The bill introduces comprehensive regulations for the deposit and investment of public moneys by governmental units in Kansas. It requires financial institutions, such as banks and savings associations, to secure deposits that exceed federally insured amounts through a pooled method, with the state treasurer responsible for establishing the necessary procedures. The bill also prohibits investment advisers from engaging in principal transactions related to public moneys and outlines the administrator's responsibilities in managing defaults by financial institutions, including determining at-risk amounts and ensuring repayment to affected governmental units. Additionally, it includes provisions for filing complaints against non-compliant governmental units, with confidentiality protections and penalties for violations.

Moreover, the bill amends existing laws to clarify definitions and investment options for governmental units, specifying that required bonds for securing public funds must equal the total amount on deposit minus federal insurance. It details acceptable collateral types, mandates that investments be made with institutions having a physical presence in the relevant governmental unit, and requires that all securities be perfected in the name of the investing unit. The bill also abolishes certain reserve funds related to the municipal investment pool and establishes new reporting requirements for the pooled money investment board, including the approval of written investment policies by the board. The effective date for these provisions is set for January 1, 2026, with several sections of existing law being repealed.

Statutes affected:
As introduced: 9-1402, 10-131, 12-1675a, 12-1675, 12-1677a, 75-4237, 75-4232
Sub: 9-1402, 12-1675, 12-1677a, 12-1677b, 75-4237, 75-4232
As Amended by Senate Committee: 9-1402, 12-1675, 12-1677a, 12-1677b, 75-4237, 75-4232
Enrolled: 9-1402, 12-1675, 12-1677a, 12-1677b, 75-4237, 75-4232