Bill > HF844

This bill modifies existing Iowa law regarding financial institutions and public funds by making several key changes. Specifically, the bill removes references to section 12C.6A throughout the code, effectively repealing that section entirely. The legislation simplifies the rules for depositing public funds by allowing uninsured portions of public funds to be invested in insured deposits or certificates of deposit at federally insured banks or savings associations, regardless of their location. The bill also adjusts provisions related to notices from financial institutions and the superintendent's authority to address violations involving public fund regulations. Under the new language, if a state bank fails to comply with public fund regulations, the superintendent can impose restrictions on the bank during the current and up to eight subsequent calendar quarters, but removes the previous option of recommending the bank's removal from the list of institutions eligible to accept public funds. The bill is set to take effect on July 1, 2025, and appears to be aimed at streamlining and clarifying regulations surrounding public fund deposits and financial institution oversight.

State Government (House)

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF844