Kansas Senate Bill SB51

Kansas 2023-2024 Regular Session

• Introduced: 1/18/23
• Refer: 1/19/23
• Report Pass: 2/14/23
• Refer: 2/16/23
• Refer: 2/20/23
• Refer: 4/4/23
• Failed: 4/30/24

Caption

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

Impact

If enacted, SB51 will significantly impact how fiduciary financial institutions receive their charters and operate within Kansas. The bill establishes definitions crucial for understanding fiduciary services, including what constitutes an 'alternative asset' and the requirements for creating an 'alternative asset custody account.' This clarity is intended to foster the growth of fiduciaries that can manage both traditional and alternative investments while ensuring compliance with state laws.

Summary

Senate Bill 51, also known as the technology-enabled fiduciary financial institutions act, seeks to modernize the regulatory framework governing fiduciary financial institutions in Kansas. The bill introduces provisions for the operation and oversight of these institutions, demanding compliance with specific requirements set by the state banking board. One of the key aspects of the bill is the authorization for the state bank commissioner to accept state and national criminal history record checks from private entities, enhancing the vetting process for those involved with fiduciary financial institutions.

Contention

Notably, a point of contention within the bill is the confidentiality surrounding criminal history checks. The bill stipulates that the results from these checks must remain confidential and are not subject to public disclosure, which raises concerns about transparency and accountability in the oversight of fiduciary financial institutions. Additionally, there are discussions about the implications of allowing private entities to conduct criminal history checks, as some stakeholders argue this could lead to inconsistencies and potential biases in how applications are treated.

Implementation

The successful implementation of SB51 hinges on the coordinated efforts between the state banking board and applicants for fiduciary financial institution charters. The bill specifies stringent requirements for applicants, including necessary investments in economic growth zones and commitments to charitable contributions. These stipulations aim to not only safeguard the interests of investors but also to stimulate economic development within designated areas of Kansas.