Kansas 2023-2024 Regular Session

Kansas House Bill HB2840

Introduced
3/13/24  
Refer
3/13/24  

Caption

Authorizing governmental units to utilize a public moneys pooled method of securities to secure the deposit of public moneys in excess of the amount insured or guaranteed by the federal deposit insurance corporation and requiring the state treasurer to establish procedures therefor and banks, savings and loan associations and savings banks to make certain reports upon the request of a governmental unit.

Summary

House Bill 2840 seeks to enhance the security of public moneys deposited by governmental units in Kansas by permitting the use of a public moneys pooled method of securities. This method allows governmental entities to secure deposits exceeding the amounts insured by federal deposit insurance through the establishment of a pool of eligible securities. The bill mandates that the state treasurer establish precise procedures for implementing this pooled method, ensuring that the public funds are safeguarded adequately. One significant change proposed in HB2840 is the introduction of a pooled securities method which would provide an alternative to traditional deposit security measures. Currently, governmental units must obtain security through corporate surety bonds or specific types of deposits. By allowing for pooled securities, banks and savings institutions can utilize a system that may offer greater flexibility and security when handling large sums of public money, which is especially useful in times of financial instability. The bill delineates the roles of the state treasurer and financial institutions in administering this pooled method. It requires designated banks and savings associations to report their holdings of public funds that exceed federally insured amounts. This will enhance transparency and oversight, ensuring that public entities are aware of their financial exposure in case of bank defaults. Moreover, it aims to institute safeguards that require the aggregate market value of the securities in the pool to be at least 102% of the deposits that surpass federal insurance limits. Controversy may arise surrounding the implications of relying on pooled securities. Critics may argue that this could shift financial burdens or liabilities to the state in cases of default or that it might lead to a complex web of financial liabilities that could be hard to oversee effectively. Supporters, however, contend that this shift represents a proactive approach to managing public funds in a manner that could enhance fiscal responsibility and security. Moreover, the bill includes provisions for the liquidation process in the event a bank fails, detailing how public moneys would be distributed among the affected governmental units, thereby addressing concerns about the financial protection of public funds.

Companion Bills

No companion bills found.

Previously Filed As

KS SB524

Requiring banks to enter into a written agreement with the state treasurer to be a depository of public moneys, increasing the market value of securities necessary to secure the deposit of public moneys, providing procedures for when a depository fails to follow the requirements of the state treasurer, modifying certain definitions, authorizing the state treasurer to assess a fee to operate the public moneys pooled method, creating the public moneys fee fund and providing exceptions to the public moneys pooled method if accounts are subject to conflicting federal law.

KS HB2152

Substitute 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 financial institution, requiring certification from a governmental unit that deposits in the municipal investment pool fund were first offered to a financial institution in the preceding year and allowing financial institutions to file complaints upon the failure to comply.

KS SB115

Enacting the Kansas bullion depository act to authorize the state treasurer to establish, administer or contract for the administration of bullion depositories and allowing for state moneys to be deposited in such bullion depositories and invested in specie legal tender.

KS S01453

Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.

KS A03246

Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.

KS S03066

Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.

KS A04818

Allows credit unions, savings banks, savings and loan associations and federal savings associations to accept and secure deposits from municipal corporations.

KS SB435

Providing procedures, standards and requirements for the deposit and investment of public moneys, creating the public moneys fee fund and authorizing the state treasurer to assess a fee to operate the public moneys pooled method, making and concerning appropriations for fiscal year 2027 for the office of the state treasurer, authorizing a certain transfer from the state general fund to the public moneys fee fund, modifying investment standards for the board of trustees of the Kansas public employees retirement system of moneys certified by the state treasurer as equivalent to the aggregate net amount received for unclaimed property and authorizing investments in certain foreign governments and the KPERS board of trustees to elect the vice chairperson of the board, requiring newly affiliated KP&F employers to contribute at the actuarial required rate for past and future service and repealing certain working after retirement statutes for state and local elected officials.

KS A03539

Establishes the savings bank, savings and loan association or credit union municipal deposit program; defines terms; provides that a credit union accepting deposits of public money is subject to certain limitations and shall pledge assets or furnish other security satisfactory in form and amount to the depositor, for the repayment of monies held in the name of such depositor, when required to be secured by applicable law, decree, or regulation.

KS S03962

Establishes the savings bank, savings and loan association or credit union municipal deposit program; defines terms; provides that a credit union accepting deposits of public money is subject to certain limitations and shall pledge assets or furnish other security satisfactory in form and amount to the depositor, for the repayment of monies held in the name of such depositor, when required to be secured by applicable law, decree, or regulation.

Similar Bills

No similar bills found.