SSB 1179

_____ the explanation’s substance by the members of the general assembly. This bill concerns bonding requirements for certain public entities and public fund investment requirements.30, the state board of regents, and the Iowa finance authority, to not include in any document or instrument necessary to effectuate issuance of a debt obligation by the issuer any provision requiring any action by the state or issuing entity except an action directly affecting the creditworthiness of the state or authority or an action that would have a direct and material effect on the financial risk or return to a lender. The bill also creates new Code chapter 12K, which imposes certain investment restrictions on public funds, defined as the treasurer of state, the state board of regents, the Iowa public employees’ retirement system (IPERS), the public safety peace officers’ retirement system, the statewide fire and police retirement system, and the judicial retirement system. The bill requires public funds to exercise any voting rights of securities held by the public fund and to file a written report, quarterly, with the governor and the treasurer of state concerning each vote taken, to include the substance of the question voted on, the vote cast, the date of the vote, and number of shares voted. The bill also provides that an investment manager for a public fund shall not undertake any transaction on behalf of such public fund for any reason other than to maximize investment return, unless the investment manager provides written notice of the proposed transaction and receives written authorization from the public fund for the proposed transaction. The bill provides that this restriction does not apply to transactions taken in conformity with the divestment and other requirements of Code chapter 12F, 12H, or 12J.9111.