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aims to modernize and streamline the regulatory framework governing trust companies in Arkansas by repealing outdated provisions and introducing updated definitions and regulations. Key amendments include the removal of several definitions related to trust institutions, the clarification of terms such as "Trust company" and "Trust business," and the establishment of new criteria for unauthorized trust activities. The bill also outlines the process for organizing and chartering state trust companies, emphasizing the need for adequate capitalization and the qualifications of officers and shareholders.

Additionally, SB230 modifies the capital requirements for state trust companies, stipulating a minimum capital of one million dollars while allowing the Bank Commissioner discretion to adjust this based on operational needs. The bill streamlines the charter application process, eliminates unnecessary provisions related to public notice and protests, and enhances the authority of the Bank Commissioner in overseeing trust institutions. It also introduces new provisions for private trust companies, including the process for converting to public trust companies and the conditions under which they may request exemptions from certain regulations. Overall, the bill aims to enhance regulatory clarity, operational efficiency, and consumer protection within the trust management landscape in Arkansas.