Senate File 321 - ReprintedA Bill ForAn Act 1relating to the investment and use of funds in the
2veterans trust fund.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 12B.10, subsection 6, Code 2021, is
2amended by adding the following new paragraph:
3   NEW PARAGRAPH.  n.  Investments by the veterans trust fund
4established in section 35A.13.
5   Sec. 2.  Section 12B.10C, subsection 4, Code 2021, is amended
6by adding the following new paragraph:
7   NEW PARAGRAPH.  k.  The veterans trust fund established in
8section 35A.13.
9   Sec. 3.  Section 35A.13, subsection 3, Code 2021, is amended
10to read as follows:
   113.  Moneys credited to the trust fund shall not be
12transferred, used, obligated, appropriated, or otherwise
13encumbered, except as provided in this section. Moneys in the
14trust fund may be used for cash flow purposes during a fiscal
15year provided that any moneys so allocated are returned to the
16trust fund by the end of that fiscal year.
Moneys in the trust
17fund may also be used for cemetery grant development purposes
18provided that any moneys so allocated, except for moneys used
19for department of administrative services expenditures related
20to the grant, are returned to the trust fund upon receipt of
21federal funds received for such purposes.
22   Sec. 4.  Section 35A.13, Code 2021, is amended by adding the
23following new subsection:
24   NEW SUBSECTION.  3A.  a.  Notwithstanding subsection 4,
25moneys in the fund, except so much of the fund as may be
26necessary to be kept on hand for the making of disbursements
27under this section, shall be invested by the treasurer of
28state, in consultation with the commission, in any investments
29authorized for the Iowa public employees’ retirement system
30in section 97B.7A, including common stock, and subject to the
31requirements of chapters 12F, 12H, and 12J, and the earnings
32therefrom shall be credited to the fund. The treasurer of
33state may execute contracts and agreements with investment
34advisors, consultants, and investment management and benefit
35consultant firms in the administration of investments of moneys
-1-1in the fund.
   2b.  Investment management expenses shall be charged to the
3investment income of the fund and there is appropriated to the
4treasurer of state from the investment income of the fund an
5amount required for the investment management expenses.
   6c.  For purposes of this subsection, investment management
7expenses are limited to the following:
   8(1)  Fees for investment advisors, consultants, and
9investment management and benefit consultant firms hired by
10the treasurer of state in administering the investments of the
11fund.
   12(2)  Fees and costs for safekeeping fund assets.
   13(3)  Costs for performance and compliance monitoring, and
14accounting for fund investments.
   15(4)  Any other costs necessary to prudently invest or protect
16the assets of the fund.
   17d.  The commission and the treasurer of state, and their
18employees, are not personally liable for claims based upon an
19act or omission of the person performed in the discharge of the
20person’s duties concerning the veterans trust fund, except for
21acts or omissions which involve malicious or wanton misconduct.
22   Sec. 5.  Section 35A.13, subsection 4, Code 2021, is amended
23by striking the subsection and inserting in lieu thereof the
24following:
   254.  a.  For each fiscal year that the balance of the trust
26fund on July 1 is below fifty million dollars, the interest
27and earnings on moneys in the fund and the first five hundred
28thousand dollars transferred pursuant to section 99G.39 from
29the lottery fund are appropriated to the commission to be used
30to achieve the purposes of subsection 6. Moneys appropriated
31to the commission under this paragraph that remain unencumbered
32or unobligated at the end of the fiscal year shall revert to
33the fund.
   34b.  For each fiscal year that the balance of the trust fund
35on July 1 is above fifty million dollars but the balance of the
-2-1fund was below fifty million dollars on July 1 of the previous
2fiscal year, moneys transferred pursuant to section 99G.39 from
3the lottery fund are appropriated to the commission to be used
4to achieve the purposes of subsection 6. Moneys appropriated
5to the commission under this paragraph that remain unencumbered
6or unobligated at the end of the fiscal year shall revert to
7the fund.
   8c.  For each fiscal year that the balance of the trust fund
9on July 1 is above fifty million dollars and the balance of
10the fund was above fifty million dollars on July 1 of the
11previous fiscal year, moneys equal to the net income the fund
12received in the previous fiscal year are appropriated to the
13commission to be used to achieve the purposes of subsection
146. Moneys appropriated to the commission under this paragraph
15that remain unencumbered or unobligated at the end of the
16fiscal year shall revert to the fund. For the purposes of this
17paragraph, “income" means moneys credited to the veterans trust
18fund pursuant to subsection 2 and moneys transferred pursuant
19to section 99G.39.
   20d.  Notwithstanding paragraphs “a”, “b”, and “c”, moneys
21credited to the war orphans educational assistance account
22shall be expended as provided in subsection 7.
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