Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


February 16, 2021


The Honorable Jeff Longbine, Chairperson
Senate Committee on Financial Institutions
Statehouse, Room 235A-E
Topeka, Kansas 66612
Dear Senator Longbine:
SUBJECT: Fiscal Note for SB 242 by Senate Committee on Financial Institutions and
Insurance
In accordance with KSA 75-3715a, the following fiscal note concerning SB 242 is
respectfully submitted to your committee.
The bill would move mortgage provisions of the Uniform Consumer Credit Code into the
Kansas Mortgage Business Act. The bill would also modify the process for renewing licenses for
nonbank mortgage companies. The bill would allow more grace time in the renewal process and
would provide for late fees to be assessed by the Office of the State Bank Commissioner. The bill
would also remove the distinction for nonbank mortgage companies between those with a bona
fide office and those without one. Entities without a bona fide office would no longer have to
maintain a minimum net worth of $50,000 or submit accounting certifications to the Office of the
State Bank Commissioner. All entities would be required to remain solvent, have a positive net
worth, and maintain a surety bond.
The Office the State Bank Commissioner states that the bill could produce additional
revenues because the agency would be able to collect late fees for renewals. The bill could also
reduce the amount of staff time for verifying bona fide offices and accounting certifications.
However, the agency anticipates the changes in the bill would have a negligible effect to
expenditures and revenues which could be absorbed within the agency’s current budget.
The Honorable Jeff Longbine, Chairperson
Page 2—SB 242

The Office of Judicial Administration states that the bill could increase judge and staff time
in foreclosure cases against mortgage companies. However, a fiscal effect cannot be estimated.
The Offices of the Attorney General, Secretary of State, and State Treasurer indicate that the bill
would not have a fiscal effect because the bill would not change current practices performed by
the agencies.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Melissa Wangemann, Office of Banking Commissioner
Vickie Hurt, Credit Unions
Debbie Thomas, Judiciary
Willie Prescott, Office of the Attorney General
Lauren Tice Miller, Office of the Treasurer


Statutes affected:
As introduced: 9-2201, 9-2202, 9-2203, 9-2205, 9-2208, 9-2209, 9-2211, 9-2212, 9-2216a, 9-2220, 1-108, 1-301, 2-103, 2-201, 2-202, 2-301, 2-302, 2-310, 2-401, 2-404, 3-308, 5-201, 6-104, 6-108, 16-207, 1-101, 16-207d, 40-1209