Senate File 2155 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON STATE
                                     GOVERNMENT

                                 (SUCCESSOR TO SSB
                                     3022)

                                      A BILL FOR

  1 An Act concerning public investment maturity limitations
  2    relating to the operating funds of political subdivisions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5387SV (1) 87
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PAG LIN



  1  1    Section 1.  Section 12B.10A, subsection 1, paragraph c, Code
  1  2 2018, is amended to read as follows:
  1  3    c.  Operating funds may only be invested in investments
  1  4 which mature within three hundred ninety=seven days or less
  1  5 and which are authorized by law for the investing public
  1  6 entity.  However, that portion of operating funds in excess of
  1  7 an amount equal to thirty=three percent of operating funds may
  1  8 be invested in certificates of deposit at federally insured
  1  9 depository institutions approved pursuant to chapter 12C which
  1 10 mature within five years or less.
  1 11                           EXPLANATION
  1 12 The inclusion of this explanation does not constitute agreement with
  1 13 the explanation's substance by the members of the general assembly.
  1 14    This bill provides that a political subdivision may invest
  1 15 that portion of operating funds in excess of 33 percent
  1 16 of operating funds in certificates of deposit which mature
  1 17 within five years or less.  Current law requires political
  1 18 subdivisions to invest operating funds in investments which
  1 19 mature within 397 days or less.
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