The proposed bill establishes the Kanbucks program, enabling the state treasurer to invest in linked deposits with eligible financial institutions to provide loans for various purposes, including agricultural production, housing development, business needs, and extraordinary natural gas costs incurred during the severe winter weather event of February 2021. The bill abolishes several existing loan deposit programs related to agricultural production and housing while ensuring the continuation of existing linked deposit loans. The state treasurer is authorized to invest up to 5% of the pooled money investment portfolio in linked deposits, with specific loan limits, such as a maximum of $2,500,000 for agricultural production or business loans.

Additionally, the bill amends existing laws regarding the management of state funds and investment accounts, mandating the director of accounts and reports to transfer specific amounts from the state general fund to the pooled money investment portfolio by June 30 of 2020, 2021, and 2022. It updates procedures for accepting requests from banks for investment accounts, allowing the director of investments to award these accounts at market rates determined daily. The bill also removes provisions related to linked deposits for various loans that previously stipulated a 2% interest rate reduction from the market rate and introduces new language for establishing reciprocal deposit programs by the pooled money investment board. Furthermore, it repeals numerous sections of existing law to streamline the legal framework governing these financial transactions.

Statutes affected:
As introduced: 75-4209, 75-4237