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Minutes for SB335 - Committee on Financial Institutions and Insurance
Short Title
Including savings and loan associations and savings banks in the state banking code and repealing the savings and loan code.
Minutes Content for Tue, Jan 30, 2018
Chairperson Longbine turned the committee's attention to and opened the hearing on SB335. Eileen Ma presented a brief review of the bill.
Kathleen Taylor testified on behalf of the Kansas Bankers Association in support of the bill, which would update the statutes to provide a state charter for savings and loans to give them a choice between a federal or a state charter. Ms. Taylor's research in this matter revealed that many of the provisions of the old Kansas Savings and Loan Code (KSLC) had not been updated since 1943 at the time in 1993, when the KSLC was abolished and all powers and duties were transferred to the Office of the State Bank Commissioner. Ms. Taylor outlined and explained sections to be updated as follows: (Attachment 4)
- Definitions of "bank or state bank";
- Definition of "mutual bank";
- New section dealing with mutual state bank deposit accounts;
- New section dealing with service corporations;
- Amendments to the 9-900s Capital sections of the banking code;
- Reinstatement of ability to invest in municipal bonds;
- Certificate of Existence and Authority;
KBA urged the committee to consider recommending SB335 favorably for passage. Ms. Taylor responded to questions from Senators Rogers and Suellentrop.
Brock Roehler, Staff Attorney for the Office of the State Bank Commissioner (OSBC) also presented supportive testimony for SB335. He remarked that his office had worked with the KBA to develop the bill. Mr. Roehler explained that currently, no savings and loan associations are chartered by the OSBC; nine savings and loan associations in Kansas hold a federal charter issued by the Office of the Comptroller of the Currency (OCC). By updating the Banking Code, a state charter would become a viable option and may result in some savings and loan associations choosing to convert to a state charter. (Attachment 5)
There being no further discussion or questions, and no other proponent, opponent, or neutral testimony submitted, Chairperson Longbine closed the hearing on SB335.
