The bill establishes a framework for the conversion of state banks into special purpose depository institutions in Wyoming. It introduces a new section, W.S. 13-12-127, which outlines the process for such conversions, including the requirement for state banks to submit a comprehensive application that details their conversion plan, asset and liability management, and compliance with existing banking regulations. The application must be approved by the bank's shareholders and includes a fee, as well as various certifications and documents as required by the commissioner. The commissioner has the authority to expedite the approval process, and the application must be approved or denied within specified timeframes.

Additionally, the bill mandates that the banking commissioner adopt necessary rules to implement these provisions by July 1, 2026, while the act itself will take effect on the same date, with certain sections becoming effective immediately upon the bill's passage. The converted special purpose depository institutions will retain the operational history of the original state bank but must refrain from using the term "state bank" in their business name. The legislation aims to provide a clear pathway for state banks to transition into special purpose depository institutions while ensuring regulatory compliance and consumer protection.