Kansas 2023-2024 Regular Session

Kansas Senate Bill SB302

Introduced

3/8/23

Refer

3/9/23

Failed

4/30/24

Caption

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.

Impact

The passage of SB 302 would significantly impact the regulatory landscape governing technology-enabled fiduciary financial institutions. By prohibiting the engagement of these entities in critical financial operations without legislative consent, the bill establishes a framework that promotes greater accountability and oversight of financial practices. This approach aims to mitigate risks associated with fiduciary transactions while preserving the integrity of state financial regulations.

Summary

Senate Bill 302 is designed to address the operations of technology-enabled fiduciary financial institutions within Kansas. The bill suspends these institutions from engaging in fidfin transactions, custodial services, and trust business until the legislature provides explicit consent and approval for such activities through a legislative act. This measure is aimed at protecting Kansas taxpayers and ensuring that the state general fund is not exposed to potential liabilities arising from these financial activities.

Contention

Notably, the bill mandates a forensic audit to be conducted by an independent firm, investigating various aspects of technology-enabled fiduciary financial institutions. This includes examining the sources of funds used in financial transactions, scrutinizing campaign contributions made by these institutions, and assessing the nature of assets involved in their operations. While supporters may argue that such measures enhance transparency and protect public interests, there may be concerns about the implications for innovation in financial services and the operational viability of these institutions in the state.

Latest SB302 Activity

Companion Bills

No companion bills found.

Similar Bills

KS SB204

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

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 SB51

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

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.