As Amended by Senate Committee
Session of 2023
HOUSE BILL No. 2133
By Committee on Financial Institutions and Pensions
1-23
AN ACT concerning financial institutions; relating to payments made with
credit and debit cards; allowing a surcharge for use of such cards;
amending K.S.A. 12-16,125 and 72-1176 and K.S.A. 2022 Supp. 19-
122 and 75-30,100 and repealing the existing sections; also repealing
K.S.A. 2022 Supp. 16a-2-403 the technology-enabled fiduciary
financial institutions act; providing that fiduciary financial
institutions shall be overseen, supervised and examined by the office
of the state bank commissioner as a chartered trust company;
allowing a fiduciary financial institution to publish or promulgate
itself as a trust company in legal or regulatory filings or in
disclosures to existing or prospective customers or investors;
authorizing a fiduciary financial institution to exercise fiduciary
powers and full trust powers and to engage as a trust company under
state and federal law; amending K.S.A. 9-2307, 9-2308 and 9-2310
and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 12-16,125 is hereby amended to read as follows:
12-16,125. A city may accept credit or debit cards for the payment of
taxes, utility fees or other exactions. The city may establish the type of
credit or debit card the city will accept. The city may set a fee to be added
to each credit card transaction equal to the charge paid by the city for the
use of the credit card by the person. If the city imposes a fee for payments
made by credit card, the city shall provide notice of such fee to the person
making payment by credit card.
Any transaction involving payment by credit card pursuant to this
section shall not be subject to the provisions of K.S.A. 16a-2-403, and
amendments thereto.
Sec. 2. K.S.A. 2022 Supp. 19-122 is hereby amended to read as
follows: 19-122. (a) Any county may accept credit or debit cards for the
payment of any taxes, utility fees or other exactions. The county may
establish the type of credit or debit card the county will accept. The county
may set a fee to be added to each credit card transaction equal to the
charge paid by the county for the use of the credit card by the person. If
the county imposes a fee for payments made by credit card, the county
shall provide notice of such fee to the person making payment by credit
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36 HB 2133—Am. by SC 2
card.
(b) Any transaction involving payment by credit card pursuant to this
section shall not be subject to the provisions of K.S.A. 16a-2-403, and
amendments thereto.
Sec. 3. K.S.A. 72-1176 is hereby amended to read as follows: 72-
1176. The board of education of any school district, pursuant to a policy
developed and adopted by the board, may provide for the acceptance of
payment in the form of a credit or debit card of fees, tuition or other
charges imposed by the school district. The policy may provide for
imposition of an additional fee to recover the actual amount of any costs
incurred by the school district by reason of the method of payment used.
The policy also may provide for establishment by the school district of
secure internet sockets that will allow payment by a credit or debit card via
the internet. Any transactions involving payment by credit card pursuant to
this section shall not be subject to the provisions of K.S.A. 16a-2-403, and
amendments thereto.
Sec. 4. K.S.A. 2022 Supp. 75-30,100 is hereby amended to read as
follows: 75-30,100. (a) Any state agency that imposes or collects fees,
tuition or other charges shall accept payment thereof in the form of a
personal, certified or cashier's check or money order. A state agency may
accept payment by credit card, debit card or other method designated by
the agency. A state agency may impose an additional fee to recover the
actual amount of any cost incurred by reason of the method of payment
used by the payee.
(b) In addition to the methods specified in subsection (a), after June
30, 2001, a state agency shall accept payment of fees, tuition or other
charges in the form of a credit card or debit card.
(c) Any transactions involving payment by credit card or debit card
pursuant to this section shall not be subject to the provisions of K.S.A.
16a-2-403, and amendments thereto.
(d) The provisions of this section shall not apply to any fees, fines or
charges imposed by the secretary of corrections on offenders under the
jurisdiction of the secretary of corrections or juvenile offenders placed in
juvenile correctional facilities under the jurisdiction of the secretary of
corrections.
(e) Any municipal university, community college, technical college or
vocational educational school, as defined by K.S.A. 74-3201b, and
amendments thereto, or not-for-profit private postsecondary educational
institution that was granted approval to confer academic or honorary
degrees by the Kansas state board of education under the provisions of
K.S.A. 17-6105, prior to its repeal, or is otherwise exempt from the Kansas
private and out-of-state postsecondary educational institution act pursuant
to K.S.A. 74-32,164, and amendments thereto, accepting payment of fees,
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2133—Am. by SC 3
tuition or other charges in the form of a credit card or debit card shall not
be subject to the provisions of K.S.A. 16a-2-403, and amendments thereto.
Sec. 5. K.S.A. 12-16,125 and 72-1176 and K.S.A. 2022 Supp. 16a-2-
403, 19-122 and 75-30,100 are hereby repealed.
Section 1. K.S.A. 9-2307 is hereby amended to read as follows: 9-
2307. (a) A fiduciary financial institution shall make a report to the
commissioner pursuant to the provisions of K.S.A. 9-1704, and
amendments thereto. In making such a report, a fiduciary financial
institution shall:
(1) Report the fiduciary financial institution's fidfin transactions
pursuant to generally accepted accounting principles; and
(2) calculate such fiduciary financial institution's capital solvency
by including the value of all tangible and intangible assets owned by the
fiduciary financial institution, regardless of use.
(b) In examining a fiduciary financial institution, the state banking
board and the commissioner shall:
(1) Consider that the collateral or underlying assets associated with
fidfin transactions are volatile in nature and that such volatility has
been accepted by the members and customers of the fiduciary financial
institution;
(2) respect the form, treatment and character of fidfin transactions
under the laws of this state notwithstanding the treatment or
characterization of such transactions under generally accepted
accounting principles or for tax purposes;
(3) evaluate whether available capital, including the agreement of a
fiduciary financial institution's members to contribute capital pursuant
to K.S.A. 9-2305, and amendments thereto, exceeds the fiduciary
financial institution's obligations, determined in accordance with
generally accepted accounting principles;
(4) evaluate the background and qualifications of a fiduciary
financial institution's executive officers and directors, the internal
controls and audit processes enacted by the fiduciary financial
institution and adherence to its policies and procedures;
(5) evaluate the profitability of a fiduciary financial institution in
accordance with subsection (c);
(6) evaluate a fiduciary financial institution's compliance with
applicable state and federal laws; and
(7) evaluate a fiduciary financial institution's information
technology systems, policies and practices.
(c) Profitability shall not be a consideration in evaluating a
fiduciary financial institution if sufficient capital and equity exist in the
business, including, without limitation, membership capital, surplus,
undivided profits and commitments by members to contribute additional
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2133—Am. by SC 4
capital to the fiduciary financial institution pursuant to K.S.A. 9-2305,
and amendments thereto, to satisfy the fiduciary financial institution's
obligations.
(d) A fiduciary financial institution shall be overseen, supervised and
examined by the office of the state bank commissioner as a chartered trust
company as defined in K.S.A. 9-701, and amendments thereto, exercising
fiduciary powers and engaging in trust business pursuant to K.S.A. 9-
2310, and amendments thereto, and rules and regulations adopted
pursuant to state law by such office and shall be designated, recognized
and referenced as a chartered trust company as defined in K.S.A. 9-701,
and amendments thereto, by the office of the state bank commissioner
without exception.
Sec. 2. K.S.A. 9-2308 is hereby amended to read as follows: 9-2308.
A fiduciary financial institution may use in such fiduciary financial
institution's business name or advertising the words "fiduciary financial
institution" or any similar term or phrase, but may not use in such
institution's name the words "bank" or "trust company" without
reference to fidfin trusts or any other term that tends to imply that such
fiduciary financial institution is a bank or trust company, unless the
commissioner has approved the use in writing after finding that the use
will not be misleading. A fiduciary financial institution is a chartered trust
company as defined in K.S.A. 9-701, and amendments thereto, for all
purposes under federal and state law as if authorized under K.S.A. 9-
804(c), and amendments thereto. While a fiduciary financial institution is
a trust company for purposes of federal and state law and rules and
regulations and possesses trust powers under this act, it is the intent of
this section to impose restrictions on the business name of such
institution to avoid confusion with other banks and trust companies that
operate in this state but that are not fiduciary financial institutions. The
naming restrictions on the business name imposed under this section
shall in no way reduce or eliminate the trust powers granted to a
fiduciary financial institution as a trust company under this act. Other
than indicating that the fiduciary financial institution is headquartered
and chartered in Kansas, no fiduciary financial institution's name or
advertising shall infer or imply that such fiduciary financial institution
is endorsed by, an affiliate of or otherwise connected with the
government of the state of Kansas. Nothing in this section or K.S.A. 9-
2011, and amendments thereto, shall restrict a fiduciary financial
institution from publishing or promulgating itself as a trust company as
defined in K.S.A. 9-701, and amendments thereto, in legal or regulatory
filings or disclosures to existing or prospective customers or investors.
Sec. 3. K.S.A. 9-2310 is hereby amended to read as follows: 9-2310.
Any fiduciary financial institution is hereby authorized to exercise by its
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43 HB 2133—Am. by SC 5
board of directors or duly authorized officers or agents, subject to law,
the following powers:
(a) To engage in fidfin transactions in accordance with K.S.A. 9-
2311, and amendments thereto;
(b) to receive, retain and manage alternative asset custody accounts
in accordance with K.S.A. 9-2313, and amendments thereto; and
(c) to exercise fiduciary powers and full trust powers and to engage
as a trust company in trust business as defined in K.S.A. 9-701, and
amendments thereto, as incidental to and any other applicable federal or
state law or rules and regulations, in any manner that assists in the
performance of the activities in subsections (a) and (b); and
(d) to publish and promulgate itself as a chartered trust company as
defined in K.S.A. 9-701, and amendments thereto, in legal or regulatory
filings or disclosures to existing or prospective customers or investors,
subject only to the restriction on the business name as provided in K.S.A.
9-2308, and amendments thereto.
Sec. 4. K.S.A. 9-2307, 9-2308 and 9-2310 are hereby repealed.
Sec. 6. 5. This act shall take effect and be in force from and after its
publication in the statute book Kansas register.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19