This bill amends existing laws regarding the eligibility requirements for financial institutions that can accept public funds in Iowa. It specifically modifies Section 12B.10 by removing the reference to Section 12C.6A, which is entirely repealed in this legislation. The bill allows for the investment of any uninsured portion of public funds in insured deposits or certificates of deposit arranged by the depository, provided certain conditions are met. Additionally, it updates the notice requirements for the treasurer of state regarding inquiries and clarifies the process for issuing cease and desist orders against state banks and their officials for violations related to public fund management.

The repeal of Section 12C.6A eliminates the previous requirement for financial institutions to demonstrate a commitment to serving their local communities in order to be eligible for public fund deposits. This change also removes the obligation for the treasurer of state to maintain a list of eligible institutions and the associated processes for public comments and challenges to an institution's eligibility. Overall, the bill streamlines the regulations governing public fund deposits, potentially broadening the range of financial institutions that can accept such funds.

Statutes affected:
Introduced: 12B.10, 12C.2, 524.223, 12C.6A