Brief⁽¹⁾

H.C.R. 5037 is a proposed amendment to Article 13, Section 2 of the Kansas Constitution. The concurrent resolution would modify the prohibition against the state being a stockholder in any banking institution by permitting public retirement and pension plans, including the Kansas Public Employees Retirement System (KPERS), to own stock in banks.

If adopted by the Legislature, the proposed amendment would be submitted to the electors of the state at the general election in the year 2000, unless a special election is called at a sooner date.

Background

H.C.R. 5037 was requested by KPERS officials who explained that, since KPERS is an instrumentality of the state, it is prohibited from investing in bank stocks. The inability to invest in such stocks, officials said, cost the System about $25 million a year in lost investment income and additional amounts in higher management fees paid to its financial managers.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html