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Commission supports submitting written testimony on bankers'collateral-pool bill after local compromise
Summary
After negotiations between bankers, municipalities and state stakeholders, a proposed change to public-deposit rules that would create a collateral pool and simplify administration won county support; commissioners asked staff to file written testimony in favor.
Brent Shelton updated the commission on a bill addressing public-deposit rules for local governments and said stakeholders had reached a workable compromise.
Brent said he had opposed the bill initially but became a proponent after a compromise. He described participation by the Kansas Bankers Association, the League of Kansas Municipalities, the Community Bankers Association, the Kansas Association of Counties and the state treasurer. The compromise keeps a local bank first-look preference while creating a collateral pool to secure public deposits and simplify administration. "The good piece of the bill, is that there would be a collateral pool, which would simplify administration for the banks," Brent said.
Why it matters: The bill would affect how counties and cities place public deposits with local banks and how banks secure public funds with collateral. Staff and the commission signaled support for preparing written testimony backing the compromise.
Next steps: Commissioners asked staff (Tanya and others) to draft a supportive letter to be filed with the association or committee handling the bill.
Ending: Staff will coordinate with Brent, Tanya and others to prepare and submit written testimony in support of the agreed language.
