HF 569 (LSB 2200HV (4) 87)

HOUSE FILE 569

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO HSB 115)

(As Amended and Passed by the House 2017-03-28)

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.  The tax-sheltered investment 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 adviser representative under chapter 502, by the insurance division of the department of commerce. The director shall require each insurance company and investment company included in the program to utilize the third party administrator selected by the department and a common remitter, and shall limit the total number of insurance companies and investment companies in the program to no more than thirty. 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.