A bill for an act relating to the investment of public funds, and making penalties applicable.

HF 2592 allows Iowa cities, counties, and other local governments to invest up to 25% of their public funds in joint investment trusts. Before investing, governing bodies must provide written acknowledgment that funds in these trusts are not insured, guaranteed, or collateralized, and that losses could occur based on trust performance. The bill also clarifies that uninsured portions of public funds may be invested in insured deposits or certificates of deposit at federally insured credit unions. Violating these provisions would constitute a breach of fiduciary duty, potentially leading to civil, criminal, or administrative penalties.