Kansas 2025-2026 Regular Session

Kansas Senate Bill SB34

Introduced
1/16/25  

Caption

Authorizing the KPERS board of trustees to invest in bitcoin exchange-traded products and providing requirements, limitations and definitions regarding such investments.

Impact

The implementation of SB34 would significantly affect the existing legislative framework surrounding retirement fund investments in Kansas. By incorporating bitcoin ETPs as a permissible investment, the bill opens up the fund to emerging markets and digital finance sectors, which could potentially lead to higher returns amid the volatility associated with cryptocurrencies. However, it also raises concerns about the risk profile of the fund, as traditional investment avenues may offer more stability compared to the unpredictable nature of the crypto market.

Summary

Senate Bill 34 (SB34) aims to amend the investment strategy of the Kansas Public Employees Retirement System (KPERS) by allowing the board of trustees to invest up to 10% of the retirement fund in bitcoin exchange-traded products (ETPs). This move reflects a notable shift in investment policy, introducing cryptocurrency into the investment portfolio of a public retirement fund, which has implications for risk management and portfolio diversification. The bill specifies the requirements and limitations surrounding this type of investment, emphasizing the need for careful oversight and adherence to established investment objectives aimed at protecting beneficiaries.

Contention

Notable points of contention surrounding SB34 arise from the inherent risks associated with bitcoin investments, such as market volatility, regulatory uncertainty, and investor education. Critics argue that introducing a speculative asset like bitcoin could endanger the financial security of public employees' retirement benefits. Moreover, there are calls for greater transparency and accountability in how such investment strategies are managed to ensure that they align with the best interests of fund beneficiaries and maintain public trust in the management of retirement funds.

Companion Bills

No companion bills found.

Previously Filed As

KS SB23

Eliminating the statutory 15% alternative investment limit for the KPERS fund and requiring the KPERS board to establish an alternative investment percentage limit.

KS HB2103

Substitute for HB 2103 by Committee on Financial Institutions and Pensions - Eliminating the statutory 15% alternative investment limit for the KPERS fund and requiring the KPERS board to establish an alternative investment percentage limit.

KS HB2100

Enacting the Kansas public investments and contracts protection act concerning environmental, social and governance (ESG) criteria, prohibiting the state and political subdivisions from giving preferential treatment to or discriminating against companies based on such ESG criteria in procuring or letting contracts, requiring KPERS fiduciaries to act solely in the financial interest of the participants and beneficiaries of the system, indemnifying KPERS with respect to actions taken in compliance with such act, restricting state agencies from adopting ESG criteria or requiring any person or business to operate in accordance with such criteria and providing for enforcement of such act by the attorney general.

KS HB2711

Enacting the countries of concern divestment act, increasing the statutory alternative investment percentage limitation for the KPERS trust fund, increasing the amount of KPERS retirant compensation subject to the statutory employer contribution rate to the first $40,000 earned in a calendar year, providing a KPERS working after retirement exemption for retirants employed by a community developmental disability organization or a community service provider in a licensed professional nurse, licensed practical nurse or direct support position and increasing the working after retirement earnings limit for members of the Kansas police and firemen's retirement system.

KS HB2193

Concerning the investment of state moneys; reestablishing the provisions of law authorizing the state treasurer to certify and transfer a portion of state moneys, equivalent to the aggregate net amount received for unclaimed property, available for investment to the KPERS board of trustees.

KS SB291

House Substitute for SB 291 by Committee on Legislative Modernization - Transferring all cybsersecurity services under the chief information technology officer of each branch of government, creating chief information security officers within the judicial and legislative branches, requiring a chief information security officer to be appointed by the attorney general, Kansas bureau of investigation, secretary of state, state treasurer and insurance commissioner and requiring the chief information security officers to implement certain minimum cybersecurity standards, requiring the information technology executive council to develop a plan to integrate executive branch information technology services under the executive chief information technology officer, making and concerning appropriations for the fiscal years ending June 30, 2025, and June 30, 2026, for the office of information technology, Kansas information security office and the adjutant general, authorizing certain transfers and imposing certain limitations and restrictions and directing or authorizing certain disbursements and procedures for all state agencies and requiring legislative review of state agencies not in compliance with this act.

KS HB2436

Senate Substitute for HB 2436 by Committee on Federal and State Affairs - Creating the crime of coercion to obtain an abortion and providing enhanced criminal penalties for offenses committed with the intent to coerce a woman to obtain an abortion.

KS HB2577

Providing discretionary authority to the state treasurer to transfer moneys certified as equivalent to the aggregate net amount received for unclaimed property to the KPERS board and to liquidate such moneys for further investment by the pooled money investment board or for necessary payments to owners of unclaimed property.

KS SB243

Providing requirements and procedures for settlement agreements involving a minor.

KS HB2321

Enacting the Kansas work and save program act, allowing certain individuals to contribute to individual retirement accounts and providing administrative duties and powers of the state treasurer regarding such program.

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