9-1703.   Examination and administrative expenses;annual assessment, due dates for payments, delinquency penalty; disposition ofreceipts; bank commissioner fee fund.(a) The expense of every regular examination, together with the expense ofadministering the banking and savings and loan laws, including salaries,travel expenses, supplies and equipment, shall be paid by the banks andsavings and loan associations of the state, and for this purpose the bankcommissioner shall, prior to thebeginning of each fiscal year, make an estimate of the expenses to beincurred by the department during such fiscal year. From this total amountthe commissioner shall deduct the estimated amount of the anticipatedannual income to the fund from all sources other than bank and savings andloan association assessments. The commissioner shall allocate and assess theremainder to the banks and savings and loan associations in the state onthe basis of theirtotal assets, as reflected in the last March 31 report calledfor by the federal deposit insurance corporation under theprovisions of section 7 of the federal deposit insuranceact, 12 USC 1817, and amendments thereto, or K.S.A.17-5610, andamendmentsthereto, except that the annual assessment willnot be less than $1,000 for any bank or savings and loan association.

      (b)   The expense of every regular trust examination, together with theexpense of administering trust laws, including salaries, travel expenses,supplies and equipment, shall be paid by the trust companies and trustdepartments of banks of this state, and for this purpose, the bankcommissioner, prior to the beginning of each fiscal year, shall make anestimate of the trust expenses to be incurred by the department during suchfiscal year. The commissioner shall allocate and assess the trust departmentsin the state on the basis of their total fiduciary assets, as reflected in thelast March 31 report called for by the federaldeposit insurance corporation under the provisions of section 7 of the federaldeposit insurance act, 12 USC 1817, and amendments thereto, or K.S.A. 17-5610,and amendments thereto, except that the annual assessment shall not be lessthan $1,000 for any active trust department. The commissioner shall allocateand assess the trust companies in the state on the basis of their fiduciaryassetsas reflected in the last December 31 report filedwith the commissioner pursuant to K.S.A. 9-1704, and amendments thereto,except that the annual assessment will not be less than $1,000 for anyactive trust company.A trust department which has no fiduciary assets, asreflected in the last March 31 report called for by the federal depositinsurance corporation under the provisions of section 7 of the federal depositinsurance act, 12 USC 1817, and amendments thereto, or K.S.A. 17-5610, andamendments thereto, may be granted inactive status by the commissioner and theannual assessment shall not be more than $100 for the inactive trustdepartment. A trust company which has no fiduciary assets, as reflected inthe last preceding year-end report filed with the commissioner,may be granted inactive status by the commissioner and the annual assessmentshall not be more than $100 for an inactive trustcompany.No inactive trust department or trust company shall accept any fiduciaryassets or exercise any part of or all of its trust authority until such time asit has applied for and received prior written approval of the commissioner toreactivate its trust authority.

      (c)   A statement of each assessment made under theprovisions of subsection (a) or (b) shall be sent by the commissioner toeach bank, savings and loan association, trust department and trust companyon July 1 or the next business day thereafter.If a bank, savings and loan association or trust company exists as acorporate entity with the secretary of state's office as of the close ofbusiness on June 30, and is authorized by the office of the state bankcommissioner to conduct banking, savings and loan or trust business, one-halfof the amount so assessed shall be due and payable on or before July 15. If abank savings and loan association or trust company exists as a corporate entitywith the secretary of state's office as of close of business on December 31,and is authorized to conduct banking, savings and loan or trust business, theremaining one-half of the amount assessed shall be due and payable on or beforeJanuary 15.Any expenses incurred or servicesperformed on account of any bank, trust department or trust company orother corporation whichare outside of the normal expense of an examination required under theprovisions of K.S.A. 9-1701, and amendments thereto, or K.S.A. 17-5612, andamendmentsthereto,shall be charged to and paid by the corporation forwhom they were incurred or performed. The commissioner may impose a penaltyupon any bank, savings and loan association, trust department or trustcompany which fails to pay its annual assessment.The penalty shall be assessed in the amount of $50 for each day theassessment is not paid. The counting period for such penalty will beginFebruary 1 or August 1.

      The bank commissionershall remit all moneys received by or for such commissioner from suchexamination fees to the state treasurer inaccordance with the provisions of K.S.A. 75-4215, and amendments thereto.Upon receiptof each such remittance, the state treasurer shall deposit the entireamount in the state treasury. Twenty percent of eachdeposit shall be credited to the state general fund and the balanceshall be credited to the bank commissioner fee fund. All expendituresfrom the bank commissioner fee fund shall be made in accordance withappropriation acts upon warrants of the director of accounts and reportsissued pursuant to vouchers approved by the bank commissioner or by aperson or persons designated by the commissioner.

      (d)   As used in this section, "savings and loan association" means a Kansasstate-chartered savings and loan association.

      (e) (1)   In the event a bank, savings and loan association or trustcompany ismerged into, consolidated with, or the assets and liabilities of which arepurchased and assumed by another bank, savings and loan association or trustcompany, between the preceding March 31 and June 30, for banks andsavings and loanassociations, or the preceding December 31 and June 30, for trustcompanies,the surviving or acquiring bank, savings and loan association or trust companyis obligated to pay the assessment of the institutionbeing merged, consolidated orassumed for the fiscal year commencing July 1.

      (2)   In the event a bank, savings and loan association, or trust company ismerged into, consolidated with, or the assets and liabilities of which arepurchased and assumed by another bank, savings and loan association or trustcompany between July 1 and December 31, the surviving entity shall be obligatedto pay the unpaid portion of the assessment for the fiscal year commencing July1 which would have been due on or before January 15 of the institution beingmerged, consolidated or assumed.

      History:   L. 1947, ch. 102, § 89;L. 1949, ch. 110, § 3;L. 1955, ch. 65, § 1;L. 1959, ch. 61, § 1;L. 1965, ch. 79, § 1;L. 1969, ch. 62, § 1;L. 1973, ch. 50, § 2;L. 1975, ch. 44, § 31;L. 1981, ch. 55, § 1;L. 1985, ch. 57, § 2;L. 1992, ch. 49, § 1;L. 1993, ch. 30, § 1;L. 1994, ch. 33, § 1;L. 1995, ch. 25, § 1;L. 1996, ch. 39, § 1;L. 2000, ch. 12, § 1;L. 2001, ch. 5, § 43;L. 2006, ch. 89, § 3; July 1.