The bill amends various sections of Kansas law concerning the management and security of public moneys held by banks, savings and loan associations, and savings banks. A significant change is the requirement for these financial institutions to enter into a written agreement with the state treasurer, which includes increasing the market value of securities required for deposits from 100% to 102%. The legislation also introduces a "public moneys pooled method" for securing deposits that exceed federal insurance limits, establishing a fee structure for its operation and creating a public moneys fee fund. Additionally, it clarifies the roles of custodial banks and mandates that custodial agreements be in writing and approved by relevant boards.

Moreover, the bill allows for investments in municipal bonds and obligations, as well as in municipal client investment pools managed by local banks or trust companies, provided that eligible financial institutions do not offer competitive interest rates. It also specifies that all security purchases and repurchase agreements must occur on a delivery versus payment basis. The bill updates definitions related to state bank accounts, reiterating the increased security measures and ensuring no conflicts of interest arise from shared ownership among banks. Outdated provisions are repealed to streamline the law, and the act will take effect upon publication in the statute book.

Statutes affected:
As introduced: 9-1402, 12-1675, 75-4218, 9-1401, 9-1403, 9-1405, 9-1406, 9-1407, 9-1408, 9-1410, 75-4201
As Amended by Senate Committee: 9-1402, 12-1675, 75-4218, 9-1401, 9-1403, 9-1405, 9-1406, 9-1407, 9-1408, 9-1410, 75-4201