SB 524 — Requiring banks to enter into a written agreement with the state treasurer to be a depository of public moneys, increasing the market value of securities necessary to secure the deposit of public moneys, providing procedures for when a depository fails to follow the requirements of the state treasurer, modifying certain definitions, authorizing the state treasurer to assess a fee to operate the public moneys pooled method, creating the public moneys fee fund and providing exceptions to the public moneys pooled method if accounts are subject to conflicting federal law.

As Amended by Senate Committee Session of 2026 SENATE BILLBILLNo. No.

524 By Committee onAssessmenton Assessment and Taxation 3-3 AN ACT concerning public moneys;

If the governing body of the municipal corporation or quasi-municipal corporation fails to designate an official depository or depositories, the officer thereof having custody of the governing body's funds shall deposit such funds with one or more banks, savings and loan associations or savings banks which that have main or branch offices in the county or counties in which all or part of SB 524524—Am. 2 such municipal corporation or quasi-municipal corporation is located if satisfactory security can be obtained therefor.

by SC 2 such municipal corporation or quasi-municipal corporation is located if satisfactory security can be obtained therefor.

(3) The security agreement shall be in writing, executed by all parties SB 524524—Am. 3 thereto, maintained as part of the parties' official records, and except for the municipal corporations or quasi-municipal corporations, approved by the boards of directors or loan committees, which approvals shall be reflected in the minutes of the boards or committees.

by SC 3 thereto, maintained as part of the parties' official records, and except for the municipal corporations or quasi-municipal corporations, approved by the boards of directors or loan committees, which approvals shall be reflected in the minutes of the boards or committees.

(2) bonds of any governmental unit municipal corporation or quasi- municipal corporation of the state of Kansas that have been refunded in advance of the bonds' maturity and are fully secured as to payment of principal and interest thereon by deposit in trust, under escrow agreement SB 524524—Am. 4 with a bank, of direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America;

by SC 4 with a bank, of direct obligations of, or obligations the principal of and the interest on which are unconditionally guaranteed by, the United States of America;

12-1740 et seq., and amendments thereto, that are rated at least MIG-1 orAaor Aa by Moody's investors service or AAby Standard & Poor's corp.;

and (iii) are valued at not to exceed 50% of the lesser of the following SB 524524—Am. 5 three values:

by SC 5 three values:

(g) For purposes of this section, "governmental unit" means the state SB 524524—Am. 6 or any county, municipality or other political subdivision of the stateIn cases where a depository fails to meet the requirements established by the state treasurer, the state treasurer shall instruct the governmental unit that such governmental unit shall select one of the following options:

by SC 6 or any county, municipality or other political subdivision of the stateIn cases where a depository fails to meet the requirements established by the state treasurer, the state treasurer shall instruct the governmental unit that such governmental unit shall select one of the following options:

(4) a trust company incorporated under the laws of this state or SB 524524—Am. 7 another state;

by SC 7 another state;

(g) When securities, security entitlements and financial assets are deposited with the state treasurer as authorized by this section, the state treasurer shall make a charge for such service which that is equivalent to SB 524524—Am. 8 the reasonable and customary charge made therefor.

by SC 8 the reasonable and customary charge made therefor.

and SB 524524—Am. 9 (2) total cumulative amount of each deposit does not exceed the maximum deposit insurance amount for one depositor at one financial institution as determined by the federal deposit insurance corporation.

by SC 9 (2) total cumulative amount of each deposit does not exceed the maximum deposit insurance amount for one depositor at one financial institution as determined by the federal deposit insurance corporation.

(2) "Governmental unit" means the state or any county, municipality SB 524524—Am. 10 or other political subdivision thereof.

by SC 10 or other political subdivision thereof.

Expenses of such administrator shall be paid by the office of SB 524524—Am. 11 the state treasurer.

by SC 11 the state treasurer.

and (3) name, phone number and email address of a representative of each SB 524524—Am. 12 governmental unit represented in the pool.

by SC 12 governmental unit represented in the pool.

(j) This section shall take effect on and after January 1, 2026The treasurer may assess a fee to be used solely to operate the public moneys pooled method that isis. equivalent to the reasonable and customary charge made therefor.

Such fee shall be equivalent to the reasonable and customary charge made therefor and shall be adopted through rules and regulations.

(a) The governing body of any county, city, township, school district, area vocational-technical school, community college, firemen's relief association, community mental health center, community facility for people with intellectual disability or any other governmental entity, unit or subdivision in the state of Kansas having authority to receive, hold and expend public moneys or funds may invest any moneys SB 524524—Am. 13 that are not immediately required for the purposes for which the moneys were collected or received, and the investment of which is not subject to or regulated by any other statute.

by SC 13 receive, hold and expend public moneys or funds may invest any moneys that are not immediately required for the purposes for which the moneys were collected or received, and the investment of which is not subject to or regulated by any other statute.

12-1675a(g), and amendments thereto, then such repurchase agreements may be entered into with banks, savings and loan associations or savings banks that have main or branch offices in the SB 524524—Am. 14 county or counties in which all or part of such investing governmental unit is located;

by SC 14 associations or savings banks that have main or branch offices in the county or counties in which all or part of such investing governmental unit is located;

Pooled investments of public moneys made by trust departments under this paragraph shall be subject to the same terms, conditions and limitations as are applicable to the municipal investment poolSB established524—Am. by K.S.A.

by SC 15 pool established by K.S.A.

or SB 524 15 (8) municipal bonds or other obligations issued by any municipality of the state of Kansas as defined in K.S.A.

(g) In selecting a depository institution pursuant to subsection (b)(2), an investing governmental unit shall allow an eligible financial institution SB 524524—Am. 16 two business days to respond to the bid.

by SC 16 an investing governmental unit shall allow an eligible financial institution two business days to respond to the bid.

75- 4201.4201.As used in this act, unless the context otherwise requires:

As used in this act, unless the context otherwise requires:

12-1740 et seq., and amendments thereto, unless such bonds are rated at least MIG-1 or Aa by SB 524524—Am. 17 Moody's Investors Service or AA by Standard & Poor's Corp.

by SC 17 amendments thereto, unless such bonds are rated at least MIG-1 or Aa by Moody's Investors Service or AA by Standard & Poor's Corp.