Kansas 2023-2024 Regular Session

Kansas Senate Bill SB204

Introduced
2/8/23  
Refer
2/9/23  
Report Pass
2/15/23  
Refer
2/23/23  
Refer
3/1/23  
Refer
4/4/23  

Caption

Replacing the definition of "charitable beneficiaries" with "qualified charities" in the technology-enabled fiduciary financial institutions act.

Impact

The changes brought about by SB204 facilitate a more straightforward operational framework for fiduciary financial institutions in Kansas. By clearly defining 'qualified charities', the bill empowers these institutions to effectively manage trusts while adhering to both their fiduciary responsibilities and relevant legal guidelines. This could potentially lead to an increase in charitable contributions through these institutions, positively impacting local economies and community welfare programs.

Summary

Senate Bill 204 amends the technology-enabled fiduciary financial institutions act by replacing the term 'charitable beneficiaries' with 'qualified charities'. This change is significant as it aligns the legislation with existing definitions under Kansas law, specifically referencing K.S.A. 79-32,283. The bill aims to enhance clarity within the legislation and ensure that the types of beneficiaries eligible under fiduciary trusts are consistent with state tax codes, which promote transparency and compliance for fiduciary financial institutions.

Conclusion

Overall, SB204 seeks to modernize and refine Kansas legislation regarding fiduciary financial institutions. By addressing definitions within the act, the bill not only promotes consistency within state law but also aims to foster an environment that encourages charitable giving. However, the implications for smaller charities warrant further discussion and consideration to ensure equitable access to resources.

Contention

While the bill appears largely beneficial, discussions surrounding it suggest that stakeholders are concerned about the potential ramifications for smaller charities that may not meet the new definition of 'qualified charities'. This adjustment could limit access to funds from certain fiduciary institutions, directing financial support predominantly towards larger, more established charities. As such, balancing the legislative intent to enhance compliance and clarity with the need to support a diverse charity landscape is a point of contention among stakeholders.

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 SB51

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

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 SB199

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.

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.

MD SB175

Fiduciary Institutions - Investigation of Financial Abuse and Financial Exploitation - Records Disclosure

ME LD114

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MS SB2419

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