Committee hears bill to update Kansas banking code, ease trust-service rules and align with federal law

The Kansas Senate Committee on Financial Institutions and Insurance opened a hearing on Senate Bill 139 at a committee meeting, considering multiple changes to the state banking code that would affect banks and trust companies operating in Kansas.

The bill’s sponsor and reviser described the measure as a package of technical updates and targeted changes to the Kansas statutes that govern bank holding companies, board reporting requirements, trust-service contracting, relocation rules for trust offices and administrative-hearing procedures. The changes also would mirror federal law on out-of-state, federally insured institutions, the Office of State Bank Commissioner testified.

Eileen (Reviser) told the committee the bill would amend multiple K.S.A. sections and make several procedural changes. She summarized key provisions, saying the bill would require a banker or trust company to file an oath for any newly elected officer or director within 15 days; require notice to the commissioner before a newly appointed CEO, president or director begins duties; and require notice to the commissioner within five business days when such an officer leaves or is removed. She also…