An Act relating to trust authority; concerning inactive trust companies or departments; amending K.S.A. 1995 Supp. 9-1703 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 1995 Supp. 9-1703 is hereby amended to read as follows: 9-1703. (a) The expense of every regular examination, together with the expense of administering the banking and savings and loan laws, including salaries, travel expenses, supplies and equipment, shall be paid by the banks and savings and loan associations of the state, and for this purpose the bank commissioner shall, prior to the beginning of each fiscal year, make an estimate of the expenses to be incurred by the department during such fiscal year. From this total amount the commissioner shall deduct the estimated amount of the anticipated annual income to the fund from all sources other than bank and savings and loan association assessments. The commissioner shall allocate and assess the remainder to the banks and savings and loan associations in the state on the basis of their total assets, as reflected in the last March 31 report called for by the federal deposit insurance corporation under the provisions of section 7 of the federal deposit insurance act, 12 USC 1817 and amendments thereto or K.S.A. 17-5610 and amendments thereto, except that the an- nual assessment will not be less than $1,000 for any bank or savings and loan association.
(b) The expense of every regular trust examination, together with the expense of administering trust laws, including salaries, travel expenses, supplies and equipment, shall be paid by the trust companies and trust departments of banks of this state, and for this purpose, the bank com- missioner, prior to the beginning of each fiscal year, shall make an esti- mate of the trust expenses to be incurred by the department during such fiscal year. The commissioner shall allocate and assess the trust depart- ments and trust companies in the state on the basis of their total fiduciary assets, as reflected in the last December 31 report filed with the com- missioner pursuant to K.S.A. 9-1704 and amendments thereto, except that the annual assessment will not be less than $1,000 for any active trust department or trust company. A trust department or a trust company which has no fiduciary assets, as reflected in the last preceding year-end report filed with the commissioner, may be granted inactive status by the commissioner and the annual assessment shall not be more than $100 for an inactive trust department or trust company. No inactive trust depart- ment or trust company shall accept any fiduciary assets or exercise any part of or all of its trust authority until such time as it has applied for and received prior written approval of the commissioner to reactivate its trust authority.
(c) A statement of each assessment made under the provisions of subsection (a) or (b) shall be sent by the commissioner to each bank, savings and loan association, trust department and trust company on July 1 or the next business day thereafter. If a bank, savings and loan associ- ation or trust company exists as a corporate entity with the secretary of state's office as of the close of business on June 30, and is authorized by the office of the state bank commissioner to conduct banking, savings and loan or trust business, one-half of the amount so assessed shall be due and payable on or before July 15. If a bank savings and loan association or trust company exists as a corporate entity with the secretary of state's office as of close of business on December 31, and is authorized to con- duct banking, savings and loan or trust business, the remaining one-half of the amount assessed shall be due and payable on or before January 15. Any expenses incurred or services performed on account of any bank, trust department or trust company or other corporation which are outside of the normal expense of an examination required under the provisions of K.S.A. 9-1701, and amendments thereto or K.S.A. 17-5612 and amend- ments thereto, shall be charged to and paid by the corporation for whom they were incurred or performed. The commissioner may impose a pen- alty upon any bank, savings and loan association, trust department or trust company which fails to pay its annual assessment. The penalty shall be assessed in the amount of $50 for each day the assessment is not paid. The counting period for such penalty will begin February 1 or August 1.
The bank commissioner shall remit all moneys received by or for such commissioner from such examination fees to the state treasurer at least monthly. Upon receipt of each remittance, the state treasurer shall de- posit the entire amount in the treasury. Twenty percent of each deposit shall be credited to the state general fund and the balance shall be cred- ited to the bank commissioner fee fund. All expenditures from the bank commissioner fee fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the bank commissioner or by a person or persons designated by the commissioner.
(d) As used in this section, ``savings and loan association'' means a Kansas state-chartered savings and loan association.
(e) In the event a bank, savings and loan association or trust company is merged into, consolidated with, or the assets and liabilities of which are purchased and assumed by another bank, savings and loan association or trust company, between the preceding March 31, for banks and savings and loan associations, or the preceding December 31, for trust companies, and July 1, the surviving or acquiring bank, savings and loan association or trust company is obligated to pay the assessment on the assets merged, consolidated or assumed for the fiscal year commencing July 1.
Sec. 2. K.S.A. 1995 Supp. 9-1703 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its publication in the statute book.
Approved March 22, 1996.