SB 232 — Establishing the born to invest act and requiring the office of vital statistics to provide data to the office of the state treasurer for distribution of informational materials regarding certain government-administered savings accounts.

AsAmended by House Committee As Amended by Senate Committee Session of 2025 SENATE BILLNo.BILL No.

232 ByAN CommitteeACT onconcerning Federalthe anddepartment StateAffairsof 2-6health ANand ACTenvironment concerningoffice retirementof andvital pensions;statistics;

relating to managementinformation andregarding investmentgovernment-administered bysavings theaccounts; board of trustees of the Kansas public employees retirement system of moneys certified by the state treasurer as equivalent to the aggregate net amount received for unclaimed property;

modifyingestablishing investmentthe standards;born to invest act;

authorizingrequiring investmentsthe office of vital statistics to provide information regarding children born in certainKansas foreignto governments;the state treasurer;

amendingpermitting K.S.A.the state treasurer to provide informational materials on government-administered savings accounts for such children and such children's families.

2024Be 2025it Supp.enacted by the Legislature of the State of Kansas:

75-Section 22631. (a) This section shall be known and repealingmay be cited as the existingborn section.to invest act.

9(b) Be(1) The itstate enactedtreasurer byshall determine the Legislaturedata ofnecessary to distribute informational materials that describe the Stateavailability, ofpurposes, Kansas:advantages and enrollment procedures concerning:

Section(A) For 1. K.S.A.a child born on or after January 1, 2025, a Trump account established by section 530Aof the federal internal revenue code;

2024(B) the 2025postsecondary Supp.educational savings program established by section 529 of the federal internal revenue code and K.S.A.

75-226375-640 isthrough hereby75-648, amendedand toamendments readthereto; as follows:

75-2263.and (C) an ABLE savings account established by section 529A of the federal internal revenue code and K.S.A.

(a)75-651 (1)through The75-657, stateand treasureramendments shallthereto. certify to the board of trustees a portion of state moneys available for investment by the pooled money investment board that is equivalent to the aggregate net amount received for unclaimed property.

The(2) The statedata treasurer may transferinclude thethe: amount certified to the board of trustees.

All(A) Name suchof moneys shall be considered moneys in the statechild; treasury for purposes of K.S.A.

75-6704,(B) name and amendmentsmailing thereto.address of the child's parent or legal guardian on the child's certificate of live birth;

(2) Subjector to(C) date the provisions of subsection (h), the boardchild's oflive trusteesbirth. is responsible for the management and investment of that portion of state moneys available for investment by the pooled money investment board that is certified by the state treasurer to the board of trustees as being equivalent to the aggregate net amount received for unclaimed property and shall discharge the board's duties with respect to such moneys solely in the interests of the state general fund and shall invest and reinvest such moneys and acquire, retain, manage, including the exercise of any voting rights and disposal of investments of such moneys within the limitations and according to the powers, duties and purposes as prescribed by this section.

(b) Moneys(c) specified(1) Notwithstanding inany subsectionother (a)law shall be invested and reinvested to achieve the investmentcontrary, objective,the whichstate isregistrar preservation of suchvital moneysstatistics andshall accordinglyprovide providingto that the moneysstate aretreasurer as productive as possible, subject to the standardsdata setdetermined forthnecessary inunder thissubsection section.(b).

No(2) such(A) By moneysSeptember shall1, be2026, investedif orno reinvestedcorresponding ifdeath certificate has been issued for a child, the solestate orregistrar primaryof investmentvital objectivestatistics isshall forprovide economicto developmentthe orstate socialtreasurer purposesdata orrelating objectives.to children in Kansas who were born prior to July 1, 2026, and are currently eligible for government-administered savings accounts.

SB(B) Within 232—Am.90 days after the issuance of a certificate of a live birth of a child in Kansas, unless a corresponding death certificate has been issued for the child within such time, the state registrar of vital statistics shall provide to the state treasurer the data relating to children born in Kansas on or after July 1, 2026.

by(3) The HCdata 2 (c) In investing and reinvesting moneys specified in subsection (a) and in acquiring, retaining, managing and disposing of investments of the moneys, the board of trustees shall exercisebe thetransmitted judgment, care, skill, prudence and diligence under the circumstances then prevailing that persons of prudence, discretion and intelligence acting in a likesecure capacityelectronic andmanner familiarconsistent with suchapplicable mattersfederal would use in the conduct of an enterprise of like character and withstate likelaw. aims by diversifying the investments of the moneys so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so, and not in regard to speculation but in regard to the permanent disposition of similar moneys, considering the probable income as well as the probable safety of their capital.

(d) In(d) The theinformational dischargematerials ofshall suchbe managementin a suitable form and investmentmanner responsibilitiesas prescribed by the boardstate oftreasurer trusteesfor may:mail, including brochures, letters, inserts or other printed information.

(1) ContractThe forstate thetreasurer servicesmay ofshare oneinformation orand morematerials professionalwith investment advisors or other consultants in the managementdepartment and investment of suchadministration moneysdivision andof otherwiseprinting infor the performanceprinting, ofproduction theand dutiesdistribution of the boardinformational ofmaterials. trustees under this section;

and(e) The (2) arrangestate fortreasurer theshall custodymaintain ofinformation suchregarding moneys as the boardavailability, ofpurposes trusteesand considersadvantages advisable with one or more member banks or trust companies of the federalgovernment-administered reservesavings systemaccounts ordescribed with one or more banks in thesubsection state(b). of Kansas, or both, to be held in safekeeping by the banks or trust companies for the collection of the principal and interest or other income or of the proceeds of sale;

andTo (3) investensure inthat UnitedKansas Statesfamilies dollar-denominatedare bonds,aware notes, debentures or other similar obligations of athe foreignaccounts, government that the internationalstate monetarytreasurer fundshall listspublicize as an industrial country and for which the fullinformation faithon and credit of such nation has been pledged for the paymentstate oftreasurer's principalwebsite and interestthrough sofinancial longliteracy aseducational suchtraining. security country shall be rated at least A- or better by Standard and Poor's corporation or, A3 or better by Moody's investors service or A- or better by Fitch ratings or an equivalent investment grade by a securities rating organization accepted by the national association of insurance commissioners.

Investments(f) The shallsecretary onlyof behealth allowedand inenvironment aand countrythe thatstate hastreasurer nevermay defaultedenter oninto short-terminteragency oragreements long-termto debtcarry obligations.out this section.

The investmentagreements inmay suchaddress foreignprocedures, securitiesconfidentiality, atdata anytransfers, onereimbursements time shall not exceed 5% of theactual cashcosts availableand forany investmentother thatmatters maydetermined benecessary investedby pursuantthe tosecretary thisand section.state treasurer.

UnderSENATE noBILL circumstancesNo. shall investments be made in bonds, notes, debentures or any similar obligations of a foreign government that is:

(A) Identified232—page 2 (g) Except as apermitted by state sponsoror offederal terrorismlaw byand the Unitedpurposes Statesof departmentthis section, nothing in this section shall be construed to authorize the disclosure of state;any confidential or protected records or information.

or (B) an authoritarian or totalitarian government the sovereign powers of which are exercised through a single person or group of persons who SB 232—Am.

by HC 3 are not elected by any form of legitimate popular voting any country of concern as defined in K.S.A.

2025 Supp.

75-42b02, and amendments thereto.

(e) The board of trustees shall require that each person contracted with under subsection (d)(1) or (2) to provide services shall obtain commercial insurance that provides for errors and omissions coverage for such person in an amount to be specified by the board of trustees.

The amount of such coverage specified by the board of trustees shall be at least the greater of $500,000 or 1% of the funds entrusted to such person up to a maximum of $10,000,000.

The board of trustees shall require a person contracted with under subsection (d) to provide services to give a fidelity bond in a penal sum as may be fixed by law or, if not so fixed, as may be fixed by the board of trustees, with corporate surety authorized to do business in this state.

Such persons contracted with the board of trustees pursuant to subsection (d) and any persons contracted with such persons to perform the functions specified in subsection (b) shall be deemed to be fiduciary agents of the board of trustees in the performance of contractual obligations.

(f) (1) Subject to the objective set forth in subsection (b) and the standards set forth in subsection (c), the board of trustees shall formulate and adopt policies and objectives for the investment and reinvestment of such moneys and the acquisition, retention, management and disposition of investments of the moneys.

Such policies and objectives shall be in writing and shall include: