Senate File 246 - Introduced SENATE FILE 246 BY EVANS A BILL FOR An Act relating to interest on state moneys invested in 1 depository time certificates of deposit. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1976XS (2) 91 sc/ns
S.F. 246 Section 1. Section 12C.6, subsection 2, paragraph b, Code 1 2025, is amended to read as follows: 2 b. State funds invested in depository time certificates 3 of deposit shall draw interest at not less than the rate 4 established, effective on the date of investment. The interest 5 rate shall not be less than one-half of the effective federal 6 funds rate, as published by the federal reserve bank of New 7 York. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanations substance by the members of the general assembly. 11 Under current law, state moneys invested in a depository 12 time certificate of deposit (CD) must earn interest at no less 13 than the rate established by the treasurer of state for state 14 moneys placed in a time deposit. This bill requires that 15 such a CD interest rate be at least one-half of the effective 16 federal funds rate, as published by the federal reserve bank 17 of New York. By operation of law, this applies to investments 18 in CDs by a public body or officer other than the treasurer of 19 state (Code section 12C.6(3)). 20 -1- LSB 1976XS (2) 91 sc/ns 1/ 1