BillTrack50 logo
Free Signup Login
Bill

Bill > SF246

IA SF246

IA SF246
A bill for an act relating to interest on state moneys invested in depository time certificates of deposit.

summary

Introduced
02/10/2025
In Committee
02/10/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

Under current law, state moneys invested in a depository time certificate of deposit (CD) must earn interest at no less than the rate established by the treasurer of state for state moneys placed in a time deposit. This bill requires that such a CD interest rate be at least one-half of the effective federal funds rate, as published by the federal reserve bank of New York. By operation of law, this applies to investments in CDs by a public body or officer other than the treasurer of state (Code section 12C.6(3)).

AI Summary

This bill modifies existing Iowa law regarding interest rates on state moneys invested in depository time certificates of deposit (CDs). Currently, state funds invested in CDs must earn interest at a rate set by the state treasurer, but this bill specifically requires that the CD interest rate must be at least one-half of the effective federal funds rate, which is a benchmark interest rate published by the Federal Reserve Bank of New York. This change ensures that state investments in CDs will earn a minimum level of interest tied to a standard financial indicator, potentially providing more predictable and potentially higher returns for state funds. The bill applies to investments made by public bodies or officers other than the state treasurer, and will take effect in the 2025 Code of Iowa.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Senate Local Government Subcommittee (14:00:00 3/5/2025 Room 217 Conference Room) (on 03/05/2025)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...