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Senate
File
2286
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SENATE
FILE
2286
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
SSB
3075)
(As
Amended
and
Passed
by
the
Senate
April
8,
2026
)
A
BILL
FOR
An
Act
relating
to
the
investment
of
public
funds,
and
making
1
penalties
applicable.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
12B.10,
subsection
5,
paragraph
a,
1
subparagraph
(7),
subparagraph
division
(a),
unnumbered
2
paragraph
1,
Code
2026,
is
amended
to
read
as
follows:
3
A
joint
investment
trust
organized
pursuant
to
chapter
28E
4
that
is
in
compliance
with
section
12B.10D
,
provided
that
the
5
joint
investment
trust
shall
be
one
of
the
following:
6
Sec.
2.
Section
12B.10,
subsection
7,
unnumbered
paragraph
7
1,
Code
2026,
is
amended
to
read
as
follows:
8
Notwithstanding
sections
12C.2
,
12C.4
,
and
12C.6
,
and
any
9
other
provision
of
law
relating
to
the
deposits
of
public
10
funds,
if
public
funds
are
deposited
in
a
depository,
as
11
defined
in
section
12C.1
,
any
uninsured
portion
of
the
public
12
funds
invested
through
the
depository
may
be
invested
in
13
insured
deposits
or
certificates
of
deposit
arranged
by
14
the
depository
that
are
placed
in
or
issued
by
one
or
more
15
federally
insured
banks
,
credit
unions,
or
savings
associations
16
regardless
of
location
for
the
account
of
the
public
funds
17
depositor
if
all
of
the
following
requirements
are
satisfied:
18
Sec.
3.
NEW
SECTION
.
12B.10D
Regulation
of
joint
investment
19
trusts.
20
1.
a.
Beginning
April
30,
2027,
a
political
subdivision
21
of
the
state
may
invest
up
to
twenty-five
percent
of
the
22
aggregate
amount
of
its
public
funds
in
a
joint
investment
23
trust
authorized
under
section
12B.10,
subsection
5,
paragraph
24
“a”
,
subparagraph
(7).
The
twenty-five
percent
limit
must
25
be
calculated
based
on
the
average
of
all
of
the
political
26
subdivision’s
public
funds
over
the
previous
two
fiscal
years.
27
b.
A
political
subdivision
that
exceeds
the
twenty-five
28
percent
limit
solely
as
a
result
of
fluctuations
in
fund
29
balances,
earnings,
or
valuation
is
not
in
violation
of
this
30
subsection
if
the
political
subdivision
acts
in
good
faith
to
31
restore
compliance
within
30
days.
32
2.
A
joint
investment
trust
shall
not
directly
or
indirectly
33
pay
an
individual,
association,
or
entity
not
providing
direct
34
investment
management,
administrative,
custodial,
or
other
bona
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fide
operational
services
to
the
trust.
1
3.
Before
depositing
or
investing
public
funds
with
a
joint
2
investment
trust
organized
under
chapter
28E,
the
governing
3
body
of
the
political
subdivision
shall
execute
a
written
4
acknowledgment
stating
all
of
the
following:
5
a.
That
the
participant
understands
and
affirms
that
funds
6
invested
in
the
joint
investment
trust
may
not
be
deposits
7
insured
by
the
federal
deposit
insurance
corporation,
national
8
credit
union
administration,
or
any
other
government
insurance
9
program
comparable
to
those
offered
by
a
local
financial
10
institution.
11
b.
That
the
participant
understands
and
affirms
that
such
12
funds
are
not
collateralized
or
guaranteed
by
the
state,
a
13
political
subdivision,
or
any
other
entity.
14
c.
That
the
participant
acknowledges
that
the
safety
of
such
15
funds
depends
on
the
investment
performance
and
management
of
16
the
joint
investment
trust
and
is
subject
to
loss
of
principal.
17
Sec.
4.
Section
12C.17,
subsection
1,
paragraph
c,
Code
18
2026,
is
amended
to
read
as
follows:
19
c.
The
securities
shall
be
deposited
with
the
federal
20
reserve
bank,
the
federal
home
loan
bank
of
Des
Moines,
Iowa,
21
a
corporate
central
credit
union
organized
under
section
22
533.213
a
securities
broker-dealer
registered
as
a
member
of
23
the
financial
industry
regulatory
authority
,
or
a
corporate
24
credit
union
whose
activities
are
subject
to
regulation
by
the
25
national
credit
union
administration
pursuant
to
a
bailment
26
agreement
or
a
pledge
custody
agreement.
27
Sec.
5.
Section
12C.17,
subsection
4,
Code
2026,
is
amended
28
to
read
as
follows:
29
4.
Upon
written
request
from
the
appropriate
public
officer
30
but
not
less
than
monthly,
the
federal
reserve
bank,
the
31
federal
home
loan
bank
of
Des
Moines,
Iowa,
a
corporate
central
32
credit
union
organized
under
section
533.213
a
securities
33
broker-dealer
registered
as
a
member
of
the
financial
industry
34
regulatory
authority
,
or
a
corporate
credit
union
whose
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activities
are
subject
to
regulation
by
the
national
credit
1
union
administration
shall
report
a
description,
the
par
value,
2
and
the
market
value
of
any
pledged
collateral
by
a
credit
3
union.
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