Brief ⁽¹⁾

SB 130 concerns the powers of trust companies. The bill allows for a trust company to be chartered by the Bank Commissioner for a limited purpose, with the articles of incorporation of the company listing the specific powers the trust company chooses and is authorized to exercise.

Background

SB 130 was requested by the State Bank Commissioner who explained that existing law would require a freestanding trust company-one not associated with a bank-to be prepared to exercise all the powers enumerated in the Kansas statute. The Commissioner said he had been contacted about chartering a trust company with a specifically limited authority and to staff with employees knowledgeable in the limited area. The response to the inquiry was that Kansas law does not allow a limited freestanding trust company and an application to create such an entity would probably be refused.

The bill gives the Commissioner the flexibility to charter a limited freestanding trust company just as the Commissioner already has the authority to allow a trust department of a bank to offer limited trust services and to staff accordingly.

The fiscal note prepared by the Division of the Budget indicates passage of the bill will have no fiscal effect.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi