House
File
2035
-
Introduced
HOUSE
FILE
2035
BY
CARLSON
A
BILL
FOR
An
Act
authorizing
political
subdivisions
to
invest
in
certain
1
joint
investment
trusts
that
are
operated
in
accordance
with
2
the
governmental
accounting
standards
board.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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2035
Section
1.
Section
12B.10,
subsection
5,
paragraph
a,
1
subparagraph
(7),
Code
2016,
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
one
of
the
following:
8
(i)
Rated
within
the
two
highest
classifications
by
at
9
least
one
of
the
standard
rating
services
approved
by
the
10
superintendent
of
banking
by
rule
adopted
pursuant
to
chapter
11
17A
and
operated
in
accordance
with
either
17
C.F.R.
§270.2a-7,
12
or
be
registered
with
the
requirements
of
the
governmental
13
accounting
standards
board
for
external
investment
pools.
14
(ii)
Registered
with
the
federal
securities
and
exchange
15
commission
under
the
federal
Investment
Company
Act
of
1940,
16
15
U.S.C.
§80a-1,
and
operated
in
accordance
with
17
C.F.R.
17
§270.2a-7.
18
(b)
The
manager
or
investment
advisor
of
the
joint
19
investment
trust
shall
be
registered
with
the
federal
20
securities
and
exchange
commission
under
the
Investment
Advisor
21
Act
of
1940,
15
U.S.C.
§80b-1.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
Under
current
law,
political
subdivisions
are
authorized
26
to
invest
public
funds
in
joint
investment
trusts
that
are
27
operated
in
accordance
with
federal
law
relating
to
money
28
market
funds
and
that
have
either
achieved
a
specified
rating
29
or
are
registered
with
the
federal
Securities
and
Exchange
30
Commission.
31
This
bill
provides
that
those
joint
investment
trusts
that
32
have
achieved
the
required
specified
rating
must
be
operated
in
33
accordance
with
either
the
federal
law
relating
to
money
market
34
funds
or
with
the
governmental
accounting
standards
board’s
35
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requirements
for
external
investment
pools.
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