House Status:
Senate Status:
Senate Status:
Minutes for HB2560 - Committee on Financial Institutions and Insurance
Short Title
Providing when applications under the state banking code are considered abandoned or expired and allowing an originating trustee to have such trustee's principal place of business outside of Kansas.
Minutes Content for Tue, Mar 5, 2024
The Chairperson opened the hearing on HB2560.
David Wiese, Sr. Assistant Revisor, ROS, presented the Revisor's Memorandum brief, and reminded that the bill passed the House by a vote of 119 - 0. (Attachment 8)
Brock Roehler, General Counsel, Office of the State Bank Commissioner (OSBC), gave oral proponent testimony on this bill requested by Mr. Roehler, on behalf of David Herndon, State Bank Commissioner. He told members that the Consumer and Mortgage Lending division has only about 2.5% of corporate applications abandoned every year. The Banking division receives approximately 28 applications per year, with the most common application fee being $500. OSBC expects one incomplete application each year and would be declared abandoned, which would cause the bank or trust company to reapply. On this assumption, OSBC anticipates the fiscal impact would be about $500 per year. (Attachment 9)
Will Bergman, In-House Counsel, Midwest Trust Company, Overland Park, KS presented in-person oral testimony supporting HB2560, Mr. Bergman emphasized that when a Kansas trust company becomes trustee, there is a cascade of positive effects for Kansas. Accountants, estate-planning attorneys, and investment managers all receive additional work and jobs are created. Adopting this change will allow Kansas trust companies to bring in large numbers of accounts in an efficient, legal manner that will grow the trust administration business in Kansas. (Attachment 10)
The Chairperson pointed the Committee's attention to the proponent written-only testimony from Joe Karnes, Vice President and Trust Officer, CTFA; Legislative Representative, Trust Division, Kansas Bankers Association. (Attachment 11)
The Chairperson opened the floor for questions for the proponents, who responded to Senators Dietrich, Warren, Fagg, and Pittman.
There being no other business for today, and no other proponent, opponent, or neutral testimony submitted, Chairperson Longbine closed the hearing on HB2560. The meeting adjourned at 10:20 AM. The next scheduled meeting is Wednesday, March 6, 2024, at 9:30 AM in Room 546-South of the Capitol.
