House
Study
Bill
187
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
COWNIE)
A
BILL
FOR
An
Act
relating
to
authorized
investments
of
public
funds
by
a
1
joint
investment
trust.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
2121HC
(2)
85
rn/nh
H.F.
_____
Section
1.
Section
12B.10,
subsection
5,
paragraph
a,
1
subparagraph
(7),
Code
2013,
is
amended
to
read
as
follows:
2
(7)
(a)
A
joint
investment
trust
organized
pursuant
3
to
chapter
28E
prior
to
and
existing
in
good
standing
on
4
the
effective
date
of
this
Act
or
a
joint
investment
trust
5
organized
pursuant
to
chapter
28E
after
April
28,
1992,
6
provided
that
the
joint
investment
trust
shall
either
be
rated
7
within
the
two
highest
classifications
by
at
least
one
of
the
8
standard
rating
services
approved
by
the
superintendent
of
9
banking
by
rule
adopted
pursuant
to
chapter
17A
and
operated
10
in
accordance
with
17
C.F.R.
§
270.2a-7,
or
be
registered
11
with
the
federal
securities
and
exchange
commission
under
the
12
federal
Investment
Company
Act
of
1940,
15
U.S.C.
§
80a,
and
13
operated
in
accordance
with
17
C.F.R.
§
270.2a-7.
The
manager
14
or
investment
advisor
of
the
joint
investment
trust
shall
be
15
registered
with
the
federal
securities
and
exchange
commission
16
under
the
Investment
Advisor
Act
of
1940,
15
U.S.C.
§
80b.
17
(b)
A
joint
investment
trust
described
in
subparagraph
18
division
(a)
may
invest
in
obligations
of
any
state
or
a
19
political
subdivision
or
agency
of
any
state,
provided
that
20
such
obligations
are
rated
at
the
time
of
purchase
within
the
21
two
highest
classifications
established
by
at
least
one
of
the
22
standard
rating
services
approved
by
the
superintendent
of
23
banking
by
rule
adopted
pursuant
to
chapter
17A.
24
EXPLANATION
25
This
bill
relates
to
authorized
investments
of
public
funds.
26
Currently,
Code
section
12B.10,
subsection
5,
authorizes
27
a
political
subdivision
of
the
state
to
invest
in
a
joint
28
investment
trust
organized
pursuant
to
Code
chapter
28E.
The
29
bill
expands
the
forms
of
investment
a
joint
investment
trust
30
can
make
to
include
obligations
of
any
state
or
a
political
31
subdivision
or
agency
of
any
state.
The
bill
provides
that
32
such
obligations
must
be
rated
at
the
time
of
purchase
within
33
the
two
highest
classifications
established
by
at
least
one
of
34
the
standard
rating
services
approved
by
the
superintendent
of
35
-1-
LSB
2121HC
(2)
85
rn/nh
1/
2
H.F.
_____
banking
by
rule
adopted
pursuant
to
Code
chapter
17A.
1
-2-
LSB
2121HC
(2)
85
rn/nh
2/
2