Brief ⁽¹⁾

HB 2252, as amended, concerns the regulation of credit unions. The bill requires state-chartered credit unions to comply with the reserve requirements adopted by the National Credit Union Administration (NCUA). The Senate Committee reinstated the current reserve requirements that apply to corporate credit unions and deleted the language that would subject a corporate credit union, chartered in this state, to the reserve requirements adopted by the NCUA.

Further, the bill authorizes the Credit Union Administrator to adopt rules and regulations to be followed by a foreign (out-of-state) credit union applying to do business in Kansas.

Background

HB 2252 was requested by the Credit Union Administrator who explained that new reserve requirements became effective for all federally insured credit unions on December 31, 2000. Kansas credit unions are federally insured and will be required to abide by the federal requirements.

Regarding foreign credit unions, the Administrator currently may admit a foreign credit union to do business in Kansas. With the rule and regulation authority, the Administrator will be able to establish specific standards the foreign credit union must meet to do business in this state.

The Senate Committee amendments also were requested by the Credit Union Administrator.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi