This bill amends various sections of the Iowa Code related to the eligibility requirements for financial institutions that can accept public funds. Notably, it repeals Code section 12C.6A, which previously mandated that financial institutions demonstrate a commitment to serving their local communities to be eligible for public fund deposits. The bill also modifies existing provisions by removing references to section 12C.6A and clarifying that public funds can be deposited in federally insured banks or savings associations regardless of their location, provided certain conditions are met.

Additionally, the bill updates the process for the treasurer of state regarding the management of public funds and the actions that can be taken against financial institutions that violate regulations. It allows the superintendent to issue cease and desist orders for violations related to chapter 12C and removes the requirement for the treasurer to maintain a list of eligible financial institutions, streamlining the process for public fund deposits. Overall, the bill aims to simplify the regulations surrounding public fund deposits while ensuring compliance with financial standards.

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