Kansas 2023-2024 Regular Session

Kansas Senate Bill SB199

Introduced

2/7/23

Refer

2/8/23

Failed

4/30/24

Caption

Authorizing the state banking board to deny, suspend or revoke a charter of a fiduciary financial institution in certain circumstances, requiring fiduciary financial institutions to purchase a surety bond and establishing a civil money penalty for violations of the technology-enabled fiduciary financial institutions act.

Impact

One significant impact of SB199 is the requirement for fiduciary financial institutions to purchase a surety bond amounting to 5% of their total assets. This surety bond serves multiple purposes, such as covering liquidation expenses and providing reimbursement for customer losses. By requiring this financial safety net, the state aims to ensure that institutions remain solvent and uphold their obligations to clients. This bond is expected to instill greater confidence in financial dealings, thus potentially improving customer trust in fiduciary services.

Summary

Senate Bill 199 aims to enhance the regulation of fiduciary financial institutions by granting the state banking board the authority to deny, suspend, or revoke charters for these institutions under specific circumstances. This promotes accountability and compliance among fiduciary financial institutions, as they are required to adhere to established laws and regulations. The bill sets forth detailed conditions under which actions against institutions can be taken, thus establishing a clearer framework for enforcement and monitoring in the financial sector.

Contention

While SB199 strengthens the regulatory framework for fiduciary institutions, some concerns may arise regarding the breadth of powers granted to the state banking board. Critics may argue that the provisions allowing for the denial or revocation of charters may be overly broad or lack proper safeguards against abuse. Furthermore, the requirement for a surety bond may impose additional financial burdens on smaller fiduciary institutions, which could hinder competition and limit options for consumers seeking financial services.

Latest SB199 Activity

Companion Bills

No companion bills found.

Similar Bills

KS HB2235

Updating provisions of the technology-enabled fiduciary financial institutions (TEFFI) act by making the act part of the state banking code, adjusting and providing certain definitions, reducing the TEFFI charter application fee, authorizing the issuance of certificates and trust certificates, providing for the supervision of TEFFIs by the state bank commissioner and including Kansas nonprofit corporations as qualified charities for the TEFFI income tax credit.

KS HB2133

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 refer to itself as a trust company in legal or regulatory filings or disclosures to existing or prospective customers or investors and 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.

KS SB51

Authorizing the state bank commissioner to accept state and national criminal history record checks from private entities.

KS SB302

Suspending fidfin transactions, custodial services and trust business of technology-enabled fiduciary financial institutions until the legislature expressly consents to and approves such activities by an act of the legislature and requiring the legislature to conduct a forensic audit of technology-enabled fiduciary financial institutions.

KS HB2560

Enacting the Kansas money transmission act and the Kansas earned wage access services act, providing when applications under the state banking code are considered abandoned or expired, allowing an originating trustee to have such trustee's principal place of business outside of Kansas, authorizing any person to become a depositor or lessor of a safe deposit box, providing methods in which bank deposits may be withdrawn by a depositor and prohibiting banks from requiring a cosigner for an account of a child in the custody of the secretary for children and families, secretary of corrections or a federally recognized Indian tribe.