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Bill > HB2152
KS HB2152
KS HB2152Substitute for HB 2152 by Committee on Financial Institutions and Pensions - Mandating financial institutions to secure governmental unit deposits in excess of the amount insured or guaranteed by the FDIC by utilizing a public moneys pooled method of securities, prohibiting investment advisers that execute bids for the investment of public moneys from managing moneys directly from such bid, allowing governmental unit deposits to be invested at a rate agreed upon by the governmental unit and the
summary
Introduced
01/29/2025
01/29/2025
In Committee
03/18/2025
03/18/2025
Crossed Over
03/11/2025
03/11/2025
Passed
03/27/2025
03/27/2025
Dead
Signed/Enacted/Adopted
04/10/2025
04/10/2025
Introduced Session
2025-2026 Regular Session
Bill Summary
AN ACT concerning public moneys; relating to the deposit and investment thereof; mandating banks, savings and loan associations and savings banks to secure governmental unit deposits in excess of the amount insured or guaranteed by the federal deposit insurance corporation by utilizing the public moneys pooled method; directing the state treasurer to establish procedures therefor; requiring financial institutions to make certain reports upon the request of a governmental unit; prohibiting investment advisers that execute bids for the investment of public moneys from engaging in a principal transaction with a governmental unit directly related to such public moneys; allowing governmental unit deposits to be invested in a financial institution at a rate agreed upon by the governmental unit and the financial institution; requiring certification from governmental units that deposits in the municipal investment pool fund were first offered to a bank, savings and loan association or savings bank in the preceding year; allowing eligible financial institutions to file a complaint with the state treasurer upon the failure of a governmental unit to comply with certain requirements; establishing the investment rate for the pooled money investment board bank certificate of deposit program; amending K.S.A. 9-1402, 12-1675, 12-1677a and 12-1677b and K.S.A. 2024 Supp. 75-4237 and repealing the existing sections.
AI Summary
This bill introduces comprehensive changes to how governmental units in Kansas handle public money deposits and investments. It mandates that financial institutions secure governmental unit deposits exceeding FDIC insurance limits through a "public moneys pooled method" involving investment company shares with specific security requirements. The bill prohibits investment advisers who execute public money investment bids from directly managing those funds, preventing potential conflicts of interest. It establishes new reporting requirements for financial institutions, including monthly statements detailing deposit amounts and security values, and empowers the state treasurer to oversee and regulate these processes. The legislation allows governmental units to negotiate deposit interest rates directly with financial institutions and creates a mechanism for the state treasurer to investigate and potentially penalize institutions or governmental units that do not comply with the new rules. The bill includes provisions for handling potential bank defaults, ensuring that governmental units can recover their deposited funds even if a financial institution experiences financial difficulties. Importantly, these new regulations will take effect on January 1, 2026, giving financial institutions and governmental units time to prepare for and implement the new requirements.
Committee Categories
Business and Industry, Government Affairs, Labor and Employment
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Financial Institutions and Pensions (House)
Last Action
House Approved by Governor on Thursday, April 3, 2025 (on 04/10/2025)
Official Document
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