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 without the previous community commitment requirement.

Additionally, the bill updates the language regarding the actions of the treasurer of state and the superintendent in relation to financial institutions that fail to comply with regulations. It allows for the superintendent to issue cease and desist orders for violations and unsafe practices without the need for the treasurer to maintain a list of eligible institutions, thereby streamlining the process for managing public fund deposits. Overall, the bill aims to simplify the eligibility criteria for financial institutions while ensuring that public funds are still protected.

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