Senate File 321 - Reprinted SENATE FILE 321 BY COMMITTEE ON VETERANS AFFAIRS (SUCCESSOR TO SSB 1135) (As Amended and Passed by the Senate March 10, 2021 ) A BILL FOR An Act relating to the investment and use of funds in the 1 veterans trust fund. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 SF 321 (2) 89 dg/rn/mb

S.F. 321 Section 1. Section 12B.10, subsection 6, Code 2021, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . n. Investments by the veterans trust fund 3 established in section 35A.13. 4 Sec. 2. Section 12B.10C, subsection 4, Code 2021, is amended 5 by adding the following new paragraph: 6 NEW PARAGRAPH . k. The veterans trust fund established in 7 section 35A.13. 8 Sec. 3. Section 35A.13, subsection 3, Code 2021, is amended 9 to read as follows: 10 3. Moneys credited to the trust fund shall not be 11 transferred, used, obligated, appropriated, or otherwise 12 encumbered, except as provided in this section . Moneys in the 13 trust fund may be used for cash flow purposes during a fiscal 14 year provided that any moneys so allocated are returned to the 15 trust fund by the end of that fiscal year. Moneys in the trust 16 fund may also be used for cemetery grant development purposes 17 provided that any moneys so allocated, except for moneys used 18 for department of administrative services expenditures related 19 to the grant, are returned to the trust fund upon receipt of 20 federal funds received for such purposes. 21 Sec. 4. Section 35A.13, Code 2021, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 3A. a. Notwithstanding subsection 4, 24 moneys in the fund, except so much of the fund as may be 25 necessary to be kept on hand for the making of disbursements 26 under this section, shall be invested by the treasurer of 27 state, in consultation with the commission, in any investments 28 authorized for the Iowa public employees’ retirement system 29 in section 97B.7A, including common stock, and subject to the 30 requirements of chapters 12F, 12H, and 12J, and the earnings 31 therefrom shall be credited to the fund. The treasurer of 32 state may execute contracts and agreements with investment 33 advisors, consultants, and investment management and benefit 34 consultant firms in the administration of investments of moneys 35 -1- SF 321 (2) 89 dg/rn/mb 1/ 3

S.F. 321 in the fund. 1 b. Investment management expenses shall be charged to the 2 investment income of the fund and there is appropriated to the 3 treasurer of state from the investment income of the fund an 4 amount required for the investment management expenses. 5 c. For purposes of this subsection, investment management 6 expenses are limited to the following: 7 (1) Fees for investment advisors, consultants, and 8 investment management and benefit consultant firms hired by 9 the treasurer of state in administering the investments of the 10 fund. 11 (2) Fees and costs for safekeeping fund assets. 12 (3) Costs for performance and compliance monitoring, and 13 accounting for fund investments. 14 (4) Any other costs necessary to prudently invest or protect 15 the assets of the fund. 16 d. The commission and the treasurer of state, and their 17 employees, are not personally liable for claims based upon an 18 act or omission of the person performed in the discharge of the 19 person’s duties concerning the veterans trust fund, except for 20 acts or omissions which involve malicious or wanton misconduct. 21 Sec. 5. Section 35A.13, subsection 4, Code 2021, is amended 22 by striking the subsection and inserting in lieu thereof the 23 following: 24 4. a. For each fiscal year that the balance of the trust 25 fund on July 1 is below fifty million dollars, the interest 26 and earnings on moneys in the fund and the first five hundred 27 thousand dollars transferred pursuant to section 99G.39 from 28 the lottery fund are appropriated to the commission to be used 29 to achieve the purposes of subsection 6. Moneys appropriated 30 to the commission under this paragraph that remain unencumbered 31 or unobligated at the end of the fiscal year shall revert to 32 the fund. 33 b. For each fiscal year that the balance of the trust fund 34 on July 1 is above fifty million dollars but the balance of the 35 -2- SF 321 (2) 89 dg/rn/mb 2/ 3

S.F. 321 fund was below fifty million dollars on July 1 of the previous 1 fiscal year, moneys transferred pursuant to section 99G.39 from 2 the lottery fund are appropriated to the commission to be used 3 to achieve the purposes of subsection 6. Moneys appropriated 4 to the commission under this paragraph that remain unencumbered 5 or unobligated at the end of the fiscal year shall revert to 6 the fund. 7 c. For each fiscal year that the balance of the trust fund 8 on July 1 is above fifty million dollars and the balance of 9 the fund was above fifty million dollars on July 1 of the 10 previous fiscal year, moneys equal to the net income the fund 11 received in the previous fiscal year are appropriated to the 12 commission to be used to achieve the purposes of subsection 13 6. Moneys appropriated to the commission under this paragraph 14 that remain unencumbered or unobligated at the end of the 15 fiscal year shall revert to the fund. For the purposes of this 16 paragraph, “income" means moneys credited to the veterans trust 17 fund pursuant to subsection 2 and moneys transferred pursuant 18 to section 99G.39. 19 d. Notwithstanding paragraphs “a” , “b” , and “c” , moneys 20 credited to the war orphans educational assistance account 21 shall be expended as provided in subsection 7. 22 -3- SF 321 (2) 89 dg/rn/mb 3/ 3