Amendment H-8396 to SF 2286

Filed April 22, 2026 in the House by

In plain words

AI summary This amendment replaces the entire bill. It allows local governments to get competitive quotes directly from institutions for certain investments, pick the highest rate of return for similar investments, and requires financial institutions to post current interest rates online weekly. It also requires local governments to include specific investment details in public quarterly reports and adds corporate credit unions to the list of places where securities can be deposited or reported.¹

What it changes

1. By striking everything after the enacting clause and inserting: “Section
2. 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. Sec.
3. Section 12B.10, subsection 7, unnumbered paragraph 1, Code 2026, is amended to read as follows: Notwithstanding sections 12C.2 , 12C.4 , and 12C.6 , and any other provision of law relating to the deposits of public funds, if public funds are deposited in a depository, as defined in section 12C.1 , any uninsured portion of the public funds invested through the depository may be invested in insured deposits or certificates of deposit arranged by the depository that are placed in or issued by one or more federally insured banks , credit unions, or savings associations regardless of location for the account of the public funds depositor if all of the following requirements are satisfied: Sec.
4. 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 may select the investment offering the highest rate of return. Sec.
5. NEW SECTION . 12B.10D Public funds investment transparency.
6. 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.
7. 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. Sec.
8. Section 12C.17, subsection 1, paragraph c, Code 2026, is amended to read as follows: c. The securities shall be deposited with the federal reserve bank, the federal home loan bank of Des Moines, Iowa, a corporate central credit union organized under section 533.213 a securities broker-dealer registered as a member of the financial industry regulatory authority , or a corporate credit union whose activities are subject to regulation by the national credit union administration pursuant to a bailment agreement or a pledge custody agreement. Sec.
9. Section 12C.17, subsection 4, Code 2026, is amended to read as follows:
10. Upon written request from the appropriate public officer but not less than monthly, the federal reserve bank, the federal home loan bank of Des Moines, Iowa, a corporate central credit union organized under section 533.213 a securities broker-dealer registered as a member of the financial industry regulatory authority , or a corporate credit union whose activities are subject to regulation by the national credit union administration shall report a description, the par value, and the market value of any pledged collateral by a credit union.”

Official amendment (PDF) · In the Bill Book