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KS HB2152
Bill
Status
4/10/2025
Primary Sponsor
Financial Institutions and Pensions
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AI Summary
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Banks, savings and loan associations, and savings banks must secure governmental unit deposits exceeding FDIC-insured amounts using a "public moneys pooled method" requiring securities valued at least 102% of uninsured deposits, effective January 1, 2026.
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Investment advisers executing bids for public moneys investment are prohibited from engaging in principal transactions with governmental units related to the same securities or financial products for which they provided advice.
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Governmental units may invest deposits in eligible financial institutions at any rate agreed upon by both parties, and must allow eligible institutions two business days to respond to investment bids.
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Governmental units depositing in the municipal investment pool fund must provide certification proving compliance with local bank preference requirements and list the banks from which bids were requested in the preceding year.
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Financial institutions may file confidential complaints with the state treasurer if they believe governmental units have not complied with deposit requirements; first violations require training, while subsequent violations carry civil penalties up to $500 per violation.
Legislative Description
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.
Last Action
House Approved by Governor on Thursday, April 3, 2025
4/10/2025