Requiring banks to enter into a written agreement with the state treasurer to be a depository of public moneys, increasing the market value of securities necessary to secure the deposit of public moneys, providing procedures for when a depository fails to follow the requirements of the state treasurer, modifying certain definitions, authorizing the state treasurer to assess a fee to operate the public moneys pooled method, creating the public moneys fee fund and providing exceptions to the public moneys pooled method if accounts are subject to conflicting federal law.

This bill requires banks and financial institutions that hold Kansas public funds to sign written agreements with the state treasurer, ensuring the state can control those funds if the bank fails. It increases the amount of securities banks must hold as collateral to secure public deposits from 100% to 102% of the deposit value and establishes procedures for handling situations where a bank does not follow state requirements. The legislation also creates a fee fund to cover the costs of operating the public money pooling system and allows exceptions when federal laws conflict with state requirements. These changes apply to municipal corporations, quasi-municipal corporations, and their designated depositories across Kansas.