Brief⁽¹⁾

Sub. for S.B. 574 concerns the special order ("Wild Card") authority of the Bank Commissioner. Upon the issuance of a special order, the bill would require the Commissioner:

• to meet with the Senate Committee on Financial Institutions and Insurance and the House Committee on Financial Institutions within six days of issuing a special order when the Legislature is in session;



• to submit a written report to the President of the Senate and the Speaker of the House of Representatives, to the Minority Leaders of each body, as well as to the Chairperson of the Senate Committee on Financial Institutions and Insurance and the Chairperson of the House Committee on Financial Institutions when the Legislature is not in session, and



• to prepare and submit to the designated legislative leaders, whenever a special order is issued, an economic impact statement which discloses the cost or benefit of the special order issued, the persons who bear the cost and reap the benefit of the order, and the impact on the Banking Department, other agencies of government, and upon private citizens and consumers of the product or services which are the subject of the special order and its enforcement.

Background

Sub. for S.B. 574 was requested by the Senate Committee on Financial Institutions and Insurance in response to the issuance of a special order which had and has a significant financial impact on the State General Fund. The bill does not change the Commissioner's authority to issue a special order or the criteria for issuing such an order. The criteria remain preservation of the welfare of a particular institution, the welfare of all state banks, and to the promotion of competitive equality between state and national banks.

Sub. for S.B. 574 requires more complete disclosure of the economic impact of a special order to both public and private entities than is contained in present law.

The Bank Commissioner and the Kansas Bankers Association opposed any change in the "Wild Card" statute.

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-bill.html.