# Arkansas SB230: TO REPEAL THE ARKANSAS TRUST INSTITUTIONS ACT; AND TO CREATE THE ARKANSAS TRUST INSTITUTIONS ACT OF 2025. Arkansas SB230, TO REPEAL THE ARKANSAS TRUST INSTITUTIONS ACT; AND TO CREATE THE ARKANSAS TRUST INSTITUTIONS ACT OF 2025., is a 2025 Regular Session Senate bill sponsored by Brandon Achor (Republican), Justin Boyd (Republican); status enacted, last action 2025-03-04 (Notification that SB230 is now Act 237) (as of 2026-10-19). - Canonical: https://policyrisk.com/state-bill/AR-SB230-2025 - As of: 2026-10-19 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Arkansas SB230 - State: Arkansas - Session: 2025 Regular Session - Title: TO REPEAL THE ARKANSAS TRUST INSTITUTIONS ACT; AND TO CREATE THE ARKANSAS TRUST INSTITUTIONS ACT OF 2025. - Status: enacted - Chamber: Senate - Introduced: 2025-02-13 - Last action: 2025-03-04, Notification that SB230 is now Act 237 - Sponsors: Brandon Achor (Republican), Justin Boyd (Republican) - Cosponsors: 0 - Touches household money: no - Roll calls: 2 (119 yes, 0 no in all) - Economic provisions PRIA read: 35 ## Summary No summary available. ## Bill overview: provisions PRIA read - Trust clients get fee and conflict protections: benefit, low. Trustee and fiduciary pay agreements must be negotiated fairly, and charges must be reasonable for the services provided. The law sets no specific fee cap. Trust companies must disclose actual or potential conflicts reasonably expected to affect their independence or judgment before entering an agr… - Trust clients get loss and record safeguards: benefit, low. State trust companies must obtain reasonable client protection against fraud, theft, forgery, and similar insurable losses. Coverage generally includes all directors, officers, and employees, using an insurer or surety authorized in Arkansas or otherwise acceptable to the commissioner. The provider… - Arkansas residents can choose trust providers: benefit, low. Arkansas residents can choose any trust institution to act as their fiduciary, managing money or property for them. An institution with an Arkansas trust office or representative office and its affected clients can also choose the governing law. Choices include Arkansas, a state where affected clie… - Trust clients can choose investment law: benefit, low. A trust institution with an Arkansas trust office or representative office and its affected clients can jointly choose investment standards. They can choose Arkansas law, the law of a state where affected clients live, or the institution's principal-office state. This choice sets the legal investme… - Trust record misconduct carries felony penalties: benefit, low. Knowingly hiding information or company records from the Arkansas Bank Commissioner is a Class D felony. The same penalty applies to destroying or removing records to hide information material to a pending or expected proceeding. Knowingly making false entries in a trust company's books, records, r… - Trust companies must quickly report suspected theft: benefit, low. Trust companies must report robberies and shortages of company or trust funds exceeding $5,000 within 48 hours of discovery. They must also report apparent or suspected misuse of funds or property by directors, officers, or employees, regardless of amount. Reports go to the Bank Commissioner, and a… - Out-of-state trust firms can expand: benefit, low. Out-of-state trust institutions with an Arkansas trust office can open or acquire more trust offices or representative offices. Added locations must follow the requirements for Arkansas state trust institutions. At each qualifying trust office, these firms can offer any activity Arkansas law allows… - Trust institutions can offer broader services: benefit, low. Arkansas state banks and trust companies can perform fiduciary services and use related business powers allowed by law. Chartered trust companies can conduct trust business inside or outside Arkansas. They can deposit trust funds with themselves or affiliates, subject to Arkansas Code § 23-51-508.… - Trust oversight targets conflicts and misconduct: benefit, low. Covered trust regulators cannot hold specified company jobs or ownership interests, accept payments or gifts, or borrow from state trust companies. They can keep deposits and buy noncredit services on ordinary customer terms. Without written commissioner consent, directors are barred for felonies,… - Trust charter objections require costly filings: cost, low. To appear in opposition to a state trust company charter application, a person must file a written protest. The protest must explain the objection and be filed within 30 days after notice of the application. The person must also pay a fee of $2,000 to $5,000, set by the commissioner through rules. - Trust company buyers face tighter rules: cost, low. A private trust company's exemption cannot be sold or transferred with control of the company. The exemption ends on the control transfer's effective date. The buyer must follow the act unless a separate exemption application is filed and approved. A person required to apply for control of an Arkan… - Trust company leaders face oversight duties: cost, low. State trust-company boards must have at least three directors, with more than half living in Arkansas. Before each elected term, directors must file sworn statements accepting their roles, confirming qualifications, and promising lawful, diligent service. Boards are responsible for trust duties, in… - Trustees can delegate with client safeguards: mixed, low. Trustees and other fiduciaries can delegate investment, management, or administrative work, but must carefully select and review the provider. They generally remain responsible for the work, except as provided in Arkansas Code § 28-73-807. Hiring and paying an affiliate requires permission from the… - Trust records stay private with exceptions: mixed, low. Specified State Bank Department records are confidential and generally exempt from Arkansas public-records requests. These include examination reports, examination information, investigations and reports about trust companies or customers, and submitted personal financial statements. Disclosure is… - Arkansas trust providers can expand offices: mixed, low. State trust institutions can apply to establish or acquire trust and representative offices anywhere in Arkansas. Arkansas-chartered institutions can also apply for offices in other states, supplying office, market, jurisdiction, board, and fee information. Out-of-state business generally starts 30… - Family trust exemptions carry ongoing duties: mixed, low. Private trust companies that do not serve the public can seek full or partial exemptions and pay a nonrefundable $3,000 to $5,000 fee. Applicants must meet family-control, disclosure, and Arkansas records-office requirements; exempt companies must certify annually by June 30 and pay applicable fran… - Out-of-state trust offices need reciprocal access: mixed, low. Out-of-state trust institutions without an Arkansas trust office can establish or acquire one when their home state allows comparable Arkansas institutions similar access. They must meet Arkansas and home-state requirements, including a written promise to follow applicable Arkansas law. New-office… - Private trust companies can serve public: mixed, low. A private trust company can apply to end private status and serve the general public. It must provide a board resolution, acknowledge that exemptions end, and pay any required filing fee. Public business generally starts 30 days after approval, unless the commissioner sets another date; extended re… - Representative trust offices cannot manage trusts: mixed, low. Out-of-state trust institutions can establish, acquire, and maintain Arkansas representative offices, but cannot act as trustees or other fiduciaries there. Institutions without an Arkansas trust office must apply with good-standing and board documents and any prescribed fee. Business generally sta… - State oversees trust company shutdowns: mixed, low. A state trust company choosing to liquidate must surrender its assets and business to the Arkansas Bank Commissioner. This requires approval by a majority of directors or members and notice to the commissioner. Suspending operations immediately puts the company under the commissioner's control for… - Trust accounts keep duties after transfers: mixed, low. Mergers need prior written commissioner approval and required board and shareholder approvals; a resulting state trust company must be solvent and adequately funded. Buying all or nearly all specified trust assets needs approval based on financial safety, sufficient capital, and legal compliance. P… - Trust charter applicants face fees and screening: mixed, low. Trust-company applicants must submit sworn applications, required materials, proof of capital held in escrow, and a nonrefundable $3,000–$10,000 fee set by rule. Approval requires a market the company can serve profitably and review of its plan, capital, prospects, and organizers' qualifications an… - Trust companies can change shares carefully: mixed, low. State trust companies generally need prior approval to change capital through dividends, share sales, redemptions, or other means. Rule-based exceptions cover specified cash stock sales, proportional share dividends, profit transfers to capital, and loss-related surplus decreases. Companies can ame… - Trust companies face Arkansas office rules: mixed, low. State trust companies must continuously keep their main office in Arkansas. An in-state move requires written notice and a board resolution. The move usually takes effect 30 days after receipt, unless the commissioner sets another date or requires approval. State and out-of-state trust institutions… - Trust companies face business filing rules: mixed, low. Organizers must sign formation documents listing the company's name, duration, powers, shares, starting capital, main office, and initial board. The initial board must have at least three directors or managers; companies must also adopt bylaws and follow state corporation-law amendment procedures.… - Trust companies face minimum capital rules: mixed, low. A new state trust company charter generally requires at least $1 million in capital. The Bank Commissioner can require more or approve a reduction on application when consistent with safe and sound operations. Capital requirements can also change based on a company's condition, operations, or plann… - Trust company closures protect creditor claims: mixed, low. Voluntary closure needs approval from holders of a majority of voting stock and the commissioner, plus arrangements to pay creditors. Companies must publish notice weekly for four consecutive weeks, notify creditors to present claims, and remain subject to exams and reporting. For insolvency or imm… - Trust company debt protects depositors first: mixed, low. A state trust company's board can issue capital notes or similar debt without shareholder action, with prior written commissioner approval. This debt ranks below depositors' claims; convertible debt remains subject to existing shareholder purchase rights. Qualifying debt ranking below unsecured cre… - Trust company investments face spending limits: mixed, low. State trust companies cannot invest in unrelated commerce unless the law permits it or client duties require it. Subsidiary investments, including loans, are capped at 20% of capital base for one subsidiary and 40% for all subsidiaries. The Bank Commissioner can approve excess subsidiary investment… - Trust company loans face new safeguards: mixed, low. A state trust company's loans to one non-insider cannot exceed 20% of its capital base; all insider loans share a 20% cap. Companies cannot lend trust deposits; trustees can lend to beneficiaries only when the trust document expressly allows or requires it. Credit to company or affiliate insiders m… - Trust company takeovers require approval fees: mixed, low. Taking direct or indirect control of an Arkansas state trust company generally requires the Bank Commissioner's prior written approval. Applicants pay a rule-set filing fee of $1,500 to $3,000. They must submit required information and publish notice after the application is accepted as complete. E… - Trust insiders face fair-dealing and loan accountability: mixed, low. Covered deals with trust-company insiders must use terms and credit standards substantially like comparable deals with outsiders. Officers or directors who knowingly make, approve, permit, or fail to prevent a loan violating lending limits face personal liability. They can owe the company or commis… - Trust institutions face exams and oversight fees: mixed, low. The Arkansas Bank Commissioner oversees authorized trust institutions, makes rules, and can require testimony and evidence. State trust companies must undergo exams at least every 24 months, or more often when needed for safety. They must file condition and income reports periodically and whenever… - Trust providers need authority to operate: mixed, low. Only authorized institutions and qualifying foundations can conduct trust business in Arkansas. Out-of-state providers need the required Arkansas branch or licensed office. New state trust companies need a charter, approved leaders, and completed organizational steps before doing trust business. Ex… - Trust violators face penalties and takeovers: mixed, low. Covered compliance-order violations carry civil penalties up to $1,000 each; violations of unsafe-conduct or removal orders carry up to $500 daily. The commissioner can bring civil cases for actual or anticipated violations of the act, related rules, or orders. In extraordinary urgent situations, t… ## Sponsors and cosponsors - Sponsor: Brandon Achor (Republican), House - Sponsor: Justin Boyd (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-03-03 | House | House Vote - Monday, March 3, 2025 2:06:50 PM | pass | 92 | 0 | | | 2025-02-19 | Senate | Senate Vote - Wednesday, February 19, 2025 2:09:45 PM | pass | 27 | 0 | 1 | ## Actions (19) - 2025-03-04: Notification that SB230 is now Act 237 (Senate) - 2025-03-03: DELIVERED TO GOVERNOR. (Senate) - 2025-03-03: Reported correctly enrolled and ordered delivered to the Governor. (Senate) - 2025-03-03: ORDERED ENROLLED (Senate) - 2025-03-03: Returned from the House as passed. (Senate) - 2025-03-03: Returned to the Senate as passed. (House) - 2025-03-03: Read the third time and passed and ordered transmitted to the Senate. (House) - 2025-02-26: Returned by the Committee Do Pass (House) - 2025-02-19: Read the first time, rules suspended, read the second time and referred to the Committee on INSURANCE & COMMERCE- HOUSE (House) - 2025-02-19: RECEIVED FROM THE SENATE (House) - 2025-02-19: Ordered immediately transmitted to the House. (Senate) - 2025-02-19: Read the third time and passed. (Senate) - 2025-02-18: Returned by the Committee, with the recommendation that it Do Pass (Senate) - 2025-02-17: Re-referred to INSURANCE & COMMERCE - SENATE (Senate) - 2025-02-17: REPORTED CORRECTLY ENGROSSED (Senate) - 2025-02-17: Amendment # 1 read the first time, rules suspended, read the second time and adopted, ordered engrossed. (Senate) - 2025-02-17: Withdrawn from Committee and placed on 2nd reading for purpose of amendment # 1 (Senate) - 2025-02-13: Read first time, rules suspended, read second time, referred to INSURANCE & COMMERCE - SENATE (Senate) - 2025-02-13: Filed (Senate) ## Bill text - SB230 - Introduced, 2025-02-13: [PDF](https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FBills%2F2025R%2FPublic%2FSB230.pdf) - Act Version: [PDF](https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2025R%2FPublic%2F&file=237.pdf&ddBienniumSession=2025%2F2025R) ## Related bills - HB1265: AN ACT FOR THE UNIVERSITY OF ARKANSAS AT LITTLE ROCK APPROPRIATION FOR THE 2025-2026 FISCAL YEAR. (enacted) - HB1237: TO PROHIBIT MEDICAL PROFESSIONALS FROM SOLICITING INJURED INDIVIDUALS; AND TO SET PENALTIES FOR A VIOLATION OF THE PROHIBITION OF SOLICITATION OF INJURED INDIV… (failed) - HB1686: TO AMEND THE LAW CONCERNING LICENSES TO CARRY CONCEALED HANDGUNS. (failed) - SB440: TO AMEND THE LAW CONCERNING EMBALMERS AND FUNERAL DIRECTORS; TO REGULATE THE USE OF ALKALINE HYDROLYSIS; AND TO REGULATE ALKALINE HYDROLYSIS FACILITIES. (failed) - HB1695: TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO ALLOW A MUNICIPALITY TO PETITION TO SET ASIDE THE SALE OF PROPERTY TO CERTAIN P… (failed) - HR1012: TO AMEND THE RULES OF THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY; TO REQUIRE THAT A MEMBER OF THE HOUSE OF REPRESENTATIVES BE SELECTED A… (failed) ## Sources - [SB230 - Introduced (PDF)](https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FBills%2F2025R%2FPublic%2FSB230.pdf) - [Act Version (PDF)](https://www.arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2025R%2FPublic%2F&file=237.pdf&ddBienniumSession=2025%2F2025R) ## Related - [HB1265: AN ACT FOR THE UNIVERSITY OF ARKANSAS AT LITTLE ROCK APPROPRIATION FOR THE 2025…](https://policyrisk.com/state-bill/AR-HB1265-2025) - [HB1237: TO PROHIBIT MEDICAL PROFESSIONALS FROM SOLICITING INJURED INDIVIDUALS; AND TO S…](https://policyrisk.com/state-bill/AR-HB1237-2025) - [HB1686: TO AMEND THE LAW CONCERNING LICENSES TO CARRY CONCEALED HANDGUNS.](https://policyrisk.com/state-bill/AR-HB1686-2025) - [SB440: TO AMEND THE LAW CONCERNING EMBALMERS AND FUNERAL DIRECTORS; TO REGULATE THE US…](https://policyrisk.com/state-bill/AR-SB440-2025) - [HB1695: TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO…](https://policyrisk.com/state-bill/AR-HB1695-2025) - [HR1012: TO AMEND THE RULES OF THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL…](https://policyrisk.com/state-bill/AR-HR1012-2025) - [Arkansas bills](https://policyrisk.com/states/arkansas/bills) - [Arkansas state hub](https://policyrisk.com/states/arkansas) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/AR-SB230-2025 (as of 2026-10-19).