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 introduction of specific reporting deadlines for these institutions. Additionally, fiduciary financial institutions will be exempt from certain records retention requirements and will be allowed to issue trust certificates representing beneficial ownership of assets in alternative custody accounts. The bill also expands the definition of qualified charities to include Kansas nonprofit corporations for income tax credits related to fiduciary financial institutions.

Moreover, the bill outlines operational requirements for fiduciary financial institutions, such as maintaining suitable office space in designated economic growth zones and employing a minimum of three staff members. It introduces a tax credit for institutions making qualified charitable distributions while based in these zones and specifies criteria for such distributions. The legislation also repeals several existing statutes related to fiduciary financial institutions, streamlining the regulatory framework and enhancing the potential for charitable contributions in economic growth zones. Overall, the bill aims to modernize regulations while promoting the growth and efficiency of fiduciary financial institutions in Kansas.

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