CHAPTER 12 SENATE BILL No. 457 An Act relating to trust authority; concerning inactive trust companies or departments;
amending K.S.A. 1999 Supp. 9-1703 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 1999 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)  (1) In the event a bank, savings and loan association or trust com-
pany 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 and June
30, for banks and savings and loan associations, or the preceding Decem-
ber 31 and June 30, 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 of the institution being merged, con-
solidated or assumed for the fiscal year commencing July 1.

      (2) In the event a bank, savings and loan association, or trust com-
pany 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 July 1 and December 31, the sur-
viving entity shall be obligated to pay the unpaid portion of the assessment
for the fiscal year commencing July 1 which would have been due on or
before January 15 of the institution being merged, consolidated or as-
sumed.

 Sec.  2. K.S.A. 1999 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 16, 2000.
__________