SF 2167 (LSB 6016XS (2) 83)

SENATE FILE 2167

BY  STEWART

A BILL FOR

An Act relating to authorized forms of investment for contributions to the Iowa educational savings plan trust.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 12D.4, subsection 1, Code 2009, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  The treasurer of state shall establish, by December 31, 2010, an additional investment option involving investment of program fund moneys in a participant’s account directly in bank-issued certificates of deposit insured by the federal deposit insurance corporation. Licensed advisors or securities agents may be compensated from the product distributor, bank, or other distribution agent for their activities in marketing and advising investors regarding the program.
EXPLANATION
   This bill relates to the manner in which contributions to the Iowa educational savings plan trust are invested.
   The bill directs the treasurer of state to establish an additional educational savings plan trust investment option involving investment of moneys in a participant’s account within the program fund directly in bank-issued certificates of deposit insured by the federal deposit insurance corporation. The bill authorizes licensed advisors or securities agents to be compensated from the product distributor, bank, or other distribution agent for their activities in marketing and advising investors regarding the program.
   The bill requires the option to be established by December 31, 2010.