SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 51
As Recommended by Senate Committee on
Financial Institutions and Insurance

Brief*
SB 51 would amend the Technology-enabled Fiduciary
Financial Institutions Act (TEFFI Act) to authorize the State
Bank Commissioner (Commissioner) to accept state and
national criminal history record checks performed by private
entities.

Fingerprinting of Certain Officials; Criminal History
Record Checks, Use of Private Entities; Unlawful
Disclosure
The bill would amend existing fingerprinting criteria in
the TEFFI Act to add the Commissioner to the entities
permitted to require fingerprinting of officers, directors, or
organizers of fiduciary financial institutions. Under current
law, the State Banking Board (Board) is assigned this duty.
The bill would further authorize the Board or the
Commissioner to accept a state or national criminal history
record check from a private entity if the Kansas Bureau of
Investigation (KBI) or Federal Bureau of Investigation (FBI) is
unable to to supply the criminal history record checks through
available repositories. The bill would also state that the Board
and Commissioner would not be allowed to disclose or use a
state or national criminal history record check except for the
purposes provided in the TEFFI Act. The unauthorized use of
a state or national criminal history record check would
constitute a class A nonperson misdemeanor.
____________________
*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
 The bill would also provide each criminal history record
check would be deemed confidential, not subject to the
Kansas Open Records Act, and could not be disclosed to any
fiduciary financial institution. The bill would provide these
confidentiality provisions would expire on July 1, 2028, unless
the Legislature reviews and reenacts such provisions prior to
July 1, 2028.

Definitions
The bill would add definitions in the TEFFI Act for the
terms “director,” “officer,” “organizer,” and “private entity.” A
“private entity” would mean an entity other than the KBI or
FBI that can provide a state or national criminal history record
check.
The bill would be in effect upon publication in the
Kansas Register.

Background
The bill was introduced by the Senate Committee on
Financial Institutions and Insurance at the request of the
Office of the State Bank Commissioner (OSBC).
[Note: The Joint Committee on Fiduciary Financial
Institutions met in December 2022, and among topics
discussed, the Committee received comment and a
legislative proposal from the OSBC regarding the agency’s
inability to obtain background checks from the FBI and
language updates to the TEFFI Act to define certain officials
and permit the Commissioner to require fingerprinting of
these officials. The Joint Committee recommended
introduction of legislation to accommodate this request.]


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Senate Committee on Financial Institutions and
Insurance
In the Senate Committee hearing, a representative of
the OSBC provided proponent testimony, stating the bill
would include the additional language necessary for the
OSBC to receive criminal history record check information
from the FBI. The bill would also include criminal history
record check provisions to assist the OSBC in its background
check process. The representative noted the bill would have
a neutral fiscal effect.
Neutral testimony was provided by the Executive Officer
of the KBI. The KBI official provided background information
regarding the KBI’s responsibility to maintain the state’s
criminal history records. The KBI official also noted there are
an estimated 77 state statutes that authorize criminal history
record checks for non-criminal justice entities. The KBI official
stated the agency is working to change the structure of the
civil fingerprint background check statutes to a single statute
and it hopes to introduce a bill soon.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the OSBC indicates any fiscal effect
associated with the bill could be absorbed within the agency’s
existing resources. The KBI indicates that any revenue it
receives from criminal history record check requests would be
offset by operating expenditures relating to staffing and
maintenance of the repository system that generates the
criminal history check. The Kansas Legislature indicates the
bill would have no fiscal effect. Any fiscal effect associated
with the bill is not reflected in The FY 2024 Governor’s
Budget Report.
Fiduciary financial institutions; TEFFI Act; State Bank Commissioner; State Banking
Board; fingerprinting; private entities; confidential information


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Statutes affected:
As introduced: 9-2301, 9-701, 9-2302