An  Act concerning the bank commissioner; relating to duties and qualifications; transfer-
      ring the duties of the consumer credit commissioner to the state bank commissioner;
      abolishing the office of the consumer credit commissioner; amending K.S.A. 16a-2-302,
      as amended by section 12 of 1999 Substitute for Senate Bill No. 301, 75-1304, 75-1308
      and 75-3135 and K.S.A. 1998 Supp. 16a-1-301, as amended by section 8 of 1999 Sub-
      stitute for Senate Bill No. 301, and repealing the existing sections; also repealing K.S.A.
      16-403, 16-601, 16-601a, 16-601b, 16-601c, 16-601d, 16-601e, 16-601f, 16-601g, 16-
      601h, 16-601i, 16-601j, 16-601k, 16-601l, 16-601m, 16-601n, 16-601o, 16-601q, 16-601r,
      16-601s, 16-602, 16-603, 16-604, 16-605, 16-606, 16-607, 16-608, 16-609, 16-610, 16-
      611, 16-612, 16-613, 16-614, 16-616, 16-618, 16-619, 16-620, 16-621, 16-622, 16-623,
      16-624, 16-625, 16-626, 16-627, 16-628, 16-629, 16-630, 16-631, 16-632, 16-633, 16-
      634, 16-635, 16-636, 16-637, 16-638, 16-639 and 16-640.


     
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 75-1304 is hereby amended to read as follows: 75-
1304. (a) The governor shall appoint, subject to confirmation by the sen-
ate as provided in K.S.A. 75-4315b, a state bank commissioner whose
term of office shall be four years and who shall serve until a successor is
appointed and qualified. No person shall be eligible for appointment as
commissioner unless the person has had five years actual banking expe-
rience as an executive officer in a state bank in this state. If a vacancy
occurs in the office of the commissioner prior to the expiration of a term,
the vacancy shall be filled for the unexpired term by appointment by who
shall serve at the pleasure of the governor.

      (b) No person shall be eligible for appointment as commissioner unless
such person has at least five years actual experience as an executive officer
in a state or national bank located in this state.

      (c) The commissioner shall devote the commissioner's time and atten-
tion to the business and duties of the office on a full-time basis.

      (d) While serving as bank commissioner, the commissioner shall not
be an officer, voting director, employee or paid consultant of:

      (1) Any state or national bank or bank holding company;

      (2) any affiliate of a state or national bank or bank holding company;
or

      (3) any other entity regulated by the commissioner.

      New Sec.  2. The office of the consumer credit commissioner created
by K.S.A. 16-403 and amendments thereto is hereby abolished. Except
as otherwise provided in this act, all of the powers, duties and functions
of the existing consumer credit commissioner are hereby transferred to
and conferred and imposed upon the state bank commissioner established
by K.S.A. 75-1304 and amendments thereto.

      New Sec.  3. (a) (1) Except as provided in subsection (2), the state
bank commissioner shall be the successor in every way to the powers,
duties and functions of the consumer credit commissioner in which the
same were vested prior to the effective date of this act. Every act per-
formed in the exercise of such powers, duties and functions by or under
the authority of the state bank commissioner shall be deemed to have the
same force and effect as if performed by the consumer credit commis-
sioner in which such powers, duties and functions were vested prior to
the effective date of this act.

      (2) The deputy commissioner for consumer and mortgage lending
shall be the successor in every way to those powers, duties and functions
of the consumer credit commissioner concerning the administration of
the uniform consumer credit code (K.S.A. 16a-1-101 et seq. and amend-
ments thereto) in which the same were vested prior to the effective date
of this act. Every act performed in the exercise of such powers, duties
and functions by or under the authority of the deputy commissioner for
consumer and mortgage lending shall be deemed to have the same force
and effect as if performed by the consumer credit commissioner in which
such powers, duties and functions were vested prior to the effective date
of this act.

      (b)  (1) Except as provided in subsection (2), whenever the consumer
credit commissioner, or words of like effect, are referred to or designated
by a statute, contract or other document, such reference or designation
shall be deemed to apply to the state bank commissioner.

      (2) Whenever the consumer credit commissioner, or words of like
effect, are referred to or designated by a statute, contract or other doc-
ument concerning the administration of the uniform consumer credit
code (K.S.A. 16a-1-101 et seq. and amendments thereto) such reference
or designation shall be deemed to apply to the deputy commissioner for
consumer and mortgage lending.

      (c)  (1) Except as provided in subsection (2), all orders and directives
of the consumer credit commissioner in existence on the effective date
of this act shall continue to be effective and shall be deemed to be orders
and directives of the state bank commissioner until revised, amended or
nullified pursuant to law.

      (2) All orders and directives of the consumer credit commissioner
concerning the administration of the uniform consumer credit code
(K.S.A. 16a-1-101 et seq. and amendments thereto) in existence on the
effective date of this act shall continue to be effective and shall be deemed
to be orders and directives of the deputy commissioner for consumer and
mortgage lending until revised, amended or nullified pursuant to law.

      (d)  (1) Except as provided in subsection (2), all rules and regulations
of the consumer credit commissioner, in existence on the effective date
of this act shall continue to be effective and shall be deemed to be duly
adopted rules and regulations of the state bank commissioner until re-
vised, amended, revoked or nullified pursuant to law.

      (2) All rules and regulations of the consumer credit commissioner
concerning the administration of the uniform consumer credit code
(K.S.A. 16a-1-101 et seq. and amendments thereto) in existence on the
effective date of this act shall continue to be effective and shall be deemed
to be duly adopted rules and regulations of the deputy commissioner for
consumer and mortgage lending until revised, amended, revoked or nul-
lified pursuant to law.

      (e) The state bank commissioner shall succeed to whatever right, title
or interest the consumer credit commissioner has acquired in any real
property in this state, and the state bank commissioner shall hold the
same for and in the name of the state of Kansas.

      (f)  (1) Except as provided in subsection (2), on and after the effective
date of this act, whenever any statute, contract or other document con-
cerns the power or authority of the consumer credit commissioner, the
state bank commissioner shall succeed to such power or authority.

      (2) On and after the effective date of this act, whenever any statute,
contract or other document concerns the power or authority of the con-
sumer credit commissioner concerning the administration of the uniform
consumer credit code (K.S.A. 16a-1-101 et seq. and amendments thereto)
the deputy commissioner for consumer and mortgage lending shall suc-
ceed to such power or authority.

      New Sec.  4. (a) When any conflict arises as to the disposition of any
property, power, duty or function or the unexpended balance of any ap-
propriation as a result of any abolition, transfer, attachment or change
made by or under authority of this act, such conflict shall be resolved by
the governor, whose decision shall be final.

      (b) The state bank commissioner shall succeed to all property, prop-
erty rights and records which were used for or pertain to the performance
of the powers, duties and functions transferred to the bank commissioner.
The deputy commissioner for consumer and mortgage lending shall suc-
ceed to all property, property rights and records which were used for or
pertain to the performance of the powers, duties and functions concern-
ing the administration of the uniform consumer credit code (K.S.A. 16a-
1-101 et seq. and amendments thereto) transferred to the deputy com-
missioner for consumer and mortgage lending. Any conflict as to the
proper disposition of property or records arising under this section, and
resulting from the transfer, attachment or all or part of the powers, duties
and functions of the consumer credit commissioner, shall be determined
by the governor, whose decision shall be final.

      New Sec.  5. (a) No suit, action or other proceeding, judicial or ad-
ministrative, lawfully commenced, or which could have been commenced,
by or against any state agency or program mentioned in this act, or by or
against any officer of the state in such officer's official capacity or in
relation to the discharge of such officer's official duties, shall abate by
reason of this act. The court may allow any such suit, action or other
proceeding to be maintained by or against the successor of any such state
agency or any officer affected.

      (b) No criminal action commenced or which could have been com-
menced by the state shall abate by the taking effect of this act.

      New Sec.  6. (a) On the effective date of this act, the balances of all
funds appropriated or reappropriated for the consumer credit commis-
sioner are hereby transferred to the state bank commissioner. The direc-
tor of accounts and reports shall transfer all moneys in the consumer
credit fee fund to the bank commissioner fee fund. On the effective date
of this act, all liabilities of the consumer credit fee fund existing prior to
the effective date of this act are imposed on the bank commissioner fee
fund. The consumer credit fee fund is hereby abolished.

      (b) On the effective date of this act, the liability for all accrued com-
pensation or salaries of officers and employees who, immediately prior to
such date, were engaged in the performance of powers, duties or func-
tions of any state agency or officer transferred by this act, or which be-
comes a part of the office of the state bank commissioner or the powers,
duties and functions of which are transferred to the bank commissioner,
shall be assumed and paid by the state bank commissioner.

      New Sec.  7. On the effective date of this act, officers and employees
who, immediately prior to such date, were engaged in the performance
of powers, duties or functions involved in the administration of any law
administered by the consumer credit commissioner, and who, in the opin-
ion of the state bank commissioner, are necessary to perform the powers,
duties and functions involved in the administration of any law adminis-
tered by the consumer credit commissioner, shall be transferred to, and
shall become officers and employees of the bank commissioner. Any such
officer or employee shall retain all retirement benefits and all rights of
civil service which had accrued to or vested in such officer or employee
prior to the effective date of this act. The service of each such officer and
employee so transferred shall be deemed to have been continuous.

      Sec.  8. K.S.A. 1998 Supp. 16a-1-301, as amended by section 8 of
1999 Substitute for Senate Bill No. 301, is hereby amended to read as
follows: 16a-1-301. In addition to definitions appearing in subsequent
articles, in K.S.A. 16a-1-101 through 16a-9-102, and amendments thereto:

      (1) "Actuarial method" means the method of allocating payments
made on a debt between the principal and the finance charge pursuant
to which a payment is applied, assuming no delinquency charges or other
additional charges are then due, first to the accumulated finance charge
and then to the unpaid principal balance. When a finance charge is cal-
culated in accordance with the actuarial method, the contract rate is ap-
plied to the unpaid principal balance for the number of days the principal
balance is unpaid. At the end of each computational period, or fractional
computational period, the unpaid principal balance is increased by the
amount of the finance charge earned during that period and is decreased
by the total payment, if any, made during the period after the deduction
of any delinquency charges or other additional charges due during the
period.

      (2) "Administrator" means the consumer credit deputy commissioner
of the consumer and mortgage lending division appointed by the bank
commissioner pursuant to K.S.A. 16-403 75-3135, and amendments
thereto.

      (3) "Agreement" means the bargain of the parties in fact as found in
their language or by implication from other circumstances including
course of dealing or usage of trade or course of performance.

      (4) "Amount financed" means the net amount of credit provided to
the consumer or on the consumer's behalf. The amount financed shall be
calculated as provided in rules and regulations adopted by the adminis-
trator pursuant to K.S.A. 16a-6-117, and amendments thereto.

      (5) "Annual percentage rate" means the finance charge expressed as
a yearly rate, as calculated in accordance with the actuarial method. The
annual percentage rate shall be calculated as provided in rules and reg-
ulations adopted by the administrator pursuant to K.S.A. 16a-6-117, and
amendments thereto.

      (6) "Appraised value" means, with respect to any real estate at any
time, the greater of:

      (a) The total appraised value of the real estate, as reflected in the
most recent records of the tax assessor of the county in which the real
estate is located; or

      (b) the fair market value of the real estate, as reflected in a written
appraisal of the real estate performed by a Kansas licensed or certified
appraiser within the past 12 months.

      (7) "Billing cycle" means the time interval between periodic billing
statement dates.

      (8) "Cash price" of goods, services, or an interest in land means the
price at which they are offered for sale by the seller to cash buyers in the
ordinary course of business and may include (a) the cash price of acces-
sories or services related to the sale, such as delivery, installation, alter-
ations, modifications, and improvements, and (b) taxes to the extent im-
posed on a cash sale of the goods, services, or interest in land. The cash
price stated by the seller to the buyer in a disclosure statement is pre-
sumed to be the cash price.

      (9) "Closed end credit" means a consumer loan or a consumer credit
sale which is not incurred pursuant to open end credit.

      (10) "Closing costs" with respect to a debt secured by an interest in
land includes:

      (a) The actual fees paid a public official or agency of the state or
federal government, for filing, recording or releasing any instrument re-
lating to the debt; and

      (b) bona fide and reasonable expenses incurred by the lender in con-
nection with the making, closing, disbursing, extending, readjusting or
renewing the debt which are payable to third parties not related to the
lender, except that reasonable fees for an appraisal made by the lender
or related party are permissible.

      (11) "Code mortgage rate" means the greater of:

      (a) 12%; or

      (b) the sum of:

      (i) The yield on 30-year fixed rate conventional home mortgage loans
committed for delivery within 31 to 90 days accepted under the federal
home loan mortgage corporation's or any successor's daily offerings for
sale on the last day on which commitments for such mortgages were
received in the previous month; and

      (ii) 5%.

      If the reference rate referred to in subparagraph (i) of paragraph (b)
is discontinued, becomes impractical to use, or is otherwise not readily
ascertainable for any reason, the administrator may designate a compa-
rable replacement reference rate and, upon publishing notice of the same,
such replacement reference rate shall become the reference rate referred
to in subparagraph (i) of paragraph (b). The secretary of state shall publish
notice of the code mortgage rate not later than the second issue of the
Kansas register published each month.

      (12) "Conspicuous" means a term or clause is conspicuous when it is
so written that a reasonable person against whom it is to operate ought
to have noticed it. Whether a term or clause is conspicuous or not is for
decision by the trier of fact.

      (13) "Consumer" means the buyer, lessee, or debtor to whom credit
is granted in a consumer credit transaction.

      (14) "Consumer credit sale":

      (a) Except as provided in paragraph (b), a "consumer credit sale" is
a sale of goods, services, or an interest in land in which:

      (i) Credit is granted either by a seller who regularly engages as a seller
in credit transactions of the same kind or pursuant to a credit card other
than a lender credit card,

      (ii) the buyer is a person other than an organization,

      (iii) the goods, services, or interest in land are purchased primarily
for a personal, family or household purpose,

      (iv) either the debt is by written agreement payable in more than four
installments or a finance charge is made, and

      (v) with respect to a sale of goods or services, the amount financed
does not exceed $25,000.

      (b) A "consumer credit sale" does not include:

      (i) A sale in which the seller allows the buyer to purchase goods or
services pursuant to a lender credit card; or

      (ii) a sale of an interest in land, unless the parties agree in writing to
make the transaction subject to the uniform consumer credit code.

      (15) "Consumer credit transaction" means a consumer credit sale,
consumer lease, or consumer loan or a modification thereof including a
refinancing, consolidation, or deferral.

      (16) "Consumer lease" means a lease of goods:

      (a) Which a lessor regularly engaged in the business of leasing makes
to a person, other than an organization, who takes under the lease pri-
marily for a personal, family or household purpose;

      (b) in which the amount payable under the lease does not exceed
$25,000;

      (c) which is for a term exceeding four months; and

      (d) which is not made pursuant to a lender credit card.

      (17) "Consumer loan":

      (a) Except as provided in paragraph (b), a "consumer loan" is a loan
made by a person regularly engaged in the business of making loans in
which:

      (i) The debtor is a person other than an organization;

      (ii) the debt is incurred primarily for a personal, family or household
purpose;

      (iii) either the debt is payable by written agreement in more than
four installments or a finance charge is made; and

      (iv) either the amount financed does not exceed $25,000 or the debt
is secured by an interest in land.

      (b) Unless the loan is made subject to the uniform consumer credit
code by written agreement, a "consumer loan" does not include:

      (i) A loan secured by a first mortgage unless:

      (A) The loan-to-value ratio of the loan at the time when made exceeds
100%; or

      (B) in the case of subsection (1) of section 3 and amendments thereto,
the annual percentage rate of the loan exceeds the code mortgage rate;
or

      (ii) a loan made by a qualified plan, as defined in section 401 of the
internal revenue code, to an individual participant in such plan or to a
member of the family of such individual participant.

      (18) "Credit" means the right granted by a creditor to a debtor to
defer payment of debt or to incur debt and defer its payment.

      (19) "Credit card" means any card, plate or other single credit device
that may be used from time to time to obtain credit. Since this involves
the possibility of repeated use of a single device, checks and similar in-
struments that can be used only once to obtain a single credit extension
are not credit cards.

      (20) "Creditor" means a person who regularly extends credit in a
consumer credit transaction which is payable by a written agreement in
more than four installments or for which the payment of a finance charge
is or may be required and is the person to whom the debt arising from
the consumer credit transaction is initially payable on the face of the
evidence of indebtedness or, if there is no such evidence of indebtedness,
by written agreement. In the case of credit extended pursuant to a credit
card, the creditor is the card issuer and not another person honoring the
credit card.

      (21) "Earnings" means compensation paid or payable to an individual
or for such individual's account for personal services rendered or to be
rendered by such individual, whether denominated as wages, salary, com-
mission, bonus, or otherwise, and includes periodic payments pursuant
to a pension, retirement, or disability program.

      (22) "Finance charge" means all charges payable directly or indirectly
by the consumer and imposed directly or indirectly by the creditor as an
incident to or as a condition of the extension of credit. The finance charge
shall be calculated as provided in rules and regulations adopted by the
administrator pursuant to K.S.A. 16a-6-117, and amendments thereto.

      (23) "First mortgage" means a first priority mortgage lien or similar
real property security interest.

      (24) "Goods" includes goods not in existence at the time the trans-
action is entered into and merchandise certificates, but excludes money,
chattel paper, documents of title, and instruments.

      (25) Except as otherwise provided, "lender" includes an assignee of
the lender's right to payment but use of the term does not in itself impose
on an assignee any obligation of the lender with respect to events occur-
ring before the assignment.

      (26) "Lender credit card" means a credit card issued by a supervised
lender.

      (27) "Loan":

      (a) Except as provided in paragraph (b), a "loan" includes:

      (i) The creation of debt by the lender's payment of or agreement to
pay money to the debtor or to a third party for the account of the debtor;

      (ii) the creation of debt either pursuant to a lender credit card or by
a cash advance to a debtor pursuant to a credit card other than a lender
credit card;

      (iii) the creation of debt by a credit to an account with the lender
upon which the debtor is entitled to draw immediately; and

      (iv) the forbearance of debt arising from a loan.

      (b) A "loan" does not include the payment or agreement to pay
money to a third party for the account of a debtor if the debt of the
debtor arises from a sale or lease and results from use of either a credit
card issued by a person primarily in the business of selling or leasing
goods or services or any other credit card which may be used for the
purchase of goods or services and which is not a lender credit card.

      (28) "Loan-to-value ratio", at any time for any loan secured by an
interest in real estate, means a fraction expressed as a percentage:

      (a) The numerator of which is the aggregate unpaid principal balance
of all loans secured by a first mortgage or a second mortgage encumbering
the real estate at such time; and

      (b) the denominator of which is the appraised value of the real estate.

      (29) "Merchandise certificate" means a writing issued by a seller not
redeemable in cash and usable in its face amount in lieu of cash in
exchange for goods or services.

      (30) "Official fees" means:

      (a) Fees and charges prescribed by law which actually are or will be
paid to public officials for determining the existence of or for perfecting,
releasing, or satisfying a security interest related to a consumer credit
sale, consumer lease, or consumer loan; or

      (b) premiums payable for insurance in lieu of perfecting a security
interest otherwise required by the creditor in connection with the sale,
lease, or loan, if the premium does not exceed the fees and charges de-
scribed in paragraph (a) which would otherwise be payable.

      (31) "Open end credit" means an arrangement pursuant to which:

      (a) A creditor may permit a consumer, from time to time, to purchase
goods or services on credit from the creditor or pursuant to a credit card,
or to obtain loans from the creditor or pursuant to a credit card;

      (b) the unpaid balance of amounts financed and the finance and other
appropriate charges are debited to an account;

      (c) the finance charge, if made, is computed on the outstanding un-
paid balances of the consumer's account from time to time; and

      (d) the consumer has the privilege of paying the balances in install-
ments.

      (32) "Organization" means a corporation, limited liability company,
government or governmental subdivision or agency, trust, estate, part-
nership, cooperative, or association.

      (33) "Person" includes a natural person or an individual, and an or-
ganization.

      (34)  (a) "Person related to" with respect to an individual means (i)
the spouse of the individual, (ii) a brother, brother-in-law, sister, sister-
in-law of the individual, (iii) an ancestor or lineal descendant of the in-
dividual or the individual's spouse, and (iv) any other relative, by blood,
adoption or marriage, of the individual or such individual's spouse who
shares the same home with the individual.

      (b) "Person related to" with respect to an organization means (i) a
person directly or indirectly controlling, controlled by or under common
control with the organization, (ii) an officer or director of the organization
or a person performing similar functions with respect to the organization
or to a person related to the organization, (iii) the spouse of a person
related to the organization, and (iv) a relative by blood, adoption or mar-
riage of a person related to the organization who shares the same home
with such person.

      (35) "Prepaid finance charge" means any finance charge paid sepa-
rately in cash or by check before or at consummation of a transaction, or
withheld from the proceeds of the credit at any time. Prepaid finance
charges shall be calculated as provided in rules and regulations adopted
by the administrator pursuant to K.S.A. 16a-6-117, and amendments
thereto.

      (36) "Presumed" or "presumption" means that the trier of fact must
find the existence of the fact presumed unless and until evidence is in-
troduced which would support a finding of its nonexistence.

      (37) "Principal" means the total of the amount financed and the pre-
paid finance charges, except that prepaid finance charges are not added
to the amount financed to the extent such prepaid finance charges are
paid separately in cash or by check by the consumer. The administrator
may adopt rules and regulations regarding the determination or calcula-
tion of the principal or the principal balance pursuant to K.S.A. 16a-6-
117, and amendments thereto.

      (38) "Sale of goods" includes any agreement in the form of a bailment
or lease of goods if the bailee or lessee agrees to pay as compensation for
use a sum substantially equivalent to or in excess of the aggregate value
of the goods involved and it is agreed that the bailee or lessee will become,
or for no other or a nominal consideration has the option to become, the
owner of the goods upon full compliance with such bailee's or lessee's
obligations under the agreements.

      (39) "Sale of an interest in land" includes a lease in which the lessee
has an option to purchase the interest and all or a substantial part of the
rental or other payments previously made by the lessee are applied to the
purchase price.

      (40) "Sale of services" means furnishing or agreeing to furnish serv-
ices and includes making arrangements to have services furnished by an-
other.

      (41) "Second mortgage" means a second or other subordinate priority
mortgage lien or similar real property security interest.

      (42) "Seller": Except as otherwise provided, "seller" includes an as-
signee of the seller's right to payment but use of the term does not in
itself impose on an assignee any obligation of the seller with respect to
events occurring before the assignment.

      (43) "Services" includes (a) work, labor, and other personal services,
(b) privileges with respect to transportation, hotel and restaurant accom-
modations, education, entertainment, recreation, physical culture, hos-
pital accommodations, funerals, cemetery accommodations, and the like,
and (c) insurance.

      (44) "Supervised financial organization" means a person, other than
an insurance company or other organization primarily engaged in an in-
surance business:

      (a) Organized, chartered, or holding an authorization certificate un-
der the laws of any state or of the United States which authorize the
person to make loans and to receive deposits, including a savings, share,
certificate or deposit account; and

      (b) subject to supervision by an official or agency of such state or of
the United States.

      (45) "Supervised lender" means a person authorized to make or take
assignments of supervised loans, either under a license issued by the ad-
ministrator (K.S.A. 16a-2-301 and amendments thereto) or as a super-
vised financial organization (subsection (44) of K.S.A. 16a-1-301 and
amendments thereto).

      (46) "Supervised loan" means a consumer loan, including a loan made
pursuant to open end credit, with respect to which the annual percentage
rate exceeds 12%.

      (47) "Written agreement" means an agreement such as a promissory
note, contract or lease that is evidence of or relates to the indebtedness.
A letter that merely confirms an oral agreement does not constitute a
written agreement for purposes of this subsection unless signed by the
person against whom enforcement is sought.

      (48) "Written administrative interpretation" means any written com-
munication from the consumer credit commissioner which is the official
interpretation as so stated in said written communication by the consumer
credit commissioner of the Kansas uniform consumer credit code and
rules and regulations pertaining thereto.

      Sec.  9. K.S.A. 16a-2-302, as amended by section 12 of 1999 Substi-
tute for Senate Bill No. 301, is hereby amended to read as follows: 16a-
2-302. (1)  (a) The administrator shall receive and act on all applications
for licenses to make supervised loans under this act. Applications shall be
filed in the manner prescribed by the administrator and shall contain the
information the administrator may require by rule and regulation to make
an evaluation of the financial responsibility, character and fitness of the
applicant.

      (b) Submitted with each application shall be an application fee. Ap-
plication and license fees shall be in such amounts as are established
pursuant to subsection (5) of K.S.A. 16a-6-104, and amendments thereto.
The license year shall be the calendar year. Each license shall remain in
force until surrendered, suspended or revoked.

      (c) The administrator shall remit all moneys received under K.S.A.
16a-1-101 to 16a-6-414, inclusive, and amendments thereto, to the state
treasurer at least monthly. Upon receipt of any such remittance the state
treasurer shall deposit the entire amount thereof in the state treasury. Of
each deposit 20% shall be credited to the state general fund and the
balance shall be credited to the consumer credit bank commissioner fee
fund. All expenditures from such fund shall be made in accordance with
appropriation acts upon warrants of the director of accounts and reports
issued pursuant to vouchers approved by the administrator or by a person
or persons designated by the administrator.

      The 20% credit to the state general fund required by this subsection
(c) is to reimburse the state general fund for accounting, auditing, budg-
eting, legal, payroll, personnel and purchasing services, and any and all
other state governmental services, which are performed on behalf of the
administrator by other state agencies which receive appropriations from
the state general fund to provide such services. Nothing in this subsection
(c) shall be deemed to authorize remittances to be made less frequently
than is authorized under K.S.A. 75-4215, and amendments thereto.

      (d) Every licensee shall, on or before the first day of January, pay to
the administrator the license fee prescribed under this subsection (1) for
each license held for the succeeding license year. Failure to pay the li-
cense fee within the time prescribed shall automatically revoke the li-
cense.

      (2) No license shall be issued unless the administrator, upon inves-
tigation, finds that the financial responsibility, character and fitness of the
applicant, and of the members thereof if the applicant is a copartnership
or association and of the officers and directors thereof, if the applicant is
a corporation, are such as to warrant belief that the business will be op-
erated honestly and fairly within the purposes of this act. An applicant
meets the minimum standard of financial responsibility for engaging in
the business of making supervised loans, under subsection (1) of K.S.A.
16a-2-301, and amendments thereto, only if the applicant has filed with
the administrator a proper surety bond of at least $100,000 which has
been approved by the administrator. The required surety bond may not
be canceled by the licensee without providing the administrator at least
30 days' prior written notice and must provide within its terms that the
bond shall not expire for two years after the date of the surrender, rev-
ocation or expiration of the subject license, whichever shall first occur.

      (3) The administrator may deny any application or renewal for a su-
pervised loan license if the administrator finds:

      (a) There is a refusal to furnish information required by the admin-
istrator within a reasonable time as fixed by the administrator; or

      (b) any of the factors stated in K.S.A. 16a-2-303, and amendments
thereto, as grounds for denial, revocation or suspension of a license.

      (4) Upon written request the applicant is entitled to a hearing on the
question of license qualifications if: (a) The administrator has notified the
applicant in writing that the application has been denied; or (b) the ad-
ministrator has not issued a license within 60 days after the application
for the license was filed. A request for a hearing may not be made more
than 15 days after the administrator has mailed a writing to the applicant
notifying the applicant that the application has been denied and stating
in substance the administrator's findings supporting denial of the appli-
cation.

      (5) The administrator shall adopt rules and regulations regarding
whether a licensee shall be required to obtain a single license for each
place of business or whether a licensee may obtain a master license for
all of its places of business, and in so doing the administrator may differ-
entiate between licensees located in this state and licensees located else-
where. Each license shall remain in full force and effect until surrendered,
suspended or revoked.

      (6) No licensee shall change the location of any place of business
without giving the administrator at least 15 days prior written notice.

      (7) A licensee may conduct the business of making supervised loans
only at or from any place of business for which the licensee holds a license
and not under any other name than that in the license. Loans made pur-
suant to a lender credit card do not violate this subsection.

      Sec.  10. K.S.A. 75-1308 is hereby amended to read as follows: 75-
1308. The commissioner shall keep a record of all fees collected by him
or her the commissioner, together with a record of all expenses incurred
in making the examinations of all banks and trust companies. The the
administration of programs for the regulation of banks and trust com-
panies and in the administration of programs for the regulation of con-
sumer and mortgage lending. The bank commissioner shall remit all mon-
eys received by or for him or her the commissioner from such fees to the
state treasurer at least monthly. Upon receipt of each such remittance,
the state treasurer shall deposit the entire amount thereof in the state
treasury. Twenty percent (20%) of each such deposit shall be credited to
the state general fund and the balance shall be credited to the bank com-
missioner fee fund. All expenditures from the bank commissioner fee
fund shall be made in accordance with appropriation acts upon warrants
of the director of accounts and reports issued pursuant to vouchers ap-
proved by the bank commissioner or by a person or persons designated
by him or her the commissioner.

      Sec.  11. K.S.A. 75-3135 is hereby amended to read as follows: 75-
3135. The bank commissioner shall receive an annual salary to be fixed
by the governor with the approval of the state finance council. The bank
commissioner is hereby authorized to appoint a two deputy commissioner
commissioners who shall be in the unclassified service under the Kansas
civil service act and shall receive an annual salary fixed by the bank com-
missioner. The deputy commissioner of the banking division shall super-
vise all banks and trust companies as directed by the commissioner and
shall perform such other duties as may be required by the commissioner.
The deputy commissioner of the consumer and mortgage lending division
shall supervise all consumer and mortgage lending functions as directed
by the commissioner and shall perform such other duties as may be re-
quired by the commissioner. If the office of the commissioner is vacant
or if the commissioner is absent or unable to act, the deputy commissioner
of the banking division shall be the acting commissioner. The deputy
commissioner of the banking division shall have at least five years' expe-
rience as a state bank officer or five years' experience as a state or federal
deposit insurance corporation bank examiner regulator. The deputy com-
missioner of consumer and mortgage lending shall have at least five years'
experience in consumer or mortgage lending, regulatory, legal or related
experience. The bank commissioner is also authorized to appoint or con-
tract for, in accordance with the civil service law, such special assistants
and other employees as are necessary to properly discharge the duties of
the office.

      Sec.  12. K.S.A. 16-403, 16-601, 16-601a, 16-601b, 16-601c, 16-601d,
16-601e, 16-601f, 16-601g, 16-601h, 16-601i, 16-601j, 16-601k, 16-601l,
16-601m, 16-601n, 16-601o, 16-601q, 16-601r, 16-601s, 16-602, 16-603,
16-604, 16-605, 16-606, 16-607, 16-608, 16-609, 16-610, 16-611, 16-612,
16-613, 16-614, 16-616, 16-618, 16-619, 16-620, 16-621, 16-622, 16-623,
16-624, 16-625, 16-626, 16-627, 16-628, 16-629, 16-630, 16-631, 16-632,
16-633, 16-634, 16-635, 16-636, 16-637, 16-638, 16-639, 16-640, 16a-2-
302, as amended by section 12 of 1999 Substitute for Senate Bill No. 301,
75-1304, 75-1308 and 75-3135 and K.S.A. 1998 Supp. 16a-1-301, as
amended by section 8 of 1999 Substitute for Senate Bill No. 301, are
hereby repealed.

      Sec.  13. This act shall take effect and be in force from and after its
publication in the statute book.

I hereby certify that the above BILL originated in the
SENATE, and passed that body

____________________________________

SENATE adopted
  Conference Committee Report ______________________________

Passed the HOUSE
     as amended ______________________________

HOUSE adopted
  Conference Committee Report ______________________________

APPROVED ______________________________