12-1677b. Direct investments by cities, counties and school districts, when; requirements; forfeiture of investment rights, when. (a) The governing body of any city, county or school district which has a written investment policy approved by the governing body of such city, county or school district and such written investment policy is approved by the pooled money investment board as provided in subsection (b) may invest and reinvest pursuant to the approved investment policy in the following investments, as authorized under paragraph (6) of subsection (b) of K.S.A. 12-1675, and amendments thereto:
(1) Direct obligations of, or obligations that are insured as to principal and interest by, the United States of America or any agency thereof and obligations and securities of United States sponsored enterprises which under federal law may be accepted as security for public funds, except that such investments shall not be in mortgage-backed securities;
(2) interest-bearing time deposits in any banks, savings and loan associations and savings banks; or
(3) repurchase agreements with banks, savings and loan associations and savings banks, or with a primary government securities dealer which reports to the market reports division of the federal reserve bank of New York for direct obligations of, or obligations that are insured as to principal and interest by, the United States government or any agency thereof and obligations and securities of United States government sponsored enterprises which under federal law may be accepted as security for public funds.
(b) In approving the investment policy of any city, county or school district, the pooled money investment board shall require that such policy addresses liquidity, diversification, safety of principal, yield, maturity and quality and capability of investment management staff. In addition, the policy shall provide procedures for compliance with subsection (c) of K.S.A. 12-1675, and amendments thereto, and a certification from the investment management staff that those procedures have been followed.
(c) The investment policy of any city, county or school district approved by the pooled money investment board under this section shall be reviewed and approved at least annually by such board or when such city, county or school district makes changes in such investment policy. On condition of approving the investment policy, the pooled money investment board shall review the policy to assure that it addresses liquidity, diversification, safety of principal, yield, maturity and quality and capability of investment management staff. In addition, the policy shall provide procedures for compliance with subsection (c) of K.S.A. 12-1675, and amendments thereto, a certification from the investment management staff that those procedures have been followed and a listing of the banks, savings and loan associations and savings banks from which the city, county or school district requested bids in the preceding year.
(d) (1) All security purchases shall occur on a delivery versus payment basis.
(2) All securities shall be perfected in the name of the city, county or school district and shall be delivered to the purchaser or a third party custodian which may be the state treasurer.
(3) Investment transactions shall only be conducted with banks, savings and loan associations and savings banks; or with primary government securities dealers which report to the market report division of the federal reserve bank of New York; or any broker-dealer which is registered in compliance with the requirements of section 15C of the securities exchange act of 1934 and registered pursuant to K.S.A. 17-12a401, and amendments thereto.
(4) The maximum maturity for investments under subsection (a) shall be four years.
(e) Investments in securities under paragraph (1) of subsection (a) shall be limited to securities which do not have any more interest rate risk than do direct United States government obligations of similar maturities. For purposes of this subsection, "interest rate risk" means market value changes due to changes in current interest rates.
(f) A city, county or school district which violates subsection (c) or (d) of K.S.A. 12-1675, and amendments thereto, or the rules and regulations of the pooled money investment board shall forfeit its rights under this section for a two year period and shall be reinstated only after a complete review of its investment policy as provided for in subsection (b). Such forfeiture shall be determined by the pooled money investment board after notice and opportunity to be heard in accordance with the Kansas administrative procedure act.
History: L. 1992, ch. 146, § 2; L. 1993, ch. 207, § 4; L. 1996, ch. 254, § 5; L. 1997, ch. 180, § 17; L. 2004, ch. 154, § 54; L. 2009, ch. 77, § 1; April 23.
Structure Kansas Statutes
Chapter 12 - Cities And Municipalities
Article 16 - Miscellaneous Provisions
12-1608 Quarterly report by treasurer.
12-1610a Kansas Government Journal subscriptions.
12-1610b Same; compilation of information.
12-1610c League of Kansas municipalities; annual dues, expenses of attending meetings.
12-1610e Same; membership in, when; instrumentality; powers; act supplemental.
12-1610f Same; city delegates; powers and duties.
12-1613 Property of dormant cities.
12-1614 Same; election of officers; delivery of property to mayor.
12-1616b Same; approval of plans by chief engineer before bonds issued.
12-1617 Farm and aquaculture products; peddler's license or permit; fee.
12-1617a Delegates to firemen's association and school.
12-1617c Dissolution of certain inoperative sewer districts located wholly within cities.
12-1617d Dissolution of certain inoperative cemetery districts located wholly within cities.
12-1617f Weeds, removal or destruction; assessment and collection of costs; notice; procedure.
12-1617g Ordinances on nuisances.
12-1634 Same; cities in counties over 90,000; regulation of speed; bond issue.
12-1651 Official newspaper in cities of second and third classes; qualifications.
12-1654 Oil and gas leases; moneys to general fund.
12-1655 Same; validation of prior leases.
12-1658 Historical collections; housing and display.
12-1659 Same; supervisor or curator; compensation.
12-1660 Same; historical society as supervisor or curator, when; compensation.
12-1661 Same; tax levy, use of proceeds.
12-1662 Federal aid to public agencies; definitions.
12-1665 Same; temporary notes; refunding notes; sale or exchange.
12-1667 Same; tax levies; outside aggregate limits.
12-1668 Same; act not exclusive.
12-1670 Same; approval or disapproval; resubmission, when.
12-1671 Certain investments; exception to cash-basis law.
12-1672 Certain investments; exception to budget law.
12-1674 Same; special services fund; use; no-fund warrants.
12-1676 Inapplicability of act to certain moneys; rates.
12-1676a Weekly advisory memorandum as to rates of interest to county treasurers.
12-1677a Municipal investment pool fund; investments; requirements; rules and regulations.
12-1677d Municipally established foundations; investment of funds.
12-1677f Investment of public funds by governmental entities; reinvestment of matured funds.
12-1680b Same; resolution; publication; petition.
12-1680c Same; special election upon protest.
12-1681 Community historical museums authorized; property and employees.
12-1683 Conduct of activities of museums; acceptance of gifts.
12-1684 Petition for establishment; election; tax levies.
12-1685 Same; filing of petition; joint meeting; notice of receipt and meeting.
12-1687 Membership of museum commissions; terms; officers; powers.
12-1688 Community historical museums; tax levies; increases, election.
12-1690 Same; supervisor and curator; appointment and compensation; duties.
12-1691 Same; acceptance of gifts and articles of historical value.
12-1692 Promotion of tourism and conventions; definitions.
12-1694b Same; interest and penalties for failure to pay or untimely payment of transient guest tax.
12-1695 Convention and tourism committee; appointment; terms; contracts for programs.
12-1696 Promotion of tourism and conventions; definitions.
12-1698a Same; interest and penalties for failure to pay or untimely payment of transient guest tax.
12-1699 Same; levy of tax prohibited, when.
12-16,100 Same; transient guest tax refund fund.
12-16,101 Convention and tourism committee; appointment; terms; contracts and programs.
12-16,103 Acquisition of fee title to realty; sale of realty; record.
12-16,104 Release of easement; notice; fee.
12-16,105 Use of property no longer needed for school building in McPherson, Kansas.
12-16,106 Human relations commission; enforcement and review of orders.
12-16,107 Same; enforcement of subpoenas.
12-16,108 State grants or loans to municipalities; definitions.
12-16,109 Same; authority to borrow money for temporary financing of service or improvement.
12-16,110 Same; general obligation of municipality; excluded from debt limit.
12-16,111 Same; not subject to budget limitations.
12-16,112 Same; amount of bonds, if issued.
12-16,113 Accounting required of expenditures of transient guest tax moneys.
12-16,114 Housing trust funds; purpose; funding of; administration.
12-16,115 Imitation firearms; civil penalty for sale, manufacture or distribution.
12-16,116 Transfer of title to public streets, avenues, alleys or lanes; cities in Crawford county.
12-16,118 Transfer of certain money and royalty interest to city of Oxford; procedure.
12-16,119 Booking or processing fee; disbursement; fee limitation.
12-16,121 Paving materials provided by cities and counties; limitations.
12-16,122 Paving materials; mining and manufacturing for use by cities and counties; limitations.
12-16,123 Cities and counties prohibited from requiring lists of tenants; exceptions.
12-16,124 Firearms and ammunition; regulation by city or county, limitations.
12-16,124a Same; limitation on liability of municipality.
12-16,124b Same; prohibiting use of tax proceeds for firearms buyback programs.
12-16,126 Kansas emergency communications preservation act.
12-16,128 Mayoral appointments; governing body approval; time limits; other requirements.
12-16,129 Accident response service fee prohibited.
12-16,132 Cities; certain ordinances void as against public policy.
12-16,134 Knives and knife making components; regulation by municipality, limitations.
12-16,136 Regulating consumer incentive items and nutrition labeling of food; definitions.