SESSION OF 2024
SUPPLEMENTAL NOTE ON SENATE BILL NO. 306
As Amended by Senate Committee on
Assessment and Taxation
Brief*
SB 306, as amended, would create an addition
modification in determining Kansas Adjusted Gross Income,
beginning in tax year 2022, for reported losses on any
applicable federal income tax return arising from any
investment, including any alternative asset investment, in a
Technology-Enabled Fiduciary Financial Institution (TEFFI).
[Note: The TEFFI Act defines “alternative asset” as
professionally managed investment assets that are not
publicly traded, including, but not limited to, private equity,
venture capital, leveraged buyouts, special situations,
structured credit, private debt, and private real estate funds
and natural resources, including any economic benefit or
beneficial interest.]
The bill would also make technical changes to remove
outdated language and update statutory references.
Background
The bill was introduced by the Senate Committee on
Assessment and Taxation at the request of Senator Holland.
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org Senate Committee on Assessment and Taxation
In the Senate Committee hearing, proponent testimony
was provided by Senator Holland, who generally stated the
bill would provide transparency into TEFFI transactions and
protect the State General Fund (SGF) from unforeseen draw
downs.
Written-only opponent testimony was provided by a
representative of The Beneficient Company Group, LP.
No other testimony was provided.
The Committee made a technical change to update
statutory references.
Fiscal Information
According to the fiscal note prepared by the Division of
Budget on the bill during the 2023 Legislative Session, the
Department of Revenue indicates enactment of the bill has
the potential to increase SGF revenue by negligible amounts
beginning in FY 2024.
Any fiscal effect associated with the bill is not reflected
in The FY 2024 Governor's Budget Report.
Taxation; Income tax; Technology-enabled Fiduciary Financial Institution;
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