SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2133
As Amended by Senate Committee on Financial
Institutions and Insurance

Brief*
HB 2133, as amended, would amend the Technology-
enabled Fiduciary Financial Institutions (TEFFI) Act to state a
fiduciary financial institution “shall be designated, recognized,
and referenced as a chartered trust company as defined in
KSA 9-701, and amendments thereto, by the Office of the
State Bank Commissioner (OSBC) without exception.” The
bill would make references to this recognition and other
modifications to provisions in the TEFFI Act pertaining to
reporting to the Commissioner and examination, use of the
business name, and general powers assigned to authorized
fiduciary financial institutions.
The bill would be in effect upon publication in the
Kansas Register.

Reporting to the Bank Commissioner; Oversight as
Chartered Trust Company
The bill would add a provision to the fiduciary financial
institution’s reporting requirements to the State Bank
Commissioner stating a fiduciary financial institution shall be:
● Overseen, supervised, and examined by the OSBC
as a chartered trust company as defined in the
Kansas Banking Code (KSA 9-701) exercising
fiduciary powers and engaging in trust business
pursuant to general powers’ provisions within the
____________________
*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
 TEFFI Act and rules and regulations adopted
pursuant to Kansas state law by such office; and
● Designated, recognized, and referenced as a
chartered trust company as defined in KSA 9-701
by the OSBC without exception.
Advertising; Use of Business Name
The bill would amend provisions pertaining to a fiduciary
financial institution’s business name and advertising to clearly
state a fiduciary financial institution is a chartered trust
company as defined in the Kansas Banking Code (KSA 9-
701) for all purposes under federal and state law as if
authorized under KSA 9-804(c) [organization, certificate,
authorization to transact either general banking or trust
business].
The bill would also provide that nothing in these naming
provisions or in KSA 9-2011 (penalties, unlawful
advertisement, publication, or otherwise promulgation that an
individual, firm, or corporation is engaged in the banking or
trust business without prior approval of the Bank
Commissioner) shall restrict a fiduciary financial institution
from publishing or promulgating itself as a trust company as
defined in the Kansas Banking Code in legal or regulatory
filings or in disclosures to existing or prospective customers
or investors.
The bill would make clarifying changes to references to
name or naming to add references to business name.

General Powers; Exercising Full Trust Powers, Engaging
as Trust Company in Trust Business; Publication and
Promulgation as a Chartered Trust Company
Under current law, a fiduciary financial institution is
authorized to exercise by its board of directors or duly

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authorized officers or agents, subject to law, the following
powers:
● To engage in fidfin transactions in accordance with
law (powers and duties pertaining to extension of
credit or credit to a fidfin trust);
● To receive, retain, and manage alternative asset
custody accounts in accordance with law (custodial
services); and
● To engage in trust business as defined in the
Kansas Banking Code applicable to supervision
(KSA 9-701).
The bill would modify this third defined power to permit
the fiduciary financial institution to exercise fiduciary powers
and full trust powers and to engage, as a trust company, in
trust business and any other applicable federal or state law or
rules and regulations, in any manner that assists in the
performance of the activities in the first two defined powers.
The bill would add a general power to authorize the
fiduciary financial institution and its board, officers, or agents
to publish and promulgate itself as a chartered trust company
as defined in the Kansas Banking Code (KSA 9-701) in legal
or regulatory filings or in disclosures to existing or prospective
customers or investors, subject only to the restriction on
business name (as provided in KSA 9-2308).

Background
[Note: 2022 SB 337 amended provisions within the
TEFFI Act to clarify and retroactively codify the intended date
for issuance of a full charter to the Beneficient Company. The
bill specified that on December 31, 2021, the conditional
charter granted under this pilot program shall be converted to
a full fiduciary financial institution charter.]

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 HB 2133, as it passed the House, would repeal the
prohibition on imposing a surcharge on payments made by
credit or debit cards. As amended by the Senate Committee,
the bill would address only the regulation and certain
activities, duties, and powers associated with fiduciary
financial institutions.

Senate Committee on Financial Institutions and
Insurance
In the Senate Committee meeting on April 4, the
Committee reviewed SB 204, which pertained to modifying
definitions in the TEFFI Act to reference the term “qualified
charities” and make changes in the corresponding tax statute
applicable to the tax liability of a fiduciary financial institution
and its qualified charitable distributions. [Note: The Senate
Committee previously recommended SB 204, as amended by
the Committee. The bill was withdrawn from the Calendar and
re-referred to the Senate Committee on April 4.]
The President and Chief Fiduciary Officer, the
Beneficient Company Group, was recognized to provide
proponent testimony addressing a balloon amendment
distributed in the meeting. The testimony highlighted the need
for urgent resolution to permit Beneficient and Beneficient
Fiduciary Financial, LLC (BFF) to make full and adequate
disclosures to the judiciary and state and federal regulators;
address unresolved issues with the Office of the State Bank
Commissioner, which would allow Beneficient’s registration
statement with the U.S. Securities and Exchange
Commission to became effective later this month; and allow
BFF to represent to its current and future customers that it is
a regulated trust company under Kansas law. The
representative noted Beneficient is in the final stages of
becoming a public company and such listing would enable
expansion of BFF’s trust and liquidity services.
The Senate Committee amended the contents of SB
204 by removing its contents and inserting contents that

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would modify and add provisions to three sections within the
TEFFI Act pertaining to reporting to the Commissioner and
recognition and reference of a fiduciary financial institution as
a chartered trust company, restrictions on business name and
the ability for a fiduciary financial institution to be recognized
as a trust company in certain legal or regulatory filings or in
certain disclosures, and general powers of fiduciary financial
institutions and the authorization to engage in trust business.
The Senate Committee recommended replacing the contents
of HB 2133, as recommended by the House Committee on
Financial Institutions and Pensions, with its modified contents
of SB 204.

Fiscal Information
A fiscal note is not immediately available for the bill, as
amended by Senate Committee.
Financial institutions; Technology-enabled Fiduciary Financial Institutions Act; TEFFI;
chartered trust company; business name; regulatory filings; customer and investor
disclosures; powers


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Statutes affected:
As introduced: 75-30, 2-403, 12-16, 19-122, 72-1176
As Amended by Senate Committee: 9-2307, 9-2308, 9-2310, 12-16, 2-403, 19-122, 72-1176, 75-30, 9-701