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HB 2766

Providing that artificial persons shall not possess any political powers relating to election activity or ballot-issue activity.

2025-2026 Regular Session

The bill prohibits artificial persons from engaging in election or ballot-issue activities, making such powers void and potentially stripping their charter privileges.

Died in Committee
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Bill Summary · HB 2766

Overview

HB 2766, introduced in the Kansas 2025-2026 session, would restrict artificial persons (corporations, certain associations, and other non-human legal entities) from directly or indirectly engaging in election activity or ballot-issue activity. The bill treats such political powers as not being part of an artificial person’s lawful charter privileges, and provides that any exercise of such powers is void and may result in forfeiture of charter privileges. The measure would take effect on January 1, 2027.

Purpose and Intent

  • Clarify and explicitly limit the powers of artificial legal persons created or authorized to do business in Kansas.
  • State that powers related to election activity or ballot-issue activity are not lawful business purposes for artificial persons.
  • Preserve natural-person rights (speech, petition, association) while restricting the scope of corporate and other artificial entities’ powers.
  • Establish enforcement mechanisms, including forfeiture of charter privileges for violations and regulatory procedures for removal of suspended entities.

Key Provisions and Changes

  • New Section 1: Foundational declarations

    • The state’s chartered status for artificial persons is a privilege, not a right, and can be modified or withdrawn.
    • Election activity and ballot-issue activity were never intended to be grantable powers for artificial persons; these powers are distinct from natural-person rights.
    • Artificial persons must be on constructive notice that their charter privileges can be modified or withdrawn.
    • Applies to both Kansas-based and foreign artificial persons, with certain exemptions for public bodies.

  • Section 2: Prohibition of political powers

    • Except as expressly provided by statute, no artificial legal person formed under Kansas law or authorized to transact business may possess power to engage in election activity or ballot-issue activity.
    • If a foreign artificial person engages in such activity, it is deemed to be transacting business in Kansas for jurisdictional purposes.

  • Amendments to numerous existing statutes (Sections 3–14)

    • Several types of legal entities (corporations, cooperatives, business trusts, credit unions, limited liability companies, limited partnerships, etc.) would be prohibited from election or ballot-issue activities beyond what is expressly permitted by statute.
    • Acts constituting election activity or ballot-issue activity by prohibited entities are ultra vires and void; such entities could forfeit charter privileges (including limited liability protections) as a matter of law.
    • Provisions include enforcement mechanisms, potential administrative forfeiture, and certification of compliance.
    • Foreign entities transacting in Kansas related to prohibited activities would be treated as transacting business for jurisdiction purposes.

  • Section 15: Repeals

    • Repeals the listed current statutes (and related provisions) and replaces them with the new framework.

  • Section 16: Effective date

    • Becomes effective on January 1, 2027, with publication in the statute book.

Affected Entities

  • Artificial legal persons organized under Kansas law or authorized to transact business in Kansas (e.g., corporations, cooperatives, business trusts, credit unions, limited liability companies, limited partnerships, foreign entities).
  • Political committees, candidate committees, and party committees are allowed to engage in election activity, but only to the extent expressly permitted by statute; other entities would be barred from such activities.
  • State agencies and political subdivisions are exempt from the act.

Procedural and Timeline Aspects

  • Effective date: January 1, 2027.
  • Transitional and enforcement provisions include potential forfeiture of charter privileges, administrative forfeiture procedures, disgorgement, and enforcement rules to be adopted by the Secretary of State.
  • Fiscal note indicates anticipated state expenditures beginning in FY 2027 for enforcement and administration, including personnel (Attorney General, SOS, and other staff) and IT/administrative needs; estimated total expenditures around $525,000 over the first years, with ongoing costs thereafter.
  • Litigation risk: the bill acknowledges possible litigation given its regulatory impact on political speech and corporate powers.

Practical Implications

  • Artificial persons would be barred from using corporate resources or influencing election outcomes through financial contributions or other election-related expenditures beyond activities expressly permitted by statute.
  • The measure seeks to ensure that political activities remain the purview of natural persons and designated political committees.
  • Compliance would require entities to review charter provisions, bylaws, and articles of incorporation to remove or restrict any election-related powers; enforcement could involve removal of charter privileges and potential legal actions.

Note: The bill died in committee on April 10, 2026, within the Kansas House process.

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

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