Committee advances technical hearing on pooled-collateral method to secure public deposits

The committee opened a hearing on House Bill 2152, which would authorize a public-money pooled method for securing governmental deposits, adjust statutes governing municipal investments and reporting, and make changes to the pooled money investment board (PMIB) bank certificate-of-deposit program.

Committee advisor Eileen summarized the bill as creating a pooled-securities method that would let financial institutions secure the uninsured portion of governmental deposits by maintaining an aggregate market-value pool of securities equal to at least 102% of uninsured public deposits. Sections 1 through 3 were described as effective January 1, 2026; the bill would authorize the state treasurer to adopt rules to administer the pooled method and to designate a third-party administrator if appropriate.

Under the bill summary, an administrator would calculate the uninsured public monies for each governmental unit and determine the market value of the pooled securities daily; governmental units would have 10 business days to verify an administrator's determination. If a participating institution defaulted, the administrator would repay governmental units from the pool and prorate…