Senate panel approves amended bill to strengthen municipal risk-pool reserves and reporting

The Senate Finance Committee on Oct. 27, 2025, approved an amended version of Senate Bill 297 aimed at increasing financial stability and transparency for municipal risk pools, the committee announced during an executive session.

The bill, as amended and approved by the committee, sets minimum reserve bands for pooled risk programs and creates a capital-reserve mechanism that allows political subdivisions to deposit surplus funds into a non‑lapsing account for future assessments or contribution holidays. "We have worked on several different amendments that are before you," David Lang, chief of staff for the secretary of state, told the committee as he summarized the package of changes.

Committee members and agency staff said the changes were intended to give local governments more predictability and time to respond if a pool's contingency reserves decline. Under the amendment, pools must notify their members if contingency reserves fall to 8% or less; a more urgent notice to the Secretary of State is required if reserves drop to 4% or less. The amendment also establishes a framework allowing political subdivisions to build a capital reserve over multiple years to meet a 4% target without disrupting annual operating budgets.

Why it matters: Municipal risk pools insure or…