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HB 2291

Creates provisions relating to approval by political subdivisions of certain requests for developments or improvements of property

2026 Regular Session Introduced by David Casteel

Kansas creates a Regulatory Relief Division and General Regulatory Sandbox to let businesses pilot innovative offerings with limited legal protections, under state oversight.

Reported Do Pass (H) - AYES: 6 NOES: 5 PRESENT: 0
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Bill Summary · HB 2291

Summary — HB 2291 (2025) — Regulatory Relief Division & General Regulatory Sandbox Program (Kansas)

Purpose

HB 2291 creates a Regulatory Relief Division in the Office of the Attorney General (AGO) and establishes a statewide General Regulatory Sandbox Program to allow businesses to pilot innovative products or services with limited legal protections and temporary relief from specified state rules or regulations. The Division may also recommend statutory or regulatory changes to the Governor and Legislature.

Key provisions

  • Regulatory Relief Division

    • Established within the AGO; headed by a Director appointed by the Attorney General.
    • Director may appoint staff; appointments initially limited to one full‑time and one part‑time employee unless additional positions are authorized by appropriations.
    • Division duties: administer the Act and the sandbox program; liaise with businesses and state agencies; review laws/regulations and recommend amendments/repeals; create risk‑analysis framework; propose reciprocity with other states; adopt rules for program administration.

  • General Regulatory Sandbox Program

    • Enables persons subject to Kansas jurisdiction to obtain limited legal protections and limited market access to demonstrate an innovative offering without obtaining a license, certification, registration or other authorization that would otherwise be required.
    • Division must consult applicable state agencies when considering applications.
    • The Division may adopt best practices from federal agencies or other states and consult with in‑state businesses.

  • Advisory Committee

    • Establishes a Program Advisory Committee composed of business representatives, state agency representatives, and legislative members (various amendments reflected in committee size/composition in committee reports); members serve multi‑year renewable terms; the Committee advises the Division and may hold closed sessions for applicant matters.

  • Application & reporting

    • Division to provide application guidance and may assist applicants; application fee may be charged (up to $250).
    • Annual legislative reporting beginning 2027 (due on or before the first day of regular session) to specified legislative committees. Required report elements include participant industries, cost savings, consumer outcomes, and recommendations for law/regulatory changes and program improvements.

Restrictions & exclusions

  • The Act expressly:
    • Prohibits waiver/suspension of licensing requirements (or creation of a deemed license) for purposes of federal or state law.
    • Excludes innovative offerings regulated under: Kansas Liquor Control Act, Club and Drinking Establishment Act, and Kansas Cereal Malt Beverage Act.
    • Bars waiver of licensing or licensing‑related rules.

Fiscal and operational impact

  • Fiscal note (AGO estimate): 6.0 FTE and $808,390 from the State General Fund (FY2026) to stand up and operate the Division (positions include attorneys, program consultant, legal assistant); $105,416 additional operating costs. Application fees could partially offset costs.
  • Some agencies (e.g., KDHE) flagged uncertainty about federal grant impacts if state regulatory enforcement is limited for sandbox participants.

Timeline & status

  • Introduced: January 30, 2025.
  • Enacted/Effective: Law effective July 1, 2025.
  • Governor vetoed; the Legislature overrode the veto (override motions prevailed — recorded yea/nay votes documented).
  • Program sunset/expiration: fiscal note and enrolled text indicate the Program expires July 1, 2030 unless the Legislature reenacts the provisions.

Who is affected

  • Primary: Kansas businesses seeking to pilot regulated innovations, entrepreneurs, and in‑state startups.
  • Secondary: State licensing/regulatory agencies (consultation workload, potential coordination issues), consumers (consumer protections and risk monitoring), the AGO (administration and oversight), and state budget (staffing and operating costs).

Compiled from official sources — confirm details with the bill’s official record.

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