Read the full stored bill text
Senate
File
246
-
Introduced
SENATE
FILE
246
BY
EVANS
A
BILL
FOR
An
Act
relating
to
interest
on
state
moneys
invested
in
1
depository
time
certificates
of
deposit.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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246
Section
1.
Section
12C.6,
subsection
2,
paragraph
b,
Code
1
2025,
is
amended
to
read
as
follows:
2
b.
State
funds
invested
in
depository
time
certificates
3
of
deposit
shall
draw
interest
at
not
less
than
the
rate
4
established,
effective
on
the
date
of
investment.
The
interest
5
rate
shall
not
be
less
than
one-half
of
the
effective
federal
6
funds
rate,
as
published
by
the
federal
reserve
bank
of
New
7
York.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
Under
current
law,
state
moneys
invested
in
a
depository
12
time
certificate
of
deposit
(CD)
must
earn
interest
at
no
less
13
than
the
rate
established
by
the
treasurer
of
state
for
state
14
moneys
placed
in
a
time
deposit.
This
bill
requires
that
15
such
a
CD
interest
rate
be
at
least
one-half
of
the
effective
16
federal
funds
rate,
as
published
by
the
federal
reserve
bank
17
of
New
York.
By
operation
of
law,
this
applies
to
investments
18
in
CDs
by
a
public
body
or
officer
other
than
the
treasurer
of
19
state
(Code
section
12C.6(3)).
20
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