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Bill

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.

2025-2026 Regular Session

Kansas bill requires banks to formally pledge collateral for public deposits, increases security standards, and lets state treasurer charge fees for pooled investment management.

Died in House Committee
#financialinstitutions #funds #municipalities #statefinance #statetreasurer
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Bill Summary · SB 524

Legislative bill overview

SB 524 requires Kansas banks holding public funds to formalize agreements with the state treasurer, increases securities collateral requirements for these deposits, and authorizes the treasurer to charge fees for managing a pooled public moneys investment method. The bill also establishes procedures for enforcement when banks fail to meet these requirements and creates exemptions for accounts subject to conflicting federal regulations.

Why is this important

Public funds deposited in banks need robust safeguards to protect taxpayer money from loss. This bill strengthens those protections through higher collateral requirements and formal oversight mechanisms while generating revenue through fees that support the state's treasury operations. The changes modernize how Kansas manages and secures billions in public deposits across the state's banking system.

Potential points of contention

  • Fee impact on smaller municipalities: Local governments and school districts using the pooled method may face new or increased costs, potentially straining budgets in smaller communities
  • Collateral burden on rural/community banks: Higher security requirements could discourage smaller regional banks from serving as public depositories, reducing competition and options for communities
  • Regulatory complexity: New written agreements and procedures add administrative requirements that may be burdensome for both state oversight and participating financial institutions

Compiled from official sources — confirm details with the bill’s official record.

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