Nothing in this compact shall interfere with a licensee's ability to hold a single state license in multiple states.

(d) Nothing in this compact shall affect the requirements established by a member state for the issuance of a license other than a compact qualifying license.

ARTICLE 6—ACTIVE MILITARY MEMBER OR THEIR SPOUSES

An active military member or their spouse shall not be required to pay to the commission for a compact privilege. If a member state chooses to charge a member state fee, it may choose to charge a reduced fee or no fee to an active military member or such military member's spouse for a compact privilege.

ARTICLE 7—ADVERSE ACTIONS

(a) A member state in which a licensee is issued a compact qualifying license shall have the exclusive authority to impose adverse action against the compact qualifying license issued by that member state.

(b) A member state may take adverse action based on current significant investigative information of a remote state, so long as the member state follows its own procedures for imposing adverse action.

(c) Nothing in this compact shall override a member state's decision that participation in an alternative program may be used in lieu of adverse action and that such participation shall remain non-public if required by the member state's laws or rules.

(d) A remote state shall have the authority to:

(1) Take adverse action as set forth in this compact against a licensee's compact privilege in that state; and

(2) issue subpoenas for both hearings and investigations that require the attendance and testimony of witnesses as well as the production of evidence.

(A) Subpoenas may be issued by a member state athletic training licensing authority for the attendance and testimony of witnesses and the production of evidence.

(B) A member state that issues a subpoena may request service of that subpoena by another member state. The member state receiving the request to serve a subpoena shall serve the subpoena if it is deemed enforceable by a court of competent jurisdiction according to the practice and procedure in the receiving member state.

(C) The issuing authority shall pay any witness fees, travel expenses, mileage and other fees required by the service statutes of the state where the witnesses or evidence are located.

(e) For the purposes of taking adverse action, a member state shall give the same priority and effect to reported conduct received from another member state as it would if the conduct had occurred within that state. In so doing, the investigating member state shall apply its own state laws to determine appropriate action.

(f) A member state, if otherwise permitted by state law, may recover from the affected licensee the costs of investigations and dispositions of cases resulting from any adverse action taken against that licensee.

(g) Joint investigations.

(1) In addition to the authority granted to a member state by its respective state law, any member state may participate with other member states in joint investigations of licensees.

(2) Member states shall share any current significant investigative information, litigation or compliance materials in furtherance of any joint or individual investigation initiated under the compact. In sharing such information between member state athletic trainer licensing authorities, all information obtained shall be kept confidential except as otherwise mutually agreed upon by the sharing and receiving member state.

(3) A remote state may issue subpoenas on behalf of a member state for both hearings and investigations that require the attendance and testimony of witnesses as well as the production of evidence.

(h) If a member state takes adverse action, it shall promptly notify the administrator of the data system. The administrator of the data system shall promptly notify all member states of any adverse actions by remote states.

(i) Nothing in this compact shall permit a member state to take any adverse action against a licensee or holder of a compact privilege for conduct or practice occurring in another member state that was legal in the member state at the time it was undertaken.

ARTICLE 8—ESTABLISHMENT AND OPERATION
OF THE COMMISSION

(a) The compact member states hereby create and establish a joint government agency whose membership consists of all member states that have enacted the compact known as the athletic trainer licensure compact commission. The compact commission is an instrumentality of the member states acting jointly and not an instrumentality of any one state. The compact commission shall come into existence on or after the effective date of the compact as set forth in article 12.

(b) Membership, voting and meetings.

(1) Each member state shall have and be limited to one commissioner, selected by that member state's licensing authority within 60 days of the member state's effective date.

(2) The commissioner shall be an administrator or their designated staff or current board member of the licensing authority.

(3) The compact commission may recommend removal or suspension of any commissioner from office.

(4) A member state's licensing authority shall fill any vacancy of its commissioner occurring on the compact commission within 60 days of the vacancy.

(5) Each commissioner shall be entitled to one vote on all matters before the compact commission requiring a vote by the commissioners.

(6) The compact commission shall meet at least once during each calendar year. Additional meetings may be held as set forth in the bylaws. A commissioner shall vote in person or by such other means as provided in the bylaws. The bylaws may provide for commissioners to meet by telecommunication, video conference or other similar electronic means.

(c) The compact commission shall have the following powers:

(1) Adopt and amend rules and bylaws;

(2) establish a code of conduct, confidentiality and conflict of interest policies for commissioners;

(3) establish the fiscal year of the compact commission;

(4) maintain its financial records in accordance with the bylaws;

(5) purchase and maintain insurance and insurance bonds;

(6) accept or contract for services of personnel, including, but not limited to, employees of a member state;

(7) conduct a financial review or audit;

(8) hire employees, elect or appoint officers, fix compensation, define duties, grant such individuals appropriate authority to carry out the purposes of the compact and establish the compact commission's personnel policies and programs relating to conflicts of interest, qualifications of personnel and other related personnel matters;

(9) enter into contracts or arrangements for the management of the affairs of the commission;

(10) assess and collect fees;

(11) accept any and all appropriate gifts, donations, grants of money, other sources of revenue, equipment, supplies, materials and services and receive, utilize and dispose of the same, except that at all times the compact commission shall avoid any appearance of impropriety or conflict of interest;

(12) lease, purchase, retain, own, hold, improve, invest or use any property, whether real, personal or mixed, or any undivided interest therein;

(13) sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of any property, whether real, personal or mixed;

(14) establish a budget and make expenditures;

(15) borrow and invest money;

(16) meet and take such actions as are consistent with the provisions of this compact, the compact commission's rules and the bylaws;

(17) initiate and conclude legal proceedings or actions in the name of the compact commission, except that the standing of any licensing authority to sue or be sued under applicable law shall not be affected;

(18) maintain and certify records and information provided to a member state as the authenticated business records of the compact commission and designate an agent to do so on the compact commission's behalf;

(19) provide and receive information from and cooperate with law enforcement agencies;

(20) determine whether a state's adopted language is materially different from the model compact language such that the state would not qualify for participation in the compact;

(21) establish and elect an executive committee, including a chairperson and vice chairperson, secretary, treasurer and such other offices as the commission shall establish by rule or bylaw;

(22) appoint committees, including standing committees, composed of members, state regulators, state legislators or their representatives, consumer representatives and such other interested persons as may be designated in this compact and the bylaws; and

(23) perform such other functions as may be necessary or appropriate to achieve the purposes of this compact.

(d) The executive committee.

(1) The executive committee shall have the power to act on behalf of the compact commission according to the terms of this compact. The powers, duties and responsibilities of the executive committee shall include:

(A) Exercise the powers and duties of the compact commission during the interim between compact commission meetings, except for adopting or amending rules, adopting or amending bylaws and exercising any other powers and duties expressly reserved to the compact commission by rule or bylaw;

(B) oversee the day-to-day activities of the administration of the compact, including enforcement and compliance with the provisions of the compact, its rules and bylaws and other such duties as deemed necessary;

(C) recommend to the compact commission changes to the rules or bylaws, changes to this compact legislation, fees charged to compact member states, fees charged to licensees and other fees;

(D) ensure compact administration services are appropriately provided, including by contract;

(E) prepare and recommend the budget;

(F) maintain financial records on behalf of the compact commission;

(G) monitor compact compliance of member states and provide compliance reports to the compact commission;

(H) establish additional committees as necessary; and

(I) other duties as provided in the rules or bylaws of the compact commission.

(2) The executive committee shall be composed of five voting members elected by the compact commission:

(A) The chair and vice chair of the compact commission shall be voting members of the executive committee;

(B) the compact commission shall elect up to three additional voting members from the current membership of the compact commission to include the offices of treasurer, secretary and one member-at-large; and

(C) up to four ex officio, nonvoting member from recognized national athletic trainer organizations.

(e) The compact commission may remove any member of the executive committee as provided in the compact commission's bylaws.

(1) The executive committee shall meet at least annually. Executive committee meetings shall be open to the public, except that the executive committee may meet in a closed, non-public meeting as provided in this article.

(A) The executive committee shall give advance notice of its meetings, posted on its website and as determined by rule or bylaw to provide notice to persons with an interest in the business of the compact commission.

(B) The executive committee may hold a special meeting in accordance with this article.

(f) The compact commission shall adopt and provide to the member states an annual report.

(g) Meetings of the compact commission.

(1) All meetings shall be open to the public, except that the compact commission may meet in a closed, non-public meeting as provided in this article.

(2) Public notice for all meetings of the full compact commission of meetings shall be given in the same manner as required under the rulemaking provisions in this compact, except that the compact commission may hold a special meeting as provided inthis article.

(3) The compact commission may hold a special meeting when it must meet to conduct emergency business by giving 24 hours' notice to all commissioners, on the compact commission's website and other means as provided in the compact commission's rules. The compact commission's legal counsel shall certify that the compact commission's need to meet qualifies as an emergency.

(4) The compact commission or the executive committee or other committees of the compact commission may convene in a closed, non-public meeting for the compact commission or executive committee or other committees of the compact commission to receive legal advice or to discuss:

(A) Non-compliance of a member state with its obligations under the compact;

(B) the employment, compensation, discipline or other matters, practices or procedures related to specific employees;

(C) current or threatened discipline of a licensee by a member state's licensing authority;

(D) current, threatened or reasonably anticipated litigation;

(E) negotiation of contracts for the purchase, lease or sale of goods, services or real estate;

(F) accusing any person of a crime or formally censuring any person;

(G) trade secrets or commercial or financial information that is privileged or confidential;

(H) information of a personal nature where disclosure would constitute a clearly unwarranted invasion of personal privacy;

(I) investigative records compiled for law enforcement purposes;

(J) information related to any investigative reports prepared by or on behalf of or for use of the compact commission or other committee charged with responsibility of investigation or determination of compliance issues pursuant to the compact;

(K) matters specifically exempted from disclosure by federal or member state law; or

(L) other matters as specified in rules of the compact commission.

(5) If a meeting or portion of a meeting is closed, the compact commission's legal counsel or designee shall certify that the meeting will be closed and reference each relevant exempting provision and such reference shall be recorded in the minutes.

All minutes and documents of a closed meeting shall remain under seal, subject to release only by a majority vote of the compact commission or order of a court of competent jurisdiction.

(h) Financing of the compact commission.

(1) The compact commission shall pay or provide for the payment of the reasonable expenses of its establishment, organization and ongoing activities.

(2) The compact commission may accept any and all appropriate revenue sources as provided in this article.

(3) The compact commission may levy on and collect an annual assessment from each member state and impose fees on licensees of member states to whom it grants a compact privilege to cover the cost of the operations and activities of the compact commission and its staff, which shall be in a total amount sufficient to cover its annual budget as approved each year for which revenue is not provided by other sources. The aggregate annual assessment amount for member states shall be allocated based upon a formula that the compact commission shall adopt by rule.

(4) The compact commission shall not incur obligations of any kind prior to securing the funds or a loan adequate to meet the same, nor shall the compact commission pledge the credit of any of the member states, except by and with the authority of the member state.

(5) The compact commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the compact commission shall be subject to the financial review and accounting procedures established under its bylaws. However, all receipts and disbursements of funds handled by the compact commission shall be subject to an annual financial review or audit by a certified or licensed public accountant, and the report of the financial review or audit shall be included in and become part of the annual report of the compact commission.

(i) Qualified immunity, defense and indemnification.

(1) The members, officers, executive director, employees and representatives of the compact commission shall be immune from suit and liability, both personally and in their official capacity, for any claim for damage to or loss of property or personal injury or other civil liability caused by or arising out of any actual or alleged act, error or omission that occurred or that the person against whom the claim is made had a reasonable basis for believing occurred within the scope of compact commission employment, duties or responsibilities, provided that nothing in this paragraph shall be construed to protect any such person from suit or liability for any damage, loss, injury or liability caused by the intentional or willful or wanton misconduct of that person. The procurement of insurance of any type by the compact commission shall not in any way compromise or limit the immunity granted under this compact.

(2) The compact commission shall defend any member, officer, executive director, employee and representative of the compact commission in any civil action seeking to impose liability arising out of any actual or alleged act, error or omission that occurred within the scope of compact commission employment, duties or responsibilities or as determined by the compact commission that the person against whom the claim is made had a reasonable basis for believing occurred within the scope of compact commission employment, duties or responsibilities; provided that this compact shall not be construed to prohibit that person from retaining their own counsel at their own expense; and provided further, that the actual or alleged act, error or omission did not result from that person's intentional or willful or wanton misconduct.

(3) The compact commission shall indemnify and hold harmless any member, officer, executive director, employee and representative of the compact commission for the amount of any settlement or judgment obtained against that person arising out of any actual or alleged act, error or omission that occurred within the scope of compact commission employment, duties or responsibilities or that such person had a reasonable basis for believing occurred within the scope of compact commission employment, duties or responsibilities, provided that the actual or alleged act, error or omission did not result from the intentional or willful or wanton misconduct of that person.

(4) Nothing in this compact shall be construed as a limitation on the liability of any licensee for professional malpractice or misconduct, which shall be governed solely by any other applicable state laws.

(5) Nothing in this compact shall be interpreted to waive or otherwise abrogate a member state's state action immunity or state action affirmative defense with respect to antitrust claims under the Sherman act, Clayton act or any other state or federal antitrust or anticompetitive law or regulation.

(6) This compact shall not be construed to be a waiver of sovereign immunity by the member states or by the compact commission.

ARTICLE 9—DATA SYSTEMS

(a) The commission shall provide for the development, maintenance, operation and utilization of a coordinated database and reporting system containing licensure, compact privileges, adverse action and the presence of current significant investigative information on all licensees and applicants for a license in member states.

(b) Notwithstanding any other provision of state law to the contrary, a member state shall submit a uniform data set to the data system on all licensees, applicants and others to whom this compact is applicable as required by the rules of the compact commission, including:

(1) Identifying information;

(2) licensure data;

(3) adverse actions against a licensee, license applicant or compact privilege and information related thereto;

(4) non-confidential information related to alternative program participation, the beginning and ending dates of such participation and other information related to such participation not made confidential under member state law;

(5) any denial of an application for licensure and the reason for such denial, excluding the reporting of any criminal history record information where prohibited by law;

(6) a binary determination regarding the presence of current significant investigative information; and

(7) other information that may facilitate the administration of this compact or the protection of the public, as determined by the rules of the commission.

(c) The records and information provided to a member state pursuant to this compact or through the data system, when certified by the commission or an agent thereof, shall constitute the authenticated business records of the commission, and shall be entitled to any associated hearsay exception in any relevant judicial, quasi-judicial or administrative proceedings in a member state.

(d) Current significant investigative information pertaining to a licensee in any member state shall only be available to other member states.

(e) It is the responsibility of the member states to monitor the data system to determine whether adverse action has been taken against a licensee or license applicant. Adverse action information pertaining to a licensee or license applicant in any member state shall be available to any other member state.

(f) Member states contributing information to the data system may designate information that may not be shared with the public without the express permission of the contributing state.

(g) Any information submitted to the data system that is subsequently expunged pursuant to federal law or the laws of the member state contributing the information shall be removed from the data system.

ARTICLE 10—RULEMAKING

(a) The compact commission shall adopt reasonable rules in order to effectively and efficiently implement and administer the purposes and provisions of the compact. A rule shall be invalid and have no force or effect only if a court of competent jurisdiction holds that the rule is invalid because the compact commission exercised its rulemaking authority in a manner that is beyond the scope and purposes of the compact, or the powers granted hereunder, or based upon another applicable standard of review.

(b) The rules of the compact commission shall have the force of law in each member state, provided, however, that where the rules conflict with the laws or regulations of a member state that relate to the scope of practice that a licensed athletic trainer is permitted to undertake in that state and the circumstances under which they may do so, as held by a court of competent jurisdiction, the rules of the compact commission shall be ineffective in that state to the extent of the conflict.

(c) The compact commission shall exercise its rulemaking powers pursuant to the criteria set forth in this article and the rules adopted thereunder. Rules shall become binding on the day following adoption or as of the date specified in the rule or amendment, whichever is later.

(d) If a majority of the legislatures of the member states rejects a rule or portion of a rule by enactment of a statute or resolution in the same manner used to adopt the compact within four years of the date of adoption of the rule, then such rule shall have no further force and effect in any member state.

(e) Rules shall be adopted at a regular or special meeting of the compact commission.

(f) Prior to adoption of a proposed rule, the compact commission shall hold a public hearing and allow persons to provide oral and written comments, data, facts, opinions and arguments.

(g) Prior to adoption of a proposed rule by the compact commission and at least 30 days in advance of the meeting at which the compact commission will hold a public hearing on the proposed rule, the compact commission shall provide a notice of proposed rulemaking:

(1) On the website of the compact commission or other publicly accessible platform;

(2) to persons who have requested notice of the compact commission's notices of proposed rulemaking; and

(3) in such other way as the compact commission may by rule specify.

(h) The notice of proposed rulemaking shall include:

(1) The time, date and location of the public hearing at which the compact commission shall hear public comments on the proposed rule and, if different, the time, date and location of the meeting where the compact commission shall consider and vote on the proposed rule;

(2) if the hearing is held via telecommunication, video conference or other electronic means, the compact commission shall include the mechanism for access to the hearing in the notice of proposed rulemaking;

(3) the text of the proposed rule and the reason therefor;

(4) a request for comments on the proposed rule from any interested person; and

(5) the manner where interested persons may submit written comments.

(i) All hearings shall be recorded. A copy of the recording and all written comments and documents received by the compact commission in response to the proposed rule shall be available to the public.

(j) Nothing in this article shall be construed as requiring a separate hearing on each rule. Rules may be grouped for the convenience of the compact commission at hearings required by this article.

(k) The compact commission shall, by majority vote of all members, take final action on the proposed rule based on the rulemaking record and the full text of the rule.

(1) The compact commission may adopt changes to the proposed rule provided the changes do not enlarge the original purpose of the proposed rule.

(2) The compact commission shall provide an explanation of the reasons for substantive changes made to the proposed rule as well as reasons for substantive changes not made that were recommended by commenters.

(3) The compact commission shall determine a reasonable effective date for the rule. Except for an emergency as provided in article 10(l), the effective date of the rule shall be no sooner than 30 days after issuing the notice that it adopted or amended the rule.

(l) Upon determination that an emergency exists, the compact commission may consider and adopt an emergency rule with 24 hours' notice, with opportunity to comment, provided that the usual rulemaking procedures provided in the compact and in this article shall be retroactively applied to the rule as soon as reasonably possible, in no event later than 90 days after the effective date of the rule. For the purposes of this provision, an emergency rule is one that shall be adopted immediately in order to:

(1) Meet an imminent threat to public health, safety or welfare;

(2) prevent a loss of compact commission or member state funds;

(3) meet a deadline for the promulgation of a rule that is established by federal law or rule; or

(4) protect public health and safety.

(m) The compact commission or an authorized committee of the compact commission shall direct revisions to a previously adopted rule for purposes of correcting typographical errors, errors in format, errors in consistency or grammatical errors. Public notice of any revisions shall be posted on the website of the compact commission. The revision shall be subject to challenge by any person for a period of 30 days after posting. The revision may be challenged only on grounds that the revision results in a material change to a rule. A challenge shall be made in writing and delivered to the compact commission prior to the end of the notice period. If no challenge is made, the revision shall take effect without further action. If the revision is challenged, the revision shall not take effect without the approval of the compact commission.

(n) No member state's rulemaking requirements shall apply under this compact.

ARTICLE 11—OVERSIGHT, DISPUTE RESOLUTION
AND ENFORCEMENT

(a) Oversight.

(1) The executive and judicial branches of state government in each member state shall enforce this compact and take all actions necessary and appropriate to implement the compact.

(2) Except as otherwise provided in this compact, venue is proper and judicial proceedings by or against the compact commission shall be brought solely and exclusively in a court of competent jurisdiction where the principal office of the compact commission is located. The compact commission may waive venue and jurisdictional defenses to the extent it adopts or consents to participate in alternative dispute resolution proceedings. This compact shall not affect or limit the selection or propriety of venue in any action against a licensee for professional malpractice, misconduct or any such similar matter.

(3) The compact commission shall be entitled to receive service of process in any proceeding regarding the enforcement or interpretation of the compact and shall have standing to intervene in such a proceeding for all purposes. Failure to provide the compact commission service of process shall render a judgment or order void as to the compact commission, this compact or adopted rules.

(b) Default, technical assistance and termination.

(1) If the compact commission determines that a member state has defaulted in the performance of its obligations or responsibilities under this compact or the adopted rules, the commission shall provide written notice to the defaulting state. The notice of default shall describe the default, the proposed means of curing the default and any other action that the compact commission may take, and shall offer training and specific technical assistance regarding the default.

(2) The compact commission shall provide a copy of the notice of default to the other member states.

(c) If a state in default fails to cure the default, the defaulting state may be terminated from the compact upon an affirmative vote of a majority of the commissioners of the member states, and all rights, privileges and benefits conferred on that state by this compact may be terminated on the effective date of termination. A cure of the default does not relieve the offending state of obligations or liabilities incurred during the period of default.

(d) Termination of membership in the compact shall be imposed only after all other means of securing compliance have been exhausted. Notice of intent to suspend or terminate shall be given by the compact commission to the governor, the majority and minority leaders of the defaulting state's legislature, the defaulting state's licensing authority and each of the member states' licensing authority.

(e) A state that has been terminated is responsible for all assessments, obligations and liabilities incurred through the effective date of termination, including obligations that extend beyond the effective date of termination.

(f) Upon the termination of a state's membership from this compact, that state shall immediately provide notice to all licensees within that state of such termination. The terminated state shall continue to recognize all licenses and compact privileges granted pursuant to this compact for a minimum of 180 days after the date of such notice of termination.

(g) The compact commission shall not bear any costs related to a state that is found to be in default or that has been terminated from the compact, unless agreed upon in writing between the compact commission and the defaulting state.

(h) The defaulting state may appeal the action of the compact commission by petitioning the United States District Court for the District of Columbia or the federal district where the compact commission has its principal offices. The prevailing party shall be awarded all costs of such litigation, including reasonable attorney fees.

(i) Dispute resolution.

(1) Upon request by a member state, the compact commission shall attempt to resolve disputes related to the compact that arise among member states and between member and non-member states.

(2) The compact commission shall adopt a rule providing for both mediation and binding dispute resolution for disputes as appropriate.

(j) Enforcement.

(1) By a ²/₃ majority vote, the compact commission may initiate legal action against a member state in default in the United States District Court for the District of Columbia or the federal district where the compact commission has its principal offices to enforce compliance with the provisions of the compact and its adopted rules. The relief sought may include both injunctive relief and damages. In the event that judicial enforcement is necessary, the prevailing party shall be awarded all costs of such litigation, including reasonable attorney fees. The remedies in this compact shall not be the exclusive remedies of the compact commission. The compact commission may pursue any other remedies available under federal or the defaulting member state's law.

(2) A member state may initiate legal action against the compact commission in the United States District Court for the District of Columbia or the federal district where the compact commission has its principal offices to enforce compliance with the provisions of the compact and its adopted rules. The relief sought may include both injunctive relief and damages. In the event judicial enforcement is necessary, the prevailing party shall be awarded all costs of such litigation, including reasonable attorney fees.

(3) No person other than a member state shall enforce this compact against the compact commission.

ARTICLE 12—EFFECTIVE DATE, WITHDRAWAL
AND AMENDMENT

(a) The compact shall come into effect on the date when the compact statute is enacted into law in the seventh member state.

(1) On or after the effective date of the compact, the compact commission shall convene and review the enactment of each of the first seven member states or charter member states to determine if the statute enacted by each such charter member state is materially different than the model compact statute.

(A) A charter member state whose enactment is found to be materially different from the model compact language shall be entitled to the default process set forth in article 11.

(B) If any member state is later found to be in default, is terminated or withdraws from the compact, the compact commission shall remain in existence and the compact shall remain in effect, even if the number of member states should be fewer than seven.

(2) Member states enacting the compact subsequent to the seven initial charter member states shall be subject to the process set forth in this article to determine if their enactments are materially different from the model compact statute and whether they qualify for participation in the compact.

(3) All actions taken for the benefit of the compact commission or in furtherance of the purposes of the administration of the compact prior to the effective date of the compact or the compact commission coming into existence shall be considered to be actions of the compact commission unless specifically repudiated by the compact commission.

(4) Any state that joins the compact subsequent to the compact commission's initial adoption of the rules and bylaws shall be subject to the rules and bylaws as they exist on the date on which the compact becomes law in that state. Any rule that has been previously adopted by the compact commission shall have the full force and effect of law on the day the compact becomes law in that state.

(b) Any member state may withdraw from this compact by enacting a statute repealing the same.

(1) A member state's withdrawal shall not take effect until 180 days after enactment of the repealing statute.

(2) Withdrawal shall not affect the continuing requirement of the withdrawing state's licensing authority to comply with the investigative and adverse action reporting requirements of this compact prior to the effective date of withdrawal.

(3) Upon the enactment of a statute withdrawing from this compact, a state shall immediately provide notice of such withdrawal to all licensees and privilege holders within that state. Notwithstanding any subsequent statutory enactment to the contrary, such withdrawing state shall continue to recognize all compact privileges granted pursuant to this compact for a minimum of 180 days after the date of such notice of withdrawal.

(A) Nothing contained in this compact shall be construed to invalidate or prevent any licensure agreement or other cooperative arrangement between a member state and a non-member state that does not conflict with the provisions of this compact.

(B) This compact may be amended by the member states. No amendment to this compact shall become effective and binding upon any member state until it is enacted into the laws of all member states.

ARTICLE 13—CONSTRUCTION AND SEVERABILITY

(a) This compact and the compact commission's rulemaking authority shall be liberally construed so as to effectuate the purposes, and the implementation and administration of the compact. Provisions of the compact expressly authorizing or requiring the promulgation of rules shall not be construed to limit the compact commission's rulemaking authority only for those purposes.

(b) The provisions of this compact shall be severable and if any phrase, clause, sentence or provision of this compact is held by a court of competent jurisdiction to be contrary to the constitution of any member state, a state seeking participation in the compact or of the United States, or the applicability thereof to any government, agency, person or circumstance is held to be unconstitutional by a court of competent jurisdiction, the validity of the remainder of this compact and the applicability thereof to any other government, agency, person or circumstance shall not be affected thereby.

(c) Notwithstanding the foregoing, the compact commission may deny a state's participation in the compact or terminate a member state's participation in the compact, if it determines that a constitutional requirement of a member state is a material departure from the compact. Otherwise, if this compact shall be held to be contrary to the constitution of any member state, the compact shall remain in full force and effect as to the remaining member states and in full force and effect as to the member state affected as to all severable matters.

ARTICLE 14—CONSISTENT EFFECT AND
CONFLICT WITH OTHER STATE LAWS

(a) This compact shall not prevent or inhibit the enforcement of any other law of a member state that is not inconsistent with the compact.

(b) Any laws, statutes, regulations or other legal requirements in a member state in conflict with the compact are superseded to the extent of the conflict.

(c) All permissible agreements between the compact commission and the member states are binding in accordance with their terms.";

And by renumbering sections accordingly;

On page 1, in the title, in line 1, by striking "the"; in line 2, by striking "practice of"; also in line 2, after the first "therapy" by inserting ", respiratory therapy, esthetics and athletic training"; in line 3, after "compact" by inserting ", respiratory care interstate compact, esthetics licensure compact and athletic trainer licensure compact"; also in line 3, by striking the second "to"; in line 4, by striking all before the period;

And your committee on conference recommends the adoption of this report.

Beverly Gossage

William Clifford

Cindy Holscher

Conferees on part of Senate

Will Carpenter

Ron Bryce

Susan Ruiz

Conferees on part of House

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2497 submits the following report:

The Senate recedes from all of its amendments to the bill.

And your committee on conference recommends the adoption of this report.

Brenda Dietrich

Michael Fagg

Silas Miller

Conferees on part of Senate

Nick Hoheisel

Angela Stiens

Rui Xu

Conferees on part of House

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2590 submits the following report:

The Senate recedes from all of its amendments to the bill.

And your committee on conference recommends the adoption of this report.

Brenda Dietrich

Michael Fagg

Silas Miller

Conferees on part of Senate

Nick Hoheisel

Angela Stiens

Rui Xu

Conferees on part of House

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2700 submits the following report:

The House accedes to all Senate amendments to the bill, and your committee on conference further agrees to amend the bill as printed with Senate Committee amendments, as follows:

On page 2, in line 22, by striking "(1)"; by striking all in lines 26 through 34;

On page 7, in line 37, by striking "and"; in line 38, after "equipment" by inserting "; and

(15) toys, if:

(A) The product's primary intended use is play or amusement by children under 14 years of age;

(B) the product does not function as a general purpose computing device; and

(C) the product does not perform critical safety, security or communication functions, including, but not limited to, home security monitoring or medical monitoring";

And your committee on conference recommends the adoption of this report.

Larry Alley

Stephen Owens

Oletha Faust-Goudeau

Conferees on part of Senate

Sean Tarwater

Jill Ward

Stephanie Sawyer Clayton

Conferees on part of House

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2464 submits the following report:

The House accedes to all Senate amendments to the bill, and your committee on conference further agrees to amend the bill as printed with Senate Committee of the Whole amendments, as follows:

On page 1, following line 10, by inserting:

"Section 1. K.S.A. 2025 Supp. 74-8133 is hereby amended to read as follows: 74-8133. (a) A credit against the tax imposed by article 32 of chapter 79 of the Kansas Statutes Annotated, and amendments thereto, on the Kansas taxable income of an angel investor and against the tax imposed by K.S.A. 40-252, and amendments thereto, shall be allowed for a cash investment in the qualified securities of a qualified Kansas business. For tax year 2021 and all tax years thereafter, the credit shall be in a total amount of up to 50% of such investors' cash investment in any qualified Kansas business, subject to the limitations set forth in subsection (b). This Such tax credit may be used in its entirety in the taxable year in which the cash investment is made, except that no tax credit shall be allowed in a year prior to January 1, 2005. If the amount by which that portion of the credit allowed by this section exceeds the investors' liability in any one taxable year, beginning in the year 2005, the remaining portion of the credit may be carried forward until the total amount of the credit is used. If the investor is a permitted entity investor, the credit provided by this section shall be claimed by the owners of the permitted entity investor in proportion to their ownership share of the permitted entity investor.

(b) For tax year 2021 and all tax years thereafter, the secretary of revenue shall not allow tax credits of more than $100,000 for a single Kansas business or a total of $350,000 in tax credits for a single year per investor who is a natural person or owner of a permitted entity investor. No tax credits authorized by this act shall be allowed for any cash investments in qualified securities for any year after the year 2026 2031. The total amount of tax credits that may be allowed under this section shall not exceed:

(1) $4,000,000 during the tax year 2007;

(2) $6,000,000 for tax years 2008 through 2010 and 2012 through 2022, except that for tax year 2011, the total amount of tax credits that may be allowed under this section shall not exceed $5,000,000;

(3) $6,500,000 for tax year 2023;

(4) $7,000,000 for tax year 2024;

(5) $7,500,000 for tax year 2025; and

(6) $8,000,000 for tax year 2026 and for each succeeding tax year through tax year 2031.

The balance of unissued tax credits may be carried over for issuance in future years until tax year 2026 2031.

For tax year 2027 and all tax years thereafter, at least 25% of the total amount of tax credits that may be allowed each tax year shall be utilized for investors investing in qualified Kansas businesses located in counties with a population of 50,000 or fewer, in years that the number of requests is sufficient to allow such distribution of tax credits. Such determination of whether there are sufficient requests shall be made based on the requests received on or before October 1 of each year.

(c) A cash investment in a qualified security shall be deemed to have been made on the date of acquisition of the qualified security, as such date is determined in accordance with the provisions of the internal revenue code.

(d) Any investor without a current tax liability at the time of the investment in a qualified Kansas business, who does not reasonably believe that it such investor will owe any such tax for the current taxable year and who makes a cash investment in a qualified security of a qualified Kansas business shall be deemed to acquire an interest in the nature of a transferable credit limited, for tax year 2021 and all tax years thereafter, to an amount of up to 50% of this such cash investment. This The interest may be transferred to any natural person, whether or not such person is then an investor, and be claimed by the transferee as a credit against the transferee's Kansas income tax liability beginning in the year provided in subsection (a). No person shall be entitled to a refund for the interest created under this section. Only the full credit for any one investment may be transferred, and this such interest may only be transferred one time. A credit acquired by transfer shall be subject to the limitations prescribed in this section. Documentation of any credit acquired by transfer shall be provided by the investor in the manner required by the director of taxation.

(e) The reasonable costs of the administration of this act, the review of applications for certification as qualified Kansas businesses and the issuance of tax credits authorized by this act shall be reimbursed through fees paid by the qualified Kansas businesses and the investors or the transferees of investors, according to a reasonable fee schedule adopted by the secretary by rules and regulations in accordance with the rules and regulations filing act.";

Also on page 1, in line 13, by striking "2029" and inserting "2031";

On page 2, in line 9, by striking "2029" and inserting "2031"; in line 38, by striking "2029" and inserting "2031"; in line 39, after "Supp." by inserting "74-8133,";

And by renumbering sections accordingly;

On page 1, in the title, in line 6, by striking "three" and inserting "five"; also in line 6, after the semicolon by inserting "extending the sunset for the angel investor tax credit to 2031 and providing for a minimum amount of credits for investors in qualified Kansas businesses located in counties with a population of 50,000 or fewer;"; also in line 6, after "Supp." by inserting "74-8133,";

And your committee on conference recommends the adoption of this report.

Larry Alley

Stephen Owens

Oletha Faust-Goudeau

Conferees on part of Senate

Sean Tarwater

Jill Ward

Stephanie Sawyer Clayton

Conferees on part of House

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2481 submits the following report:

The House accedes to all Senate amendments to the bill, and your committee on conference further agrees to amend the bill as printed with Senate Committee amendments, as follows:

On page 2, following line 18, by inserting:

amendments thereto, for the duration of the FIFA 2026 world cup commencing on June 11, 2026, and"New Sec. 2. (a) Notwithstanding the provisions of K.S.A. 41-712, 41-2614, 41-2653, 41-2704 and 41-2911, and continuing through July 19, 2026, any entity licensed under the Kansas liquor control act, the club and drinking establishment act or the Kansas cereal malt beverage act that is authorized to sell alcoholic liquor or cereal malt beverage in the original package or for consumption on the premises may sell alcoholic liquor or cereal malt beverage in accordance with the applicable statutes and rules and regulations governing the sale of such alcoholic liquor or cereal malt beverage by such licensee between the hours of 6:00 a.m. and 5:00 a.m. on the immediately following day if such entity is located in a city or the unincorporated area of a county that has elected to allow sales of alcoholic liquor and cereal malt beverage pursuant to this section in accordance with subsection (b).

(b) The board of county commissioners of any county may, by resolution, or the governing body of any city may, by ordinance, elect to allow the sale of alcoholic liquor or cereal malt beverage as described in subsection (a). Upon the adoption of any such resolution or ordinance, the clerk of such county or city shall submit a copy of such resolution or ordinance to the director of alcoholic beverage control.

(c) As used in this section, "FIFA 2026 world cup" means the international soccer tournament conducted every four years that is organized by the federation internationale de football association and set to be held in the United States, Canada and Mexico in 2026.

(d) The provisions of this section shall expire from and after July 20, 2026.";

Also on page 2, in line 30, by striking "one or"; in line 31, before "bedrooms" by inserting "than two";

On page 3, in line 4, by striking the first "one" and inserting "two"; by striking all in lines 7 through 35; in line 36, by striking "and 12-1696 are" and inserting "is";

And by renumbering sections accordingly;

On page 1, in the title, in line 1, by striking "tourist"; by striking all in lines 2 through 5; in line 6, by striking all before the semicolon and inserting "the FIFA 2026 world cup"; in line 7, by striking "such" and inserting "short-term rentals or vacation"; in line 8, by striking the semicolon and inserting ", and"; in line 10, after the semicolon by inserting "modifying the definition of transient guest for purposes of a transient guest tax for the period of May 15, 2026, through July 25, 2026; authorizing any city or county to allow the sale of alcoholic beverages 23 hours a day, seven days a week for the duration of the FIFA 2026 world cup;"; also in line 10, by striking "and 12-1696"; in line 11, by striking "sections" and inserting "section";

And your committee on conference recommends the adoption of this report.

Larry Alley

Stephen Owens

Oletha Faust-Goudeau

Conferees on part of Senate

Sean Tarwater

Jill Ward

Stephanie Sawyer Clayton

Conferees on part of House

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2333 submits the following report:

Your committee on conference agrees to disagree and recommends that a new conference committee be appointed;

And your committee on conference recommends the adoption of this report.

Renee Erickson

Adam Thomas

Dinah Sykes

Conferees on part of Senate

Susan Estes

Kyle McNorton

Conferees on part of House

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2372 submits the following report:

Your committee on conference agrees to disagree and recommends that a new conference committee be appointed;

And your committee on conference recommends the adoption of this report.

Mike Thompson

Tory Marie Blew

Oletha Faust Goudeau

Conferees on part of Senate

Tom Kessler

Rebecca Schmoe

Heather Meyer

Conferees on part of House

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2587 submits the following report:

Your committee on conference agrees to disagree and recommends that a new conference committee be appointed;

And your committee on conference recommends the adoption of this report.

Mike Thompson

Michael Murphy

Oletha Faust Goudeau

Conferees on part of Senate

Pat Proctor

Paul Waggoner

Conferees on part of House

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2760 submits the following report:

Your committee on conference agrees to disagree and recommends that a new conference committee be appointed;

And your committee on conference recommends the adoption of this report.

Mike Thompson

Tory Marie Blew

Oletha Faust-Goudeau

Conferees on part of Senate

Pat Proctor

Paul Waggoner

Conferees on part of House

CONFERENCE COMMITTEE REPORT

On motion of Rep. Carpenter, W., the conference committee report on SB 271 was adopted.

On roll call, the vote was: Yeas 125; Nays 0; Present but not voting: 0; Absent or not voting: 0.

Yeas: Alcala, Amyx, Anderson, Awerkamp, Ballard, Barrett, Bergkamp, Bergquist, Blex, Bloom, Boatman, Bohi, Borjon, Brantley, Paige, Brunk, Bryce, Buehler, Butler, Caiharr, Carlin, Carmichael, B. Carpenter, W. Carpenter, Carr, Chauncey, Collins, Corbet, Croft, Curtis, Delperdang, Droge, Ellis, Esau, Essex, Estes, Fairchild, Featherston, Francis, Gardner, Goddard, Goetz, Haskins, Hawkins, Helgerson, Helwig, Hoffman, Hoheisel, Howe, Howell, Howerton, Hoye, Huebert, Humphries, James, T. Johnson, Kessler, King, Lewis, Long, Martinez, McDonald, McNorton, Melton, Meyer, Minnix, Moser, Mosley, Neelly, Neighbor, Ohaebosim, Oropeza, Osman, Ousley, Pickert, Pishny, Poetter, Poskin, Proctor, Rahjes, Reavis, Rhiley, Roeser, Roth, Ruiz, L., Ruiz, S., Sanders, Sappington, Sawyer, Clayton, Schlingensiepen, Schmoe, Schreiber, Schwertfeger, Seiwert, Simmons, Smith, A., Smith, C., Steele, Stiens, Stogsdill, Storm, Sutton, Sweely, Tarwater, Turk, Turner, VanHouden, Vaughn, Waggoner, Ward, Wasinger, Waymaster, Weigel, White, Wikle, Wilborn, Willcott, Williams, K., Williams, L., Wilson, Winn, Wolf, Woodard, Xu.

Nays: None.

Present but not voting: None.

Absent or not voting: None.

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2528 submits the following report:

The House accedes to all Senate amendments to the bill, and your committee on conference further agrees to amend the bill as printed with Senate Committee of the Whole amendments, as follows:

On page 23, in line 15, by striking all before the second comma and inserting "July 1, 2026"; also in line 15, by striking the second "January 1, 2027" and inserting "July 1, 2026"; in line 16, by striking "January 1, 2027" and inserting "July 1, 2026"; in line 18, by striking all after "serve"; in line 19, by striking all before the period and inserting "between July 1, 2026, and the first day of the 2027 regular legislative session"; also in line 19, after the period by inserting:

"(3) Prior to the first day of the 2027 regular legislative session, the governor shall appoint members of the board who meet the requirements described in this section. Such members shall serve on and after the first day of the 2027 regular legislative session, while such members are awaiting confirmation by the senate.";

And your committee on conference recommends the adoption of this report.

Beverly Gossage

William Clifford

Conferees on part of Senate

Will Carpenter

Ron Bryce

Conferees on part of House

CONFERENCE COMMITTEE REPORT

MR. PRESIDENT and MR. SPEAKER: Your committee on conference on House amendments to SB 380 submits the following report:

The House recedes from all of its amendments to the bill, and your committee on conference further agrees to amend the bill as printed with Senate Committee amendments, as follows:

On page 1, in line 27, by striking all after "(c)"; by striking all in lines 28 and 29; in line 30, by striking "(d)"; in line 33, by striking "or";

On page 2, in line 1, after "employees" by inserting "; or

(3) is required to be owned or operated by a retail electric supplier pursuant to federal or state law or an order of the state corporation commission";

Also on page 2, by striking all in lines 2 through 11; following line 11 by inserting:

"(d) This section shall expire on July 1, 2036.";

On page 1, in the title, in line 4, by striking all after "services"; by striking all in lines 5 and 6; in line 7, by striking all before the period;

And your committee on conference recommends the adoption of this report.

Leo Delperdang

Rick Wilborn

KC Ohaebosim

Conferees on part of House

Michael Fagg

Mike Petersen

Marci Fransisco

Conferees on part of Senate

CONFERENCE COMMITTEE REPORT

MR. PRESIDENT and MR. SPEAKER: Your committee on conference on House amendments to SB 92 submits the following report:

The Senate accedes to all House amendments to the bill, and your committee on conference further agrees to amend the bill as printed with House Committee amendments, as follows:

On page 1, by striking all in lines 8 through 36;

On page 2, by striking all in lines 1 through 7; following line 7, by inserting:

"Section 1. K.S.A. 2025 Supp. 66-1,184 is hereby amended to read as follows: 66-1 constructed, installed and operated in accordance with all applicable standards and codes.

(2) Any customer that submits an application to construct, install and operate a distributed energy system shall have the option to remain on a retail rate tariff that is identical to the same rate class for which such customer would otherwise qualify as a retail customer who is not otherwise receiving service under a parallel generation service tariff or net metering tariff.

(3) A utility shall provide written notice of receipt of any application submitted pursuant to this section to the applicant within 30 days following such receipt. A utility shall approve or deny any such application or a request for system certification pursuant to such an application within,184. (a) As used in this section:

(1) "Avoided cost" means the incremental cost to a utility of electric energy that such utility would generate itself or purchase from another source and as such term is interpreted by the federal energy regulatory commission from time to time.

(2) "Distributed energy system" means any device or assembly of devices and supporting facilities that are capable of feeding excess electric power generated by a customer's energy producing system into the utility's system, such that all energy output and all other services will be fully consumed by the customer or the utility.

(3) "Export" means power that flows from a customer's electrical system through such customer's billing meter and onto the utility's electricity lines. "Export" includes the sum of power on all phase conductors.

(4) "Interconnected" means a listed system that is designed to export power and attached or connected on the customer's side of the retail meter at the customer's delivery point.

(5) "Listed" means that the device or equipment has been tested and certified to meet the institute of electrical and electronics engineers safety standards that specifically pertain to the intended function of the device or equipment.

(6) "Locational marginal price" means the hourly average market price of alternating current energy per kilowatt hour established by the applicable locational marginal price pricing node of the southwest power pool.

(7) "Monthly system average cost of energy per kilowatt hour" means the sum of all volumetric costs incurred by an electric utility during a calendar month or similar billing period as billed to the utility by generation and transmission providers and any volumetric generation costs incurred by the utility to generate energy divided by the total amount of retail kilowatt-hours that the utility sold in such month or billing period.

(8) "Permission to operate" means the operational date of the customer's distributed energy system as determined by the utility.

(9) "Utility" means any electric public utility as defined in K.S.A. 66-101a, and amendments thereto, cooperative as defined in K.S.A. 17-4603, and amendments thereto, electric utility owned by one or more such cooperatives, nonstock member-owned electric cooperative corporation incorporated in this state or municipally owned or operated electric utility.

(10) "Witness test" means an authorized representative of the electric utility who measures or verifies a specific setting or operational condition.

(b) Except as otherwise provided in this section, every utility that provides retail electric service in this state shall enter into a contract for parallel generation service with any person who is a customer in good standing with such utility that authorizes such customer to attach or connect to the utility's delivery and metering system a listed device for the purpose of exporting excess electrical power generated by such customer's distributed energy system to the utility's system. No such device shall cause damage to the public utility's system or equipment or present an undue hazard to utility personnel.

(c) (1) A utility may require any customer who is seeking to construct and install a distributed energy system to submit an application prior to any connection of the distributed energy system with the utility's system, notify the utility of the proposed distributed energy system and verify that such system is 90 calendar days following receipt of such application or request. If one or more additional studies are required, a utility shall not be subject to such 90-day deadline but shall provide the applicant with an estimated time frame for action on such application and act on such application as soon as practicable after any such studies are completed. If the utility denies such application or request, the utility shall provide to the applicant a list of the reasons for such denial and the corrective actions needed for approval.

(4) A utility may assess upon any customer requesting to install a distributed energy system:

(A) A fair and reasonable nonrefundable interconnection application fee;

(B) any applicable costs incurred by the utility for any study conducted to verify and allow the requested export capacity to be interconnected at the customer's point of delivery, including, but not limited to, costs incurred as a result of the southwest power pool's study processes; and

(C) costs associated with any related system upgrade costs, devices and equipment required to be furnished by the utility for the provision of accepting the requested export capacity.

(d) (1) Every contract for parallel generation service shall include provisions relating to fair and equitable compensation for energy exported to the utility by such customer. Except as authorized pursuant to paragraph (4), such compensation shall be not less than 100% of the utility's monthly avoided cost.

(2) A utility shall credit such compensation to the customer's account.

(3) A utility shall disclose to any customer the formula that the utility uses to determine the compensation that the utility provides pursuant to a contract for parallel generation service.

(4) (A) A utility may use locational marginal price or the monthly system average cost of energy per kilowatt hour to determine compensation for energy exported to the utility by the customer. Any such utility that uses locational marginal price or monthly system average cost of energy per kilowatt hour shall compensate the customer for the energy exported to the utility at least annually. Such compensation may be paid to such customer or credited to the customer's account. When determining compensation pursuant to this paragraph, in no case shall a utility issue an invoice for energy exported to the utility by the customer's distributed energy system. Upon the request of any customer who is subject to such locational marginal price compensation pursuant to this paragraph, the utility shall disclose the locational marginal price and the corresponding amount of energy exported to the utility by the customer's distributed energy system.

(B) The provisions of this paragraph shall expire on July 1, 2030.

(e) A customer-generator of any investor-owned utility shall have the option of entering into a contract pursuant to this section or utilizing the net metering and easy connection act. The customer-generator shall exercise the option in writing, filed with the utility.

(f) The following terms and conditions shall apply to contracts for parallel generation service:

(1) The utility shall furnish, own and maintain, at the utility's expense, all necessary meters and associated equipment utilized for billing;

(2) the utility may install, at the utility's expense, load research meters and equipment to monitor customer generation and load. The customer shall provide, at no expense to the utility, a suitable location for such meters and equipment;

(3) for the purposes of ensuring the safety and quality of utility system power, the utility shall have the right to require the customer, at certain times and as electrical operating conditions warrant, to limit the production of electrical energy from the generating facility to an amount no greater than the load at the customer's facility of which the generating facility is a part;

(4) the customer shall furnish, install, operate and maintain in good order and repair, at the customer's expense, a listed device that is suitable for the operation of the customer's distributed energy system in parallel with the utility's system.;

(5) the utility may install, own and maintain a disconnecting device located near the electric meter or meters or may require that a customer's distributed energy system contain a switch, circuit breaker, fuse or other device or feature that may be accessed by the utility at any time and would provide an authorized utility worker the ability to manually disconnect the customer's distributed energy system from the utility's electric distribution system;

(6) interconnection facilities between the customer's and the utility's equipment shall be accessible at all reasonable times to utility personnel;

(7) the customer shall notify the utility prior to the initial energizing and start-up testing of the customer's distributed energy system;

(8) prior to granting permission to operate, the utility may require:

(A) A witness test of the customer's distributed energy system and interconnection facilities;

(B) the customer to provide the certificate of inspection of the customer's distributed energy system completed pursuant to any municipal ordinance or code requirements or a certification from an electrician or electrical engineer licensed in this state that the system is installed according to applicable codes and standards; and

(C) the customer to provide documentation that the customer's distributed energy system was constructed and installed under the direction of a person who is certified by the north American board of certified energy practitioners or either a master electrician or electrical contractor licensed under the provisions of K.S.A. 12-1525 et seq., and amendments thereto;

(9) the utility may periodically require a witness test of the customer's distributed energy system and interconnection facilities throughout the provision of parallel generation service;

(10) the utility shall have the right and authority to disconnect and isolate a customer's distributed energy system without notice and at utility's sole discretion when:

(A) Electric service to a customer's premises is discontinued for any reason;

(B) adverse electrical effects, such as power quality problems, are occurring or are believed to be occurring on the utility's system or the electrical equipment of other utility customers;

(C) hazardous conditions on the utility's system are occurring or are believed to be occurring as a result of the operation of the distributed energy system or protective equipment;

(D) the utility identifies uninspected or unapproved equipment or modifications to the distributed energy system after initial approval;

(E) there is recurring abnormal operation, substandard operation or inadequate maintenance of the distributed energy system;

(F) the customer fails to remit payment to the utility for any amounts owed, including, but not limited to, amounts invoiced;

(G) the customer does not comply with the obligations of the interconnection agreement, except that, if such noncompliance is not an emergency situation, the utility shall give a customer 90 days to cure the noncompliance prior to disconnecting and isolating the distributed energy system; or

(H) such disconnection is necessary due to emergency or maintenance purposes. In the event that the utility disconnects the distributed energy system for maintenance, the utility shall make reasonable efforts to reconnect the distributed generating system as soon as practicable; and

(11) the customer shall retain the authority to temporarily disconnect such customer's distributed energy system from the utility's system at any time. Any such temporary disconnection shall not be construed as a customer's termination of the interconnection agreement without an express action to terminate such agreement pursuant to the terms and conditions of the agreement.

(g) The export capacity of a customer's renewable energy system shall be appropriately sized for such customer's anticipated electric load as follows:

(1) (A) Divide the customer's historic consumption in kilowatt-hours for the previous 12-month period by 8,760 and divide such quotient by a capacity factor of:

(i) 0.144 when such customer is in the service territory of an investor-owned utility; and

(ii) 0.288 when such customer is in the service territory of a cooperative as defined in K.S.A. 17-4603, and amendments thereto, an electric utility owned by one or more of such cooperatives, a nonstock member-owned electric cooperative corporation incorporated in this state or a municipally owned or operated electric utility; or

(B) if the customer does not have historic consumption data that adequately reflects the customer's consumption at such premises, the customer's historic consumption for the previous 12-month period shall be 7.15 kilowatt-hours per square foot of conditioned space; and

(2) round the amount determined pursuant to paragraph (1) up to the nearest one kilowatt alternating current power increment.

(h) (1) Except as provided in subsection (i), each utility shall, make parallel generation service available to customers who are in good standing with the utility, on a first-come, first-served basis, until the utility's aggregate export capacity from all distributed energy systems, including systems that are subject to a parallel generation service tariff established pursuant to this section and systems that are subject to a net metering tariff that was either voluntarily established by the utility or pursuant to K.S.A. 66-1263 et seq., and amendments thereto, equals or exceeds the following:

(A) Commencing on July 1, 2025, 6% of the utility's historic peak demand;

(B) commencing on July 1, 2026, 7% of the utility's historic peak demand; and

(C) commencing on July 1, 2027, and each year thereafter, 8% of the utility's historic peak demand.

(2) The utility may limit the export capacity of additional distributed energy systems to be connected to the utility's system due to the capacity of the distribution line to which such distributed energy system will be connected.

(i) (1) A utility shall not be required to make parallel generation service available to any customer who has a new or expanded facility that receives electric service at a voltage of 34.5 kilovolts or higher and commences such electric service on or after July 1, 2025.

(2) To determine a utility's historic peak demand for purposes of subsection (h), a utility's peak demand shall not include the additional demand of any new or expanded facility of an industrial, commercial or data center customer that receives electric service at a voltage of 34.5 kilovolts or higher and commences such electric service on or after July 1, 2025.

(3) The provisions of this subsection shall expire on July 1, 2026 2027.

(j) For any customer with a distributed energy system:

(1) The customer shall own and maintain any necessary export-limiting device;

(2) protections shall be in place to restrict the export-limiting device settings to qualified persons;

(3) the utility shall have the option to require a witness test of the export-limiting device's functions or settings prior to granting permission to operate and at any time while the distributed energy system is connected to the utility's system;

(4) the export capacity of the system shall not be increased without prior approval of the utility;

(5) the customer shall allow the utility to perform periodic witness tests of the export-limiting device's functions or settings upon request;

(6) if the export-limiting device's functions or settings are incorrect or if the device fails to limit the export of power below the designed export capacity for more than 15 minutes in any single event, the customer shall cease operation of the system until repair or reprogramming of the export-limiting device is completed. For purposes of this subparagraph, the utility may require and conduct a witness test prior to authorizing the customer to resume operation of the system; and

(7) the utility shall not restrict the brand or model of the export-limiting device if the device is approved by the manufacturer of a listed distributed energy system or is listed to perform such operations in conjunction with the customer's system.

(k) (1) (A) For a utility that is subject to the jurisdiction, regulation, supervision and control of the state corporation commission, service under any parallel generation service contract shall be subject to either the utility's rules and regulations on file with the state corporation commission, which shall include a standard interconnection process and requirements for such utility's system, or the current federal energy regulatory commission interconnection procedures and regulations.

(B) For a utility that is not subject to the jurisdiction, regulation, supervision and control of the state corporation commission, service under any parallel generation service contract shall be subject to the current federal energy regulatory commission interconnection procedures and regulations.

(2) In any case where the customer and a utility that is subject to the jurisdiction, regulation, supervision and control of the state corporation commission cannot agree to terms and conditions of any contract provided for by this section, the state corporation commission shall establish the terms and conditions for such contract.

(l) A utility shall not impose any additional fees, charges or requirements for the provision of parallel generation service unless expressly authorized pursuant to this section. Nothing in this section shall be construed to:

(1) Prohibit a utility from charging a distributed energy customer for the use of the utility's system; and

(2) authorize a utility to charge a distributed energy customer for power exported to the utility by such customer.

(m) (1) Any customer who has received approval from a utility to construct or operate a distributed energy system pursuant to this section shall notify the utility within 30 calendar days following the date that the construction has been canceled or the system is permanently shut down. Upon receipt of such notice, the utility shall cancel the parallel generation service contract with such customer.

(2) If a utility has reason to suspect that a customer's distributed energy system has been abandoned and is no longer producing energy, such utility may request verification from the customer that the system is still functioning, or that the customer has a reasonable plan to reenergize the system. If the customer fails to repair the system or provide a reasonable plan to complete such repairs within six months, the utility shall have the option to cancel the parallel generation service contract with such customer.

(3) Upon cancellation of any parallel generation service contract pursuant to this subsection, the utility shall not be obligated to refund any fees previously paid by the customer.

(n) (1) A customer shall have the right to repair or rebuild such customer's distributed energy system with listed equipment as long as such repair or rebuilding does not cause an increase in export capacity.

(2) If a customer repairs or replaces a distributed energy system, the customer shall notify the utility prior to such repair or replacement and provide proof that the new equipment complies with the same rules, regulations and approved capacity as the original installation. The utility shall have the right to require and conduct a witness test prior to authorizing operation of the system. A customer who repairs or replaces a system pursuant to this paragraph shall not be required to submit a new parallel generation service application to the utility.

(3) A customer shall not repair or replace a distributed energy system in a way that increases the export capacity of the system without providing prior notification to the utility. The utility may require the customer to submit a new parallel generation service application to include the new provisions and requirements relating to such system.

(o) (1) The governing body of any school desiring to proceed under this section shall, prior to taking any action permitted by this section, make a finding that either:

(A) Net energy cost savings will accrue to the school from such renewable generation over a 20-year period; or

(B) that such renewable generation is a science project being conducted for educational purposes and that such project may not recoup the expenses of the project through energy cost savings.

(2) Any school proceeding under this section may contract or enter into a finance, pledge, loan or lease-purchase agreement with the Kansas development finance authority as a means of financing the cost of such renewable generation.

(p) Nothing in this section shall be construed to require any cooperative as defined in K.S.A. 17-4603, and amendments thereto, electric utility owned by one or more such cooperatives, nonstock member-owned electric cooperative corporation incorporated in this state or municipally owned or operated electric utility to opt in to or otherwise participate in any demand response or distributed energy resource aggregation programs.

(q) The provisions of the net metering and easy connection act shall not preclude the state corporation commission from approving net metering tariffs upon request of an electric utility for other methods of renewable generation not prescribed in K.S.A. 66-1264(b)(1), and amendments thereto.";

Also on page 2, in line 8, by striking "66-1,178" and inserting "2025 Supp. 66-1,184";

On page 1, in the title, in line 1, by striking all after "concerning"; by striking all in lines 2 and 3; in line 4, by striking all before the semicolon and inserting "electric public utilities; relating to parallel generation; extending the expiration date for provisions that authorize a utility to not offer parallel generation service to certain large load customers and exempt certain large load customers from the determination of a utility's peak demand"; also in line 4, by striking "66-1,178" and inserting "2025 Supp. 66-1,184";

And your committee on conference recommends the adoption of this report.

Leo Delperdang

Rick Wilborn

KC Ohaebosim

Conferees on part of House

Michael Fagg

Mike Petersen

Marci Fransisco

Conferees on part of Senate

CONFERENCE COMMITTEE REPORT

MR. PRESIDENT and MR. SPEAKER: Your committee on conference on House amendments to SB 356 submits the following report:

The Senate accedes to all House amendments to the bill, and your committee on conference further agrees to amend the bill as printed as House Substitute for Senate Bill No. 356, as follows:

On page 1, by striking all in lines 7 through 36;

By striking all on page 2;

On page 3, by striking all in lines 1 through 5 and inserting:

"Section 1. Pursuant to K.S.A. 2025 Supp. 77-441, and amendments thereto, the Kansas racing and gaming commission is hereby authorized to adopt the following proposed permanent administrative rules and regulations concerning sports wagering as identified and described in the economic impact statement approved by the division of budget on February 13, 2025: K.A.R. 112-201-1, 112-201-2, 112-201-3, 112-201-4, 112-201-5, 112-201-6, 112-201-7, 112-201-8, 112-201-9, 112-201-10, 112-201-11, 112-201-12, 112-201-13, 112-201-15, 112-201-16, 112-201-17, 112-201-18, 112-201-19, 112-201-20, 112-201-21, 112-201-22, 112-201-23, 112-202-1, 112-202-2, 112-203-1, 112-203-2, 112-203-3, 112-203-4, 112-203-5, 112-203-6, 112-203-7, 112-203-8, 112-204-1, 112-204-2, 112-204-3, 112-204-4, 112-204-5, 112-204-6 and 112-204-7.";

Also on page 3, in line 7, by striking "statute book" and inserting "Kansas register";

On page 1, in the title, in line 1 by striking all after "concerning"; by striking all in lines 2 and 3; in line 4, by striking all before the period and inserting "administrative rules and regulations; relating to sports wagering; authorizing the adoption of certain rules and regulations by the Kansas racing and gaming commission"

And your committee on conference recommends the adoption of this report.

Tom Kessler

Rebecca Schmoe

Heather Meyer

Conferees on part of House

Mike Thompson

Tory Marie Blew

Oletha Faust Goudeau

Conferees on part of Senate

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2507 submits the following report:

The House accedes to all Senate amendments to the bill, and your committee on conference further agrees to amend the bill as printed with Senate Committee amendments, as follows:

On page 1, following line 7, by inserting:

"New Section 1. Pursuant to K.S.A. 2025 Supp. 77-441, and amendments thereto, the Kansas department of wildlife and parks is hereby authorized to adopt the following proposed permanent administrative rules and regulations concerning fees, registrations and other charges as identified and described in the rules and regulations submitted by the department to the division of budget on March 6, 2026: K.A.R. 115-2-2; and 115-2-3.";

Also on page 1, in line 8, before "K.S.A" by inserting "On and after July 1, 2026,"; in line 24, before "K.S.A" by inserting "On and after July 1, 2026,";

On page 4, following line 16, by inserting:

"Sec. 4. On and after July 1, 2026, K.S.A. 2025 Supp. 45-221 is hereby amended to read as follows: 45-221. (a) Except to the extent disclosure is otherwise required by law, a public agency shall not be required to disclose:

(1) Records the disclosure of which is specifically prohibited or restricted by federal law, state statute or rule of the Kansas supreme court or rule of the senate committee on confirmation oversight relating to information submitted to the committee pursuant to K.S.A. 75-4315d, and amendments thereto, or the disclosure of which is prohibited or restricted pursuant to specific authorization of federal law, state statute or rule of the Kansas supreme court or rule of the senate committee on confirmation oversight relating to information submitted to the committee pursuant to K.S.A. 75-4315d, and amendments thereto, to restrict or prohibit disclosure.

(2) Records that are privileged under the rules of evidence, unless the holder of the privilege consents to the disclosure.

(3) Medical, psychiatric, psychological or alcoholism or drug dependency treatment records that pertain to identifiable patients.

(4) Personnel records, performance ratings or individually identifiable records pertaining to employees or applicants for employment, except that this exemption shall not apply to the names, positions, salaries or actual compensation employment contracts or employment-related contracts or agreements and lengths of service of officers and employees of public agencies once they are employed as such.

(5) Information that would reveal the identity of any undercover agent or any informant reporting a specific violation of law.

(6) Letters of reference or recommendation pertaining to the character or qualifications of an identifiable individual, except documents relating to the appointment of persons to fill a vacancy in an elected office.

(7) Library, archive and museum materials contributed by private persons, to the extent of any limitations imposed as conditions of the contribution.

(8) Information that would reveal the identity of an individual who lawfully makes a donation to a public agency, if anonymity of the donor is a condition of the donation, except if the donation is intended for or restricted to providing remuneration or personal tangible benefit to a named public officer or employee.

(9) Testing and examination materials, before the test or examination is given or if it is to be given again, or records of individual test or examination scores, other than records that show only passage or failure and not specific scores.

(10) Criminal investigation records, except as provided herein. The district court, in an action brought pursuant to K.S.A. 45-222, and amendments thereto, may order disclosure of such records, subject to such conditions as the court may impose, if the court finds that disclosure:

(A) Is in the public interest;

(B) would not interfere with any prospective law enforcement action, criminal investigation or prosecution;

(C) would not reveal the identity of any confidential source or undercover agent;

(D) would not reveal confidential investigative techniques or procedures not known to the general public;

(E) would not endanger the life or physical safety of any person; and

(F) would not reveal the name, address, phone number or any other information that specifically and individually identifies the victim of any sexual offense described in article 35 of chapter 21 of the Kansas Statutes Annotated, prior to their repeal, or article 55 of chapter 21 of the Kansas Statutes Annotated, and amendments thereto.

If a public record is discretionarily closed by a public agency pursuant to this subsection, the record custodian, upon request, shall provide a written citation to the specific provisions of subparagraphs (A) through (F) that necessitate closure of that public record.

(11) Records of agencies involved in administrative adjudication or civil litigation, compiled in the process of detecting or investigating violations of civil law or administrative rules and regulations, if:

(A) Disclosure would interfere with a prospective administrative adjudication or civil litigation;

(B) disclosure would reveal the identity of a confidential source or undercover agent; or

(C) the investigation is formally closed and the agency determines that no violation occurred.

(12) Records of emergency or security information or procedures of a public agency, if disclosure would jeopardize public safety, including records of cybersecurity plans, cybersecurity assessments and cybersecurity vulnerabilities or procedures related to cybersecurity plans, cybersecurity assessments and cybersecurity vulnerabilities, or plans, drawings, specifications or related information for any building or facility that is used for purposes requiring security measures in or around the building or facility or that is used for the generation or transmission of power, water, fuels or communications, if disclosure would jeopardize security of the public agency, building or facility.

(13) The contents of appraisals or engineering or feasibility estimates or evaluations made by or for a public agency relative to the acquisition of property, prior to the award of formal contracts therefor.

(14) Correspondence between a public agency and a private individual, other than correspondence that is intended to give notice of an action, policy or determination relating to any regulatory, supervisory or enforcement responsibility of the public agency or that is widely distributed to the public by a public agency and is not specifically in response to communications from such a private individual.

(15) Records pertaining to employer-employee negotiations, if disclosure would reveal information discussed in a lawful executive session under K.S.A. 75-4319, and amendments thereto.

(16) Software programs for electronic data processing and documentation thereof, but each public agency shall maintain a register, open to the public, that describes:

(A) The information that the agency maintains on computer facilities; and

(B) the form in which the information can be made available using existing computer programs.

(17) Applications, financial statements and other information submitted in connection with applications for student financial assistance where financial need is a consideration for the award.

(18) Plans, designs, drawings or specifications that are prepared by a person other than an employee of a public agency or records that are the property of a private person.

(19) Well samples, logs or surveys that the state corporation commission requires to be filed by persons who have drilled or caused to be drilled, or are drilling or causing to be drilled, holes for the purpose of discovery or production of oil or gas, to the extent that disclosure is limited by rules and regulations of the state corporation commission.

(20) Notes, preliminary drafts, research data in the process of analysis, unfunded grant proposals, memoranda, recommendations or other records in which opinions are expressed or policies or actions are proposed, except that this exemption shall not apply when such records are publicly cited or identified in an open meeting or in an agenda of an open meeting.

(21) Records of a public agency having legislative powers that pertain to proposed legislation or amendments to proposed legislation, except that this exemption shall not apply when such records are:

(A) Publicly cited or identified in an open meeting or in an agenda of an open meeting; or

(B) distributed to a majority of a quorum of any body that has authority to take action or make recommendations to the public agency with regard to the matters to which such records pertain.

(22) Records of a public agency having legislative powers that pertain to research prepared for one or more members of such agency, except that this exemption shall not apply when such records are:

(A) Publicly cited or identified in an open meeting or in an agenda of an open meeting; or

(B) distributed to a majority of a quorum of any body that has authority to take action or make recommendations to the public agency with regard to the matters to which such records pertain.

(23) Library patron and circulation records that pertain to identifiable individuals.

(24) Records that are compiled for census or research purposes and which that pertain to identifiable individuals.

(25) Records that represent and constitute the work product of an attorney.

(26) Records of a utility or other public service pertaining to individually identifiable residential customers of the utility or service.

(27) Specifications for competitive bidding, until the specifications are officially approved by the public agency.

(28) Sealed bids and related documents, until a bid is accepted or all bids rejected.

(29) Correctional records pertaining to an identifiable inmate or release, except that:

(A) The name; photograph and other identifying information; sentence data; parole eligibility date; custody or supervision level; disciplinary record; supervision violations; conditions of supervision, excluding requirements pertaining to mental health or substance abuse counseling; location of facility where incarcerated or location of parole office maintaining supervision and address of a releasee whose crime was committed after the effective date of this act shall be subject to disclosure to any person other than another inmate or releasee, except that the disclosure of the location of an inmate transferred to another state pursuant to the interstate corrections compact shall be at the discretion of the secretary of corrections;

(B) the attorney general, law enforcement agencies, counsel for the inmate to whom the record pertains and any county or district attorney shall have access to correctional records to the extent otherwise permitted by law;

(C) the information provided to the law enforcement agency pursuant to the sex offender registration act, K.S.A. 22-4901 et seq., and amendments thereto, shall be subject to disclosure to any person, except that the name, address, telephone number or any other information that specifically and individually identifies the victim of any offender required to register as provided by the Kansas offender registration act, K.S.A. 22-4901 et seq., and amendments thereto, shall not be disclosed; and

(D) records of the department of corrections regarding the financial assets of an offender in the custody of the secretary of corrections shall be subject to disclosure to the victim, or such victim's family, of the crime for which the inmate is in custody as set forth in an order of restitution by the sentencing court.

(30) Public records containing information of a personal nature where the public disclosure thereof would constitute a clearly unwarranted invasion of personal privacy.

(31) Public records pertaining to prospective location of a business or industry where no previous public disclosure has been made of the business' or industry's interest in locating in, relocating within or expanding within the state. This exception shall not include those records pertaining to application of agencies for permits or licenses necessary to do business or to expand business operations within this state, except as otherwise provided by law.

(32) Engineering and architectural estimates made by or for any public agency relative to public improvements.

(33) Financial information submitted by contractors in qualification statements to any public agency.

(34) Records involved in the obtaining and processing of intellectual property rights that are expected to be, wholly or partially vested in or owned by a state educational institution, as defined in K.S.A. 76-711, and amendments thereto, or an assignee of the institution organized and existing for the benefit of the institution.

(35) Any report or record that is made pursuant to K.S.A. 65-4922, 65-4923 or 65-4924, and amendments thereto, and that is privileged pursuant to K.S.A. 65-4915 or 65-4925, and amendments thereto.

(36) Information that would reveal the precise location of an archeological site.

(37) Any financial data or traffic information from a railroad company, to a public agency, concerning the sale, lease or rehabilitation of the railroad's property in Kansas.

(38) Risk-based capital reports, risk-based capital plans and corrective orders including the working papers and the results of any analysis filed with the commissioner of insurance in accordance with K.S.A. 40-2c20 and 40-2d20, and amendments thereto.

(39) Memoranda and related materials required to be used to support the annual actuarial opinions submitted pursuant to K.S.A. 40-409(b), and amendments thereto.

(40) Disclosure reports filed with the commissioner of insurance under K.S.A. 40-2,156(a), and amendments thereto.

(41) All financial analysis ratios and examination synopses concerning insurance companies that are submitted to the commissioner by the national association of insurance commissioners' insurance regulatory information system.

(42) Any records the disclosure of which is restricted or prohibited by a tribal-state gaming compact.

(43) Market research, market plans, business plans and the terms and conditions of managed care or other third-party contracts, developed or entered into by the university of Kansas medical center in the operation and management of the university hospital that the chancellor of the university of Kansas or the chancellor's designee determines would give an unfair advantage to competitors of the university of Kansas medical center.

(44) The amount of franchise tax paid to the secretary of revenue or the secretary of state by domestic corporations, foreign corporations, domestic limited liability companies, foreign limited liability companies, domestic limited partnership, foreign limited partnership, domestic limited liability partnerships and foreign limited liability partnerships.

(45) Records, other than criminal investigation records, the disclosure of which would pose a substantial likelihood of revealing security measures that protect:

(A) Systems, facilities or equipment used in the production, transmission or distribution of energy, water or communications services;

(B) transportation and sewer or wastewater treatment systems, facilities or equipment; or

(C) private property or persons, if the records are submitted to the agency. For purposes of this paragraph, security means measures that protect against criminal acts intended to intimidate or coerce the civilian population, influence government policy by intimidation or coercion or to affect the operation of government by disruption of public services, mass destruction, assassination or kidnapping. Security measures include, but are not limited to, intelligence information, tactical plans, resource deployment and vulnerability assessments.

(46) Any information or material received by the register of deeds of a county from military discharge papers, DD Form 214. Such papers shall be disclosed: To the military dischargee; to such dischargee's immediate family members and lineal descendants; to such dischargee's heirs, agents or assigns; to the licensed funeral director who has custody of the body of the deceased dischargee; when required by a department or agency of the federal or state government or a political subdivision thereof; when the form is required to perfect the claim of military service or honorable discharge or a claim of a dependent of the dischargee; and upon the written approval of the Kansas office of veterans services, to a person conducting research.

(47) Information that would reveal the location of a shelter or a safehouse or similar place where persons are provided protection from abuse or the name, address, location or other contact information of alleged victims of stalking, domestic violence or sexual assault.

(48) Policy information provided by an insurance carrier in accordance with K.S.A. 44-532(h)(1), and amendments thereto. This exemption shall not be construed to preclude access to an individual employer's record for the purpose of verification of insurance coverage or to the department of labor for their business purposes.

(49) An individual's e-mail address, cell phone number and other contact information that has been given to the public agency for the purpose of public agency notifications or communications that are widely distributed to the public.

(50) Information provided by providers to the local collection point administrator or to the 911 coordinating council pursuant to the Kansas 911 act upon request of the party submitting such records.

(51) Records of a public agency on a public website that are searchable by a keyword search and identify the home address or home ownership of: A law enforcement officer as defined in K.S.A. 21-5111, and amendments thereto; a parole officer; a probation officer; a court services officer; a community correctional services officer; a local correctional officer or local detention officer; a federal judge; a justice of the supreme court; a judge of the court of appeals; a district judge; a district magistrate judge; a municipal judge; a presiding officer who conducts hearings pursuant to the Kansas administrative procedure act; an administrative law judge employed by the office of administrative hearings; a member of the state board of tax appeals; an administrative law judge who conducts hearings pursuant to the workers compensation act; a member of the workers' compensation appeals board; the United States attorney for the district of Kansas; an assistant United States attorney; a special assistant United States attorney; the attorney general; an assistant attorney general; a special assistant attorney general; a county attorney; an assistant county attorney; a special assistant county attorney; a district attorney; an assistant district attorney; a special assistant district attorney; a city attorney; an assistant city attorney; or a special assistant city attorney. Such person shall file with the custodian of such record a request to have such person's identifying information restricted from public access on such public website. Within 10 business days of receipt of such requests, the public agency shall restrict such person's identifying information from such public access. Such restriction shall expire after five years and such person may file with the custodian of such record a new request for restriction at any time.

(52) Records of a public agency that would disclose the name, home address, zip code, e-mail address, phone number or cell phone number or other contact information for any person licensed to carry concealed handguns or of any person who enrolled in or completed any weapons training in order to be licensed or has made application for such license under the personal and family protection act, K.S.A. 75-7c01 et seq., and amendments thereto, shall not be disclosed unless otherwise required by law.

(53) Records of a utility concerning information about cyber security threats, attacks or general attempts to attack utility operations provided to law enforcement agencies, the state corporation commission, the federal energy regulatory commission, the department of energy, the southwest power pool, the North American electric reliability corporation, the federal communications commission or any other federal, state or regional organization that has a responsibility for the safeguarding of telecommunications, electric, potable water, waste water disposal or treatment, motor fuel or natural gas energy supply systems.

(54) Records of a public agency containing information or reports obtained and prepared by the office of the state bank commissioner in the course of licensing or examining a person engaged in money transmission business pursuant to K.S.A. 9-508 et seq., and amendments thereto, shall not be disclosed except pursuant to K.S.A. 9-513c, and amendments thereto, or unless otherwise required by law.

(55) Records of a public agency that contain captured license plate data or that pertain to the location of an automated license plate recognition system.

(56) Records of a public agency that contain material that is obscene as defined in K.S.A. 21-6401, and amendments thereto.

(57) Records of the department of wildlife and parks regarding the precise location of any species that is listed as threatened or endangered pursuant to 16 U.S.C. § 1531 et seq. or the precise location of any species that is threatened, endangered or in need of conservation pursuant to the nongame and endangered species conservation act, K.S.A. 32-957 et seq., and amendments thereto, except when requested by a landowner, landowner's lessee or other designee regarding such person's own property.

(b) Except to the extent disclosure is otherwise required by law or as appropriate during the course of an administrative proceeding or on appeal from agency action, a public agency or officer shall not disclose financial information of a taxpayer that may be required or requested by a county appraiser or the director of property valuation to assist in the determination of the value of the taxpayer's property for ad valorem taxation purposes; or any financial information of a personal nature required or requested by a public agency or officer, including a name, job description or title revealing the salary or other compensation of officers, employees or applicants for employment with a firm, corporation or agency, except a public agency. Nothing contained herein shall be construed to prohibit the publication of statistics, so classified as to prevent identification of particular reports or returns and the items thereof.

(c) As used in this section, the term ''cited or identified'' does not include a request to an employee of a public agency that a document be prepared.

(d) If a public record contains material that is not subject to disclosure pursuant to this act, the public agency shall separate or delete such material and make available to the requester that material in the public record that is subject to disclosure pursuant to this act. If a public record is not subject to disclosure because it pertains to an identifiable individual, the public agency shall delete the identifying portions of the record and make available to the requester any remaining portions that are subject to disclosure pursuant to this act, unless the request is for a record pertaining to a specific individual or to such a limited group of individuals that the individuals' identities are reasonably ascertainable, the public agency shall not be required to disclose those portions of the record that pertain to such individual or individuals.

(e) The provisions of this section shall not be construed to exempt from public disclosure statistical information not descriptive of any identifiable person.

(f) Notwithstanding the provisions of subsection (a), any public record that has been in existence more than 70 years shall be open for inspection by any person unless disclosure of the record is specifically prohibited or restricted by federal law, state statute or rule of the Kansas supreme court or by a policy adopted pursuant to K.S.A. 72-6214, and amendments thereto.

(g) Any confidential records or information relating to security measures provided or received under the provisions of subsection (a)(45) shall not be subject to subpoena, discovery or other demand in any administrative, criminal or civil action.";

Also on page 4, in line 17, before the first "K.S.A" by inserting "On and after July 1, 2026,"; also in line 17, after "32-988" by inserting "and 45-221"; in line 20, by striking "statute book" and inserting "Kansas register";

And by renumbering sections accordingly;

On page 1, in the title, in line 1, by striking "relating to hunting" and inserting "authorizing the department of wildlife and parks to adopt certain rules and regulations related to fees, registrations and other charges; providing an exception from the disclosure requirements of the Kansas open records act for records of the department of wildlife and parks regarding the location of any species that is threatened, endangered or in need of conservation"; in line 4, after "32-988" by inserting "and 45-221";

And your committee on conference recommends the adoption of this report.

Virgil Peck

Larry Alley

Marci Francisco

Conferees on part of Senate

Tom Kessler

Rebecca Schmoe

Heather Meyer

Conferees on part of House

CONFERENCE COMMITTEE REPORT

MR. SPEAKER and MR. PRESIDENT: Your committee on conference on Senate amendments to HB 2591 submits the following report:

The House accedes to all Senate amendments to the bill, and your committee on conference further agrees to amend the bill as printed with Senate Committee amendments, as follows:

On page 1, in line 10, before "Section 1." by inserting "New";

On page 2, in line 8, before "Sec. 2." by inserting "New"; in line 16, before "Sec. 3." by inserting "New"; in line 28, before "Sec. 4." by inserting "New";

On page 3, in line 12, before "Sec. 5." by inserting "New"; following line 35, by inserting:

"New Sec. 6. (a) The provisions of sections 6 through 11, and amendments thereto, shall be known and may be cited as the virtual currency kiosk consumer protection act, and shall be a part of and supplemental to the Kansas money transmission act.

(b) This section shall take effect on and after July 1, 2026.

New Sec. 7. (a) As used in this act:

(1) "Act" means the virtual currency kiosk consumer protection act.

(2) "Blockchain" means a distributed digital ledger or database that is chronological, consensus-based, decentralized and mathematically verified in nature.

(3) "Blockchain analytics" means a software service that uses data from various virtual currencies and such currencies' applicable blockchains to provide a risk rating specific to digital wallet addresses from users of virtual currency kiosks.

(4) "Digital wallet" means hardware or software that enables individuals to store and use virtual currency.

(5) "Digital wallet address" means an alphanumeric identifier representing a destination on a blockchain for a virtual currency transfer that is associated with a digital wallet.

(6) "Initial virtual currency transaction" means the first transaction that a virtual currency operator facilitates in the exchange of money for virtual currency or virtual currency for money or other virtual currency with a person in Kansas.

(7) "Virtual currency" means a digital representation of value that:

(A) Is used as a medium of exchange, unit of account or store of value;

(B) is not money, whether or not denominated in money; and

(C) does not include a:

(i) Transaction in which a merchant grants, as part of an affinity or rewards program, value that cannot be taken from or exchanged with the merchant for money, bank credit or virtual currency; or

(ii) digital representation of value issued by or on behalf of a publisher and used solely within an online game, game platform or family of games sold by the same publisher or offered on the same game platform.

(8) "Virtual currency kiosk" means an electronic terminal owned, rented or leased by a virtual currency kiosk operator that enables the operator to facilitate the exchange of money for virtual currency or virtual currency for money or other virtual currency with a person in Kansas, including, but not limited to:

(A) Connecting directly to a separate virtual currency exchange that performs the actual virtual currency transmission; or

(B) drawing upon the virtual currency in the possession of the owner or operator of the electronic terminal.

(9) "Virtual currency kiosk operator" means a person who owns, rents or leases a virtual currency kiosk and engages in virtual currency transactions at a physical location within this state.

(b) This section shall take effect on and after July 1, 2026.

New Sec. 8.  (a) Prior to entering into an initial virtual currency transaction for, on behalf of or with a person in Kansas, each virtual currency kiosk operator shall disclose in clear, conspicuous and legible writing in the English language, whether in accessible terms of service or elsewhere, all material risks associated with such virtual currency kiosk operator's products, services and activities and virtual currency, generally, including disclosures substantially similar to the following:

(1) Virtual currency is not legal tender and is not backed or insured by the government;

(2) legislative and regulatory changes or actions at the state, federal or international level may adversely affect the use, transfer, exchange and value of virtual currency;

(3) transactions in virtual currency may be irreversible, and, accordingly, losses due to fraudulent or accidental transactions may not be recoverable;

(4) some virtual currency transactions shall be deemed to be made when recorded on a public ledger that is not necessarily the date or time that you initiate the transaction;

(5) the value of virtual currency may be derived from the continued willingness of market participants to exchange money for virtual currency, which may result in the potential for permanent and total loss of value of a particular virtual currency should the market for that virtual currency disappear;

(6) there is no assurance that a person who accepts a virtual currency as payment today will continue to do so in the future;

(7) the volatility and unpredictability of the price of virtual currency relative to the United States dollar may result in significant loss over a short period of time;

(8) the nature of virtual currency may lead to an increased risk of fraud or cyber attack;

(9) the nature of virtual currency means that any technological difficulties experienced by the virtual currency kiosk operator may prevent the access or use of your virtual currency; and

(10) any bond or trust account maintained by the virtual currency kiosk operator for the benefit of such operator's customers may not be sufficient to cover all losses incurred by customers.

(b) When opening an account, and prior to entering into an initial virtual currency transaction for, on behalf of or with such person in Kansas, each virtual currency kiosk operator shall disclose in clear, conspicuous and legible writing in the English language, whether in accessible terms of service or elsewhere, all relevant terms and conditions associated with such virtual currency kiosk operator's products, services and activities and virtual currency, generally, including disclosures substantially similar to the following:

(1) The person's liability for unauthorized virtual currency transactions;

(2) under what circumstances the virtual currency kiosk operator will, absent a court or government order, disclose the person's information to third parties;

(3) the person's right to receive periodic account statements and valuations from the virtual currency kiosk operator;

(4) the person's right to receive a receipt, trade ticket or other evidence of a transaction;

(5) the person's right to prior notice of a change in the virtual currency kiosk operator's rules or policies; and

(6) such other disclosures as are customarily given in connection with the opening of accounts.

(c) Prior to entering into each virtual currency transaction with a person in Kansas, each virtual currency kiosk operator shall ensure that a warning is clearly and conspicuously disclosed on the screen, that shall be acknowledged by tapping the screen or similar manner, and by email, in at least 12-point or the largest available font size that is substantially similar to the following, including bold and capitalization:

WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT FROM A STRANGER WHO IS INITIATING A DISHONEST SCHEME. CRIMINAL ACTIVITY MAY APPEAR IN MANY FORMS, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING:

1. Impersonating a family member or friend while claiming to be in financial or criminal trouble.

2. Communication from someone impersonating a representative of your financial institution or a law enforcement officer.

3. Claims of a frozen bank account or credit card.

4. Claims of fraudulent financial transactions.

5. Claims of identity theft or job offers in exchange for payment.

6. Requests for payment to government agencies or companies.

7. Requests for disaster relief donations or loans.

8. Offers to purchase tickets for lotteries, sweepstakes or drawings for vehicles.

IF YOU BELIEVE YOU ARE BEING SCAMMED, CONTACT YOUR LOCAL LAW ENFORCEMENT.

(d) Upon completion of any virtual currency kiosk transaction, each virtual currency kiosk operator shall provide to the person in Kansas a receipt containing the following information:

(1) The name and contact information of the virtual currency kiosk operator, including a telephone number established by the virtual currency kiosk operator to answer questions and register complaints;

(2) the type, value, date and precise time of the transaction in the local time zone;

(3) the fee charged;

(4) the exchange rate, if applicable;

(5) the difference, if any, between the exchange rate and the market rate of any virtual currency involved in the transaction realized by the person in Kansas if the difference represents a decrease in value. The difference shall be expressed in the equivalent United States dollar and labeled as a "spread fee";

(6) a statement of the liability of the virtual currency kiosk operator for non-delivery or delayed delivery;

(7) a statement of the refund policy of the virtual currency kiosk operator in compliance with section 7, and amendments thereto; and

(8) the complete wallet address where money or virtual currency is deposited or sent.

(e) The receipt required by subsection (d) shall be provided in paper form if the virtual currency kiosk operator first placed a virtual currency kiosk into service in Kansas on or after July 1, 2026. If a virtual currency kiosk was placed into service before July 1, 2026, the virtual currency kiosk operator shall provide a paper or digital receipt. All digital receipts shall require a clicked acknowledgment that the consumer has provided such consumer's email address.

(f) If the virtual currency kiosk provider agrees to conduct the transaction in Spanish, all disclosures required by this section shall also be provided in Spanish. In lieu of the disclosure required by subsection (c), the virtual currency kiosk provider shall ensure that a warning is clearly and conspicuously disclosed on the screen, that shall be acknowledged by tapping the screen or similar manner, and by email in at least 12-point or the largest available font size that is substantially similar to the following, including bold and capitalization:

ADVERTENCIA: EL FRAUDE AL CONSUMIDOR FRECUENTEMENTE COMIENZA CON EL CONTACTO DE UN EXTRAÑO QUE ESTÁ INICIANDO UN PLAN DESHONESTO. LA ACTIVIDAD CRIMINAL PUEDE APARECER DE MUCHAS FORMAS, INCLUYENDO, PERO NO LIMITADO, A LAS SIGUIENTES:

1. Hacerse pasar por un familiar o amigo mientras afirma estar en problemas financieros o criminales.

2. Comunicación de alguien que se hace pasar por un representante de su institución financiera o una agente policíaca.

3. Afirmaciones de cuenta bancaria o tarjeta de crédito congelada.

4. Afirmaciones de transacciones financieras fraudulentas.

5. Afirmaciones de robo de identidad u ofertas de trabajo a cambio de un pago.

6. Solicitudes de pago a agencias o empresas gubernamentales.

7. Solicitudes de donaciones o préstamos para ayuda en casos de desastre.

8. Ofertas para la compra de billetes de loterías, sorteos o sorteos de vehículos.

SI CREES QUE ESTÁS SIENDO ESTAFADO, COMUNÍQUESE CON LA POLICÍA LOCAL.

(g) Each virtual currency kiosk operator shall retain evidence of disclosures as required by this section for three years in addition to all other retention requirements of K.S.A. 2025 Supp. 9-578, and amendments thereto.

(h) The disclosures required by this section are intended to serve as warnings to users who may be conducting a virtual currency kiosk transaction as a result of a scam. Such disclosures shall not affect or prevent a fraud victim's ability to be eligible for a refund.

(i) This section shall take effect on and after July 1, 2026.

New Sec. 9. (a) All virtual currency kiosk operators shall use blockchain analytics software to assist in the prevention of sending purchased virtual currency from a virtual currency kiosk operator to a digital wallet known to be affiliated with fraudulent activity at the time of a transaction. The commissioner may request evidence from any virtual currency kiosk operator of current and historical use of blockchain analytics. The virtual currency kiosk operator shall be held harmless if such virtual currency kiosk operator refuses to complete a transaction based upon the knowledge or a credible suspicion that a digital wallet in the transaction is affiliated with fraudulent activity.

(b) All virtual currency kiosk operators performing business in this state shall provide live customer service during kiosk operating hours. The customer service toll-free number shall be displayed on the virtual currency kiosk or the virtual currency kiosk screens. The customer service toll-free number shall be staffed by trained individuals who are employed by or on behalf of the virtual currency kiosk operator and who provide customer assistance to a caller in real time.

(c) All virtual currency kiosk operators shall take reasonable steps to detect and prevent fraud, including establishing and maintaining a written anti-fraud policy. The anti-fraud policy shall, at a minimum, include:

(1) The identification and assessment of fraud-related risk areas;

(2) procedures and controls to protect against identified risks;

(3) allocation of responsibility for monitoring risks; and

(4) procedures for the periodic evaluation and revision of the anti-fraud procedures, controls and monitoring mechanisms.

(d) (1) Each virtual currency kiosk operator shall maintain, implement and enforce a written enhanced due diligence policy. Such a policy shall be reviewed and approved by the virtual currency kiosk operator's board of directors or an equivalent governing body of the virtual currency kiosk operator.

(2) The enhanced due diligence policy shall identify, at a minimum, individuals who are at risk of fraud based on age or mental capacity.

(e) Each virtual currency kiosk operator shall designate and employ a consumer protection officer with the following requirements:

(1) The individual shall be qualified to coordinate and monitor compliance with this section and all other applicable federal and state laws, rules and regulations;

(2) the individual shall be employed full time by the virtual currency kiosk operator;

(3) the designated consumer protection officer shall not be an individual who owns more than 20% of the virtual currency kiosk operator by which the individual is employed; and

(4) the designated consumer protection officer shall have a direct dedicated telephone number outside of any call routing system and an email address for facilitating law enforcement and regulatory agency communications.

(f) (1) Each virtual currency kiosk operator shall submit a report to the commissioner, including the location of each virtual currency kiosk within this state, within 45 days of the end of each calendar quarter in the form and manner directed by the commissioner.

(2) The location report of such virtual currency kiosk shall include, at a minimum:

(A) The legal name of the company;

(B) any fictitious or trade name;

(C) the physical address;

(D) when the virtual currency kiosk was first placed into service in Kansas;

(E) the virtual currency kiosk's operating hours;

(F) the start date of operation of a virtual currency kiosk at each location; and

(G) the end date of operation of a virtual currency kiosk at each location, if applicable.

(g) (1) Any virtual currency kiosk operator who owns, operates, solicits, markets, advertises or facilitates virtual currency kiosks in this state shall be deemed to be engaged in money transmission and require licensure pursuant to K.S.A. 2025 Supp. 9-564, and amendments thereto, and fully comply with money transmitter reporting.

(2) All unlicensed virtual currency kiosk operators shall apply for a money transmitter license within 60 days after July 1, 2026. Virtual currency kiosk operators who apply within such time provided shall be allowed to continue operations while the commissioner reviews a complete application. Any virtual currency kiosk operator whose application is denied by the commissioner shall cease operations until granted a money transmitter license.

(h) For each virtual currency transaction, the virtual currency kiosk operator or such operator's authorized delegate shall verify the identity of the user prior to accepting payment from such user. A virtual currency kiosk operator or such operator's authorized delegate shall obtain a copy of a government-issued identification card that identifies such user and shall collect additional information, including the user's name, date of birth, telephone number, address and email address prior to accepting a payment from such user at a virtual currency kiosk. A virtual currency kiosk operator shall not allow a user to engage in any transaction at a virtual currency kiosk under any name, account or identity other than such user's own true name and identity. A virtual currency kiosk operator shall be strictly liable for any violation of this section.

(i) This section shall take effect on and after July 1, 2026.

New Sec. 10.  (a) A virtual currency kiosk operator shall not collect direct or indirect charges related to a virtual currency transaction from a person in Kansas that exceed the greater of the following:

(1) $5 in United States currency or the equivalent; or

(2) 18% of the full money transmission amount in United States currency or the equivalent.

(b) A spread on a virtual currency purchase or sale between the market price and the price offered to a person in Kansas shall be considered an indirect charge.

(c) Each virtual currency kiosk provider shall retain documentation of the relevant virtual currency market price at the time of each transaction.

(d) This section shall take effect on and after July 1, 2026.

New Sec. 11. (a) Each virtual currency kiosk operator shall retain, hold and safekeep any money or virtual currency provided as part of a transaction with a person in Kansas for 72 hours for any transaction with a person that is conducted within 14 days of the initial transaction.

 (b) Irrespective of the holding period in subsection (a), the transaction shall be completed at the agreed rates at the time the person in Kansas initiated the transaction unless the virtual currency kiosk operator is required by law or judicially ordered to safekeep the funds due to criminal activity or receives a refund request under this section.

(c) A virtual currency kiosk operator may only engage in a transaction with a person in Kansas under the following transaction and day limitations:

(1) For the initial transaction, up to $1,000;

(2) within 14 days of the initial transaction, up to $1,000 per day and only one transaction within 72 hours of the initial transaction, and a maximum of $10,000 in total transactions within the first 14 days of the initial transaction; and

(3) more than 14 days from the initial transaction, up to $10,500 per day.

(d) (1) Any person in Kansas may request a full refund of the initial transaction for any reason from a virtual currency kiosk operator within the holding period in subsection (a). The virtual currency kiosk operator shall issue a full refund unless safekeeping the funds due to criminal activity is required by law or judicially ordered.

(2) An existing customer of the virtual currency kiosk operator may request only a refund of direct and indirect charges, including any spread fee and transaction fee, if such existing customer:

(A) Reports that a money transmission or a series of money transmissions was fraudulent to the commissioner, the attorney general or a law enforcement agency within 30 calendar days after the date of the last fraudulent money transmission; and

(B) submits to such virtual currency kiosk operator a police report or a sworn declaration detailing the fraudulent nature of the money transmission involving such virtual currency kiosk operator.

(e) For any initial transaction, or any transaction within 14 days of the initial transaction, upon the request of any person in Kansas, the commissioner, the attorney general or any law enforcement agency, the virtual currency kiosk operator shall issue a refund for the full money transmission amount and any fees charged, including any spread fee, if the person in Kansas:

(1) Reports that a money transmission or a series of money transmissions was fraudulent to the commissioner, the attorney general or a law enforcement agency within 30 calendar days after the date of the last fraudulent money transmission; and

(2) submits to such virtual currency kiosk operator a police report or a sworn declaration detailing the fraudulent nature of the money transmission involving such virtual currency kiosk operator.

(f) The virtual currency kiosk operator shall issue any refund requested under this section via a cash payout, the automated clearing house or mail a paper check within 10 business days after receiving the refund request. Notwithstanding the refund requirements of this section, under reasonable suspicion of fraud or wrongdoing by any person on behalf of the person in Kansas who initiated the transaction, a virtual currency kiosk operator may delay sending a refund for cause if the operator immediately reports such suspected fraud or wrongdoing to the commissioner, the attorney general or any law enforcement agency, until the receiving agency has advised the virtual currency kiosk operator of the conclusion of any investigation into such alleged fraud or wrongdoing.

(g) This section shall take effect on and after July 1, 2026.

New Sec. 12. (a) The attorney general's office and any law enforcement agency have the authority to investigate any fraudulent money transmission reported by a person in Kansas. All money transmitters shall comply with any investigation to the extent permitted by state and federal law.

(b) The attorney general's office and any law enforcement agency in Kansas shall periodically report to the commissioner any fraud or activity that violates this act and is conducted by or alleged against a money transmitter. In deciding whether to revoke or refuse to renew a license, the commissioner may consider previous fraudulent activity or any activity violating this act that is conducted by a money transmitter. The commissioner shall share any reported fraudulent money transmission with the attorney general's office and any relevant law enforcement agency in Kansas.

(c) The provisions of this section shall be a part of and supplemental to the Kansas money transmission act.

(d) This section shall take effect on and after July 1, 2026.

New Sec. 13. (a) The office of the state bank commissioner or any other state agency shall not become a receiver for any technology-enabled fiduciary financial institution that becomes insolvent or declares bankruptcy. For purposes of this section, "state agency" means the same as defined in K.S.A. 75-3701, and amendments thereto.

(b) A fiduciary financial institution shall be deemed to be insolvent if the:

(1) Actual cash market value of such fiduciary financial institution's assets is insufficient to pay such fiduciary financial institution's creditor liabilities; or

(2) fiduciary financial institution is unable to meet the demands of such fiduciary financial institution's creditors in the usual and customary manner.

(c) The provisions of this section shall be a part of and supplemental to the technology-enabled fiduciary financial institutions act.

Sec. 14. K.S.A. 2025 Supp. 9-551 is hereby amended to read as follows: 9-551. (a) K.S.A. 2025 Supp. 9-551 through 9-554, and amendments thereto, shall be known and may be cited as the Kansas financial institutions information security act.

(b) The purpose of the Kansas financial institutions information security act is to establish information security standards for any covered entity consistent with 16 C.F.R. § 314, as in effect on July 1, 2023.

(c) The Kansas financial institutions information security act applies to the handling of customer information by the following covered entities: (1) Credit services organizations, as defined in K.S.A. 50-1117, and amendments thereto; (2) mortgage companies, as defined in K.S.A. 9-2201, and amendments thereto; (3) supervised lenders, as defined in K.S.A. 16a-1-301, and amendments thereto; (4) financial institutions engaging in money transmission, as defined in K.S.A. 9-508 9-555, and amendments thereto, and not subject to licensure pursuant to K.S.A. 9-556, and amendments thereto; (5) trust companies, as defined in K.S.A. 9-701, and amendments thereto; and (6) technology-enabled fiduciary financial institutions, as defined in K.S.A. 9-2301, and amendments thereto; and (7) earned wage access service registrants, as defined in K.S.A. 9-2402, and amendments thereto.

(d) The commissioner may adopt all rules and regulations necessary to govern and administer the provisions of the Kansas financial institutions information security act.

(e) The Kansas financial institutions information security act shall be a part of and supplemental to chapter 9 of the Kansas Statutes Annotated, and amendments thereto.

Sec. 15. On and after July 1, 2026, K.S.A. 2025 Supp. 9-555 is hereby amended to read as follows: 9-555. (a) K.S.A. 2025 Supp. 9-555 through 9-596, and section 12, and amendments thereto, shall be known and may be cited as the Kansas money transmission act.

(b) As used in the Kansas money transmission act:

(1) "Act" means the Kansas money transmission act.

(2) "Acting in concert" means persons knowingly acting together with a common goal of jointly acquiring control of a licensee whether or not pursuant to an express agreement.

(3) "Applicant in control of a licensee" means a person or a person in a group of persons acting in concert that is in control of, or apply to acquire control of, a licensee pursuant to K.S.A. 2025 Supp. 9-571, and amendments thereto.

(4) "Authorized delegate" means a person designated by a licensee to engage in money transmission on behalf of the licensee.

(5) "Average daily money transmission liability" means the amount of the licensee's outstanding money transmission obligations in Kansas at the end of each day in a given period of time added together and divided by the total number of days in the given period of time. For any licensee required to calculate "average daily money transmission liability" pursuant to this act, the given period of time shall be the calendar quarters ending March 31, June 30, September 30 and December 31.

(6) "Closed loop stored value" means stored value that is redeemable by the issuer only for goods or services provided by the issuer or the issuer's affiliates or franchisees of the issuer or the franchisees's franchisees' affiliates, except to the extent required by applicable law to be redeemable in cash for its cash value.

(7) "Commissioner" means the state bank commissioner, or a person designated by the state bank commissioner to enforce this act.

(8) "Control" means the power to:

(A) Vote directly or indirectly at least 25% of the outstanding voting shares or voting interests of a licensee or person in control of a licensee;

(B) elect or appoint a majority of key individuals or executive officers, managers, directors, trustees or other persons exercising managerial authority of a person in control of a licensee; or

(C) exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee.

(9) "Eligible rating" means a credit rating from any of the three highest rating categories provided by an eligible rating service. Each rating category may include rating category modifiers such as plus or minus for Standard & Poor or the equivalent for any other eligible rating service. "Eligible rating" shall be determined as follows:

(A) Long-term credit ratings shall be deemed eligible if the rating is equal to A- or higher by Standard & Poor or the equivalent from any other eligible rating service.

(B) Short-term credit ratings are deemed eligible if the rating is equal to or higher than A-2 or SP-2 by Standard & Poor or the equivalent from any other eligible rating service. If ratings differ among eligible rating services, the highest rating shall apply when determining whether a security bears an eligible rating.

(10) "Eligible rating service" means any nationally recognized statistical rating organization that has been registered by the securities and exchange commission or any organization designated by the commissioner through order or rules and regulations as an eligible rating service.

(11) "Federally insured depository financial institution" means a bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank or industrial loan company organized under the laws of the United States or any state of the United States, when such bank, credit union, savings and loan association, trust company, savings association, savings bank, industrial bank or industrial loan company has federally insured deposits.

(12) "In Kansas" means the:

(A) Physical location of a person who is requesting a transaction in person in the state of Kansas; or

(B) person's residential address or the principal place of business for a person requesting a transaction electronically or by telephone if such residential address or principal place of business is in the state of Kansas.

(13) "Individual" means a natural person.

(14) "Key individual" means any individual ultimately responsible for establishing or directing policies and procedures of the licensee, including, but not limited to, an executive officer, manager, director or trustee.

(15) "Licensee" means a person licensed under this act.

(16) "Material litigation" means litigation, that according to United States generally accepted accounting principles, is significant to a person's financial health and would be a required disclosure in the person's annual audited financial statements, report to shareholders or similar records.

(17) "Money" means a medium of exchange that is authorized or adopted by the United States or a foreign government. "Money" includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more governments.

(18) "Monetary value" means a medium of exchange, whether or not redeemable in money.

(19) (A) "Money transmission" means any of the following:

(i) Selling or issuing payment instruments to a person located in Kansas;

(ii) selling or issuing stored value to a person located in Kansas;

(iii) receiving money for transmission from a person located in Kansas; or

(iv) payroll processing services;

(v) engaging in virtual currency transactions or other transactions for a fee from a virtual currency kiosk physically located in Kansas; or

(vi) three-party exchanges with at least one person located in Kansas in which money is exchanged for virtual currency.

(B) "Money transmission" does not include:

(i) The provision of solely online or telecommunications services or network access;

(ii) two-party exchanges with at least one person located in Kansas in which money is exchanged for virtual currency in any manner other than from a virtual currency kiosk physically located in Kansas; and

(iii) exchanges of virtual currency for another virtual currency in any manner other than from a virtual currency kiosk physically located in Kansas.

(20) "Money service business accredited state" means a state agency that is accredited by the conference of state bank supervisors and money transmitter regulators association for money transmission licensing and supervision.

(21) "Multistate licensing process" means any agreement entered into by state regulators relating to coordinated processing of applications for money transmission licenses, applications for the acquisition of control of a licensee, control determinations or notice and information requirements for a change of key individuals.

(22) "Nationwide multistate licensing system and registry" means a licensing system developed by the conference of state bank supervisors and the American association of residential mortgage regulators and owned and operated by the state regulatory registry, limited liability company or any successor or affiliated entity for the licensing and registration of persons in financial services industries.

(23) (A) "Outstanding money transmission obligation" means:

(i) Any payment instrument or stored value issued or sold by the licensee to a person located in the United States or reported as sold by an authorized delegate of the licensee to a person that is located in the United States that has not yet been paid or refunded by or for the licensee or escheated in accordance with applicable abandoned property laws; or

(ii) any money received for transmission by the licensee or an authorized delegate in the United States from a person located in the United States that has not been received by the payee or refunded to the sender or escheated in accordance with applicable abandoned property laws.

(B) "In the United States" includes a person in any state, territory or possession of the United States, the District of Columbia, the commonwealth of Puerto Rico or a United States military installation that is located in a foreign country.

(24) "Passive investor" means a person that:

(A) Does not have the power to elect a majority of key individuals or executive officers, managers, directors, trustees or other persons exercising managerial authority of a person in control of a licensee;

(B) is not employed by and does not have any managerial duties of the licensee or person in control of a licensee; or

(C) does not have the power to exercise, directly or indirectly, a controlling influence over the management or policies of a licensee or person in control of a licensee; and

(D) (i) either attests to subparagraphs (A), (B) and (C) in a form and in a manner prescribed by the commissioner; or

(ii) commits to the passivity characteristics of subparagraphs (A), (B) and (C) in a written document.

(25) (A) "Payment instrument" means a written or electronic check, draft, money order, traveler's check or other written or electronic instrument for the transmission or payment of money or monetary value, regardless of negotiability.

(B) "Payment instrument" does not include stored value or any instrument that is:

(i) Redeemable by the issuer only for goods or services provided by the issuer or the issuer's affiliate or franchisees of the issuer or the franchisees' affiliate, except to the extent required by applicable law to be redeemable in cash for its cash value; or

(ii) not sold to the public but issued and distributed as part of a loyalty, rewards or promotional program.

(26) "Payroll processing services" means the receipt of money for transmission pursuant to a contract with a person to deliver wages or salaries, make payment of payroll taxes to state and federal agencies, make payments relating to employee benefit plans or make distributions of other authorized deductions from wages or salaries. "Payroll processing services" does not include an employer performing payroll processing services on the employer's own behalf or on behalf of an affiliate.

(27) "Person" means any individual, general partnership, limited partnership, limited liability company, corporation, trust, association, joint stock corporation or other corporate entity identified or recognized by the commissioner.

(28) "Receiving money for transmission" or "money received for transmission" means the receipt of money or monetary value in the United States for transmission within or outside the United States by electronic or other means.

(29) "Stored value" means monetary value representing a claim against the issuer evidenced by an electronic or digital record and that is intended and accepted for use as a means of redemption for money or monetary value or payment for goods or services. "Stored value" includes, but is not limited to, prepaid access as defined by 31 C.F.R. § 1010.100. "Stored value" does not include a payment instrument or closed loop stored value or stored value not sold to the public but issued and distributed as part of a loyalty, rewards or promotional program.

(30) "Tangible net worth" means the aggregate assets of a licensee excluding all intangible assets, less liabilities, as determined in accordance with United States generally accepted accounting principles.

(c) This section shall take effect on and after January 1, 2025(31) "Three-party exchange" means a transaction in which a party acts as an intermediary and facilitates the exchange of virtual currency between a buyer and a seller for a fee or gain.

(32) "Two-party exchange" means a transaction in which one party holds inventory of virtual currency or money and conducts a purchase or sale transaction for a fee or gain with a person located in Kansas using such party's inventory.

Sec. 16. On and after July 1, 2026, K.S.A. 2025 Supp. 9-556 is hereby amended to read as follows: 9-556. (a) This act does not apply to:

(1) An operator of a payment system to the extent that such operator provides processing, clearing or settlement services between persons exempted under this subsection or licensees in connection with wire transfers, credit card transactions, debit card transactions, stored value transactions, automated clearing house transfers or similar funds transfers.

(2) A person appointed as an agent of a payee to collect and process a payment from a payor to the payee for goods or services other than money transmission provided to the payor by the payee if:

(A) A written agreement exists between the payee and the agent directing the agent to collect and process payments from payors on the payee's behalf;

(B) the payee holds the agent out to the public as accepting payments for goods or services on the payee's behalf; and

(C) payment for the goods and services is treated as received by the payee upon receipt by the agent so that the payor's obligation is extinguished and there is no risk of loss to the payor if the agent fails to remit the funds to the payee.

(3) A person that acts as an intermediary by processing payments between an entity that has directly incurred an outstanding money transmission obligation to a sender and the sender's designated recipient, if the entity:

(A) Is properly licensed or exempt from licensing requirements under this act;

(B) provides a receipt, electronic record or other written confirmation to the sender identifying the entity as the provider of money transmission in the transaction; and

(C) bears sole responsibility to satisfy the outstanding money transmission obligation to the sender, including the obligation to make the sender whole in connection with any failure to transmit the funds to the sender's designated recipient.

(4) The United States government and any agency, bureau, department, office or instrumentality, corporate or otherwise, thereof, including any official, employee or agent of any such entity.

(5) Money transmission by the United States postal service or by an agent of the United States postal service.

(6) Any state office or officer, department, board, commission, bureau, division, authority, agency or institution of this state, including any political subdivision thereof, and any county, city or other municipality.

(7) A federally insured depository financial institution, bank holding company, office of an international banking corporation, foreign bank that establishes a federal branch pursuant to 12 U.S.C. § 3102, a corporation organized pursuant to 12 U.S.C. §§ 1861 through 1867 or a corporation organized under 12 U.S.C. §§ 611 through 633.

(8) Electronic funds transfer of governmental benefits for a federal, state, county or governmental agency by a contractor on behalf of the United States or a department, agency or instrumentality thereof or on behalf of a state or governmental subdivision, agency or instrumentality thereof.

(9) A board of trade designated as a contract market under 7 U.S.C. §§ 1 through 25 or a person that in the ordinary course of business provides clearance and settlement services for a board of trade to the extent of the board of trade's operation as or for such a board.

(10) A futures commission merchant registered under federal commodities law to the extent of the registrant's operation as such a futures commission merchant.

(11) A person registered as a securities broker-dealer under federal or state securities law to the extent of such registrant's operation as such a securities broker-dealer.

(12) An individual employed by a licensee, authorized delegate or any person exempted from the licensing requirements of the act when acting within the scope of employment and under the supervision of the licensee, authorized delegate or exempted person as an employee and not as an independent contractor.

(13) A person expressly appointed as a third-party service provider to or agent of an entity exempt under paragraph (a)(6)(7) solely to the extent that:

(A) Such service provider or agent is engaging in money transmission on behalf of and pursuant to a written agreement with the exempt entity that sets forth the specific functions that the service provider or agent is to perform; and

(B) the exempt entity assumes all risk of loss and all legal responsibility for satisfying the outstanding money transmission obligations owed to purchasers and holders of the outstanding money transmission obligations upon receipt of the purchaser's or holder's money or monetary value by the service provider or agent.

(14) A person engaging in the practice of law, bookkeeping, accounting, real estate sales or brokerage.

(15) A person appointed as an agent of a payor for purposes of providing payroll processing services for which such agent would otherwise need to be licensed if:

(A) There is a written agreement between the payor and the agent that directs the agent to provide payroll processing services on the payor's behalf;

(B) the payor holds the agent out to employees and other payees as providing payroll processing services on the payor's behalf; and

(C) the payor's obligation to a payee, including an employee or any other party entitled to receive funds via the payroll processing services provided by the agent, is not extinguished if such agent fails to remit such funds to the payee.

(16) A person exempt by any rules or regulations adopted or by an order issued if the commissioner finds such exemption to be in the public interest and that the regulation of such person is not necessary for the purposes of this act.

(b) The commissioner may require that any person claiming to be exempt from licensing pursuant to this section provide information and documentation to the commissioner demonstrating that such person qualifies for any claimed exemption.

(c) This section shall take effect on and after January 1, 2025.

Sec. 17. On and after July 1, 2026, K.S.A. 2025 Supp. 9-558 is hereby amended to read as follows: 9-558. (a) (1) Except as otherwise provided in subsection (b), all information or reports obtained by the commissioner from an applicant, licensee or authorized delegate and all information contained in or related to an examination, investigation, operating report or condition report prepared by, on behalf of or for the use of the commissioner or financial statements, balance sheets or authorized delegate information, are confidential and are not subject to disclosure under the Kansas open records act, K.S.A. 45-215 et seq., and amendments thereto.

(2) The provisions of this subsection providing for the confidentiality of public records shall expire on July 1, 2030, unless the legislature reviews and reenacts such provisions in accordance with K.S.A. 45-229, and amendments thereto, prior to July 1, 2030.

(b) The commissioner may disclose information not otherwise subject to disclosure under subsection (a) to representatives of state or federal agencies who promise in a record that such representatives will maintain the confidentiality of the information or where the commissioner finds that the release is reasonably necessary for the protection and interest of the public in accordance with the Kansas open records act.

(c) The following information contained in the records of the office of the state bank commissioner that is not confidential and may be made available to the public:

(1) The name, business address, telephone number and unique identifier of a licensee;

(2) the business address of a licensee's registered agent for service;

(3) the name, business address and telephone number of all authorized delegates;

(4) the terms of or a copy of any bond filed by a licensee, provided that confidential information, including, but not limited to, prices and fees for such bond is redacted; or

(5) copies of any orders of the office of the state bank commissioner relating to any violation of this act or regulations implementing this act; or

(6) copies of a virtual currency kiosk operator's location report.

(d) This section shall not be construed to prohibit the commissioner from disclosing to the public a list of all licensees or the aggregated financial or transactional data concerning those licensees.

(e) This section shall take effect on and after January 1, 2025.

Sec. 18. On and after July 1, 2026, K.S.A. 2025 Supp. 9-572 is hereby amended to read as follows: 9-572. (a) A licensee adding or replacing a key individual shall provide:

(1) Notice in the manner prescribed by the commissioner within 15 days after the effective date of the appointment of the new key individual; and

(2) information as required by K.S.A. 2025 Supp. 9-564 9-565, and amendments thereto, within 45 days of the effective date of the appointment of the new key individual.

(b) Within 90 days of the date on which the notice provided pursuant to subsection (a) was determined to be complete, the commissioner may issue a notice of disapproval of a key individual if the competence, experience, character or integrity of the individual would not be in the best interests of the public or the customers of the licensee to permit the individual to be a key individual of such licensee.

(c) A notice of disapproval shall state the basis for disapproval and shall be sent to the licensee and the disapproved individual. A licensee may appeal a notice of disapproval pursuant to the Kansas administrative procedure act, K.S.A. 77-501 et seq., and amendments thereto, within 14 days.

(d) If the notice provided pursuant to subsection (a) is not disapproved within 90 days after the date when the notice was determined to be complete, the key individual shall be deemed approved.

(e) If a multistate licensing process includes a key individual notice review and disapproval process pursuant to this section and the licensee avails itself or is otherwise subject to the multistate licensing process:

(1) The commissioner is hereby authorized to accept the determination of another state if the investigating state has sufficient staffing, expertise and minimum standards for the purpose of this section; or

(2) if Kansas is a lead investigative state, the commissioner is authorized to investigate the applicant pursuant to subsection (b) and the timeframes established by agreement through the multistate licensing process.

(f) This section shall take effect on and after January 1, 2025.

Sec. 19. On and after July 1, 2026, K.S.A. 2025 Supp. 9-589 is hereby amended to read as follows: 9-589. (a) The following investments are permissible under this section:

(1) Cash, including demand deposits, savings deposits and funds in accounts held for the benefit of the licensee's customers in a federally insured depository financial institution and cash equivalents including automated clearing house items in transit to the licensee and automated clearing house items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations, debit card or credit card-funded transmission receivables owed by any bank or money market mutual funds rated AAA by Standard & Poor or the equivalent from any eligible rating service;

(2) certificates of deposit or senior debt obligations of a federally insured depository institution;

(3) an obligation of the United States or a commission, agency or instrumentality thereof, an obligation that is guaranteed fully as to principal and interest by the United States or an obligation of a state or a governmental subdivision, agency or instrumentality thereof;

(4) (A) the full drawable amount of an irrevocable standby letter of credit for which the stated beneficiary is the commissioner that stipulates that the beneficiary need only draw a sight draft under the letter of credit and present it to obtain funds up to the letter of credit amount within seven days of presentation of the items required by subparagraph (D);

(B) the letter of credit shall:

(i) Be issued by a federally insured depository financial institution, a foreign bank that is authorized under federal law to maintain a federal agency or federal branch office in a state or states or a foreign bank that is authorized under state law to maintain a branch in a state that:

(a) Bears an eligible rating or whose parent company bears an eligible rating; and

(b) is regulated, supervised and examined by United States federal or state authorities having regulatory authority over banks, credit unions and trust companies;

(ii) be irrevocable, unconditional and indicate that such letter of credit is not subject to any condition or qualifications outside of such letter of credit;

(iii) contain no references to any other agreements, documents or entities or otherwise provide for a security interest in the licensee; and

(iv) contain an issue date and expiration date and expressly provide for automatic extension, without a written amendment, for an additional period of one year from the present or each future expiration date unless the issuer of the letter of credit notifies the commissioner in writing by certified or registered mail or courier mail or other receipted means at least 60 days prior to any expiration date, that the irrevocable letter of credit will not be extended;

(C) if any notice of expiration or non-extension of a letter of credit is issued under clause (a)(4)(B)(iv), the licensee shall be required to demonstrate to the satisfaction of the commissioner, 15 days prior to expiration, that the licensee maintains and shall maintain permissible investments in accordance with K.S.A. 2025 Supp. 9-590(a) 9-588(a), and amendments thereto, upon the expiration of the letter of credit. If the licensee is not able to do so, the commissioner may draw on the letter of credit in an amount up to the amount necessary to meet the licensee's requirements to maintain permissible investments in accordance with K.S.A. 2025 Supp. 9-588(a), and amendments thereto. Any such draw shall be offset against the licensee's outstanding money transmission obligations. The drawn funds shall be held in trust by the commissioner or the commissioner's designated agent, to the extent authorized by law, as agent for the benefit of the purchasers and holders of the licensee's outstanding money transmission obligations;

(D) the letter of credit shall provide that the issuer of such letter of credit shall honor, at sight, a presentation made of the following documents by the beneficiary to the issuer on or prior to the expiration date of the letter of credit:

(i) The original letter of credit, including any amendments; and

(ii) a written statement from the beneficiary stating that any of the following events have occurred:

(a) The filing of a bankruptcy or reorganization petition by or against the licensee;

(b) the filing of a petition by or against the licensee for receivership or the commencement of any other judicial or administrative proceeding for such licensee's dissolution or reorganization;

(c) the seizure of assets of a licensee by a commissioner pursuant to an emergency order issued in accordance with applicable law, on the basis of an action, violation or condition that has caused or is likely to cause the insolvency of the licensee; or

(d) the beneficiary has received notice of expiration or non-extension of a letter of credit and the licensee failed to demonstrate to the satisfaction of the beneficiary that the licensee will maintain permissible investments in accordance with K.S.A. 2025 Supp. 9-590(a) 9-588(a), and amendments thereto, upon the expiration or non-extension of the letter of credit;

(E) the commissioner may designate an agent to serve on the commissioner's behalf as beneficiary to a letter of credit if the agent and letter of credit meet requirements established by the commissioner. The commissioner's agent may serve as agent for multiple licensing authorities for a single irrevocable letter of credit if the proceeds of the drawable amount for the purposes of subsection (a)(4) are assigned to the commissioner; and

(F) the commissioner is hereby authorized to participate in multistate processes designed to facilitate the issuance and administration of letters of credit, including, but not limited to, services provided by the nationwide multistate licensing system and registry and state regulatory registry, LLC; and

(5) 100% of the surety bond provided for under K.S.A. 2025 Supp. 9-587, and amendments thereto, that exceeds the average daily money transmission liability in Kansas.

(b) (1) Unless permitted by the commissioner by rules and regulations adopted or by order issued to exceed the limit as set forth herein, the following investments are permissible under K.S.A. 2025 Supp. 9-589, and amendments thereto, to the extent specified:

(A) Receivables payable to a licensee from the licensee's authorized delegates in the ordinary course of business that are less than seven days old up to 50% of the aggregate value of the licensee's total permissible investments; and

(B) of the receivables permissible under subparagraph (A), receivables payable to a licensee from a single authorized delegate in the ordinary course of business may not exceed 10% of the aggregate value of the licensee's total permissible investments.

(2) The following investments are permissible up to 20% per category and up to 50% combined of the aggregate value of the licensee's total permissible investments:

(A) A short-term investment of up to six months, bearing an eligible rating;

(B) commercial paper bearing an eligible rating;

(C) a bill, note, bond or debenture bearing an eligible rating;

(D) United States tri-party repurchase agreements collateralized at 100% or more with United States government or agency securities, municipal bonds or other securities bearing an eligible rating;

(E) money market mutual funds rated less than AAA and equal to or higher than A- by Standard & Poor or the equivalent from any other eligible rating service; and

(F) a mutual fund or other investment fund composed solely and exclusively of one or more permissible investments listed in subsection (a)(1) through (3).

(3) Cash, including demand deposits, savings deposits and funds in such accounts held for the benefit of the licensee's customers, at foreign depository institutions are permissible up to 10% of the aggregate value of the licensee's total permissible investments if the licensee has received a satisfactory rating in the licensee's most recent examination and the foreign depository institution:

(A) Has an eligible rating;

(B) is registered under the foreign account tax compliance act;

(C) is not located in any country subject to sanctions from the office of foreign asset control; and

(D) is not located in a high-risk or non-cooperative jurisdiction as designated by the financial action task force.

(c) This section shall take effect on and after January 1, 2025.

Sec. 20. K.S.A. 2025 Supp. 9-2301 is hereby amended to read as follows: 9-2301. (a) The provisions of K.S.A. 9-2301 through 9-2327, and amendments thereto, and section 13, and amendments thereto, shall be known and may be cited as the technology-enabled fiduciary financial institutions act. The technology-enabled fiduciary financial institutions act shall be a part of and supplemental to chapter 9 of the Kansas Statutes Annotated, and amendments thereto.

(b) For purposes of the technology-enabled fiduciary financial institutions act:

(1) "Act" means the technology-enabled fiduciary financial institutions act;

(2) "alternative asset" means professionally managed investment assets that are not publicly traded, including, but not limited to, private equity, venture capital, leveraged buyouts, special situations, structured credit, private debt, private real estate funds and natural resources, including any economic or beneficial interest therein;

(3) "alternative asset custody account" means an account created by the owner of an alternative asset that designates a fiduciary financial institution as custodian or agent and into which the owner transfers, electronically or otherwise, content, materials, data, information, documents, reports and contracts in any form, including, without limitation, evidence of ownership, subscription agreements, private placement memoranda, limited partnership agreements, operating agreements, financial statements, annual and quarterly reports, capital account statements, tax statements, correspondence from the general partner, manager or investment advisor of the alternative asset, an investment contract as defined in K.S.A. 17-12a102(28)(E), and amendments thereto, and any digital asset as defined in K.S.A. 58-4802, and amendments thereto, whether such information is in hard copy form or a representation of such information that is stored in a computer readable format;

(4) "charitable beneficiaries" means one or more charities, contributions to which are allowable as a deduction pursuant to section 170 of the federal internal revenue code that are designated as beneficiaries of a fidfin trust;

(5) "custodial services" means the safekeeping and management of an alternative asset custody account, including the execution of customer instructions, serving as agent, fund administrative services and overall decision-making and management of the account by a fiduciary financial institution and. "Custodial services" shall be deemed to involve the exercise of fiduciary and trust powers;

(6) "director" means a person designated as a member of the board of directors pursuant to K.S.A. 9-2306, and amendments thereto;

(7) "economic growth zone" means an incorporated community with a population of not more than 5,000 people located within one of the following counties: Allen, Anderson, Barber, Bourbon, Brown, Chase, Chautauqua, Cherokee, Cheyenne, Clark, Clay, Cloud, Coffey, Comanche, Decatur, Doniphan, Edwards, Elk, Ellsworth, Gove, Graham, Grant, Gray, Greeley, Greenwood, Hamilton, Harper, Harvey, Haskell, Hodgeman, Jackson, Jewell, Kearny, Kingman, Kiowa, Labette, Lane, Lincoln, Linn, Logan, Marion, Marshall, Meade, Mitchell, Montgomery, Morris, Morton, Nemaha, Neosho, Ness, Norton, Osborne, Ottawa, Pawnee, Phillips, Pratt, Rawlins, Republic, Rice, Rooks, Rush, Russell, Scott, Sheridan, Sherman, Smith, Stafford, Stanton, Stevens, Sumner, Trego, Thomas, Wabaunsee, Wallace, Washington, Wichita, Wilson or Woodson;

(8) "excluded fiduciary" means a fiduciary financial institution in its capacity as trustee of a fidfin trust, provided except that a fiduciary financial institution shall only be deemed an "excluded fiduciary" to the extent the fiduciary financial institution is excluded from exercising certain powers under the instrument that may be exercised by the trust advisor or other persons designated in the instrument;

(9) "fidfin," "fidfin services" or "fidfin transactions" means the financing of a fidfin trust or the acquisition of alternative assets on behalf of and through a fidfin trust, or both, as provided in K.S.A. 9-2311, and amendments thereto, including loans, extensions of credit and direct investments;

(10) "fidfin trust" means a trust created to facilitate the delivery of fidfin services by a fiduciary financial institution;

(11) "fiduciary" means a trustee, a trust advisor or a custodian of an alternative asset custody account appointed under an instrument that is acting in a fiduciary capacity for any person, trust or estate;

(12) "instrument" means any document creating a fidfin trust or alternative asset custody account;

(13) "officer" means a person who participates or has authority to participate, other than in the capacity of a director, in major policymaking functions of a bank, trust company or fiduciary financial institution, whether or not the officer has an official title or if the officer is serving without salary or other compensation. "Officer" includes the chairperson of the board, president, vice president, cashier, secretary and treasurer of a bank, trust company or fiduciary financial institution;

(14) "organizer" means a person who filed the fiduciary financial institution formation documents;

(15) "out-of-state bank" means a national or state bank, savings and loan association or savings bank not incorporated under the laws of Kansas;

(16) "out-of-state financial institution" means an out-of-state bank or an out-of-state trust company;

(17) "out-of-state trust company" means a national or state trust company not incorporated under the laws of Kansas;

(18) (A) "qualified investment" means the purchase or development, in the aggregate, of at least 10,000 square feet of commercial, industrial, multiuse or multifamily real estate in the economic growth zone where the fiduciary financial institution maintains its principal office pursuant to K.S.A. 9-2309, and amendments thereto, provided that such community has committed to develop the necessary infrastructure to support a "qualified investment." A "qualified investment":

(i) May include, as part of satisfying the square footage requirements, the suitable office space of such fiduciary financial institution, as provided in K.S.A. 9-2309, and amendments thereto, if owned by the fiduciary financial institution;

(ii) shall be exempt from the provisions and limitations of K.S.A. 9-1102, and amendments thereto;

(iii) may be retained by a fiduciary financial institution for as long as the fiduciary financial institution operates in this state; and

(iv) may be sold, transferred or otherwise disposed of, including a sale or transfer to an affiliate of the fiduciary financial institution, if the fiduciary financial institution continues to maintain its principal office in an economic growth zone pursuant to K.S.A. 9-2309, and amendments thereto;

(B) notwithstanding the foregoing provisions, if a fiduciary financial institution leases any portion of a qualified investment made by another fiduciary financial institution as the lessee fiduciary financial institution's suitable office space:

(i) The lessee fiduciary financial institution shall make, or cause to be made, a qualified investment in an economic growth zone other than the economic growth zone where such fiduciary financial institution maintains its principal office;

(ii) the leased square footage shall count toward the square footage requirement applicable to a qualified investment under this section, if such lease has an initial term of not less than five years; and

(iii) the square footage requirement otherwise applicable to a qualified investment of the lessee fiduciary financial institution shall be reduced from 10,000 square feet to 5,000 square feet;

(19) "technology-enabled fiduciary financial institution" or "fiduciary financial institution" means any limited liability company, limited partnership or corporation that:

(A) Is organized to perform any one or more of the activities and services authorized by this act;

(B) has been authorized to conduct business as a fiduciary financial institution under this chapter pursuant to the provisions of K.S.A. 9-2302, and amendments thereto;

(C) has made, committed to make or caused to be made a qualified investment; and

(D) has committed, in or as a part of the application provided in K.S.A. 9-2302, and amendments thereto, to conduct any fidfin transactions in accordance with K.S.A. 9-2311, and amendments thereto, including the distributions required therein;

(20) "trust" means a trust created pursuant to the Kansas uniform trust code, K.S.A. 58a-101 et seq., and amendments thereto, or created pursuant to the Kansas business trust act of 1961, K.S.A. 17-2707 et seq., and amendments thereto;

(21) "trust advisor" means a fiduciary granted authority by an instrument to exercise, consent, direct, including the power to direct as provided in K.S.A. 58a-808, and amendments thereto, or approve all or any portion of the powers and discretion conferred upon the trustee of a fidfin trust, including the power to invest the assets of a fidfin trust or make or cause distributions to be made from such fidfin trust; and

(22) the definitions of K.S.A. 9-701, and amendments thereto, apply to fiduciary financial institutions except as otherwise provided in this act.

Sec. 21. K.S.A. 52-717 and K.S.A. 2025 Supp. 9-551 and 9-2301 are hereby repealed.

Sec. 22. On and after July 1, 2026, K.S.A. 2025 Supp. 9-555, 9-556, 9-558, 9-572 and 9-589 are hereby repealed.";

Also on page 3, in line 37, by striking "statute book" and inserting "Kansas register";

And by renumbering sections accordingly;

On page 1, in the title, in line 1, after the semicolon by inserting "relating to the oversight and regulation of such institutions and certain transactions performed by such institutions;"; in line 7, after the second "actions" by inserting "; enacting the virtual currency kiosk consumer protection act; providing definitions; establishing requirements for virtual currency kiosk operators; relating to certain disclosures, transaction receipts, fraud detection and prevention, live customer service, kiosk location reporting, money transmission licensure and refunds; imposing certain limits on virtual currency kiosk transaction amounts and charges; authorizing the attorney general and any law enforcement agency to investigate reports of fraudulent money transmission and report to the state bank commissioner; prohibiting the office of the state bank commissioner or any other state agency from becoming a receiver for a technology-enabled fiduciary financial institution that becomes insolvent or declares bankruptcy; providing that earned wage access service registrants are subject to the provisions of the Kansas financial institutions information security act; eliminating certain stipulations relating to the payment of negotiable instruments on Saturday afternoons or holidays; amending K.S.A. 2025 Supp. 9-551, 9-555, 9-556, 9-558, 9-572, 9-589 and 9-2301 and repealing the existing sections; also repealing K.S.A. 52-717";

And your committee on conference recommends the adoption of this report.

Brenda Dietrich

Michael Fagg

Silas Miller

Conferees on part of Senate

Nick Hoheisel

Angela Stiens

Rui Xu

Conferees on part of House