All Roll Calls
Yes: 646 • No: 0
KansasSB 4352025–2026 Regular SessionSenate
Providing procedures, standards and requirements for the deposit and investment of public moneys, creating the public moneys fee fund and authorizing the state treasurer to assess a fee to operate the public moneys pooled method, making and concerning appropriations for fiscal year 2027 for the office of the state treasurer, authorizing a certain transfer from the state general fund to the public moneys fee fund, modifying investment standards for the 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 and authorizing investments in certain foreign governments and the KPERS board of trustees to elect the vice chairperson of the board, requiring newly affiliated KP&F employers to contribute at the actuarial required rate for past and future service and repealing certain working after retirement statutes for state and local elected officials.
Sponsored By: Committee on Financial Institutions and Insurance
Signed by Governor
house committee on financial institutions and pensionssenate committee on financial institutions and insurance
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 4 benefits, 0 costs, 5 mixed.
Governments gain more eligible banking partners
Local governments can enter repurchase agreements with eligible banks and savings institutions anywhere in Kansas when local choices fall short. This applies when eligible institutions in the government unit or its county or counties are unavailable or unwilling to offer the statutory investment rate. Banks chartered under Kansas, federal, or another state's law can qualify for state deposits with a Kansas main office or branch. An ATM or similar remote device does not count as a branch.
Governments gain remedies for deposit failures
When a depository fails the Kansas treasurer's requirements, the treasurer must direct the government unit to choose a remedy. It can close the account for the full amount plus interest, without penalty after more than seven days. Alternatively, it can convert the account to a repurchase agreement on terms the treasurer accepts. Good-faith liability protection for designated-depository failures now extends beyond municipal bodies to governmental units, their officers, and bond sureties.
Insured public deposits get collateral exemption
Government deposits in qualifying reciprocal deposit programs are not treated as securities and do not need the usual public-deposit collateral. The receiving institution must receive matching reciprocal deposits from participating U.S. institutions. Each cumulative deposit must stay within the FDIC insurance limit for one depositor at one institution. This exemption does not expand household deposit insurance.
Unclaimed property funds gain investment options
The Kansas retirement board can invest treasurer-certified money equivalent to net unclaimed-property receipts in qualifying foreign government debt. The debt must be in U.S. dollars, and the government must pledge full repayment and have no debt-default history. The country must be listed as industrial by the International Monetary Fund. Minimum ratings are A- from Standard & Poor's or Fitch, A3 from Moody's, or an accepted equivalent. These investments cannot exceed 5% of available cash, and obligations of designated countries of concern are banned.
Banks must strengthen public deposit backing
Banks holding covered public deposits must use pooled eligible securities, replacing the earlier investment-company-share framework. Municipal depositories must sign agreements with the Kansas treasurer and establish legally enforceable security interests. Covered collateral rises from 100% to 102%; state accounts require 102% of the account amount, minus FDIC-insured dollars. The state-account calculation no longer includes accrued interest. The pooled-security requirement for the specified local investment option does not apply when federal law conflicts.
Governments can temporarily lower deposit backing
During tax-payment or tax-distribution peaks, governments can reduce required deposit security by up to 50% of the deposited amount. Each period is limited to 60 continuous days, with no more than 120 days per calendar year. The fund custodian, a depository officer, and the Kansas treasurer must agree in writing. This gives banks temporary relief but leaves public deposits with less collateral backing.
Kansas changes public deposit custody options
Collateral custody rules now cover deposits of any government unit, not just municipal or similar corporations. General custody options include authorized institutions, the Kansas treasurer, and the Federal Reserve Bank of Kansas City. For state accounts, banks, trust companies, and credit unions need prior pooled money board approval; treasurer custody requires a written agreement. The law removes the Federal Home Loan Bank of Topeka as an express state-account custody option. The board can accept or reject listed securities, and the law removes the express requirement that interest payments be current.
Kansas funds deposit safeguards, allows fees
The law creates a dedicated public moneys fee fund to support the pooled deposit-security system. It requires a $250,000 general-fund transfer on July 1, 2026, or as soon afterward as money is available. For the fiscal year ending June 30, 2027, the treasurer can spend all money lawfully available in the fund. Beginning July 1, 2027, the treasurer can set reasonable and customary operating fees through rules. Fees must fund only pooled-system operations, go into the dedicated fund, and be spent through appropriations.
New police pension employers fund obligations
Employers newly joining the Kansas Police and Firemen's Retirement System must fund board-certified costs for past and future service. They must budget and pay enough to meet those actuarially determined obligations. This replaces the first-year contribution rule of 16% of member pay. Actual required payments depend on the certified pension costs.
Sponsors & Cosponsors
Sponsor
Committee on Financial Institutions and Insurance
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 4/23/2026
Yea: 40 Nay: 0
Yes: 40 • No: 0
Senate vote • 4/23/2026
Yea: 40 Nay: 0
Yes: 40 • No: 0
Senate vote • 4/23/2026
Yea: 125 Nay: 0
Yes: 125 • No: 0
Senate vote • 4/23/2026
Yea: 118 Nay: 0
Yes: 118 • No: 0
Senate vote • 3/27/2026
Conference Committee Report was adopted
Yes: 40 • No: 0
House vote • 3/25/2026
Conference Committee Report was adopted
Yes: 125 • No: 0
House vote • 3/12/2026
Emergency Final Action - Passed as amended
Yes: 118 • No: 0
Senate vote • 2/11/2026
Emergency Final Action - Passed
Yes: 40 • No: 0
Actions Timeline
Enrolled and presented to Governor on Friday, April 3, 2026
4/9/2026SenateApproved by Governor on Thursday, April 9, 2026
4/9/2026SenateConference Committee Report was adopted; Yea 40, Nay 0
3/27/2026SenateConference committee report now available
3/25/2026HouseConference Committee Report was adopted; Yea 125, Nay 0
3/25/2026HouseMotion to accede adopted; Rep. Nick Hoheisel, Rep. Angela Stiens and Rep. Rui Xu appointed as conferees
3/16/2026HouseCommittee of the Whole - Committee Report be adopted
3/12/2026HouseCommittee of the Whole - Be passed as amended
3/12/2026HouseMotion to advance to Emergency Final Action adopted
3/12/2026HouseEmergency Final Action - Passed as amended; Yea 118, Nay 0, Absent 6
3/12/2026HouseNonconcurred with amendments; Conference Committee requested; appointed Sen. Brenda Dietrich, Sen. Michael Fagg and Sen. Silas Miller
3/12/2026SenateCommittee Report recommending bill be passed as amended by House Committee on Financial Institutions and Pensions
3/10/2026HouseHearing: Wednesday, March 4, 2026, 9:00 AM — Room 582-N
3/4/2026HouseReceived and Introduced
2/12/2026HouseReferred to House Committee on Financial Institutions and Pensions
2/12/2026HouseCommittee of the Whole - Be passed
2/11/2026SenateEmergency Final Action - Passed; Yea 40, Nay 0
2/11/2026SenateCommittee Report recommending bill be passed by Senate Committee on Financial Institutions and Insurance
2/9/2026SenateReferred to Senate Committee on Financial Institutions and Insurance
2/3/2026SenateHearing: Tuesday, February 3, 2026, 9:30 AM — Room 546-S
2/3/2026SenateIntroduced
2/2/2026Senate
Bill Text
As Amended by House Committee on Financial Institutions and Pensions
As Introduced
Enrolled
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