The bill amends the technology-enabled fiduciary financial institutions act by explicitly prohibiting the office of the state bank commissioner or any other state agency from acting as a receiver for technology-enabled fiduciary financial institutions that become insolvent or declare bankruptcy. It defines insolvency for these institutions based on their inability to meet creditor liabilities or demands. Additionally, the bill includes a new section that clarifies the definitions and provisions related to fiduciary financial institutions, ensuring that these definitions are part of the overall framework of the act.

Furthermore, the bill amends K.S.A. 2025 Supp. 9-2301 to incorporate the new provisions and definitions, while also repealing the existing section. The amendments aim to provide clarity and support for technology-enabled fiduciary financial institutions, ensuring they operate under a defined legal framework without the risk of state intervention in insolvency situations. The act will take effect upon publication in the statute book.

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