Special committee examines centralized pooled collateral, recommends bills to reform deposit collateral and linked‑deposit programs

A special interim committee on centralized pooled collateral and modernization of the Pooled Money Investment Board (PMIB) reviewed last session’s proposals and an economic impact study and recommended two bills to revise how public deposits are collateralized and to update the state’s linked‑deposit loan programs.

The report, presented by Eddie Penner of the Legislative Research Department, summarized the genesis of the study: House Bill 2840 (filed in the prior session) would have created a single centralized pooled collateral system to collateralize public deposits held by financial institutions. That bill did not advance, and the special committee was directed to evaluate centralized pooling, administrative law changes related to public‑fund deposits, and revisions to the state’s linked‑deposit programs.

Why it matters: under current Kansas law, deposits above FDIC insurance limits are collateralized on a deposit‑by‑deposit…