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 the treasurer of state is no longer required to maintain a list of eligible financial institutions based on community service criteria.

Additionally, the bill allows for the investment of uninsured portions of public funds in insured deposits or certificates of deposit arranged by depositories, regardless of their location, as long as certain conditions are met. It also updates the process for addressing violations by state banks, including the removal of the treasurer's recommendation for banks to be removed from the list of eligible institutions, thereby streamlining the regulatory framework governing public fund deposits.

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