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

This bill allows Iowa local governments (like cities and counties) to invest up to 25% of their public funds in specific joint investment trusts. Before using these trusts, governing bodies must provide written confirmation that they understand the funds are not federally insured, not guaranteed by the state, and carry investment risk. The bill also prohibits trusts from paying entities not directly managing the investments and requires monthly reporting of pledged collateral by financial institutions holding public funds. Violating these rules would be considered a breach of fiduciary duty, potentially leading to fines, criminal penalties, or civil liability for officials.