The bill establishes a new framework for the deposit and investment of public moneys in Kansas, allowing designated financial institutions to secure governmental unit deposits exceeding federally insured amounts through a pooled method of securities, which must be valued at a minimum of 102% of the uninsured deposits. The state treasurer is responsible for creating procedures for this method and ensuring compliance, while financial institutions are required to report on their deposits when requested. Additionally, the bill prohibits investment advisers from engaging in principal transactions related to the public moneys they advise, thereby maintaining a clear separation between advisory and transactional roles. It also amends existing statutes to replace "municipal corporation or quasi-municipal corporation" with "governmental unit," and mandates that the treasurer must repay governmental units for uninsured deposits in the event of a bank default.

Moreover, the bill updates investment options for governmental entities, allowing them to invest public moneys in various financial instruments while explicitly excluding derivatives. It clarifies the language regarding eligible financial institutions and investment conditions, including the removal of the term "market" from investment rate determinations, allowing rates to be set up to 2% less than the market rate. The bill introduces reciprocal deposit programs and tasks the pooled money investment board with establishing procedures for these programs. It also repeals several existing statutes related to investment management, aiming to streamline the legal framework governing these financial practices. The provisions of the bill are set to take effect on January 1, 2026, and will enhance the security and management of public funds in Kansas.

Statutes affected:
As introduced: 9-1402, 10-131, 12-1675a, 12-1675, 12-1677a, 75-4237, 75-4232