HF 569 (LSB 2200HV (3) 87)

HOUSE FILE 569

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO HSB 115)

A BILL FOR

An Act concerning authorized investment vehicles in a tax-sheltered investment program established by the department of administrative services.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8A.438, subsection 1, Code 2017, is amended to read as follows:
   1.  The director may establish a tax-sheltered investment program for eligible employees. The director may arrange for the provision of investment vehicles authorized under section 403(b) of the Internal Revenue Code, as defined in section 422.3.  If the director establishes a tax-sheltered investment program pursuant to this section, the program shall include investment vehicles authorized under section 403(b) of the Internal Revenue Code provided by any insurance company or investment company that is recommended for inclusion in the program by a person licensed as an insurance producer under chapter 522B, or registered as a securities agent or investment advisor representative under chapter 502, by the insurance division of the department of commerce. To be eligible for inclusion in the program, an insurance company shall have filed with, and had the company’s contract and forms approved by, the insurance division of the department of commerce, and an investment company shall be registered with the federal securities and exchange commission. The department may offer the tax-sheltered investment program to eligible public employers in the state of Iowa.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides that if the director of the department of administrative services establishes a tax-sheltered investment program under section 403(b) of the Internal Revenue Code, the program shall include investment vehicles from any insurance company or investment company recommended for inclusion in the program by a licensed insurance producer or registered securities agent or investment advisor representative. The bill provides that to be eligible for inclusion in the program, the insurance company shall have filed with, and had the company’s contract and forms approved by, the insurance division of the department of commerce, and an investment company shall be registered with the federal securities and exchange commission.