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Senate
File
458
-
Introduced
SENATE
FILE
458
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
SSB
1061)
A
BILL
FOR
An
Act
relating
to
eligibility
requirements
for
financial
1
institutions
in
which
public
funds
may
be
deposited.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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458
Section
1.
Section
12B.10,
subsection
7,
unnumbered
1
paragraph
1,
Code
2025,
is
amended
to
read
as
follows:
2
Notwithstanding
sections
12C.2
,
12C.4
,
and
12C.6
,
12C.6A,
3
and
any
other
provision
of
law
relating
to
the
deposits
of
4
public
funds,
if
public
funds
are
deposited
in
a
depository,
5
as
defined
in
section
12C.1
,
any
uninsured
portion
of
the
6
public
funds
invested
through
the
depository
may
be
invested
7
in
insured
deposits
or
certificates
of
deposit
arranged
by
8
the
depository
that
are
placed
in
or
issued
by
one
or
more
9
federally
insured
banks
or
savings
associations
regardless
of
10
location
for
the
account
of
the
public
funds
depositor
if
all
11
of
the
following
requirements
are
satisfied:
12
Sec.
2.
Section
12C.6,
subsection
2,
paragraph
f,
Code
2025,
13
is
amended
to
read
as
follows:
14
f.
The
notice
shall
also
provide
the
name
and
address
of
a
15
state
official
to
whom
inquiries
can
be
sent.
Actions
of
the
16
treasurer
of
state
under
this
section
and
section
12C.6A
are
17
exempt
from
chapter
17A
.
18
Sec.
3.
Section
524.223,
subsection
2,
unnumbered
paragraph
19
1,
Code
2025,
is
amended
to
read
as
follows:
20
If
the
state
bank,
director,
officer,
employee,
or
21
substantial
shareholder
fails
to
appear
at
the
hearing
,
it
22
shall
be
deemed
to
have
consented
to
the
issuance
of
a
cease
23
and
desist
order.
In
the
event
of
such
consent,
or
if
upon
24
the
record
made
at
such
hearing,
the
superintendent
shall
find
25
that
any
violation
or
unsafe
or
unsound
practice
specified
in
26
the
notice
has
been
established,
the
superintendent
may
issue
27
and
serve
upon
the
state
bank,
director,
officer,
employee,
or
28
substantial
shareholder
an
order
to
cease
and
desist
from
any
29
such
violation
or
practice.
Such
order
may
require
the
state
30
bank
and
its
directors,
officers,
employees,
and
shareholders
31
to
cease
and
desist
from
any
such
violation
or
practice
and,
32
further,
to
take
affirmative
action
to
correct
the
conditions
33
resulting
from
any
such
violation
or
practice.
In
addition,
34
if
the
violation
or
practice
involves
a
failure
to
comply
with
35
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458
chapter
12C
or
any
rules
adopted
pursuant
to
chapter
12C
,
the
1
superintendent
may
recommend
to
the
treasurer
of
state
that
2
the
bank
be
removed
from
the
list
of
financial
institutions
3
eligible
to
accept
public
funds
under
section
12C.6A
and
may
4
require
that
during
the
current
calendar
quarter
and
up
to
the
5
next
succeeding
eight
calendar
quarters
that
the
bank
do
any
6
one
or
more
of
the
following:
7
Sec.
4.
REPEAL.
Section
12C.6A,
Code
2025,
is
repealed.
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
This
bill
repeals
Code
section
12C.6A,
which
prohibits
12
public
funds
from
being
deposited
in
a
financial
institution
13
that
does
not
demonstrate
a
commitment
to
serving
the
needs
of
14
the
local
community
in
which
the
institution
is
chartered
to
15
do
business,
requires
the
treasurer
of
state
to
create
a
list
16
of
financial
institutions
that
are
eligible
to
accept
public
17
funds,
creates
requirements
for
such
financial
institutions
18
relating
to
public
comments
and
annual
submissions
to
the
19
treasurer
of
state,
and
establishes
a
process
for
challenging
20
an
institution’s
eligibility
to
receive
public
funds.
21
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