Kansas legislators close hearing on HB 2152 after deal on municipal collateral pool

The House committee recessed and then closed its multiweek hearing on HB 2152 on Tuesday after proponents and opponents told lawmakers they had reached a working compromise on changes to law governing municipal public-funds deposits.

Committee members were told negotiators had agreed to drop several contested provisions, add new reporting and enforcement tied to the state treasurer’s office, and adopt operational limits on how pooled collateral would be handled.

The compromise, as described by Kansas Bankers Association representatives and municipal officials, removes proposed changes to bond-proceeds language and withdraws a separate change to the bank statutory investment rate that proponents said had produced the largest fiscal concern. The parties also agreed to require governmental units to give financial institutions two business days to respond to bids for public deposits; adopt a reporting mechanism to the treasurer's office for alleged statutory violations; and add collateral-pool administration rules that clarify liquidation authority and conflict-of-interest limits.

"Over the last couple weeks, there's been a significant amount of work that you all have asked us to do on your behalf ... and over the last two weeks ... I believe we are there," said Alex…