Senate File 2286 - Reprinted SENATE FILE 2286 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SSB 3075) (As Amended and Passed by the Senate April 8, 2026 ) A BILL FOR An Act relating to the investment of public funds, and making 1 penalties applicable. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 SF 2286 (2) 91 sc/ns/mb

S.F. 2286 Section 1. Section 12B.10, subsection 5, paragraph a, 1 subparagraph (7), subparagraph division (a), unnumbered 2 paragraph 1, Code 2026, is amended to read as follows: 3 A joint investment trust organized pursuant to chapter 28E 4 that is in compliance with section 12B.10D , provided that the 5 joint investment trust shall be one of the following: 6 Sec. 2. Section 12B.10, subsection 7, unnumbered paragraph 7 1, Code 2026, is amended to read as follows: 8 Notwithstanding sections 12C.2 , 12C.4 , and 12C.6 , and any 9 other provision of law relating to the deposits of public 10 funds, if public funds are deposited in a depository, as 11 defined in section 12C.1 , any uninsured portion of the public 12 funds invested through the depository may be invested in 13 insured deposits or certificates of deposit arranged by 14 the depository that are placed in or issued by one or more 15 federally insured banks , credit unions, or savings associations 16 regardless of location for the account of the public funds 17 depositor if all of the following requirements are satisfied: 18 Sec. 3. NEW SECTION . 12B.10D Regulation of joint investment 19 trusts. 20 1. a. Beginning April 30, 2027, a political subdivision 21 of the state may invest up to twenty-five percent of the 22 aggregate amount of its public funds in a joint investment 23 trust authorized under section 12B.10, subsection 5, paragraph 24 “a” , subparagraph (7). The twenty-five percent limit must 25 be calculated based on the average of all of the political 26 subdivision’s public funds over the previous two fiscal years. 27 b. A political subdivision that exceeds the twenty-five 28 percent limit solely as a result of fluctuations in fund 29 balances, earnings, or valuation is not in violation of this 30 subsection if the political subdivision acts in good faith to 31 restore compliance within 30 days. 32 2. A joint investment trust shall not directly or indirectly 33 pay an individual, association, or entity not providing direct 34 investment management, administrative, custodial, or other bona 35 -1- SF 2286 (2) 91 sc/ns/mb 1/ 3

S.F. 2286 fide operational services to the trust. 1 3. Before depositing or investing public funds with a joint 2 investment trust organized under chapter 28E, the governing 3 body of the political subdivision shall execute a written 4 acknowledgment stating all of the following: 5 a. That the participant understands and affirms that funds 6 invested in the joint investment trust may not be deposits 7 insured by the federal deposit insurance corporation, national 8 credit union administration, or any other government insurance 9 program comparable to those offered by a local financial 10 institution. 11 b. That the participant understands and affirms that such 12 funds are not collateralized or guaranteed by the state, a 13 political subdivision, or any other entity. 14 c. That the participant acknowledges that the safety of such 15 funds depends on the investment performance and management of 16 the joint investment trust and is subject to loss of principal. 17 Sec. 4. Section 12C.17, subsection 1, paragraph c, Code 18 2026, is amended to read as follows: 19 c. The securities shall be deposited with the federal 20 reserve bank, the federal home loan bank of Des Moines, Iowa, 21 a corporate central credit union organized under section 22 533.213 a securities broker-dealer registered as a member of 23 the financial industry regulatory authority , or a corporate 24 credit union whose activities are subject to regulation by the 25 national credit union administration pursuant to a bailment 26 agreement or a pledge custody agreement. 27 Sec. 5. Section 12C.17, subsection 4, Code 2026, is amended 28 to read as follows: 29 4. Upon written request from the appropriate public officer 30 but not less than monthly, the federal reserve bank, the 31 federal home loan bank of Des Moines, Iowa, a corporate central 32 credit union organized under section 533.213 a securities 33 broker-dealer registered as a member of the financial industry 34 regulatory authority , or a corporate credit union whose 35 -2- SF 2286 (2) 91 sc/ns/mb 2/ 3

S.F. 2286 activities are subject to regulation by the national credit 1 union administration shall report a description, the par value, 2 and the market value of any pledged collateral by a credit 3 union. 4 -3- SF 2286 (2) 91 sc/ns/mb 3/ 3