Amendment H-8136 to HF 2592

Filed March 4, 2026 in the House by

In plain words

AI summary This amendment allows local governments to get competitive quotes directly from institutions for certain long-term or nonstandard investments and requires them to choose the highest rate of return among similar options. It also requires financial institutions to post current investment rates and limits online weekly and requires local governments to include specific investment details in their public quarterly financial reports.¹

What it changes

1. Page 1, after line 6 by inserting: “Sec. ___. Section 12B.10, subsection 5, Code 2026, is amended by adding the following new paragraph: NEW PARAGRAPH . c. A political subdivision may obtain a competitive quote directly from an eligible institution for an investment exceeding twelve months or using nonstandard terms.”
2. Page 1, after line 18 by inserting: “Sec. ___. Section 12B.10A, subsection 2, Code 2026, is amended by adding the following new paragraph: NEW PARAGRAPH . d. Among authorized investments of the same type and comparable maturity, a political subdivision investing public funds shall select the investment offering the highest rate of return.”
3. Page 2, after line 18 by inserting: “Sec. ___. NEW SECTION . 12B.10E Public funds investment transparency.
4. a. A financial institution or joint investment trust eligible to receive public funds pursuant to the laws of this state shall maintain publicly accessible historical rate data for a minimum of one year and shall post on a publicly accessible internet site at least once per week all of the following: (1) Current rates for daily liquid or demand deposit products available to a public entity. (2) Fixed-term investment rates available to a public entity that range from one month to twelve months. (3) Any applicable investment threshold, capacity limit, or minimum or maximum deposit amount associated with those rates. b. Any rate that a financial institution or joint investment trust posts on an internet site must reflect offerings available to a public entity at the time of publication and clearly identify any promotional or limited availability rate.
5. A local government investing operating funds directly in a publicly offered deposit product or joint investment trust shall document the settlement date of each investment, the investment type, the amount invested, and the rate received in a public quarterly financial report.”
6. By renumbering as necessary.

Official amendment (PDF) · In the Bill Book