HF 2261 – Governmental joint investment trusts
FLOOR ACTION:
HF 2261 amends current law that allows local governments to jointly invest public funds in a trust if it operates in accordance with federal law relating to money market funds that have either achieved a specified rating or are registered with the U.S. Securities and Exchange Commission (SEC). Recently, the SEC made significant changes to the valuation requirements in the applicable federal rule. This bill makes parallel updates in Iowa Code.
The legislation allows local governments to continue joint investment trusts with public funds, if the trusts have achieved the required specified rating in accordance with federal law or Governmental Accounting Standards Board requirements for external investment pools. This modification allows government investment pools like the Iowa Public Agency Investment Trust (and the local governments that invest in it) and Iowa Schools Joint Investment Trust (and the school districts and community colleges that invest in it) to continue operating as they have for the past 25 years without any additional investment risk. The bill passed the House 97-0.
[3/22: 47-0 (Chelgren, Feenstra, Schneider absent)]