House File 539 - Introduced HOUSE FILE BY FORD Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to minimum ratings required for financial 2 institution eligibility to receive deposits of state public 3 funds. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2618HH 83 6 rn/nh/5 PAG LIN 1 1 Section 1. Section 12C.6A, subsection 2, Code 2009, is 1 2 amended to read as follows: 1 3 2. In addition to establishing a minimum interest rate for 1 4 public funds pursuant to section 12C.6, the committee composed 1 5 of the superintendent of banking, the superintendent of credit 1 6 unions, the auditor of state or a designee, and the treasurer 1 7 of state shall develop a list of financial institutions 1 8 eligible to accept state public funds. The committee shall 1 9 require that a financial institution seeking to qualify for 1 10 the listshall annually provide the committee a written 1 11 statement that the financial institution has complied with the 1 12 requirements of this chapter and has a commitment to community 1 13 reinvestment consistent with the safe and sound operation of a 1 14 financial institution, unless the financial institutionhas 1 15 received a rating of satisfactory or higher pursuant to the 1 16 federal Community Reinvestment Act, 12 U.S.C. } 2901 et seq., 1 17 andsuchshall require certification of the ratingis 1 18 certifiedto the committee by the superintendent of banking. 1 19 To qualify for the list, a financial institution must 1 20 demonstrate a continuing commitment to meet the credit needs 1 21 of the local community in which it is chartered. 1 22 EXPLANATION 1 23 This bill relates to eligibility requirements applicable to 1 24 financial institutions in order to receive deposits of state 1 25 public funds. 1 26 Currently, a financial institution shall be eligible to be 1 27 added to a list of financial institutions eligible to accept 1 28 state public funds compiled by a committee consisting of the 1 29 superintendent of banking, the superintendent of credit 1 30 unions, the auditor of state or a designee, and the treasurer 1 31 of state. Code section 12C.6A provides that the committee 1 32 shall require that a financial institution seeking to qualify 1 33 for the list must annually provide a written statement that 1 34 the financial institution has complied with the requirements 1 35 of the Code chapter and has a commitment to community 2 1 reinvestment consistent with the safe and sound operation of a 2 2 financial institution. This requirement is waived, however, 2 3 if the financial institution has received a rating of 2 4 satisfactory or higher pursuant to the federal Community 2 5 Reinvestment Act and the rating is certified to the committee 2 6 by the superintendent of banking. 2 7 The bill deletes the provision permitting a financial 2 8 institution that has not received a rating of satisfactory or 2 9 higher to qualify for the list pursuant to the written 2 10 statement of compliance and commitment. 2 11 LSB 2618HH 83 2 12 rn/nh/5