Brief ⁽¹⁾

HB 2169, as amended, concerns the deposit of state moneys by state agencies. The bill shifts responsibility from the Pooled Money Investment Board (PMIB) to the investing state agency maintaining a bank account to ensure that securities pledged by the bank are adequate to secure the balance in the account as required by law. If the securities pledged are found by the state agency to be inadequate, the agency shall immediately notify the PMIB.

Additionally, HB 2169 substitutes the word "requested" for the word "bid" in the state moneys law.

The Senate Committee amendment changes the effective date of the bill to publication in the Kansas Register.

Background

HB 2169 was requested by the Director of Investments of the Pooled Money Investment Board who explained that the PMIB receives only a monthly report on an agency account while the agency itself might have nearly daily contact with its bank. Consequently, the agency is in a much better position to know whether accounts are properly secured and should have the responsibility for ensuring that accounts are adequately secured.

Further, the Director noted that the change from "bid" to "requested" is a technical change to reflect the actual practice of the PMIB to accept requests from banks for public funds rather than the misconception that banks bid for the money. Public funds are awarded to banks at the market rate established each business day by the Director of Investments.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi