The bill amends the Kansas banking code to establish the Technology-Enabled Fiduciary Financial Institutions Act, which aims to regulate fiduciary financial institutions that leverage technology in their operations. Key changes include a reduction in the charter application fee from $100,000 to $50,000 starting July 1, 2025, and the establishment of due dates for financial reports to the state bank commissioner. The bill also exempts these institutions from certain records retention requirements and allows for the issuance of trust certificates representing beneficial ownership of assets in alternative custody accounts. Additionally, it expands the definition of qualified charities to include Kansas nonprofit corporations for income tax credits related to fiduciary financial institutions.

Further amendments focus on operational requirements, including the necessity for fiduciary financial institutions to maintain suitable office space in designated economic growth zones and employ a minimum of three staff members. The bill outlines the evaluation process for these institutions, emphasizing compliance with laws and financial obligations, while profitability will not be a consideration if sufficient capital and equity are present. It also introduces provisions for fiduciary transactions, including financing to fidfin trusts, and clarifies that external assistance does not constitute engagement in fidfin transactions. The bill repeals several existing statutes related to fiduciary financial institutions to streamline the tax credit process and enhance support for economic growth zones through charitable contributions.

Statutes affected:
As introduced: 9-2301, 79-32, 9-542, 9-701, 9-2303, 9-2324, 9-2307, 9-1130, 17-12, 9-2309, 9-2310, 9-2311, 9-2312, 9-2322, 75-3739, 75-37