CHAPTER 33
SENATE BILL No. 142
An Act concerning financial institutions; relating to the authority to issue special orders;
amending K.S.A. 17-5601 and K.S.A. 2000 Supp. 9-1715 and repealing the existing
sections.

Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2000 Supp. 9-1715 is hereby amended to read as
follows: 9-1715. (a) The commissioner shall have the power to authorize
any or all state banks to engage in any activity in which such banks could
engage were they operating as national banks any insured depository in-
stitution at the time such authority is granted, including but without lim-
itation because of enumeration the power to do any act, and own, possess
and carry as assets, property of such character including stocks, bonds or
other debentures which, at the time authority is granted, is authorized
under federal applicable laws and regulations to be done by national banks
any insured depository institution notwithstanding any restriction else-
where contained in the statutes of the state of Kansas. This power shall
include the power to authorize any or all Kansas trust companies to en-
gage in any trust related activity in which the trust department of a na-
tional bank any insured depository institution with trust powers could
engage at the time authority is granted. This power shall be in addition
to any and all other powers granted to the commissioner.

      (b) The commissioner shall exercise the power granted in subsection
(a) by the issuance of a special order if the commissioner deems it rea-
sonably required to preserve and protect the welfare of a particular in-
stitution, or if the commissioner deems it reasonably required to preserve
the welfare of all state banks or trust companies and to promote com-
petitive equality of state and national banks other insured depository in-
stitutions. Such special order shall provide for the effective date thereof
and upon and after such date shall be in full force and effect until
amended or revoked by the commissioner. Promptly following issuance,
the commissioner shall cause mail a copy of each special order to be
mailed to all state banks and trust companies and shall be published in
the Kansas register.

      (c) The commissioner, at the time of issuing any special order pur-
suant to this section, shall prepare a written report, which shall include a
description of the special order and a copy of the special order, and submit
the written report to:

      (1) The president and the minority leader of the senate;

      (2) the chairperson and ranking minority member of the senate stand-
ing committee on financial institutions and insurance;

      (3) the speaker and the minority leader of the house of representa-
tives;

      (4) the chairperson and ranking minority member of the house of
representatives standing committee on financial institutions; and

      (5) the governor.

      (d) Within two weeks of the beginning of each legislative session, the
commissioner shall submit to the chair of the senate standing committee
on financial institutions and insurance, and the chair of the house standing
committee on financial institutions, a written summary of each special
order issued during the preceding year. Upon request of the chair of the
senate standing committee on financial institutions and insurance or the
chair of the house standing committee on financial institutions, the com-
missioner, or the commissioner's designee, shall appear before the com-
mittee to discuss any special order issued during the preceding year. If
the committee desires information concerning the economic impact of
any special order, the committee chair or ranking minority member may
request assistance from the division of budget.

      (e) The issuance of special orders under this section shall not be sub-
ject to the provisions of article 4 of chapter 77 of the Kansas Statutes
Annotated.

      (f) As used in this statute, ``insured depository institution'' means a
bank, a savings and loan association or a savings bank organized under
the laws of the United States, this state, or any other state, whose deposits
are insured by the United States government.

      Sec.  2. K.S.A. 17-5601 is hereby amended to read as follows: 17-
5601. (a) The commissioner shall have general supervision over all asso-
ciations and corporations which are subject to the provisions of this act.
The commissioner shall enforce the purposes of this act by use of the
powers herein conferred and by resort to the courts when required. In
addition to any and all other powers heretofore granted to the state sav-
ings and loan commissioner, the commissioner, with the prior approval
of the savings and loan board, shall have the power to authorize state
savings and loan associations to engage in any activity in which such as-
sociations could engage were they operating as federal savings and loan
associations any insured depository institution at the time such authority
is granted, including but without limitation because of enumeration, the
power to do any act, and own, possess and carry as assets, property of
such character, including stocks, bonds or other debentures which, at the
time said authority is granted, is authorized under federal applicable laws
and regulations to be done by federal savings and loan associations any
insured depository institution, notwithstanding any restrictions elsewhere
contained in the statutes of the state of Kansas. The commissioner shall
exercise such power by the issuance of a special order therefor, if such
commissioner deems it reasonably required to preserve and protect the
welfare of state savings and loan associations and promote competitive
equality of state and federal savings and loan associations. Such special
order shall provide for the effective date thereof and upon and after such
date shall be in full force and effect until amended or revoked by the
commissioner, with the prior approval of the state savings and loan board,
by subsequent special order. Upon issuance of a special order, the com-
missioner promptly shall mail copies thereof to all state savings and loan
associations. The issuance of such special orders shall not be subject to
the provisions of article 4 of chapter 77 of the Kansas Statutes Annotated.

      (b) The commissioner shall, at the time of issuing any special order
pursuant to this section, submit a written report thereof to the president
and minority leader of the senate and to the speaker and minority leader
of the house of representatives.

      (b) The commissioner shall exercise the power granted in subsection
(a) by the issuance of a special order if the commissioner deems it rea-
sonably required to preserve and protect the welfare of a particular in-
stitution, or if the commissioner deems it reasonably required to preserve
the welfare of all state savings and loan associations and to promote com-
petitive equality of state and other insured depository institutions. Such
special order shall provide for the effective date thereof and upon and
after such date shall be in full force and effect until amended or revoked
by the commissioner. Promptly following issuance, the commissioner shall
mail a copy of each special order to all state savings and loan associations
and shall be published in the Kansas register.

      (c) The commissioner, at the time of issuing any special order pur-
suant to this section, shall prepare a written report, which shall include
a description of the special order and a copy of the special order, and
submit the written report to:

      (1) The president and the minority leader of the senate;

      (2) the chairperson and ranking minority member of the senate stand-
ing committee on financial institutions and insurance;

      (3) the speaker and the minority leader of the house of representa-
tives;

      (4) the chairperson and ranking minority member of the house of
representatives standing committee on financial institutions; and

      (5) the governor.

      (d) Within two weeks of the beginning of each legislative session, the
commissioner shall submit to the chair of the senate standing committee
on financial institutions and insurance, and the chair of the house stand-
ing committee on financial institutions, a written summary of each special
order issued during the preceding year. Upon request of the chair of the
senate standing committee on financial institutions and insurance or the
chair of the house standing committee on financial institutions, the com-
missioner, or the commissioner's designee, shall appear before the com-
mittee to discuss any special order issued during the preceding year. If
the committee desires information concerning the economic impact of any
special order, the committee chair or ranking minority member may re-
quest assistance from the division of budget.

      (e) The issuance of special orders under this section shall not be sub-
ject to the provisions of article 4 of chapter 77 of the Kansas Statutes
Annotated.

      (f) As used in this statute, ``insured depository institution'' means a
bank, a savings and loan association or a savings bank organized under
the laws of the United States, this state, or any other state, whose deposits
are insured by the United States government.

 Sec.  3. K.S.A. 17-5601 and K.S.A. 2000 Supp. 9-1715 are hereby
repealed.
 Sec.  4. This act shall take effect and be in force from and after its
publication in the statute book.

Approved March 21, 2001.
__________