The bill SB230 proposes a comprehensive overhaul of the existing Arkansas Trust Institutions Act, replacing it with the Arkansas Trust Institutions Act of 2025. This new legislation aims to modernize the regulatory framework governing trust institutions in Arkansas by repealing outdated provisions, including the entire Chapter 51, which covered definitions, fiduciary responsibilities, and operational guidelines for trust companies. Key amendments include the removal of several definitions and provisions related to the application process for establishing state trust companies, as well as the introduction of new definitions and criteria for fiduciary organizations, such as "foundation." The bill also clarifies the process for organizing and chartering state trust companies, streamlining the approval process and granting the Bank Commissioner authority to implement necessary rules.

Additionally, SB230 addresses various operational aspects of state trust companies, including investment activities, lending limits, and the acquisition of control. It establishes new guidelines for investments, allowing for greater flexibility while maintaining regulatory oversight, and modifies the conditions under which private trust companies can request exemptions from certain provisions. The bill emphasizes the importance of maintaining adequate capital and outlines the responsibilities of the board of directors, ensuring compliance with regulatory standards. Overall, SB230 seeks to enhance the governance and oversight of trust institutions in Arkansas, fostering a more secure and efficient financial landscape while protecting the interests of clients and beneficiaries.