Authorizing the state bank commissioner to accept state and national criminal history record checks from private entities.
Impact
If enacted, SB51 will significantly impact how fiduciary financial institutions receive their charters and operate within Kansas. The bill establishes definitions crucial for understanding fiduciary services, including what constitutes an 'alternative asset' and the requirements for creating an 'alternative asset custody account.' This clarity is intended to foster the growth of fiduciaries that can manage both traditional and alternative investments while ensuring compliance with state laws.
Summary
Senate Bill 51, also known as the technology-enabled fiduciary financial institutions act, seeks to modernize the regulatory framework governing fiduciary financial institutions in Kansas. The bill introduces provisions for the operation and oversight of these institutions, demanding compliance with specific requirements set by the state banking board. One of the key aspects of the bill is the authorization for the state bank commissioner to accept state and national criminal history record checks from private entities, enhancing the vetting process for those involved with fiduciary financial institutions.
Contention
Notably, a point of contention within the bill is the confidentiality surrounding criminal history checks. The bill stipulates that the results from these checks must remain confidential and are not subject to public disclosure, which raises concerns about transparency and accountability in the oversight of fiduciary financial institutions. Additionally, there are discussions about the implications of allowing private entities to conduct criminal history checks, as some stakeholders argue this could lead to inconsistencies and potential biases in how applications are treated.
Implementation
The successful implementation of SB51 hinges on the coordinated efforts between the state banking board and applicants for fiduciary financial institution charters. The bill specifies stringent requirements for applicants, including necessary investments in economic growth zones and commitments to charitable contributions. These stipulations aim to not only safeguard the interests of investors but also to stimulate economic development within designated areas of Kansas.
Authorizing the attorney general and the state gaming agency to receive certain additional criminal history records, updating criminal history record language related to the state bank commissioner, requiring the secretary of labor to conduct criminal history record checks on employees who have access to federal tax information and authorizing the secretary of commerce to conduct such checks on final applicants for and employees in certain sensitive positions.
Requiring criminal history record check information relating to hemp producers to be sent to the state fire marshal, updating the fingerprinting language for the state banking commissioner for money transmitters and earned wage access services providers and authorizing the state gaming agency and attorney general to have access to more criminal history record information.
Prohibiting the office of the state bank commissioner or any other state agency from becoming a receiver for a technology-enabled fiduciary financial institution that becomes insolvent or declares bankruptcy.
Updating provisions of the technology-enabled fiduciary financial institutions (TEFFI) act by making the act part of the state banking code, adjusting and providing certain definitions, reducing the TEFFI charter application fee, authorizing the issuance of certificates and trust certificates, providing for the supervision of TEFFIs by the state bank commissioner and including Kansas nonprofit corporations as qualified charities for the TEFFI income tax credit.
Clarifying definitions of individuals who are subject to a state and national criminal history record check and which agency receives the results of such record check.
Requiring all applicants for teaching licenses and certificates and employees of a school district or public innovative district to submit to a criminal history record check and creating the criminal history record check reimbursement fund for certain state and criminal history record checks conducted by the Kansas department for aging and disability services.
Authorizing financial institutions to report suspected financial exploitation of an adult account holder to a designated agency, notify any adult designated as a trusted contact by such account holder of suspected financial exploitation and place a temporary hold on certain transactions or disbursements. Enacting the virtual currency kiosk consumer protection act, providing definitions, and establishing requirements for virtual currency kiosk operators. Prohibiting the office of the state bank commissioner or any other state agency from becoming a receiver for a technology-enabled fiduciary financial institution that becomes insolvent or declares bankruptcy. Providing that earned wage access service registrants are subject to the Kansas financial institutions information security act, and eliminating certain stipulations relating to the payment of negotiable instruments on Saturday afternoons or holidays.
Updating provisions of the technology-enabled fiduciary financial institutions (TEFFI) act by making the act part of the state banking code, adjusting and providing certain definitions, reducing the TEFFI charter application fee, authorizing the issuance of certificates and trust certificates, providing for the supervision of TEFFIs by the state bank commissioner and including Kansas nonprofit corporations as qualified charities for the TEFFI income tax credit.
Providing for the apportionment of business income by manufacturers of alcoholic liquor depending on whether the taxpayer is a qualifying Kansas investor or a general manufacturer and removing obsolete reference to global intangible low-taxed income provided for under the federal internal revenue code in determining Kansas adjusted gross income.
Prohibiting the office of the state bank commissioner or any other state agency from becoming a receiver for a technology-enabled fiduciary financial institution that becomes insolvent or declares bankruptcy.
Relating to joint accounts in banking institutions and eliminating the requirement that the commissioner approve joint account forms to be used by banking institutions