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

This bill allows Iowa cities, counties, and other local governments to invest up to 25% of their public funds in joint investment trusts, calculated using their average funds from the past two years. Before investing, governing bodies must provide written acknowledgment that these funds are not insured by federal programs, not guaranteed by the state, and subject to market risk. The bill also requires that any uninsured portion of public funds deposited with a bank must be invested only in insured deposits or certificates of deposit from federally insured financial institutions. Violating these rules constitutes a breach of fiduciary duty, potentially leading to criminal or civil penalties for officials.